SSTI Digest

Over the years, the SSTI Digest has covered every aspect of the innovation economy, touching on entrepreneurship, high-tech research, STEM education, economic trends, global competitiveness, federal, state and local policy, and much more. We have striven to achieve a balance between news and analysis, bringing our readers everything they need to understand the evolving state of tech-based economic development.

To celebrate our second decade, SSTI has assembled some of the most important articles of our past 20 years.

On March 1, 1996, the first edition of the SSTI Digest was sent to a select group of fewer than 60 state tech-based economic development leaders. The original subscribers received the Digest via fax every Friday because Sprint offered unlimited, free calls and faxes each Friday. Since these early days, the Digest has grown to thousands of subscribers from across the country as well as hundreds of subscribers from several countries.

Over the past 20 years, the Digest’s subscriber base has grown and diversified to include not only state economic development professionals, but professionals from local governments, venture development organizations, nonprofit organizations, and universities. To celebrate the 20th anniversary of the Digest, SSTI reached out to current subscribers of the Digest who also received the original edition to share their thoughts on the Digest and why it remains an essential read for them:

The Department of Energy (DOE) has published a formal response to the final report of the Commission to Review the Effectiveness of the National Energy Laboratories (CRENEL). The commission’s report, Securing America’s Future: Realizing the Potential of the Department of Energy’s National Laboratories found that the DOE Labs need to focus on six key themes: recognizing their value; rebuilding trust; maintaining alignment and quality; maximizing impact; managing effectiveness and efficiency; and, ensuring lasting change. In response to the recommendations offered in the CRENEL report, the DOE’s formal response indicates that the department is committed to executing the following objectives, including to:

Governors around the country continue to lay out priorities for the next legislative session. In the coming weeks, SSTI will review gubernatorial addresses and budget proposals related to economic development. This week, we highlight developments in Illinois, Michigan and New Jersey.

Immigrants play a significant role in American innovation, while women and minorities are underrepresented, according to a new report from the Information Technology and Innovation Foundation (ITIF). In the report, the authors utilize a survey of more than 900 individuals who have contributed to the development of a notable technological innovation from 2011 to 2014, allowing them to gain additional insight on items such as their gender, ethnicity, education, funding sources, and age.

While the Department of Commerce’s (DOC) Economic Development Administration (EDA) continues to take steps to implement the Federal Loan Guarantees for Innovative Technologies in Manufacturing (ITM) program, additional steps remain before they can issue loan guarantees according to a new report from the United States Government Accountability Office (GAO). To reduce redundancies across similar programs, GAO recommends that EDA works with the Small Business Administration (SBA) and the National Institute of Standards and Technology (NIST) to identify additional gaps in capital access that the program could fill, and conduct outreach to help target those gaps.

A bipartisan group of 17 governors signed the Governors’ Accord for a New Energy Future – a joint commitment to support the deployment of renewable, cleaner and more efficient energy technologies and other solutions to make the U.S. economy more productive and resilient as well as spur job creation in member states. The multi-state effort will work to implement clean energy policies and initiatives in four areas: clean energy, clean transportation choices, a modern electrical grid, and plan for a new energy future. Although the accord doesn’t provide specific efforts, senior advisors to participating governors are expected to convene shortly to discuss initial steps to pursue their shared priorities and commitments according to solarindustrymag.com.

The National Institute of Standards and Technology (NIST) released a new Federal Funding Announcement (FFA) to award its first national manufacturing innovation institute (NMII). Proposers may solicit a new NMII on any advanced manufacturing technology focus area not already addressed by another institute or competition. NIST intends to make one award in the form of a cooperative agreement that will provide up to $70 million in federal support over a five-year period – NIST requires the awardee match federal funds with equal funding from non-federal sources. The solicitation is open to U.S.-owned entities organized and operated in the United States including U.S. states, local governments, institutions of higher education, nonprofit and for-profit organizations. Applications must be submitted by July 22, 2016.

More than three-quarters of U.S. venture capital dollars went to companies in California, New York and Massachusetts in 2015, according to data from the PricewaterhouseCoopers (PwC)/National Venture Capital Association (NVCA) Moneytree Report. California companies received over 57 percent of all U.S. investment, about 0.5 percent down from the state’s peak in 2014. Both New York and Massachusetts received about 10 percent of U.S. dollars. Washington, the state with the fourth highest share, trailed far behind at 2.1 percent. California and Massachusetts also both led in venture capital dollars per capita, taking in about $860 and $841 per resident, respectively. Massachusetts continues to lead the nation in deals per capita, with about 6.5 per 100,000 residents.

The National Science Foundation (NSF) released a solicitation to establish and sustain Innovation Corps (I-Corps) Nodes as part of I-Corps’ National Innovation Network that builds upon fundamental research to guide the output of scientific discoveries closer to the development of technologies, products, processes and services that benefit society. NSF will commit up to $8.5 million to support seven I-Corps Nodes to foster understanding on how to:

• Identify, develop and support promising ideas that can generate value;
• Create and implement tools, resources and training activities;
• Gather, analyze, evaluate and utilize the data and insight resulting from the experiences of those participating in regional programs; and,
• Share and leverage effective innovation practices on a national scale.

Eligibility is restricted to institutions of higher education including community colleges as well as other nonprofit organizations. NSF requires that potential applicants submit a letter of intent by March 10. Read the FOA…

In the last month, several international countries and Hong Kong have made significant monetary contributions to establish investment funds that will make strategic investments in their country’s startups. These investment funds have a two-fold focus. First, they want to help provide early stage capital to companies that have the potential to spur economic prosperity within their borders. Second, they want to help make their companies more appealing to foreign investors.

Hong Kong
In January, Hong Kong’ s chief executive Leung Chun-ying announced the launch of a new $2 billion HKD (256.9 million USD) innovation and technology venture fund during a policy address. The fund will focus on making strategic investments to grow Hong Kong-based startup ventures with the intent of increasing funding from private venture funds through a matching process.

SSTI’s analysis of gubernatorial addresses, strategic plans and budget proposals continues this week with highlights from Alabama, Louisiana, Oklahoma, Pennsylvania and Tennessee. Governors are facing difficult fiscal situations in several of these states, often scaling back tech-based economic development efforts. Tennessee Gov. Bill Haslam, however, is using a fiscal surplus to invest in higher education and regionally focused economic initiatives.

Alabama