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 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…

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.” “California needs a comprehensive statewide strategy to uplift and upskill our workers, to ensure technological advancements in AI, blockchain, big data, are creating jobs, not destroying them, and to reform our institutions so that more workers have an ownership…

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. Manufacturers eligible for DMAP support were those that experienced at least a 5 percent decline in sales, production or…

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.

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.

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.

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. Of the $100 million proposed in the plan, approximately $50 million would go toward certificate programs and new equipment for schools and universities, $25 million would support student scholarships, $20 million would fund career exploration programs, and $5 million would help address a shortage in teachers in high-demand career fields, according to Crain’s Detroit Business. Announced last week, these funds are on top of the new investments in workforce development announced in the governor’s proposed budget earlier this month. The plan would support a bevy of new and established initiatives. For K-12 education, the plan proposes to train educators to teach computer science and…

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.

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 Gov. Rick Snyder signed Executive Order 2018-2, which directs the Michigan Consortium for Advanced Networks to identify gaps in broadband service coverage and capacity, current efforts underway to address connectivity issues, and key strategies and recommendations for the state and private sector to pursue to achieve enhanced connectivity. The Consortium must present a plan by August 1, and after completion of the…

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.

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.

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. The URC also was successful in moving discoveries out of the lab and into the marketplace. From 2012 to 2016, the following results relating to the life, medical and health sciences sector were found: 1,348 inventions reported by researchers, 380 U.S. patents issued, 433 new license agreements, 32 new startup companies, and $142 million in royalties earned.