SSTI Digest

A leading technology association has stepped up to positively impact tech diversity and inclusion through a new challenge that aims to double the percentage of the state’s Black and Latinx tech workers — currently at 5 and 7 percent respectively — by the end of the decade. The Mass Technology Leadership Council (MassTLC) launched a 2030 Challenge earlier this week that also will continue to work towards gender parity in the state’s tech workforce. According to a release announcing the initiative, the new challenge came about in response to the organization’s benchmarking of the state’s tech sector, including key metrics on race, ethnicity and gender, which showed that the Massachusetts tech sector, one of the highest paying sectors in one of the most expensive regions in the country, does not adequately reflect the diverse population of the state. MassTLC is inviting organizations that employ tech workers to join the Tech Compact for Social Justice by committing to change within their own organizations. MassTLC will work with Tech Compact signers over the coming months and years to track progress, spotlight leadership, share best practices, work to…

In general, the effect of the pandemic on states’ budgets due to the wave of business, retail, and commerce shutdowns, as well as other reduced economic activity across the nation, is not entirely known, or too early to forecast; however, a number of states are beginning to experience the initial impacts of a substantial downturn. With several states having already enacted their 2020-21 budgets, special sessions are expected later this year to deal with declining revenues. Others ended sessions early without a new fiscal year spending plan in place. Many are also acting quickly to help mitigate the effects of lost revenues and an increased demand for services. Some of the states’ impacts and actions are outlined below. Alaska officials report that the drop in global oil prices will likely add $300 million to the state's current year (2020) budget deficit. The Alaska Journal of Commerce reports the state Legislative Finance Division told lawmakers that the state could experience a $600 million revenue reduction in the 2021 fiscal year, which starts July 1. In Arkansas, lawmakers were called into special session to address an estimated $353 million hit to the state’s…

The economy, workforce and climate change continue to surface in governors' state of the state addresses. While today’s strong economy allows most governors to reflect on how the states have grown, preparing for the next downturn continues to be a point of concern. As SSTI continues to review the addresses for news of new innovation-related initiatives, we find Delaware proposing increased investment in its economic infrastructure, while renewable energy standards are at play in states like Delaware, Hawaii, and Maine. And Wisconsin’s governor pledged to create a commission to focus on rural prosperity and another to consider redistricting across the state. Those and more innovation initiatives are excerpted from the governors’ remarks below. Delaware Gov. John Carney outlined his priorities for strengthening Delaware’s economy as he starts his fourth year as governor: “I’ve asked our Chief Information Officer, James Collins, to lead a new effort to connect state government with Delawareans through technology. This will be a game changer for our state. Together, we’ve also invested over $30 million in the Higher Education Economic Development Fund. We…

A trio of plans focused on economic development at the state level were released this month. Noting that it is at an economic crossroads and facing serious challenges, Maine’s Department of Economic and Community Development has issued a new 10-year economic development strategy for the state. Massachusetts has also proposed a new economic development plan, focusing on four key areas, while a new report in Maryland is targeting clean energy as an opportunity for the state to invest in the future. Maine’s plan Maine’s challenges include what they say is a likely global economic downturn, an aging workforce and threats to some of its largest industries due to technology and climate change. Noting that it has not had such a strategy in more than two decades, the new plan was developed incorporating feedback from more than 1,300 Mainers. Talent and innovation emerged as the two major necessities to spur growth in the state. With Maine having one of the oldest populations in the nation, a current tight labor market, and an estimated 65,000 decrease in the workforce from retirements over the next ten years, its workforce challenges are many-faceted. The report…

Research universities and their partnerships with industry, including an institution’s research capacity, are important elements to building a state’s economy as well as the national economy and talent pipeline and workforce. Following on our review of higher education and commercialization programs, as well as our ongoing review of state activities in 2019 (see our stories on free tuition offerings, climate change and clean energy), this week we report on new university-industry partnerships, including research capacity activities, launched in 2019. The following programs represent some of those efforts. Alabama Earlier this month, the University of Alabama (UA) announced the launch of its Tide Research Partnership Program. The program is designed to strengthen UA’s research and development partnerships with industry, as well as encourage businesses and companies to sponsor research opportunities at UA, while also providing opportunities for students to work on real world solutions to current challenges. The program is managed by the UA Office for Research and Economic Development, and sets costs upfront for exclusive rights to possible…

The Massachusetts Life Sciences Center (MLSC) plans to launch a seed fund to support the development of life sciences startups outside of the Greater Boston area. These areas, many already rich in major research university and medical center anchor institutions, should be bolstered by this early-stage funding currently concentrated in Boston. Although the MLSC hopes to expand the program in future years, the fund will provide individual investments of up to $250,000 in convertible notes with up to $1 million of capital investment available Lowell, Worcester, Springfield, Amherst, and Pittsfield. Having won a $300,000 grant from the U.S. Department of Commerce’s Office of Innovation and Entrepreneurship, the MLSC board has approved $300,000 in matching grants, which will be administered in conjunction with the Massachusetts Transfer Technology Center.

With 36 governors being sworn in following the November elections, 20 of those being new faces and 16 who were re-elected, this year’s inaugural and state of the state addresses promise new ideas along with proposed resolutions to existing challenges. As the governors present their plans to constituents, SSTI revisits our Tech Talkin’ Govs series. The first round of addresses presented here reveals new initiatives in education and building the workforce in Idaho, green energy initiatives in Maine, collaboration in Massachusetts, the largest economic investment in workforce in the state’s history in New Hampshire, and more. Today’s coverage includes highlights from governors in Idaho, Maine, Massachusetts, New Hampshire, North Dakota, and South Dakota. Follow along in the coming weeks as we continue to cover all of the governors’ addresses for 2019, bringing you excerpts of their words, promises and programs that touch on the innovation economy. Idaho Gov. Brad Little delivered his first state of the state address on Jan. 7 and said that education is his top priority for the state budget: “I will continue to focus on…

The Massachusetts legislature ended its 2018 session with a slate of bills related to tech-based economic development. Legislation for general economic development, life sciences industry, and green communities created new authorizations and provided for more than $1 billion in bond funding authority, with a substantial portion allocation to innovation-related activities. From broadband access to SBIR support to workforce development, the bills created a host of new opportunities for TBED in the Bay State. Economic Development (Ch. 228) The legislature passed bond funding authorizations for a long list of more than $500 million in local economic development projects and several statewide initiatives. Among the latter, MassVentures was approved for $12.5 million to continue supporting SBIR/STTR awardees; $25 million was authorized for Manufacturing USA centers in the state; and, $2.5 million is approved for cybersecurity innovation. The innovation-related local approvals include: Projects to develop solar vehicles ($3 million); A multi-partner project to investigate marine genetics ($1.3 million); Startup ecosystem support in Worcester ($1 million); UMass at…

The ability of states to deliver the services promised to its residents relies on their fiscal soundness. With most states beginning their fiscal year in July, SSTI has reviewed the current fiscal standing for each state and here presents a snapshot of our findings. Most states ended their fiscal year with a surplus and continue to recover from the Great Recession, with a growing economy and job gains. However, they face continuing demands on their budgets, with expanded Medicaid payments and the growing opioid crisis confronting nearly every state. Such decisions affect the state’s ability to fund innovation efforts, from the amount of support available for higher education and STEM programs, to funding for entrepreneurship, and forging public private partnerships to strengthen innovation programming that the private sector cannot fully support. Our analysis found that some states that rely on the energy sector to fund their spending priorities continue to struggle, while others are already factoring in anticipated revenues as a result of new Supreme Court rulings involving gaming and online sales tax collections.

Nearly a month after the start of the new fiscal year, Massachusetts legislators have approved an FY 2019 budget. Science and innovation stakeholders may find it worth the wait. Included in the $42 billion budget are new funding for a precision manufacturing initiative that will fund multiple, local activities ($2.7 million) and $500,000 for registered apprenticeships. A wide range of programs received at least twice as much funding as in FY 2018, including: MEP ($2 million in FY 2019); John Adams Innovation Institute ($2.5 million); Microlending grants ($300,000); Massachusetts Growth Capital Corporation technical assistance program ($2 million); Massachusetts Biomedical Initiative Inc. ($500,000); and, University of Massachusetts Innovation Commercialization Seed Fund ($500,000). Despite this positive movement, stakeholders are waiting on one more step in the process. Governor Charlie Baker is yet to sign the budget, and legislators advanced a budget more than $400 million greater than the line-item veto veteran had signaled he would accept. He has until July 27 to make his decisions.

Workforce development programs and apprenticeships continue to win favor in many of the governors’ state budget proposals. In our latest review of TBED initiatives being proposed in state budgets, we found Kansas asking for additional funds for research, worker training and apprenticeships; Massachusetts is looking to double community college scholarship funding and increase several workforce development initiatives; and in Michigan, skilled trades training would receive a boost.

SSTI’s Tech Talkin’ Govs feature continues as governors across the country roll out their state of the state addresses. We review each speech for comments relevant to the innovation economy, and bring you their words directly from their addresses. In this fourth installment, we present excerpts from governors in California, Hawaii, Massachusetts, Michigan, North Dakota, South Carolina and Wisconsin. This week’s review includes states like California with its goal for lower carbon output to Hawaii and Massachusetts who are looking to increase their use of renewable energy sources. Meanwhile, energy-dependent North Dakota is looking to diversify its economy and Wisconsin seeks ways to build its workforce.