SSTI Digest

Readers may have noticed the most populous states end up topping many of the statistical tables related to economic development. Normalizing the data by some relevant, related measure can provide a higher quality look that is a little closer to the “apples to apples” appeal that might help influence some policy issues. For this week’s edition of Useful Stats, SSTI is exploring research intensity as a component of state gross domestic product (GDP) and the research load “carried” by each member of the R&D personnel within the state’s higher education community.   HERD and GDP Higher education R&D (HERD) intensity as it relates to GDP, calculated as HERD expenditures as a percentage of total GDP, indicates the relative importance of R&D spending by colleges and universities to their regional economies and varies greatly across the U.S. Note that HERD survey data is released by Fiscal Year (FY), while GDP data, drawn from the U.S. Bureau of Economic Analysis (BEA), is released by calendar year. Nationwide, the HERD-to-GDP ratio has consistently ranged narrowly between 0.37% and 0.40%, and, in 2023, had a value of 0.38%. In 2023,…

SSTI’s new analysis of NIH data reveals the agency’s external R&D spending per award has been essentially treading water for the past 25 years in terms of real dollars—rising just 4% since FY 2000 when adjusted for inflation. This slow growth comes despite the crucial role NIH funding plays in technology-based economic development (TBED) policies across many states, particularly in the biomedical and life sciences. However, NIH funding remains a major economic driver as the world’s largest funder of biomedical and behavioral research, having generated nearly $2.50 of economic activity for every dollar spent in FY 2023, according to NIH estimates. While these awards support innovation, academic research, and regional economies, their purchasing power has eroded over time, barely keeping pace with inflation. This edition of Useful Stats examines national and state-level trends in NIH awards (count and funding) from FY 2000 through FY 2024 using data from NIH’s Research Portfolio Online Reporting Tools (RePORT).   Brief overview of national NIH award data Before diving into state-level NIH awards, it is important to establish a relative baseline…

Artificial intelligence, market saturation, and shifting demands from both employers and students are driving changes in coding bootcamps and other programs in the tech training sector, according to a recent Inside Higher Education story. These factors have contributed to several closures in the past year: 2U’s bootcamp division (December 2024) Codeup (December 2024) Momentum Learning Triangle coding bootcamp (August 2024) Rithm School (stopped accepting new applications in July 2024) Launch Academy (paused its code school in May 2024) Women who Code (April 2024) Epicodus (early 2024) Kenzie Academy, run by Southern New Hampshire University (2023) Other providers have recently adapted their business models. Codesmith has moved to remote-based programming as of February 2024, while General Assembly, one of the largest bootcamps, introduced part-time options in March 2024. After downsizing in 2023, Ada Developers Academy reopened with a new focus on AI in fall 2024. 2U plans to offer shorter-term microcredentials in place of its bootcamp programming. Is your organization running a tech training program. Let us know your experience by emailing tbedcop@…

In this week’s continuing coverage of gubernatorial addresses as they discuss the innovation economy, the following highlights have been selected from five of the eight State of the States or budget addresses given between Jan. 17 and Jan. 28, 2025, by the governors from Maine, Missouri, New Mexico, Utah, and Wisconsin. Information on previous 2025 State of the States and/or budget addresses can be found here. Additional addresses and states will be covered in future Digest issues. With revenues for many states relatively consistent with forecasters’ expectations, lawmakers, with a few exceptions, continue to maintain cautious or constrained views of their funding priorities and proposed initiatives. As a result, many governors in SSTI’s analysis of addresses delivered so far this season speak more to previously implemented programs and their continued successes rather than rolling out many new programs. However. new priorities growing stronger innovation economies have not been completely overlooked. On Jan. 28, Maine Gov. Janet Mills presented her State of the Budget address to lawmakers. Citing a tight fiscal environment and the leveling off of…

The U.S. National Science Foundation announced awards totaling approximately $40 million to support research and STEM workforce development in Delaware, Guam, Kentucky, Louisiana, and Vermont, according to a January 22 NSF press release. These grants are part of the NSF Established Program to Stimulate Competitive Research (NSF EPSCoR). “Strengthening Partnerships for Advancing Research Capacity in Delaware” is led by the University of Delaware and delivered in partnership with the Delaware EPSCoR State Committee, Delaware State University, Delaware Technical Community College, Goldey-Beacom College, and Wilmington University. The award abstract, notes that the project is expected to strengthen the data and intellectual property infrastructure among the participating institutions, boost interdisciplinary team-based research, improve communication and access to STEM programming, and support entrepreneurial training.  “Optimizing Research Infrastructure in Guam” is led by the University of Guam in collaboration with Guam Community College. The project’s award abstract states the funding enables “student research experiences to employ a near-peer mentoring…

Regional cooperation economic development is believed to stimulate growth in various ways, including increased trade, enhanced movement of technologies from lab to market, and improved resource allocation. Federal support for innovation-driven growth has increasingly forced applicants to take integrated regional approaches. However, empirical evidence on the specific impacts of such cooperation is scant. New research from the IZA Institute of Labor Economics seeks to address this gap by investigating the interplay between regional cooperation and integration (RCI) and two key economic outcomes: labor productivity and firm-level innovation.  In Regionalism, Productivity, and Innovation, authors Rolando Avendano, Massimiliano Tani, and Lovely C. Tolin analyze data from 170 national economies, including the United States, and 60,000 firms, covering 2010-2021. In doing so, they make extensive use of the Asian Development Bank's Asia-Pacific Regional Cooperation and Integration Index (ARCII). This index provides a framework for assessing RCI across eight key areas, including trade, investment, finance, infrastructure, and population mobility. The study uses a…

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 Alabama lawmakers are mulling the creation of a bitcoin reserve. The state recently established a Blockchain Study Commission, which held its inaugural meeting in July 2024, to explore how blockchain technology could benefit Alabama and how the state might regulate it. Also, Alabama Rep. Mike Shaw announced that he intended to introduce legislation focused on the regulation of cryptocurrency and blockchain technologies. These two coupled actions seek to understand the technology’s implications for economic development in the state and advance Alabama’s cautiously proactive approach to integrating blockchain and digital assets into the state’s financial and regulatory framework. Meanwhile, Alabama State Auditor…

Fewer of the youngest and later stage innovation-driven companies are receiving private venture capital at a time when the country needs more of both to retain our global economic leadership, according to data released in the latest report from PitchBook and NVCA. Across 2024, United States VC has seen an increase in overall deal value (+$47 billion) despite a decrease in deal count (-936) since the prior year, reveals the Q4 2024 Venture Monitor report. Values for each metric still sit below the pandemic-induced highs in 2021 and 2022. By stage, 2024 has, to date, a larger proportion of early-stage and venture growth deals, balanced by a lower proportion of pre-seed/seed and late-stage deals. This edition of Useful Stats will explore 10-year trends, from 2015 through 2024, in venture activity by stage and state using the Q4 2024 Venture Monitor report’s data.   Brief data notes It is important to note that PitchBook continuously identifies new deals and updates their datasets, often leading to increased deals and values over time from figures first announced for any particular year. Thus, older datasets are often more complete, which may cause…

With the start of the new year, most governors deliver State of the State addresses or Budget addresses laying out their priorities for the coming year. With revenues for many states relatively consistent with forecasters expectations, lawmakers, with a few exceptions, continue to maintain cautious or constrained views of their funding priorities and proposed initiatives. As a result, many governors in SSTI’s analysis of addresses delivered so far this season, are speaking more about previously implemented programs and their continued successes rather than rolling out many new programs. However, new priorities for growing stronger innovation economies have not been completely overlooked. The following highlights have been selected excerpted from eight of the 20 State of the States or Budget addresses given between Dec. 2024 and Jan. 16, 2025, by governors from Arkansas, Colorado, Connecticut, Iowa, Kansas, Massachusetts, New Jersey, and New York.   Additional addresses and states will be covered in future Digest issues. On Jan. 14, Arkansas Gov. Sarah Huckabee Sanders gave her second State of the State address, proposing a plan to improve access and…

The Future of Jobs Report 2025 by the World Economic Forum (WEF) explores how labor markets are being shaped by emerging technologies, demographic shifts, and environmental pressures. The report analyzes the evolving trends in employment, identifying both the risks of job displacement and the opportunities for job creation in a rapidly changing global economy. It also discusses the need for workers to adapt their skills to remain competitive in an increasingly automated and digital job market. The report primarily focuses on the impact of automation, artificial intelligence (AI), and energy-related technologies on future industry employment patterns. The report suggests that emerging technologies will lead to both job creation and job displacement, but the scale and nature of these shifts will vary across sectors. Job Creation: Advances in AI and its rapid deployment along with an aging population are among the greatest drivers for job growth in fields such as energy, technology, and healthcare. The sectors with the highest growth potential may not be the first that typically come to mind for most TBED practitioners, but perhaps should be. For instance, AI and…

The most recent TBED Community of Practice webinar, “SBA’s Growth Accelerator Fund Competition in Action,” featured two previous winners of the GAFC who provided tips on how to prepare for and what to expect from the competition. A representative from SBA was also on hand to give the agency’s perspective. Jack Henkel from the Florida High Tech Corridor, which received a State II GAFC award in 2023, outlined that program’s overall plan for the award, describing their planning and processes for bringing their Cenfluence initiative to central Florida, particularly rural areas. He also talked about the companies that benefitted from their program, highlighting a few as top success stories. Rick Lloyd from FuzeHub talked about their more recent 2024 award. He described how the project is reaching out to people in New York State who do not have access to universities to develop entrepreneurship, explaining that the project’s first task was to identify organizations in the state that lack such access. Both award winners addressed questions of general interest to those considering applying for the award. They detailed how their project evolved from Stage I to…

The U.S. Department of Commerce’s Economic Development Administration (EDA) announced awards totaling approximately $210 million in implementation grants, ranging between approximately $22 million and $48 million, to six Tech Hub designees from recently passed appropriations from Congress. These new awardees, all among the 15 previously designated Tech Hubs which had yet to receive Tech Hubs implementation funds,  are focused on critical technologies important to American economic and national security, according to the announcement from Commerce. This new round of awards is funded by new appropriations from the Fiscal Year (FY) 2025 National Defense Authorization Act (NDAA). The NDAA also includes a provision that could provide the Tech Hubs Program with additional funding of up to $280 million through a spectrum auction by the Federal Communications Commission. A list of awardees follows. Exact dollar amounts for each Hub will be determined as grant agreements are negotiated. American Aerospace Materials Manufacturing Tech Hub (Washington, Idaho) Lead Agency: American Aerospace Materials Manufacturing Center Technology Focus: aerospace…