SSTI Digest

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

Educating the next generation of workers, ensuring they will have the skills necessary for the jobs of the future and paying attention to the actions that will affect the climate are all on the agendas of the latest round of governors giving their state of the state and budget addresses. A focus on skills can be seen in addresses from governors in California, Maine, Michigan, Oklahoma and Pennsylvania. States are also continuing with initiatives to forward attention on climate change, as reflected in Maine’s climate agenda and Michigan joining other states in the Climate Alliance.

California Gov. Gavin Newsom gave his first state of the state address:

 “We must map out longer-term strategies, not just for the utilities’ future, but for California’s energy future, to ensure that the cost of climate change doesn’t fall on those least able to afford it.”

Faced with one of the largest drawdowns in defense spending in American history, the Defense Manufacturing Assistance Program (DMAP) targeted affected companies and communities across Michigan, Ohio and Indiana for assistance. The program aimed to support economic stabilization and diversification across the region during the five-year period from 2013 to 2018. After five years of projects, an evaluation of DMAP found that for every one dollar that went into the program, companies obtained an average of $18 new dollars in additional revenue.

The effort was funded primarily by the Department of Defense’s Office of Economic Adjustment and led by the University of Michigan in partnership with Ohio State and Purdue. DMAP practitioners worked with more than 300 companies over this time, which led to approximately 20,000 jobs created and retained – including 662 new jobs – and $183 million in new sales. The program also helped drive innovation in these companies, resulting in 139 new products and 26 commercialized technologies.

SSTI has reviewed the ballot initiatives across the country that affect innovation. Several states have energy initiatives on their ballots, while higher education funding is at play in Maine, Montana, New Jersey and Rhode Island. Utah could become only the second state to fund its schools through gas taxes, if a measure there is passed. At the same time, four states have ballot issues addressing redistricting commissions which could have a significant impact on state legislative makeup when lines are redrawn after the 2020 census.

Arizona

Proposition 127: 50 Percent Renewable Energy Standard by 2030 Amendment. The measure requires that electric utilities acquire 50 percent of their electricity from renewable sources by the year 2030 with the percent required steadily increasing each year.

Colorado

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.

Alabama

Due to the effectiveness of employer-sponsored training program, U.S. states are working to build partnerships with industry partners that leverage public resources to help develop a 21st century workforce that addresses specific industry needs. Over the last month, partnerships have been announced between states and key industry leaders including AGCO, CVS, Tesla, and the U.S. Chamber of Commerce Foundation. Some of those collaborations are detailed below.

California & North Carolina

Tesla officially announced the Tesla START program – a 12-week training program aimed at providing students with the technical skills they need to work for the electric car manufacturer. Tesla also announced exclusive partnerships with community colleges in both California and North Carolina to oversee the programs on their campuses.

Investments in STEM education, apprenticeship programs, and tech-focused tuition assistance are among a handful of proposals included in the “Marshall Plan for Talent” last Thursday. The plan includes $100 million in talent investments and utilizes a three-pronged approach to training by addressing K-12 education, higher education and the state’s existing workforce. The funds would come from savings due to a state bond refinancing, according to the governor.

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.

Kansas

In a supplemental FY 2019 budget proposal drafted by previous Gov. Sam Brownback, $5 million of additional funding was requested to enable the National Institute for Aviation Research (NIAR) to expand its research and worker training in automated manufacturing processes.  Located at Wichita State University, NIAR houses three Federal Aviation Administration designated centers of excellence in general aviation research, composites and advanced materials, and airworthiness assurance.

With more than 30 percent of rural America still lacking access to what the FCC considers adequate broadband, governors from across the country are working toward diverse strategies to build rural broadband capacity. By providing rural communities with access to full-speed, stable broadband, these governors hope that they can revitalize rural communities by helping small business formation and expansion as well as improve educational achievement/workforce training for rural citizens. Governors have announced new initiatives in Michigan, Missouri, North Carolina, and Wyoming, and in Wisconsin, Gov. Scott Walker is calling for Federal Communications Commission (FCC) rule changes to increase access to broadband internet across the country.

Michigan

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.

California Gov. Jerry Brown, who is term limited delivered his final state of the state address.

Funding for TBED programs took a hit under Massachusetts Gov. Charles Baker, who vetoed millions of dollars in programs that the legislature had approved in the FY 2018 state budget. Michigan programs fared better with funding maintained to diversify the state’s economy and funding for entrepreneurship ecosystems getting a boost. And in Virginia, after a messy budget process addressing an addendum to its biennial budget, many innovation programs saw increases.

Massachusetts

Gov. Charles Baker signed the FY 2018 budget passed by the Massachusetts legislature, but not before vetoing millions of dollars in programs that would support technology-based economic development. 

Michigan’s University Research Corridor, an alliance of Michigan State University, the University of Michigan and Wayne State University, conducted $1.2 billion in academic R&D in the life, medical and health sciences, and served as a stabilizing force to the state’s economy as one of the only sectors that grew during the 2000s. Those are among the findings of the 2017 URC sector report, which was prepared by Public Sector Consultants. The report, Leading Discovery: URC Contributions to the Life, Medical and Health Sciences, notes that employment in the life, medical and health sciences sector, which accounts for one in eight jobs in Michigan, is up 18.9 percent since 2000, compared to overall Michigan employment, which is down 9.3 percent.