SSTI Digest

In this final coverage of gubernatorial addresses as they discuss the innovation economy, the following highlights have been selected from State of the States or budget addresses given between Feb. 18 and March 14, 2025, by the governors from Florida, Illinois, North Carolina, and Ohio.  Information on previous 2025 State of the States and/or budget addresses can be found here, here, here, and here.

Recent headlines have been full of discussion on cryptocurrencies and speculation on significant changes in federal policy related to the technology. Anticipating federal action, leaders of several states are exploring ways to get their own jurisdictions involved in the space. Here are some recent examples, drawing from proposed legislation to implemented policies and structures for acceptance of the financial innovation:

States Considering Bitcoin Reserves

The Appalachian Regional Commission (ARC) recently awarded  $14.5 million in Appalachian Regional Initiative for Stronger Economies (ARISE) grants for five projects. ARISE is ARC’s multi-state initiative that aims to drive large-scale, regional economic transformation through collaborative projects.

Forty-one states and Puerto Rico voted on 151 statewide ballot measures this fall. Many measures focused on abortion, citizenship, or electoral system reforms. Three measures with direct connection to innovation all were approved by voters, augmenting the strong track record tech-based economic development initiatives have when they are placed directly before voters. The three measures were for vocational-technical school scholarships in Arkansas, a $25 million R&D bond issue in Maine, and a $160.5 million higher ed facilities bond bill in Rhode Island. Voters have previously approved R&D bond measures in Maine and Rhode Island. SSTI highlights more information on those and other initiatives that could have or will impact economic development in individual states.

On average, Black households engaged in entrepreneurial activity have a higher rate of return on their business in comparison to Hispanic and white households, according to an Economic Commentary from the Federal Reserve Bank of Cleveland. Public policy encouraging and supporting minority entrepreneurship and innovation pays profits as well as social dividends, the study reveals.

The average yield of equity invested in a business, regardless of the household’s involvement in the business, is 5.6% for Black households, 4.6% for white households and 2.5% for Hispanic households. 

After a busy election season that saw gubernatorial elections in 36 states, newly elected and re-elected governors delivered their annual State of the State addresses, kicking off new programs and reviewing the conditions of their states. SSTI reviews the speeches every year and covers news of new developments and initiatives the governors have highlighted as they relate to the innovation economy. New programs are laid out here in the governors own words as excerpts from their State of the State or budget addresses. Not all governors delivered a State of the State, and some that did may not have revealed new innovation-related initiatives and so are not included in our coverage. Common initiatives among the governors that touched on innovation included an emphasis on workforce, education and broadband; water issues for Western governors; and, clean energy.

The U.S. Department of the Treasury announced 11 additional states whose SSBCI plans have been approved: Alaska, Idaho, Iowa, Massachusetts, Minnesota, Missouri, Nebraska, Nevada, New Mexico, Ohio, and Utah. This is in addition to the 20 states that have been approved this year: California, Hawaii, Kansas, Maryland, Michigan, West Virginia, Arizona, Connecticut, Indiana, Maine, New Hampshire, Pennsylvania, South Carolina, South Dakota, Vermont, Colorado, Montana, New York, North Carolina and Oregon.

As state budgets move into the legislatures for final negotiations and approvals, the last of the governors have addressed their constituents and put forth their proposals. While a renewed sense of hope is seeping into the latest addresses, governors are still cautious and guarded in proposing new programs. Broadband, small business, education and workforce initiatives continue to be among the innovation-related initiatives announced by the state leaders, with the intent that those efforts will also boost the economic recovery of the states.

A new commentary from a senior policy analyst at the Federal Reserve Bank of Cleveland examines the extent to which disparities exist between Black and whites in labor market outcomes such as levels of labor force participation, unemployment rates, and earnings. Economic inclusion trends have been studied at the national level, but this commentary takes a look at how those disparities vary within and across states with a specific look at the Fourth Federal Reserve District states of Kentucky, Ohio and Pennsylvania.

For those looking for examples of the impact state investment, university involvement and tech-based economic development can have in rural parts of the country, one can examine news from Appalachian Ohio that Stirling Ultracold reached a definitive merger agreement on March 22 to be acquired for a reported $258 million by publicly-traded BioLife Solutions. The original lead investor in Stirling Ultracold is TechGROWTH Ohio, one of Ohio Third Frontier’s regional entrepreneurial service providers. BioLife intends to keep the Stirling Ultracold brand intact and maintain existing staff in Athens, Ohio. The 160 employees in the rural Southeast Ohio county is the equivalent on a per capita basis to more than 11,000 employees in Cook County, Illinois (the county Chicago is located in).    

While the Appalachian region began the 21st century by expanding the reaches of its fossil fuel industries, clean energy development and carbon emission reductions are not yet out of reach for Pennsylvania, Ohio and West Virginia. A set of reports developed by the University of Massachusetts’ Political Economy Research Institute (PERI) present opportunities available to these states for the advancement of clean energy technologies within the region while also detailing the economic and employment benefits of potential climate stabilization programs.

Ohio unveiled the Columbus Innovation District this week, marking the third such announcement in less than a year, with a $100 million commitment from JobsOhio, the state’s nonprofit economic development corporation. Other partners in the Columbus initiative include Ohio State University, which will contribute $650 million, and Nationwide Children’s Hospital, with a $350 million commitment. The district is intended to bring together globally recognized education and healthcare research institutions to help create in-demand jobs and fuel $3 billion in economic impact for Columbus and Ohio over the next 10 years.