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…

A new innovation hub slated to open in January in Washington promises to connect 5G startups with investors and technology labs, while also creating a pipeline of jobs for students interested in the emerging sector. A separate effort in Virginia will become a testbed for 5G wireless security that is expected to accelerate cyber research and include 39 universities and four federal partners. Last year, the president directed the secretary of commerce to lead the creation of a long-term spectrum plan and the White House Office of Science and Technology Policy (OSTP) has since outlined development priorities for American leadership in the emerging technology.  But with no 5G network up and running yet, one may begin to wonder if all the attention is hype, or rooted in reality of a truly disruptive technology that will largely advance society. A recent briefing paper from the Berkeley Roundtable on the International Economy seeks to answer who is likely to benefit from this promised vastly faster connectivity, and how that value will be captured.

When Gov. Janet Mills addressed the United Nations General Assembly on Sept. 23, it was the first time a sitting governor of Maine has been asked to address the body. She had been invited as part of her participation in the UN Climate Action Summit 2019, and has made tackling climate change and embracing renewable energy key priorities of her administration. She is not the only governor stepping into the role where the federal government has backed out. Twenty five states are now part of the United States Climate Alliance; a collection of states that have committed to taking action that addresses the climate challenge and implement policies that advance the goals of the Paris Agreements, aiming to reduce greenhouse gas emissions by at least 26-28 percent below 2005 levels by 2025. Mills, along with governors from Illinois, Montana, Nevada, New Mexico and Pennsylvania, all joined this year. They are part of the increasing action seen across the states in clean energy, climate change and carbon reduction. This story takes a look at some of the 2019 developments in the states. California A standoff between the Trump administration and California centered on emission…

New Mexico Gov. Michelle Lujan Grisham became the latest governor to propose a plan for free tuition, with what has been called the “one of the most ambitious attempts to make higher education more accessible.” If approved, the plan would allow in-state students to attend any of the 29 state public colleges or universities, regardless of income. It is designed as a “last-dollar” program. If approved, it would be just the second state to offer full tuition coverage to its residents (New York offers the Excelsior scholarship, which will be fully phased in in 2020), according to New Mexico’s governor. The New Mexico program would be “an absolute game-changer” for the state, according to the governor, who said in a prepared release that higher education has been a victim of the recession and that by making college more accessible to students in the state, the state would in turn see improved economic growth, improved outcomes for workers and families, and a better trained and better compensated workforce. While New Mexico’s efforts are still in the proposal stage and Virginia’s governor has announced that he will…

Reviewing another slate of governors’ state of the state and inaugural addresses reveals some recurring themes. With a focus on maintaining gains made since the Great Recession and increasing budgets, many governors are holding off on major new initiatives, but are proposing means to increase broadband access, diversify their economies, build renewable energy efforts, and increase their rainy day funds in case of an economic downturn. SSTI presents part 2 of our Tech Talkin’ Govs series, with coverage of governors in Colorado, Connecticut, Oregon, Virginia, West Virginia and Wyoming. 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. Colorado Gov. Jared Polis reiterated his goal of reaching 100 percent renewable energy in the state by 2040 and desire to expand broadband: “As Governor, my goal is to lead the statewide transition to a clean, sustainable, and growing economy. It is imperative for our climate, our security, our health, and our economic growth for all Coloradans. We will lead…

Vibrant Virginia (VV), a new program from Virginia Tech’s Office of Economic Development, is offering seed grants as a way to encourage faculty and graduate students to explore persistent public policy challenges spanning the state’s urban, suburban, and rural communities. Providing between $5,000 and $12,000 to university researchers targeting key issues facing the state, VV has an initial focus on Southwest Virginia, Hampton Roads, Northern Virginia, and Southside Virginia – regions located outside of the university’s traditional footprint. Examples of projects funded so far include programs that match public school students with internships, build online capacity at rural nonprofits, and use population health expertise to identify strategies around the opioid crisis. The VV program also funds regional conversations to help Virginia Tech become a more effective partner in advancing community changes, as well as academic projects, which seek to highlight important challenges and opportunities across the state.     

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.

New Jersey is considering a state program for free tuition for community college which would be phased in over several years and Virginia is proposing money for a customized workforce recruitment and training incentive program in newly proposed state budgets. Both states have new governors who have revised their predecessors’ budgets, resulting in some additional TBED initiatives in the states. New Jersey Gov. Phil Murphy’s proposed FY 2019 budget includes $50 million for tuition-free community college. The plan would provide tuition grants to students with average household incomes below $45,000, with the intention of phasing in more students until community college is free for all students by 2021. A $2.0 million grant program to help school districts offer college-level computer science courses and support, targeting STEM-focused high schools. In his budget message, the governor proposes a student-loan-forgiveness program that rewards those who graduate with a STEM-related degree and get a job in a corresponding field, all while staying in New Jersey. Although the governor also campaigned with this plan, there are no additional details in the budget…

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 third installment, we present excerpts from governors in Delaware, New Mexico, Rhode Island, Virginia and West Virginia. Many of the governors across the country are delivering the final addresses and taking the time to look back over their term on accomplishments while others are looking forward to new initiatives. The Delaware governor’s comments in the innovation space centered on jobs and strengthening training opportunities while in New Mexico the governor is term limited and she took the opportunity to focus on jobs and manufacturing partnership with Mexico. The Rhode Island governor, who has indicated she will run for reelection this year, focused on education, job training and small business. Growth in the state’s clean energy industry was an accomplishment touted by the outgoing governor in Virginia. And in West Virginia, the governor is interested in free technical and community colleges.

The innovation economy is a featured component of both newly elected governors’ agendas, with each showing support for TBED-related initiatives in their platforms. In New Jersey, Governor-elect Phil Murphy (D) has pledged to reclaim the state’s innovation economy while in Virginia Governor-elect Ralph Northam (D) proposed a new workforce development plan focused on “the new-collar jobs of the 21st century.” In New Jersey, Murphy has vowed to reclaim the innovation economy through a variety of means including: getting new advancements to market; making higher education and community colleges more affordable; developing a STEM-oriented K-12 curriculum along with “alternative pathways to success,” including apprenticeship programs and vocational training; lowering tuition and fees at public two- and four-year colleges; increasing state funding for R&D; convening an innovation cabinet with leaders from inside and outside government; increasing access to capital for small businesses and startups; and, providing computer science education to every child in the state’s public schools. In Virginia, Northam is proposing a new…

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.

While many universities maintain startup investment funds targeted at growing university-affiliated startups, several universities are looking beyond their walls for investment opportunities that will create a return on investment (ROI), but also support economic prosperity. Through these investment funds, universities are able to make strategic investment in startups that will contribute to the future growth of their community, region and state. Massachusetts provides a recent example where MIT will invest $25 million in local startups.  Virginia Tech has also said it will invest $15 million in startups willing to locate in Blacksburg and Roanoke’s innovation corridor. In late 2016, MIT announced a $25 million startup investment fund as part of its broad entrepreneurship initiative, dubbed The Engine. Beyond MIT-affiliated startups, the potential $150 million Engine fund will be open to Cambridge startups in biotech, robotics, advanced manufacturing, medical devices, and energy. In addition to the startup capital, MIT resources would be available through a 26,000-square-foot startup space on the edge of its campus. To ensure no bias in the…