SSTI Digest

Creative, digital, design and engineering occupations all have bright outlooks, along with architectural and green occupations, according to a recent report from Nesta, a global innovation foundation. Nesta took into account five major trends in mapping out how employment is likely to change in the future, and the implications for skills.

Nesta used a comprehensive mixed-methods approach in The Future of Skills; Employment in 2030, including consideration of diverse and interacting sources of structural change, which are expected to impact future skills needs. In analyzing both the U.S. and United Kingdom, the foundation assembled detailed information about occupations, which were debated and discussed in workshops. That information was used to train a machine learning classifier to generate predictions for all occupations and estimate the skills that would most likely experience growth or decline.

Senators Jerry Moran (R-Kan.) and Mark Warner (D-Va.) along with Senators Roy Blunt (R-Mo.) and Amy Klobuchar (D-Minn.)  introduced the Startup Act today – legislation that would help regions throughout the country address critical gaps between R&D and economic prosperity. SSTI has worked with the offices on sections of the bill that reauthorize and expand the Regional Innovation Strategies program and would implement a new commercialization grants program. SSTI supports the Startup Act (S. 1877) and calls upon other senators to cosponsor this bill and for the House to take up the legislation.

In a press statement accompanying the reintroduction, Moran explained the urgency of the issues to be tackled by the varied elements of the bill.

Do state policies focused on growing opportunity through science, technology, innovation and entrepreneurship work? Which approach has more success: encouraging technology commercialization and entrepreneurship or building and filling incubators and research parks?  To try to answer these questions, new empirical research looks at the effectiveness of sustained state investments in technology-based economic development activities on high-technology job growth.

In the most recent round of Regional Innovation Strategies (RIS) funding, 42 organizations from 28 states were awarded $17 million to support the creation and expansion of tech transformation networks (i6 Challenge) and early-stage seed capital funds (the Seed Fund Support). In total, EDA’s awards leveraged over $22 million in private, state and local matching funds. Eight of those winners are members of SSTI and we heard from several of them on what this award will mean for their organization.  SSTI’s Innovation Advocacy Council has been instrumental in supporting the program, working with members of Congress to ensure its continued success.

In 2015, businesses spent 4.4 percent more on R&D performed in the U.S. than they did in 2014, reaching $356 billion total, the NSF reports. Of the total R&D expenditures in 2015, companies spent $22 billion (6 percent) on basic research, $56 billion (16 percent) on applied research, and $278 billion (78 percent) on development.

Funding from companies' own sources was $297 billion in 2015, a 5 percent increase from the $283 billion spent in 2014. Funding from other sources was $59 billion in 2015 and $58 billion in 2014. Companies in the manufacturing industries accounted for the lion’s share ($236 billion of 66 percent) of domestic R&D, with most of that (83 percent) coming from the companies’ own funds. That spending was also concentrated in a small number of states. Businesses in California accounted for 32 percent of the $297 billion, followed by Massachusetts (6 percent of the national total), Washington (6 percent), Michigan (5 percent), Texas (5 percent), New York (4 percent), New Jersey (4 percent), Illinois (4 percent), and Pennsylvania (3 percent).

Two states taking a fresh look at their economies convened task forces that recently released reports detailing efforts the states can make to improve their state’s economic futures. In Missouri, Gov. Eric Greitens asked an innovation task force to take stock of the state’s current standing and offer options to help businesses and innovators succeed. The resulting summary report offers more than 30 options that the state could pursue in growing its economy. In West Virginia, WVU President Gordon Gee, Marshall University President Jerome Gilbert and WV Secretary of Commerce Woody Thrasher released findings from the West Virginia Forward report that identifies possible short- and long-term solutions for the economic challenges the state faces and will result in a memorandum of understanding among the three to help implement the report’s findings.

While more Americans live in communities that are “prosperous” compared to “distressed,” large gaps persist across geographies, demographics, and educational attainment, according to a new report from the Economic Innovation Group (EIG). The 2017 Distressed Community Index, an update to last year’s release, is comprised of seven related metrics and categorizes communities into one of five tiers based on performance: prosperous, comfortable, mid-tier, at risk, and distressed. To “reconnect” distressed communities and foster economic inclusion, the report’s authors recommend activities to support grassroots economic growth and reversing policies (e.g., restrictive zoning, occupational licensing requirements, and discriminatory housing policies) and other actions that have helped “tip the scales” in favor of the prosperous.

Columbus-based State Auto Labs, the innovation arm of the State Automobile Mutual Insurance Company, is collaborating with venture development organization Rev1 Ventures on a $25 million corporate venture fund to support innovation and entrepreneurship in the insurance industry. Through the partnership, Rev1 Ventures and State Auto Labs will help connect InsurTech and FinTech startups with resources such as capital, technologists, and industry experts. The fund, Rev1’s largest to date, will focus on four key investment areas: technology related to the internet of things; the role of machine learning and artificial intelligence in supporting data driven decision-making; distribution technologies; and, products and solutions that focus on the changing needs of insurance customers. 

SSTI’s 2017 Annual Conference held last week in Washington, D.C., helped build bridges to the future through its gathering of more than 250 participants working to create a better future through science, technology, innovation and entrepreneurship. Congressman David Cicilline addressed the gathering and stressed the importance of the Regional Innovation Strategies program in his keynote address. Thought leaders revealed insights on the current political climate, social and demographic trends across the nation, and the importance of building an inclusive effort to create sustainable and meaningful change.

Attendees were able to mingle with Hill staff during the National Innovation Reception and outstanding programs from across the country were recognized in the Creating a Better Future Awards program. The premier gathering of peers return home with new ideas and solutions developed from the numerous sessions focused on challenges and solutions to a variety of issues including capital formation, workforce and talent development, scaling start-up companies and more.   

Recognizing that the former steel city was at tipping point in its development, Pittsburgh’s city leaders decided to tip the scale toward continued growth. Whether the city is able to rise to the level of a serious global competitor may hinge on the implementation of initiatives that will guide the city in capitalizing on their innovation, research and business assets, according to a new report from the Brookings Institution. Pittsburgh leaders received a call to action as a result of a collaborative effort initiated by two city foundations and the Brookings Institution.

The Innovation Advocacy Council (IAC), an initiative of SSTI to better communicate with and educate Congress on innovation issues, has named Ben Johnson its new chairperson. Johnson, BioSTL’s vice president of programs, will take over the position from Michael Cassidy, president and CEO of the Georgia Research Alliance.

“We’ve been able to achieve our current level of success because of the continued strong leadership that individuals in the innovation space have provided for the effort,” said Dan Berglund, SSTI president and CEO. “This country is at a junction where policy support to advance the principles of innovation that will create jobs and advance economic prosperity is crucial. Mike Cassidy has guided the effort well, and we look forward to Ben’s continued leadership on this front.”

On September 20, the Economic Development Administration (EDA) announced $17 million in awards to the 2017 Regional Innovation Strategies (RIS) program awards. SSTI’s Innovation Advocacy Council has worked with members to encourage Congress to support this program, which makes awards to support the creation and expansion of tech transformation networks (i6 Challenge) and early-stage seed capital funds (the Seed Fund Support). In total, EDA made 42 investments that leveraged over $22 million in private, state and local matching funds, including to eight SSTI members:

Seed Fund Support Awardees

• Biogenerator – $300,000
• JumpStart Inc. – $300,000
• Louisiana Tech University – $299,178
• Enterprise Center of Johnson County, Inc. – $150,000

i6 Challenge Awardees