SSTI Weekly Digest: Study Says Florida Needs Skilled Workers and Early-stage Support for High-Tech Growth

From SSTI Weekly Digest:

Though the state of Florida has aggressively pursued research investment over the past few years, particularly in the life science, a new report finds the state is still struggling to build a sufficient pool of highly-skilled workers for its high-tech companies. The study, which was conducted at the behest of 19 local economic development organizations, finds the state has not yet made a complete transition from an agriculture- and real estate-based economy to one built on high-tech industry and innovation. Interviews with statewide stakeholders also confirmed there is a continuing need in the state to support innovations-based entrepreneurs through economic development organizations.

The study was conducted at the request of the Florida High Tech Corridor Council, the Metro Orlando Economic Development Commission, Space Florida and several other local economic development organizations and companies. After a series of interviews, research into the state's programs and a benchmark analysis, they found that the most glaring obstacle facing the state was its weaknesses in human capital and talent development. The state’s K-12 educational system was perceived as inadequate to the task of producing a stream of high-quality college students and workers in high-tech fields. Although the state has done well in attracting talent, the available pool of highly-skilled workers remains low enough to discourage relocating companies.

The report also identified several other perceived gaps in the state’s innovation continuum. Entrepreneurs in the state lacked access to start-up and early-stage capital, which several interviewees suggested could be remedied by additional state assistance. One state program, the Florida Opportunity Fund, has been created to address this capital gap but has not yet been fully implemented. Lack of consistent legislative support for innovation programs also was seen as a persistent problem for development.

Not all of the news was bad. Despite problems with the K-12 educational system, many interviewees cited university accessibility, partnerships and collaborations as key advantages for Florida. The state’s community college system also is viewed as beneficial to the high-tech economy, particularly for its focused curriculum and alignment with business needs. Many STEM graduates for Florida educational institutions, however, seem to leave after graduation despite Florida’s high rating for overall quality of life.

The recent state effort to recruit major life science research institutions also was seen as a boon to the economy. As reported in the May 7, 2008 issue of the SSTI Weekly Digest, the State of Florida has invested almost $1 billion to lure life science research and development centers to the state through its Innovation Incentive Fund (IIF). Although the IIF is currently empty and will not receive any new funding this year, many of the interviewees involved in the study cited the fund as a positive development. The fund has demonstrated the state’s potential to attract West Coast and international life science centers. Still, many remain concerned about the state’s lack of support for smaller projects and for innovation in communities that cannot afford the fund-matching commitment required by the IIF. Others see the lack of funding for FY2008 as another indicator of the state’s government’s inconsistency in support for TBED initiatives.