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1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK 99508-5918 Ph: 907-272-4333, Fax: 907-274-6228 www.astf.org

1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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Page 1: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

1

2000 Alaska Science & Technology Innovation Index

November 2000

Alaska Science & Technology Foundation

4500 Diplomacy Drive, Suite 515

Anchorage, AK 99508-5918

Ph: 907-272-4333, Fax: 907-274-6228

www.astf.org

Page 2: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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Table of ContentsPage

Executive Summary – Where Alaska’s doing Well, Average, and Poorly 3

Population and Economic Infrastructure

Population 4Age Distribution (Alaska vs. National Average) 5Age Distribution (Alaska 1990 vs. 1999) 6Alaska Gross State Product 7Employment and Earnings 8Employment Growth Rates 9Employment by Major Industry 10Employment Change 11Per Capita Personal Income 12Earnings by Major Industry 13Technology Industry Jobs/Wages 14

Innovation

Total Patents 15Utility Patents 16Utility Patents Per 100,000 Population 17Research and Development Expenditures 18Research and Development by Performer 19Research and Development at the University of Alaska Fairbanks 20Sources of Federal Research and Development Dollars 21State Government Research and Development Expenditure Per Capita 22

Financial Capacity

Initial Public Offerings 23Venture Capital 24Small Business Innovation Research Awards 25Small Business Innovation Research Awards Per Million Persons 26

Infrastructure and Human Resources

Online Population 27Digital State Government 28Ph.D. Scientists and Engineers Per 1000 Workers 29Scholastic Assessment Test Scores 30Educational Attainment 31University of Alaska System Headcount, Degrees Awarded, and Faculty 32Science and Engineering Graduate Students 33Science and Engineering Doctorate Awards 34

Appendices

A - ASTF Technology Industry Standard Industrial Codes 35B - Advisory Committee and Acknowledgements 36C – References 37

Page 3: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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Executive Summary

Welcome to Alaska’s first science and technology innovation index. High paying jobs in growth areas are critically needed to offset the decline in wealth and employment from Alaska’s North Slope. These new jobs require technical innovation, capital, management, and trained workers. By examining historical trends and comparison with selected other states and the U.S. average, this index represents a snapshot in understanding areas where Alaska is either doing well, average, or poorly in terms of science and technology innovation and potential.

Where Alaska is doing well:

• Growth rate in technology industry jobs, starting from a small base (p. 14)

• Patents issued to Alaskans are on an upward trend (p. 15)

• Households with internet access and computers, Alaska ranks 1st in the nation (p. 27)

• State government utilization of digital technology (p. 28)

• Scholastic Assessment Test (SAT) scores (p. 30)

• Percentage of adults with high school degrees (p. 31)

Where Alaska is average:

• Per capita personal income equal to national average (p. 12)

• State government research and development (R&D) expenditure per capita (p. 22)

• Percentage of workforce with Ph.D.’s in Science and Engineering (p. 29)

• Percentage of adults with college degrees (p. 31)

Where Alaska is doing poorly:

• High outward migration of college students and younger aged workers (p. 5)

• Gross state product has started to decline (p. 7)

• Overall job growth is slight (p. 8)

• High unemployment percentage, Alaska is 2nd in the nation (p. 8)

• Relatively high percentage of non-resident workers (p. 8)

• High paying jobs are on decline due to manufacturing and oil industry reduction (p. 11)

• Slow growth rate of per capita personal income, Alaska is lowest of the 50 states (p. 12)

• Low percentage of high-tech workers (p. 14)

• Patents per capita lag the national average (p. 17)

• Low R&D expenditures per capita and low share of industry R&D (p. 18)

• Venture capital is essentially nil (p. 24)

• Small Business Innovation Research awards are increasing but on a per capita lag the national average (p. 26)

• Decline in University of Alaska student and faculty headcount (p. 32)

• Low science and engineering graduate students per capita (p. 33)

Page 4: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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Alaska's Population

0

100

200

300

400

500

600

700

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000

Tho

usan

ds

Sources: Alaska Department of Labor and Workforce Development, Alaska Population Overview: 1999 Estimates, May 2000, and An Economic Profile of Alaska, June 2000

With a population of 622,000 in 1999, Alaska ranked 48th out of 50 states. Only Wyoming and Vermont have smaller populations. In spite of its low population density of 1.1 person per square mile, Alaska’s population in 1999 was 70% urban (places with greater than 2500 persons) with 42% living in Anchorage. In contrast, the U.S. national average is 77 persons per square mile and is about 75% urban. In 1999 Alaska’s racial makeup was 74% white, 17% Native American, 5% Asian & Pacific Islander, and 4% African American. %5 of Alaska’s population have Hispanic ethnicity.

Following a rapid increase after World War II lasting until 1952 , Alaska’s population grew at about 3% from 1952-1973. Population then leaped due to the construction of the Trans-Alaska Pipeline System and then dipped with a recession in 1977-1980. In the early 1980’s Alaska’s population advanced again as oil wealth was spent building infrastructure along with private and federal investment. Overcapacity in the economy and oil price decline in 1986 created a severe recession with consequent population loss. In the last decade, Alaska’s population has averaged a 1.3% growth rate.

Natural increase is currently the major component of population growth. Recent strong economies in other states that typically supply migrants to Alaska have resulted in a decline of migrants to the state. Downsizing and restructuring within the military and oil industries have also contributed to net out-migration.

Page 5: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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July 1, 1999 Age Distribution

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

0 to4

5 to9

10to14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75-79

80-84

85+

Age Range

Per

cent

AlaskaU.S.

Sources: Alaska Department of Labor and Workforce Development, Alaska Population Overview: 1999 Estimates and U.S. Census Bureau, Resident Population Estimates of the United States by Age and Sex, August 25, 2000

Versus the national average, Alaska’s peaks and valleys in age distribution are considerably more pronounced. Migration to Alaska began to sharply increase in the 1970 accounting for the dramatic increase in persons over 40. The large bulge at ages 35-45 was created by the 1980-1990 migration to Alaska. Outward migration is particularly high for 18-35 year olds and their young children under school age as they leave the state for more attractive education and employment opportunities. Many older citizens move south for retirement.

In 1999, Alaska’s median age was 32.9 years compared with 35.5 years for the national average.

Page 6: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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1990 vs. 1999 Age DistributionIn Alaska

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

0 to4

5 to9

10to14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75-79

80-84

85+

Age Range

Per

cent

19991990

Source: Alaska Department of Labor and Workforce Development, Alaska Population Overview: 1999 Estimates, May 2000

Alaska’s population is aging due to military personnel losses and less interest in young-person migration to Alaska. The median age has increased from 29.3 years in 1990 to 32.9 years in 1999.

Page 7: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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Alaska's Gross State Product, 1961-1998 (Millions in 1998 Dollars)

0

5,000

10,000

15,000

20,000

25,00019

61

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

Petroleum

Infrastructure/Support

Government

Other Basic Industries

Source: Goldsmith, Scott, Alaska Gross State Product (GSP) 1961-1998, ISER, UAA, June 1999

Overall, in real 1998 dollars, after growing rapidly, Alaska’s GSP plateaued, and has recently declined. Petroleum has boosted Alaska’s economy since the 1970’s, peaked in 1988, and has been on decline. Other basic industries (seafood, tourism, logging, mining, air cargo, agriculture) contribute less to GSP than petroleum, but create more jobs. Infrastructure and support industries (utilities, communications, trade, and service industries) have grown rapidly as Alaska’s population grew and economy matured. Government remains a big contributor to GSP. Private industry has grown relative to government. State and local government have grown relative to federal government.

Page 8: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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Alaska Employment & Earnings

259 262 264 269 275 278 279

32.3 32.3 32.1 32.533.5 33.6

0

50

100

150

200

250

300

350

400

94 95 96 97 98 99 0

Em

plo

ym

en

t (0

00

)

0

5

10

15

20

25

30

35

40

An

nu

al E

arn

ing

s($

00

0)/

Jo

b

Employment Annual Earnings

Source: Alaska Department of Labor and Workforce Development

Alaska’s wage and salary employment and average annual earnings are growing only slightly. [The employee counts above are for wage and salary employment only; the self-employed are excluded.]

In 1999, Alaska reported just over 20,000 persons unemployed and actively looking for work. Alaska’s 1999 average unemployment percentage (6.4%) was second highest out of 50 states. The 1999 U.S. national jobless rate was only 4.2%. Seasonal impacts on employment are unusually high reflecting construction slow-downs in winter and tourism related employment in summer.

Due to the scarcity of employment opportunities in rural Alaska, many individuals do not meet the official definition of unemployed because they have not conducted an active job search.

Page 9: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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Employment Growth Rates

6.5 6.3

3.3

2.11.4

2.7 2.41.8 1.8 2.1

0

1

2

3

4

5

6

7

8

1960-70

1970-80

1980-90

1990-99

1995-99

%

Alaska

U.S.

Source: Alaska Department of Labor and Workforce Development

In contrast to the 1960–1990 period, Alaska’s employment growth in 1995–1999 lagged the rest of the nation.

Alaska’s employment growth remains in the 1-1.5% range through fall 2000.

Page 10: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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Alaska Employment by Major Industry (6/1/99 -5/30/00)

9.3

12.8

13.6

14

26.6

57.6

71.6

74

0 20 40 60 80 100

Mining, Oil & Gas

Finance, Ins. & Real Estate

Manufacturing

Construction

Trans., Comm. & Utilities

Trade

Services/Misc

Government

Jobs (000)Source: Alaska Department of Labor and Workforce Development, An Economic Profile of Alaska, June 2000 Employment counts are for wage and salary employment only; the self-employed are excluded.

Government is the leading employer in Alaska with 17,000 Federal including military, 21,800 State, and 35,100 Local.

Employment in natural resources, the source of Alaska’s wealth, is relatively small.

A relatively high percentage (20%) of workers are non-Alaska residents.

Page 11: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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Alaska Employment Change 2000 vs. 1994

-6,000 -3,000 0 3,000 6,000 9,000 12,000 15,000

Manufacturing

Mining, Oil & Gas

Government

Finance, Ins. & Real Estate

Construction

Transportation, Comm. & Utilities

Trade

Services & Misc

Source: Alaska Department of Labor and Workforce Development, An Economic Profile of Alaska, June 2000

Over the 1994-June 2000 period, Alaska employment increased overall by about 20,000 jobs (7.7%). The lower paid services and trade sectors had the largest increase while higher paid and mining, oil, and gas job numbers decreased.

Page 12: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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Per Capita Personal Income

$23,000

$24,000

$25,000

$26,000

$27,000

$28,000

$29,000

95 96 97 98 99

U.S. Alaska

U.S. Department of Commerce, Bureau of Economic Analysis

Personal income statistics reflect the kind of economic development opportunities people have, the quality of jobs people can find, and hence the quality of life.

In 1999, Alaska ranked 17th out of 50 states in per capita personal income and was equal to the national average. In 1995, Alaska ranked 7 th.

Alaska’s per capita personal income growth rate of 2.5% from 1998 to 1999 was the lowest of the 50 states. For the nation, per capital income grew by 4.8% from 1998 to 1999, almost double Alaska’s rate.

According to the BEA, Alaska personal income growth has been held back by slow growth in net earnings, reflecting weakness in all major industry groups.

Page 13: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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1999 Alaska Earnings by Major Industry

22,300

26,700

26,400

33,700

34,700

37,800

42,300

46,600

79,700

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000

Trade

Agriculture, Forestry & Fishing

Services

Manufacturing

Finance, Ins. & Real Estate

Government

Trans., Comm. & Utilities

Construction

Mining

$/job

Source: Alaska Department of Labor and Workforce Development

Of the above major industry classes, the mining industry leads in the highest paying wages in Alaska. Top paying sectors within the mining industry were:

7,862 oil and gas extraction ($83,000/job)

1,185 metal mining jobs ($66,000/job)

Page 14: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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Alaskan Jobs/Wages in Technology Industries

Industry Segment 1994 1999

1999 vs.

1994 %

Technology Jobs

Total Jobs

Tech/Total

Average Wage

9,050

256,829

3.5%

$42,935

10,967

272,512

4%

$45,082

21%

6%

5%

Technology Industry 1999 Jobs

Telephone communications

Engineering & architectural services

Computer & data processing services

Research & testing services

Professional & commercial equipment

Electrical goods

All other

Total

3,224

3,071

1,046

777

743

495

1,611

10,967

Sources: Alaska Department of Labor and Workforce Development. See Appendix A for Alaskan technology industries definition used in this index.

The number of technology industry jobs in Alaska, while small in absolute terms, grew 3.5 times as fast as total jobs over the 1994 to 1999 period.

According to the American Electronics Association which uses its own definition of high tech, Alaska’s percentage of high-tech workers per 1000 private sector workers in 1998 was less than half of the US. national average. Alaska ranked 10 th nationally in high-tech employment growth rate from 1997 to 1998. Alaska ranked 1st nationally in high-tech employment grown rate from 1990-1995 due to in part to its small base.

Page 15: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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Total Patents to Alaskan Residents

30

48 4759 55

49 5060

7666

0

20

40

60

80

90 91 92 93 94 95 96 97 98 99Source: U. S. Patent and Trademark Office

Total patents granted to Alaskan residents is on the rise.

The number of patents generated is a good indication of how active the idea creation process is. These new ideas are the basis for future products and companies.

Total patents include utility patents (inventions), design patents, plant patents, and others.The origin of a patent is determined by the residence of the first-named inventor.

Three patent attorneys and three patent agents with Alaska addressesare registered with the U.S. Patent and Trademark Office.

Page 16: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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Technology # Patents

Wells

Surgery

Fishing, Trapping, & Vermin Destroying

Liquid Purification or Separation

Package and Article Carriers

Food or Edible Material

Exercise Devices

Hazardous or Toxic Waste Destruction or Containment

All Other

Total

30

13

10

6

6

6

6

5

150

232

1994-1998 Alaska Utility (Inventions) Patents

Source: U. S. Patent and Trademark Office

The oil industry led Alaska in recent new inventions, followed by the medical profession, and fishing.

Only two organizations were granted five or more utility patents during thisfive year period: Atlantic Richfield Company with 36 and the University ofAlaska with 9.

Page 17: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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1997-1998 Utility Patents Per 100,000 Population

9

42

7 912

28

10

26

05

1015202530354045

Sources: U.S. Patent and Trademark Office and U.S. Census Bureau

Alaska’s recent utility patents (inventions) per 100,000 population compares with other low population States.

However, the low population states significantly lag the national average on a utility patent per capita basis.

Page 18: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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R&D Expenditures in Alaska by Performer ($MM)

0

50

100

150

200

87 89 91 93 95 97

Industry Oth. NonprofitUniversity Fed. Gov.

1997 R&D Expenditures ($/Person)

223

1293

231119

226

1346

181

789

0

400

800

1200

1600

Alaska

Califo

rnia

Hawaii

Main

e

Mon

tana

Was

hingt

on

Wyo

ming U.S

.

Sources: National Science Foundation and U.S. Bureau of the Census

Spending on research and development is a key component of economic development and is the driving force behind innovation in the market place.

In 1997 R&D expenditures in Alaska were $136 million, ranking 47 th out of 50 states in R&D expenditures.

Alaska and the other small population states significantly lagged the U.S. average R&D spending per person.

Page 19: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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1997 R&D Expenditures by Performer

0%

20%

40%

60%

80%

100%

Industry Oth. Nonprofit University Fed. Gov.

Source: National Science Foundation

Alaska ranked last out of 50 States in terms of industry sponsored R&D expenditures. The percentage of R&D performed by industry in Alaska significantly lags other states and the national average.

Most research in Alaska in performed at the University of Alaska and by Federal agencies.

1997 Industry R&D Expenditures ($/Person)

39

1056

73 67 105

1179

58

588

0

250

500

750

1000

1250

Alaska

Califo

rnia

Haw

aii

Main

e

Monta

na

Was

hingto

n

Wyo

min

gU.S

.

Page 20: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

20

R&D Expenditures at UAF ($MM)

60

65

70

75

80

91 92 93 94 95 96 97 98

Source: National Science Foundation

R&D expenditures at the University of Alaska Fairbanks, Alaska’s only doctoral institution, have been on an upward trend. The 1998 total of $76 million was comprised of:

R&D Type $MM

Engineering 4

Physical Sciences 14

Environmental Sciences 34

Life Sciences 20

Social Sciences 4

Total 76

Page 21: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

21

Sources of FY98 Federal R&D ($Millions) Spent in Alaska

29

28

25

18.5

12

9

87

DOC

NASA

DOI

DOD

NSF

DOE

USDA

Other

Source: Rand, Discovery and Innovation: Federal Research and Development Activities in the Fifty States, District of Columbia, and Puerto Rico, 2000

In FY98, approximately $135 million of federal R&D funds were spent in Alaska.

In FY98, Alaska ranked 41st among the 50 states, District of Columbia, and Puerto Rico in terms of the amount of Federal R&D dollars received. Per capita Federal R&D spending was: California ($441/person), Washington (220), Alaska (220), Hawaii (187), Montana (90), Wyoming (85), and Maine (63).

Approximately 4% of all federal funds spent in Alaska on matters other than the direct support of individuals (i.e., such entitlements as retirement, disability, and housing assistance) is spent on R&D. This compares with 14% of all federal funds spent nationally on matters other than the direct support of individuals is spent on R&D.

Page 22: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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State Government R&D Expenditures Per Capita, FY 1995

11.548.67

29.83

10.41

21

12.28

1.85

11.48

05

101520253035

Alaska

Califo

rnia

Hawaii

Main

e

Mon

tana

Was

hingt

on

Wyo

min

gU.S

.

Dollars Per Capita

Source: Battelle Memorial Institute and State Science and Technology Institute

State government research and development expenditures per capita measure a state’s commitment to support basic research and commercialization efforts within that State. State support of research is particularly important for states that do not have any federal research laboratories and that do not have many large company corporate headquarters with accompanying R&D activities.

In FY 1995, ranked 20th out of 50 states in State government R&D expenditures per capita and was on par with the national average.

Page 23: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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Initial Public Offerings (1998 - October 2000)

State Number of IPO’s

Alaska

California

Hawaii

Maine

Montana

Washington

Wyoming

1

301

1

2

1

32

0

Source: Hale & Dorr LLP, www.haleanddorr.com

An initial public offering or IPO occurs when a privately owned company initially offers shares of its stock to the public. It is a method regulated by the Securities and Exchange Commission to allow companies to raise funds for expansion, product development, or acquisition and to allow trading in the stock. Typically companies going IPO have developed sufficient track record to attract outside investors. The number of IPO’s in a state is a measure of the number of companies reaching this threshold.

During this time period, Alaska had only one new company use this financing tool. Alaska Communications Systems Group raised $140 million.

Page 24: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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State

1995-1999

$ Millions

Alaska

California

Hawaii

Maine

Montana

Washington

Wyoming

0

32,327

33

74

38

2,461

0

U.S. 35,582

According to the national PWC survey, venture capital in Alaska in 1995-1999 was nil.

Sources: PriceWaterhouseCoopers, 1999 Venture Capital Report, MoneyTree and National Governor’s Association, Growing New Businesses with Seed and Venture Capital: State Experiences and Options

According to PWC, venture capital is critical to growing new businesses that will drive the new economy. Entrepreneurs dominate the most rapidly growing segments of the U.S. economy. Young, high-growth firms require large amounts of outside capital long before they can tap traditional sources of debt from banks or equity from the public stock markets. Private equity from individuals or high specialized venture capital companies fills this gap.

Venture capital is largely focused in a few key regions – Boston, Silicon Valley, and more recently, Austin, New York, Denver, and Seattle. Creating an entrepreneurial environment in other parts of the nation depends, in part, on the availability of venture capital.

Page 25: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

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Sources: Alaska Technology Transfer Center and U.S. Small Business Administration

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer Research (STTR) programs are competitive federal programs that fund cutting edge research by small businesses throughout the nation. SBIR projects are exclusively innovative, applied research projects that have significant commercial potential.

Alaska has been traditionally underrepresented in SBIR/STTR awards, but has made significant progress over the past six years, rising from no awards in 1993 or 1994 to a total of $3.4 million SBIR awards as of May 2000. Alaska has not yet won an STTR award.

Cumulative Alaska SBIR/STTR Awards ($000)

0 0303

1391 15461910

2749

3399

0

1,000

2,000

3,000

4,000

93 94 95 96 97 98 99 2000

Page 26: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

26

1997-98 SBIR Awards Per Million Persons

4

29

14

510

2015 17

05

101520253035

Alaska

Calfor

nia

Hawaii

Main

e

Mon

tana

Was

hingt

on

Wyo

min

gU.S

.

Source: U.S. Small Business Administration

Alaska ranked poorly in the number of 1997-1998 SBIR Awards per million persons in comparison with both small and large population states. Alaska ranked 49th out of 50 states in fiscal 1998 and 50th in 1997 in terms of total number of awards.

In terms of dollars awarded, for the 1997-1998 period, Alaska received $0.4 million out of $2.2 billion nationally or 0.02%.

Page 27: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

27

State 1998

%

1998 State Rank

Households with Home Internet Access

Alaska

California

Hawaii

Maine

Montana

Washington

Wyoming

44

31

28

26

22

37

23

1

11

16

23

40

3

37

Households with Computers

Alaska

California

Hawaii

Maine

Montana

Washington

Wyoming

62

48

42

43

41

56

46

1

11

25

20

32

3

14

Households with Telephones

Alaska

California

Hawaii

Maine

Montana

Washington

Wyoming

95.7

95.1

93.2

96.5

94.7

95.5

94.0

13

20

35

6

24

15

29

Source: U.S. Department of Commerce, National Telecommunications & Information Administration, Falling Through the Net: Defining the Digital Divide, November 1999.

The number of people online in probably the most basic indication of a state’s progress toward the digital economy. Alaska ranks first in the nation in terms of percent of households with internet access and computers and 13 th in terms of percent of households with telephones.

Online Population

Page 28: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

28

Digital State Government

1998 Survey

Alaska’s Rank Among

The 50 States

Digital Democracy

Higher Education

K-12 Education

Business Regulation

Taxation

Social Services

Law Enforcement and the Courts

Other Initiatives

Overall

1 st

26 th

29 th

1 st

10 th

1 st

15 th

40 th

9 th

Sources: The Center for Digital Government, 2000 Digital State Survey, Parts I and II, 2000 and The Progress and Freedom Foundation, The Digital State 1998, September 1998

In the most recent survey (2000), Alaska continued to rank highly in the use of digital technology in State Government.

In the 1998 survey, Alaska ranked 9th overall in the use of digital technology in State Government. Washington State was ranked 1st overall.

2000 Survey

Alaska’s Rank

Among the 50 States

State which ranked 1st

Electronic Commerce

Taxation/Revenue

Law Enforcement and the Courts

Social Services

2

2

12

5

Georgia

Kansas

Georgia

Washington

Page 29: 1 2000 Alaska Science & Technology Innovation Index November 2000 Alaska Science & Technology Foundation 4500 Diplomacy Drive, Suite 515 Anchorage, AK

29

Sources: National Science Foundation and Bureau of Labor Statistics

The highest educated members of the workforce represent a driving force for technology breakthroughs and innovations.

According to National Science Foundation estimates, Alaska had 1151 Ph.D. scientists and 165 Ph.D. engineers in its workforce in 1997.

On a per worker basis, Alaska highly educated workforce lags California and Washington and is the same as the national average.

1997 Ph.D. Scientists & Engineers Per 1000 Workers

4.5

5.35

4.4

4.9

5.4

4

4.5

3

4

5

6

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Math SAT Scores

490

500

510

520

530

91 92 93 94 95 96 97 98 99 0

Alaska U.S.

Verbal SAT Scores

490

500

510

520

530

91 92 93 94 95 96 97 98 99 0

Alaska U.S.

Source: The College Board

SAT scores are a measure of a student’s readiness for higher education.

Alaska’s SAT scores have exceeded the national mean score in both the math and verbal tests in the 1995-2000 period; however Alaska’s lead in math has shrunken. In 1998, 52% of Alaska’s high school graduates took the SAT test versus 43% for the national average.

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High School Graduate or More

90.6

80.184.6 86.7 89.1

92 90

82.8

7580859095

100%

Bachelors Degree or More

24.226.4

24

19.2

23.9

28.1

19.8

24.4

15

20

25

30

%

Source: U.S. Bureau of the Census

As of March 1998, Alaska ranked 2nd of the 50 States in terms of percentage of high school graduates with 90.6% trailing only Washington State which had 92%. Alaska’s population with bachelors degrees or more was on peer with the U.S. average, compared well with the other small population states, but lagged California and Washington. The corresponding Alaska percentages for 1990 were 86.6% high school graduates and 23% college graduates.

Educational Attainment of Persons 25 Years Old and Over, March 1998

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1995 1996 1997 1998 1999 1999 vs. 1995 %

Headcount

Total

Master’s

Doctorate

32,481

1407

177

31,917

1294

172

31,184

1246

178

31,106

1285

176

30,249

1227

193

-7

-13

9

Degrees Awarded

Baccalaureate

Bac. Math & Sci.

Bac. Engineering

Master’s

Doctorate

1428

87

80

387

19

1411

128

93

421

28

1393

117

109

467

20

1386

130

91

429

34

1271

114

72

422

27

-11

31

-10

9

42

Faculty 2075 2117 2006 1929 1977 -5

University of Alaska System

Headcount, Degrees Awarded, and Faculty

Source: UA in Review, 2000, www.alaska.edu/oir/uair00/

Total headcount has declined 7% from fall 1995 to fall 1999. Master’s headcount fell by 13%. Doctorate headcount increased 9%. Overall baccalaureate degrees awarded fell by 11%, math & science baccalaureate degrees awarded increased by 31%, and engineering baccalaureate degrees awarded fell by 10%. Overall master’s and doctorate degrees awarded increased by 9 and 42% respectively. Total faculty declined by 5%.

According to the National Center for Education Statistics, Alaska ranked 36 th in the nation in the percentage (63.8%) of students who graduate from high school. However, only 44% of those students go on to higher education according to UAF admissions director Mike Mills. Furthermore, Mills said that Alaska sends more than half of its college-bound students out of state (in 1996 Alaska’s figure was 58% versus the national average of 17%). [Taken from Anchorage Daily News (6/25/2000)]

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1998 Science & Engineering Graduate Students Per 1000 Population

1.1

1.61.3

0.5

1.7 1.6 1.6 1.5

0

0.5

1

1.5

2

Sources: National Science Foundation and U.S. Bureau of the Census

Science and engineering graduate students are the pipeline for tomorrow’s practicing scientists and engineers.

Science and engineering graduate students at the University of Alaska peaked in 1994 and have been declining faster than the national average decline trend. In 1998, Alaska lagged several other small population states and the U.S. average in science and engineering graduate enrollment per 1000 population.

Science and Engineering Graduate Students

0

200

400

600

800

1000

91 92 93 94 95 96 97 98

0

200

400

600

800

1000Alaska U.S.

Alaska U.S. (000)

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Science & Engineering Doctorate Awards at University of Alaska Fairbanks

2419

28

20

32

05

101520253035

94 95 96 97 98

Source: National Science Foundation

Science and engineering doctorate awards in Alaska showed an upward trend over the 1994-98 period. The University of Alaska Fairbanks is the only institution in Alaska offering doctoral degrees. In 1998 Alaska ranked 48 th out of 50 states.

1998 Science & Engineering Doctorate Degrees Per 100,000 Population

5

10 11

3

8 8

11 10

02468

1012

Sources: NSF and U.S. Census Bureau

Alaska’s 1998 rate of science and engineering doctoral awards per capita is half the national average.

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Appendix A

ASTF Technology Industry

Standard Industrial Classification (SIC)

1994

Alaska

Jobs

1999 Alaska Jobs

281 Industrial inorganic chemicals

282 Plastics materials & synthetics

283 Drugs

284 Soaps, cleaners, & toilet goods

285 Paints & allied products

286 Organic chemicals

287 Agricultural chemicals

289 Miscellaneous chemical products

291 Petroleum refining

348 Ordnance & accessories

351 Engines & turbines

353 Construction & related machinery

354 Industrial tools

355 Special industrial machinery

356 General industrial machinery

357 Computer & office equipment

361 Electric distribution equipment

362 Electrical industrial apparatus

363 Household equipment

364 Electric wiring & lighting

365 Household audio & video equipment

366 Communications equipment

367 Electronic components & accessories

369 Miscellaneous electrical equipment & supplies

371 Motor vehicles & equipment

372 Aircraft & parts

376 Guided missiles, space vehicles, & parts

381 Search & navigation equipment

382 Measuring & controlling devices

384 Medical equipment, instruments, & supplies

385 Opthalmic goods

386 Photographic equipment & supplies

481 Telephone communications (including ATU)

482 Telegraph & other message communications

484 Cable & other pay television services

489 Miscellaneous communication services

504 Professional & commercial equipment

506 Electrical goods

737 Computer & data processing services

781 Motion picture production & services

807 Medical & dental laboratories

871 Engineering & architectural services

873 Research & testing services

Total

ASTF combined the SIC codes used by the Bureau of Labor Statistics,

The American Electronics Association, and others as an approximation for

Alaska technology industries jobs. This estimate does not capture high-

tech jobs in other SIC codes or government or temporary employees.

SIC 481 in 1994 has been increased by 700 to estimate the impact of

Anchorage Telephone Utility (ATU) privatization.

37

3

328

7

328

1

8

9

11

4

9

5

4

12

42

2,848

5

312

306

565

473

380

42

179

2,533

599

9,050

11

1

3

229

410

22

1

1

5

6

5

3

6

16

3

1

3,224

5

258

423

743

495

1,046

49

153

3,071

777

10,967

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Appendix B – Advisory Committee and Acknowledgements

This first edition of the Alaska Science & Technology Innovation Index was compiled by Mark Bendersky, ASTF Group Project Administrator. Any comments or suggestions for future improvements should be forwarded to Mark at [email protected] or 907-272-4333.

Advisory Committee

The Alaska Science and Technology Foundation would like to thank the following individuals for contributing to this index:

Patrick Burden, Northern Economics

Neal Fried, Alaska Department of Labor and Workforce Development

Scott Goldsmith, University of Alaska Anchorage, Institute for Social & Economic Research

Sally Suddock, Alaska High Tech Business Council

Jeff Pokorny, Anchorage Economic Development Corporation

Dan Berglund and Marianne Clark, State Science & Technology Institute

Marsha Schachtel, Johns Hopkins Institute For Policy Studies

[ASTF and not the Advisory Committee is responsible for this Index.]

Acknowledgements

ASTF would like to thank the following state organizations for paving the way in the art of Innovation Indexes:

Illinois Coalition and KPMG Peat Marwick, Illinois High Tech Yearbook, 1997

Kansas Technology Enterprise Corporation, Innovation Index 1999, www.ktec.com/documents/innov_index.pdf

Maine Science & Technology Foundation, 1998 Maine Science & Technology Report Card, www.mstf.org/initiatives&partners/reportcard98/

Maryland Technology Alliance, The Maryland Innovation and Technology Index 1999, www.mdbusiness.state.md.us/reports/innovation.pdf

Massachusetts Technology Collaborative, Index of the Massachusetts Innovation Economy 1999, www.mtpc.org/theindex/theindex.html

North Carolina Board of Science and Technology, Tracking Innovation, North Carolina Innovation Index, 2000, www.governor.state.nc.us/govoffice/science/projects/nc2030.html

Washington Technology Center, Index of Innovation and Technology – Washington State 2000, www.watechcenter.org/techindex/index.html

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Appendix C - References

Workforce

Bureau of Labor Statistics, Local Area Unemployment Statistics, www.bls.gov

Alaska Department of Labor and Workforce Development, Employment and Earnings Summary Reports, 1994-1999.

Per Capita Personal Income

U.S. Department of Commerce, Bureau of Economic Analysis, BEA 00-11, May 17, 2000, www.bea.doc.gov

Patents

U.S. Patent and Trademark Office, www.uspto.gov

Patent Counts by Country/State and Year, All Patents, All Types, January 1, 1977-June 30, 1999, August 1999

Patenting Trends, Calendar Year 1999

Patenting by Geographic Region (State and Country), Breakout by Technology Class, 1994-1998 Utility Patent Grants, Alaska

Patenting by Geographic Region (State and Country), Breakout by Organization, 1994-1998 Utility Patent Grants, Alaska

SBIR/STTR Awards

U.S. Small Business Administration, www.sba.gov/sbir/library.html

Alaska Technology Transfer Center, [email protected], (907) 274-7232

Population

U.S. Census Bureau, www.census.gov

ST-99-3, State Population Estimates: Annual Time Series, July 1, 1990 to July 1, 1999

Educational Attainment of Persons 25 Years Old and Over, for States: March 1998

Resident Population Estimates of the United States by Age and Sex: April 1, 1990 to July 1, 1999, with Short-Term Projection to July 1, 2000

Alaska Population Overview: 1999 Estimates, Alaska Department of Labor and Workforce Development, May 2000

An Economic Profile of Alaska, Alaska Department of Labor and Workforce Development, Research and Analysis Section, June 2000

Gross State Product

Goldsmith, Scott, Alaska Gross State Product 1961-1998, Institute of Social and Economic Research, University of Alaska Anchorage, June 1999

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National Science Foundation, www.nsf.gov

Science and Engineering Doctorate Awards, Annual Series, Table 6, 1994-1998

State Science and Engineering Profiles and R&D Patterns: 1997-98, September 2000, NSF 00-329

Survey of Graduate Students and Post doctorates in Science and Engineering (1991-1998)

Survey of Research and Development Expenditures at Universities and Colleges, Fiscal Year 1998

National Patterns of R&D Resources: 1999 Data Update and 1998

Initial Public Offerings and Venture Capital

Hale and Door, LLC, www.haleanddorr.com

PriceWaterhouseCoopers, 1999 Venture Capital Report, Moneytree, www.pwcmoneytree.com

National Governors’ Association, Growing New Businesses with Seed and Venture Capital: State Experiences and Options, 2000, www.nga.gov/center/

SAT Scores

The College Board, SAT Scores, www.collegeboard.org

Online Population

U.S. Department of Commerce, National Telecommunications & Information Administration, Falling Through the Net: Defining the Digital Divide, November 1999, www.ntia.doc.gov.

Digital State Government

The Progress & Freedom Foundation, The Digital State 1998, How State Governments are Using Digital Technology, September 1998, www.pff.org.

The Center for Digital Government, 2000 Digital State Survey, www.centerdigitalgov.com.

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General

Progressive Policy Institute, The State New Economy Index, July 1999, www.dlcppi.org

Battelle Memorial Institute and State Science and Technology Institute, Survey of State Research and Development Expenditures: Fiscal Year 1995, September 1998

Corporation for Enterprise Development, 2000 Development Report Card for the States, www.drc.cfed.org

Rand, Discovery and Innovation: Federal Research and Development Activities in the Fifty States, District of Columbia, and Puerto Rico, 2000, www.rand.org/publications/MR/MR1194/

U.S. Department of Commerce, The Dynamics of Technology-Based Economic Development, State Science and Technology Indicators, June 2000, www.ta.doc.gov/Reports.htm

American Electronics Association, Cyberstates 4.0, A State-by-State Overview of the High-Technology Industry, 2000

American Electronics Association, Cyberstates 3.0, A State-by-State Overview of the High-Technology Industry, 1997

DeVol, Ross C., America’s High-Tech Economy, Growth, Development and Risks for Metropolitan Areas, Milken Institute, July 13, 1999, www.milkeninstitute.org.

DeVol, Ross C., Blueprint for a High-Tech Cluster, The Case of the Microsystems Industry in the Southwest, Milken Institute, August 8, 2000, www.milkeninstitute.org.

University of Alaska in Review, 2000, www.alaska.edu/oir/uair00/