SSTI Digest

The 2018 general election Tuesday proved to be a better day for Republicans in state legislative races across the country than would have been expected based on average losses for a midterm election. That said, it was also a good day, for the most part, for the political parties already in control of the statehouse chambers, regardless of affiliation: more chambers holding elections this year saw the party in control increase its numbers than lose seats.

Heading into Tuesday, four states had legislatures where the control of the two chambers was split between the Democrats and Republicans. With the election results, only Minnesota’s legislature remains divided.

Only seven state legislative chambers flipped parties after Tuesday’s election, far below the average of a dozen in most midterm elections.  Democrats picked up control of the Senate in Colorado, Connecticut, Maine and New Hampshire. Republicans secured control of the Minnesota Senate.  Minnesota and New Hampshire are the only two states to see control change in their House of Representatives, both switching to the Democrats.

With 36 governorships up for election — and more than half those open either due to retirements, term limits, or lost primaries — new faces were guaranteed in state offices across the country. As a result of Tuesday’s voting, 20 new governors will be taking office and 16 of 18 incumbent governors that were on the ballot on Tuesday will be serving another term (Illinois Governor Bruce Rauner and Wisconsin Governor Scott Walker were the only incumbent governors. defeated on Tuesday). Democrats flipped governor’s seats in seven states (Illinois, Kansas, Maine, Michigan, Nevada, New Mexico and Wisconsin), while Republicans picked up one (Alaska).  

SSTI reviewed all of the major party gubernatorial candidates’ platforms prior to the election, and here presents the election results for the 36 seats as well as the positions the winners had expressed on innovation and technology-based economic development issues.

Alabama

Since 2011, more than half of the nation's new investment in business research and development has come from California companies, and more than three-quarters has come from the top five states, according to an SSTI analysis of recently released NSF data. For the second time this year, the National Science Foundation’s (NSF) National Center for Science and Engineering Statistics (NCSES) has updated the data for the Business R&D and Innovation Survey (BRDIS),  a primary source of information on domestic and global business research and development expenditures. In 2016, companies reported nearly $317.7 billion in self-funded and self-performed domestic R&D, a $20 billion (7.0 percent) increase from the previous year, according to the updated data. This type of business R&D represented 4.0 percent of the gross state product in California and Washington in 2016, the most of any states.

SSTI has reviewed the results of ballot initiatives affecting innovation following Tuesday’s election. Higher education funding received support from voters in Maine, Montana, New Jersey and Rhode Island; however, a South Dakota measure aimed specifically at developing a fund to assist the state's postsecondary technical institutes and students was defeated. Additionally, Utah voters opposed using gas taxes to fund its schools. Several states had clean energy initiatives on their ballots, with mixed results. Arizona voters rejected a renewable energy amendment, while its neighbor, Nevada, saw voters pass one, and Washington state voters once again rejected a carbon emissions initiative.

Tuesday’s elections resulted in a Democratic majority in the House, but the changes for the next Congress go far beyond this outcome. Flipping party control means new chairs for every committee in the House; many Senate Republicans in leadership positions are reaching their party’s term limits, yielding new committee seniority; and, retirements and incumbent losses yield further changes. For the bipartisan issues of science and innovation, this shake up will produce new opportunities and uncertainties.

The changes to the House will be the most profound. By definition, a change in the majority party entails changing the chair of every committee. Rep. Jose Serrano (D-N.Y.) will now lead the appropriations subcommittee that funds commerce and science; Rep. Eddie Bernice Johnson (D-Texas) will likely chair the science, space and tech committee; and, Rep. Nydia Velázquez (D-N.Y.) will chair the small business committee.

While it has enjoyed a long history of success, the Maine Technology Institute (MTI) knew it was time to update its processes when it found itself hampered by long-standing practices. Founded in 1999, the Maine Technology Institute (MTI) is an industry-led, state-funded, nonprofit organization and among the nation’s oldest state-level technology-based economic development agencies. With a focus on diversifying and growing Maine’s economy by supporting activities around innovation and entrepreneurship, MTI has invested nearly $230 million across more than 2,000 projects in the state. Still, the organization sought improvement. In 2016, MTI embarked on a 15-month strategic planning process and met with more than 120 stakeholders across Maine’s innovation ecosystem. The work has culminated in a new guiding plan for the organization, as well as key changes to the structure and delivery of MTI’s programs and investments.

Last week, SSTI highlighted the recently released issue of the Economic Development Quarterly where three pieces stand out for their relevance to practitioners and policymakers. This article takes a look at how academic research can inform three common strategies for strengthening the manufacturing sector and encouraging regional economic development: targeting industry clusters, leveraging manufacturing extension services, and promoting workforce development.

Companies already repurpose trash into marketable products, but can the same concept work with air pollution? The National Academies of Science provides a detailed answer to this question in a committee report outlining the necessary research and innovation investments to foster the commercial exploitation of carbon dioxide and methane gas emissions generated by our current industrial economy. Gaseous Carbon Waste Streams Utilization: Status and Research Needs presents a comprehensive public-private approach to creating jobs, wealth and entire new industries while reducing the environmental cost of our carbon-intensive economy.  

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

NexusLA announced the launch of Apprenti Louisiana –  the state’s first registered information technology (IT) apprenticeship program. NexusLA, a Research Park Corporation subsidiary, will partner with Apprenti to support the program. Apprenti, a Seattle-based apprenticeship model, was launched in 2015 by the Washington Technology Industry Association and is now expanding in communities across the U.S.

Alabama Gov. Kay Ivy announced the Alabama HBCU Co-Op Pilot Program to provide students at the state’s 14 Historically Black Colleges and Universities (HBCUs) with the opportunity for hands-on work experience in STEM fields as well as create greater collaboration between Alabama’s HBCUs, industry, and government. Participating students will be required to complete three co-op semesters with some of the state’s top companies in order to gain a sense of professional experience in the area of their majors. Upon successful completion of the program, students will receive a Certificate of Completion. The pilot program is scheduled to launch in early 2019.

To participate in the Alabama HBCU Co-Op Pilot Program, students must be at least 18 years of age and enrolled at one of the Alabama HBCUs with a minimum GPA of 3.0 in a STEM field of study. Four-year students must have completed their first year of study while two-year students should have completed at least one 15-week term. Eligibility also is restricted to students who are racial/ethnic minorities.

The U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) is funding a program to better connect entrepreneurs, industry and investors with inventions from federally funded R&D. NIST has created a partnership with National Technical Information Service (NTIS) and will invest $1.7 million of its Lab to Market funding to complete the project.

The project is to create a cloud-based solution that consolidates access to commercially relevant information on federal technologies and intellectual assets, and is being led by Berico Technologies. The goal for the NIST project is to connect private companies seeking technologies to license and commercialize with relevant federal agencies, as well as to identify research assets available for further development. The new site will use data analytic tools to curate and identify complementary technologies from across the federal research system through a single site.