Vermont Science and Technology Plan
Building Vermont’s Science and Technology Enterprise
BACKGROUND
Vermont has a population characterized by a strong work ethic, creativity and high levels
of education. There is a broad base of innovative and technology-enabled enterprises, a
strong pre-K-12 education system with a concentration of opportunities in higher education
unparalleled for a state its size, combined with a brand identity as one of the most beautiful,
healthy and environmentally conscious places in America, cited regularly in numerous
publications as one of the country’s “best places to live.”
In the United States over the past half century, the success of the economy has depended
upon a strong commitment to science and technology. Discovery and innovation have
been the drivers of job creation, job growth and economic prosperity. The Vermont
workforce has seen significant growth in technology-based activities in many areas
including, but not limited to, computer hardware and software development, biomedical
research, bio-technologic and biomedical equipment production, aerospace discovery
and manufacturing, and advances in value-added food systems and sustainable energy
research and manufacturing. The National Science Foundation 2012 Science and Engineering
Indicators (see page 6) point to both strengths and weaknesses that provide guidance for
the strategies in this report.
Vermont must educate, attract and retain a workforce with the appropriate science and
technology skills to support companies that compete nationally and globally. A strong
and well-educated workforce in Science, Technology, Engineering and Math (STEM) is
the foundation for the future economy of the State. There must be strong support for
research and development in both the private and higher education sectors. There must be
strong linkages between higher education and the private sector to support technology
commercialization and to ensure development of the most effective workforce possible.
The 2013 Vermont Science and Technology Plan sets forth recommendations for specific
and measurable action strategies to help ensure economic and social prosperity for all
Vermonters. The Plan is intended to identify existing strengths in the State and help position
the economy for the accelerated growth of science- and technology-based companies.
Created by the Vermont Technology Council, the Plan articulates a strategy and set of
goals that can serve as guidelines for our government leaders, the private sector, and K-12
and higher education. The Plan is envisioned as a living document, subject to formative
assessment and modification to adjust to ever-changing conditions and opportunities.
VISION
Create an ecosystem where science, technology, innovation, research & development, and
entrepreneurship support a vibrant and prosperous economy for all Vermonters.
VERMONT TECHNOLOGY COUNCIL MISSION
The Vermont Technology Council is a volunteer organization that advocates for science
and technology-based economic development. It strives to integrate the efforts of the
private sector, higher education and government to build a strong, vibrant and flexible
economy based on science, technology, innovation and entrepreneurship in Vermont.
GOALS
• Increase the number of STEM-skilled workers and level of education.
• Increase employment in science and technology-based enterprises
• Increase research and development activity in the State of Vermont.
There is a significant need to increase the number and quality of workers with STEM-related
skills. This can be accomplished by the development of an integrated continuum of workforce
education from pre-K through 12, postsecondary education, internship development, and
retraining resources. Ensuring that Vermonters are appropriately prepared for technologybased jobs is critical to realizing our overall goals; a constant pipeline of workers is needed
to drive the economy of the State.
The Council serves as the State Committee for the Vermont Experimental Program to
Stimulate Competitive Research (VTEPSCoR).
1
S t r at e g y
1
S t r at e g y
2
Increase the number and diversity
of students who will pursue STEMrelated careers and advance
beyond K-12 to higher education
Create a mechanism for graduates
already in or who have left the
workforce to re-train in STEM
disciplines
A critical stage in the workforce continuum is
transitioning skills development potential to
entering a related career path. A multifaceted
strategy includes creating an effective public
awareness campaign highlighting how STEM
education opportunities have evolved and
appealing to our 21st century students at
all levels of education; encouraging and
requiring current science and math teachers
to explore further professional development
in their content areas; increasing the overall
number of well-prepared science and math
teachers; and developing a STEM certificate
program to formalize accreditation toward
STEM jobs. Continuing to promote and fund
current efforts like the Vermont Genetics
Network’s support of faculty and student
research at state and independent colleges,
programs like Learn to Earn, and Tech Centers
further foster experiential learning for both
high school and higher education students.
Workers in Vermont who are highly skilled, or
have high skill potential but are dislocated or
underemployed, sometimes leave the State to
find new career opportunities due to limited
options in their field. These individuals are a
significant potential source of the workforce
needed to meet the needs of technologyenabled employers. Specialized programs
focusing on retraining, education and
mentoring, and career support for available
technology-enabled careers, will allow greater
reentry to the highly-skilled employment
market. A private-public consortium supporting
retraining for workers within the State must
be expanded toward this end. This can be
supported with tuition, funds for books,
child care and programs designed to remove
barriers, enabling this population to access
these much-needed initiatives. Partnering
on these programs with existing entities
such as the Vermont Training Program, the
Workforce Education Training Fund and other
Department of Labor resources will maximize
current workforce capital. A concerted effort
to identify companies that have the capacity
and willingness to offer work experiences is
also a critical component.
In 2009, the percentage of the 25-44 year old
population in Vermont holding a high school
degree was 93.5%, tied for third in the US.
Fourth and eighth grade students achieving
proficiency in mathematics rank in the top 5
in the nation. The number of public high
school students taking advanced placement
examinations ranked 11th in the US. The
funding for K-12 education is among the
highest in the US based both on cost per
student and as a percentage of State GDP.
A troubling observation is that only 40-45%
of Vermont high school graduates move
on to higher education within 2 years of
graduation. A concerted effort is needed to
help K-12 students better understand that
post-secondary education is affordable and
essential to prepare them to join a technologybased work force. Vermont’s advanced
manufacturing sector reports they cannot
find enough STEM-qualified employees. This
training can be provided by technical colleges
and 2-year institutions, as well as four-year
colleges and universities. In 2010, the number
of Vermont technical workers was 1.19% of
the total workforce, ranking 34th in the US.
A substantial opportunity exists to increase
the number of technology workers by further
developing and increasing awareness of
programs aimed at students not currently
interested in attending four-year institutions
of higher education.
S t r at e g y
3
S t r at e g y
4
Maximize the opportunities for STEM
students to complete internships
and /or cooperative programs with
technology-based companies; career
path guidance increases the probability
of working in Vermont
Promote the availability of funding
to support early-stage science
and technology-based companies
including, but not limited to,
expansion of support for VEDA and
the Vermont Seed Capital fund
Providing high school and higher education
students the opportunity to complete internships
or cooperative programs with Vermont companies
will expose interested students to a spectrum of
careers and help them develop an appreciation
of the numerous employment opportunities in
the State. It is also an opportunity for employers
to identify their future workforce. Students will
return to their schools with insights about the
skills they will need to be competitive once they
graduate, influencing their choice of courses and
encouraging changes in curriculum that may be
needed. This effort will also facilitate dialogue
between employers and educators, providing the
opportunity to better understand their respective
needs. A number of programs throughout the
State support internships, and an increase of
10% per year in the number of placements is
recommended.
Given that less than half of the approximately
7,000 high school graduates move on to higher
education, it is remarkable that over 40,000
students are enrolled in higher education in the
State of Vermont. The quality of our institutions of
higher education attracts well-qualified high school
graduates to Vermont. In 2009, the number of
bachelor’s degrees conferred in Vermont in natural
sciences and engineering per 1,000 individuals 1824 years old was second in the nation. Regardless
of whether these graduates are Vermont residents,
an increased effort is needed to retain them in
technology-enabled companies within the State.
Further growth in internship and cooperative
programs is encouraged to increase the retention
of our higher education science and engineering
graduates.
Through some combination of graduates
of Vermont institutions of higher education and
recruitment of individuals from outside the State,
Vermont has a relatively high percentage of
postsecondary degree holders in the 25-44 year
old cohort. In 2009, 45.9% of that age group held
postsecondary degrees, placing Vermont 9th
in the country. Despite this position, anecdotal
information suggests a shortage of engineers
and computer specialists available to support
companies in Vermont. In 2010, about 1.09% of
the Vermont workforce was engineers, placing
Vermont tied for 20th in the nation and slightly
below the US average of 1.12%. Computer
specialists in 2010 represented about 1.87% of
the workforce ranking, Vermont 28th in the nation.
To create more and better paying jobs in Vermont,
increased support for early stage funding of
start-up companies is essential. Many of these
companies have high-quality,well-protected
intellectual property that serve as their basis, and
are less likely to have traditional assets to serve as
collateral. Actions that could potentially increase
the availability of funds include Federal and State
resources, investment by State pension dollars
in investment funds restricted to Vermont, and
favorable tax treatment for individuals investing
in Vermont companies.
The Vermont Seed Capital Fund (http://
vermonttechnologies.com/capital/) was founded
to provide early stage, high-risk companies
with equity. As of the end of 2012, the Fund has
invested $1.7 million into 11 companies. The funds
have been well leveraged by co-investment with
accredited angel investors, angel investor groups
and other institutional investors.
Efforts to commercialize the discoveries of
faculty, staff and students enrolled in higher
education should be strongly encouraged. Efforts
like the Office of Technology Commercialization
at the University of Vermont and the UVM Ventures
fund should have increased support, and efforts
made to make these types of services readily
available to all of higher education.
The State’s lending authority, VEDA, created
the Technology Loan Program specifically to
help drive investment and growth in companies
offering technology goods and/or services. The
program must continue to be funded, structured,
and staffed so that more aggressive loans to
companies with higher risk collateral are available,
allowing those companies to secure financing
either for physical assets or working capital. In
FY2011, the Technology Loan Program supported
seven loans totaling $907,855, up nearly $400,000
from the year prior. Increasing this investment,
both in number of loans and in overall volume,
generates opportunities for companies to grow
without diluting ownership through equity financing.
A substantial opportunity exists to increase the
desirability of investing in Vermont-based companies.
To explore creative ways for the public and private
sector to optimize the pool of capital for businesses
at all stages of development, a group should be
convened by the Secretary of Commerce for broad
ranging and innovative discussions.
3
S t r at e g y
5
Develop a stronger support system
to assist higher education and the
private sector to secure increased
Federal (including SBIR and STTR) and
State-funded grants and contracts,
private sector contracts and
foundation support for research
Research and Development (R&D) funding
activity in Vermont is relatively strong with
substantial opportunity for growth. Increased
R&D will support innovation and the creation
of new knowledge, leading to the growth of
existing companies and creation of new
companies. The University of Vermont has a
strong research enterprise - particularly in the
biomedical area – that must be well supported.
In addition, a plan to increase the research efforts
across all of higher education in areas such as
engineering, computer science and the physical
sciences should also be further developed.
Continued support for both the Vermont Genetics
Network and EPSCoR will further facilitate the
growth of research at Vermont’s other institutions
of higher education where the emphasis has
not been as strong. An increased effort by the
State of Vermont to capitalize the research
infrastructure in higher education would have
a substantial impact on both STEM education
and the research productivity.
Providing high-level technical and financial
support for grant seekers will produce more
competitive applications and help to guide
novice grant applicants. The Vermont Small
Business Development Center (VtSBDC) provides
outreach for this process and in the preparation,
analysis, process and procedures needed to
meet the stringent requirements to qualify,
submit and win grants and contracts. Effectively
transitioning an idea to a commercially-viable
product requires a continuum of support and
collaboration with existing higher education
and research institutions and companies.
Increased support for the services currently
provided by the VtSBDC will aid grant seekers
in science and technology companies and
higher education.
S t r at e g y
6
Encourage and facilitate opportunities
for R&D collaborations between the
private sector and higher education,
with clear and consistent policies
for contractual relationships and
management of intellectual property
Institutions of higher education are and should
be a greater resource for the private sector.
Interaction with faculty researchers, as well
as access to specialized research equipment
available, provides resources at the cutting
edge of innovation. Substantial expertise in
creative use of social media and software
development is also available on higher
education campuses. Companies at any stage
of development could benefit enormously by
utilizing existing laboratories and facilities on
academic campuses. As recommended by the
Governor’s Report on UVM, a concerted effort
to build awareness about faculty expertise and
equipment resources on campuses could be
of great interest to the private sector. Efforts
to develop a real-time inventory of faculty
expertise and physical resources of the Vermont
institutions of higher education are encouraged.
This information should be proactively shared
with the private sector and between and within
the institutions. The work of the Vermont Genetics
Network and Vermont EPSCoR, including the online
database of core facilities and “use of facilities”
awards, should be augmented.
S t r at e g y
7
Continue to ensure that sufficient
cyber-infrastructure capacity and
connectivity meets the growing needs
of the private and public sectors
Technology infrastructure is critical for Vermont to
be competitive regionally, nationally and globally.
Broadband inter- and intra-state connectivity
is required for economic development as well
as for cutting-edge research, computation and
education. Similarly, intelligent distribution of a
reliable, sustainable and affordable energy supply
is required for Vermont to succeed in a technologybased economy.
Cyber-infrastructure is being developed in
accordance with the Vermont Telecommunications
Plan. Both higher education and the private
sector require high bandwidth capacity to move
large data sets between organizations within the
State and globally. Internet connectivity with
low latency and high bandwidth are required.
Continued support for the private and public
sector collaboration to build a vibrant infrastructure
are encouraged. Vermont is situated on two major
internet routes in the east coast in Boston and
Albany. R&D activities are highly dependent on
the ability to share large sets of data globally.
An example of this for higher education is the
Northeast Cyber-infrastructure Consortium
(NECC), a high bandwidth research and education
network funded by the National Science Foundation
and the National Institutes of Health through VT
EPSCoR and the Vermont Genetics Network. NECC
connects research and educational institutions in
Vermont, New Hampshire, Maine, Rhode Island
and Delaware for shared centers and cloud
computation projects.
5
National Science Foundation – 2012 Science and Engineering Indicators
37.5%
The data provided in the text and these graphs are available from the National Science
VT
35%
Foundation at www.nsf.gov/statistics/seind12.
32.5%
For the figures selected, the Vermont Science and Technology Plan authors have provided an
US
30%
interpretation of the data and have drawn conclusions relative to their importance to the Plan.
Vermont ranks in a tie for 11th of 51 (states & DC)
Vermont (2009). ................................................ 35.6
US (2009)................................................................. 30.9
27.5%
US
3.8%
VT
3.6%
230
Vermont ranks 4th of 51 (states & DC)
Vermont (2009). ................................................. 248
US (2009).................................................................. 239
225
0.475%
275
0.45%
$50,000
US
2.2%
VT
1.8%
$40,000
1.6%
$35,000
Vermont ranks 29th of 51 (states & DC)
Vermont (2010). .......................................... 49,053
US (2010)........................................................... 52,418
$30,000
1.4%
Vermont ranks 27th of 51 (states & DC)
Vermont (2010). ................................................ 1.87
US (2010)................................................................. 2.24
1.2%
1%
1.5%
VT
$15,000
$12,500
US
$10,000
1.4%
US
1.3%
1.2%
$7,500
Vermont ranks 6th of 51 (states & DC)
Vermont (2009). .......................................... 15,096
US (2009)........................................................... 10,591
$5,000
In 2005, individuals working in science and engineering
occupations as a percentage of the workforce was at
about the national average. Since that time, Vermont
has trended slightly downward relative to the US
overall. If Vermont is to grow its technology-based
business sector, one will expect to see an increase
in this parameter. The downward trend could reflect
either availability of jobs or the failure to have a workforce that can fill jobs of this nature.
VT
1.1%
Vermont ranks in a tie for 35th of 51 (states & DC)
Vermont (2010). ................................................ 1.19
US (2010)................................................................. 1.35
1%
In the period 2004-2007, Vermont was above
the national average and has moved to the
national average through 2010. As technologybased business increases, this ranking should
show improvement.
TABLE 8 Computer specialists as a percentage
of the workforce (8-37)
The percentage of computer specialists in the
workforce in Vermont is slightly below the
national average and has been consistently
below for the past 8 years. As technology-based
business increases in Vermont, one should
expect an increase relative to the national data.
2010
2009
2008
2007
2006
2004
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1990
$17,500
TABLE 9 technical workers as a percentage
of the workforce (8-38)
In 2004 and 2006, the percentage of the
Vermont workforce was at the national average.
Since that time, Vermont has not kept pace,
dropping to 35th in the nation. As technologybased business increases in Vermont, one should
expect an increase relative to the national data.
2010
2009
2008
2007
2006
2004
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
0
2.4%
2%
$45,000
TABLE 6 Individuals in science and engineering
occupations as a percentage of the
workforce (8-33)
2010
US
VT
2009
2009
2008
2007
2007
2005
0.375%
2006
2003
Vermont ranks 22nd of 48 states
Vermont (2010). ................................................ 0.43
US (2010)................................................................. 0.45
0.4%
2004
2000
VT
US
0.425%
$55,000
$25,000
2010
0.5%
Vermont ranks in a tie for 3rd of 51 (states & DC)
Vermont (2009). ................................................. 293
US (2009).................................................................. 282
Despite a low percentage of Vermont high school
graduates going on to higher education, the 25-44
age cohort demonstrates that Vermont has an above
average number of holders of bachelor’s degrees
compared to the US average. This may be a reflection
of the number of institutions of higher education in
Vermont that attract highly-qualified students.
TABLE 7
Life and physical scientists as
a percentage of the workforce (8-36)
0.525%
VT
290
270
2009
SCORE OUT OF 500
2008
2009
2007
2007
2006
2005
2005
2003
2004
2000
Vermont ranks in a tie for 19th of 51 (states & DC)
Vermont (2010). ................................................ 3.75
US (2010)................................................................. 4.00
3.4%
2003
295
2009
2008
2007
2006
US
4%
235
280
TABLE 4
Current expenditures per pupil for
elementary and secondary public
schools (8-11)
2005
240
US
3 & 4: Vermont teacher salaries for the past
20 years tend to be at the US average. Over
the last 15 years, the cost per student has
increased substantially and Vermont is among
the highest in the nation. Given the relative
constancy of performance achieved in science
and math by 4th and 8th graders, the value of
such a large increase in cost per pupil should
be assessed.
2004
VT
285
TABLE 3
PUBLIC SCHOOL TEACHER SALARIES (8-9)
2003
4.2%
SCORE OUT OF 500
245
220
TABLE 2
EIGHth Grade Mathematics
performance (8-5)
2002
1 & 2: At both the fourth and eighth grade level,
Vermont ranks among the highest of the states
and DC. This is an important foundation and
needs to be maintained to build the STEM workforce needed for Vermont.
250
2001
TABLE 1
Fourth Grade Mathematics
performance (8-1)
2000
25%
TABLE 5
Bachelor’s degree holders among
individuals 25–44 years old (8-31)
7
TABLE 10
Average annual federal Small
Business Innovation Research
funding per $1 million of gDP (8-55)
$800
Small Business Innovation Research funding
over the last decade has been at the national
average. In the mid to early 1990’s, Vermont was
substantially stronger in competing in this area
for R&D funding. This suggests that there is an
opportunity to improve SBIR funding as one
mechanism to foster the growth of technologybased companies in Vermont.
$400
TABLE 11
state funding for major public
research universities per enrolled
student (8-29)
$300
$200
VT
US
$100
1988-1990
2000-2002
2004-2006
2008-2010
$10,000
US
$8,000
$6,000
$4,000
$2,000
2010
2009
2008
2007
2006
2005
0
VT
Vermont ranks 50th of 51 (states & DC)
Vermont (2010). ............................................. 3,875
US (2010).............................................................. 9,082
3%
Vermont Technology Council Board
John Evans (President)
Vermont Technology Council
Burlington, VT
Frank Cioffi (Chair)
President
Greater Burlington Industrial
Corporation
Burlington, VT
Domenico Grasso (Secretary)
Vice President for Research and Dean of
the Graduate College
University of Vermont
Burlington, VT
Christopher Allen (ex officio)
President
Vermont Academy of Science & Engineering
Burlington, VT
Steven Arms
Principle
Swarms Ventures, LLC
Shelburne, VT
US
2.5%
VT
2%
Lee Bouyea
Freshtracks Capital
Shelburne, VT
Luther F. Hackett (Emeritus Board Member)
Shelburne, VT
Melissa Hersh
Director of the Center for Professional and
Executive Development
Champlain College
Burlington, VT
The Vermont Technology Council acknowledges
the contribution of numerous individuals who
participated in the development of the Plan.
The Council is particularly thankful to Beth
Hill, Seth Bowden, Patrick Clemins and Carole
Whitaker, who dedicated their time, energy and
extraordinary skills to the effort.
Rob Hofmann
Senior Vice President & Senior Operations Officer
Union Bank
Morrisville, VT
Ken Horseman
Agency of Commerce and Community
Development, State of Vermont
Montpelier, VT
Karen Marshall
President
VTEL Data Network
Springfield, VT
Lawrence Miller
Secretary
Agency of Commerce and Community
Development, State of Vermont
Montpelier, VT
1.5%
Vermont ranks 23rd of 51 (states & DC)
Vermont (2008). ................................................ 2.22
US (2008)................................................................. 2.61
1%
David Binch
Amical Technology
2008
2007
2006
2005
2004
2003
2002
2000
1999
1998
1997
1995
1993
David Bradbury (ex officio)
President
Vermont Center for Emerging Technologies
Burlington, VT
$55,000
VT
$50,000
$45,000
$40,000
$35,000
Vermont ranks 8th of 51 (states & DC)
Vermont (2009). ................................................ 5.08
US (2009)................................................................. 3.91
$30,000
$25,000
2009
2008
2007
2006
2005
2004
2003
2002
10.5%
2001
Employment in high technology establishments
as a percentage of employment in Vermont has
consistently been below the national average. In
2008, there was a substantial increase and if this
trend continues there will be a greater demand
for STEM-qualified workers. Vermont will have
to be in a position to meet this demand for the
economy to grow.
2000
12.5%
1999
TABLE 14
Employment in high-technology
establishments as percentage of
total employment (8-54)
Robert Clarke
Former Chancellor
Vermont State Colleges
US
1998
An important component of the R&D expenditures
in Vermont is at the institutions of higher education.
As a percentage of GDP, academic and science and
engineering R&D has ranked consistently higher
than the national average. The support for research
in higher education should be a priority given
the potential for discovery serving as a base for
economic growth.
1996-1998
$12,000
1991
TABLE 13
Academic science and engineering
R&D per $1,000 of gross domestic
product (8-46)
1992-1994
2004
Total Research and Development as a percentage
of GDP in Vermont is slightly below the US average.
As the economy becomes more and more
technology-based, the spending in R&D should
increase.
$500
2003
TABLE 12
R&D as a percentage of gross
domestic product (8-39)
$600
2002
Vermont ranks 50th in support for funding of
major research universities in the US, at less than
half of the national average on a per student
enrolled basis. Opportunities to make targeted
investments, particularly those related to STEM
education and research, should be a goal for
the State.
Vermont ranks 8th of 51 (states & DC)
Vermont (2010). ................................................. 153
US (2010)..................................................................... 88
$700
Jack R. Glaser
President
MBF Bioscience (MicroBrightField, Inc.)
Williston, VT
12%
11.5%
US
11%
VT
10%
Vermont ranks 26th of 51 (states & DC)
Vermont (2008). ............................................. 10.77
US (2008).............................................................. 11.47
9.5%
9%
Tim Donovan
Chancellor
Vermont State Colleges
Montpelier, VT
Michel Guite
President
Vermont National Telephone Co., Inc.
Springfield, VT
Larry Reilly
Principal
Rosewood Energy Consulting, LLC
Hopkinton, MA
Richard Schneider
President
Norwich University
Northfield, VT
Thomas Sullivan
President
University of Vermont
Burlington, VT 05405
Richard Tarrant
Chairman of the Board
Marathon Health
Colchester, VT
Judith Van Houten (ex officio)
Director
Vermont EPSCoR
Burlington, VT
Robert Zider (ex officio)
Director/CEO
Vermont Manufacturing Extension Center
Randolph Center, VT
2008
2007
2006
2004
2003
Prepared by the Vermont Technology Council, January 2013