SSTI Digest

More and more established companies are trying to keep pace with technological changes by increasing their presence in the startup community. Although some companies choose to locate divisions such as software in places like the Bay Area, others are taking a more hands-on approach. Corporate accelerators function as startup accelerators that receive significant and public support from established firms such as financial investments, privileged access to resources, official endorsements by the corporation, as well as continued organizational ties. These accelerators, which continue to emerge both in the United States and abroad, illustrate a full-fledged trend in how established firms are using the startup model to innovate within their industries. Benefits to established companies working in startup acceleration are not limited to financial returns, notes Peter Lehmann in a master’s thesis at the Copenhagen Business School. Accelerators also benefit the startups by allowing entrepreneurs to leverage company resources, while also allowing the existing companies to explore areas of their industry where they are unfamiliar by supporting entrepreneurs. As a result, the…

The Economic Development Administration (EDA) is accepting proposals for a national partner to help coordinate the Accelerating Industry-led Regional Partnerships for Talent Development Program – a nationwide learning exchange that will focus on building critical regional partnerships to accelerate job-skills development across United States. In addition to administering the learning exchange, the awardee will be tasked to identify, promote, and expand upon successful best practices for industry-driven regional partnerships for talent development. The EDA anticipates one award of approximately $500,000 will be made. Eligibility is restricted to U.S. states, local governments, institutions of higher education, and nonprofit organizations. Proposals are due January 9, 2015. Read the funding announcement (EDA-REGIONAL-TALENT-2014)…

Incumbent governors in Colorado and Montana released their budget proposals this month, with both of the proposed budgets including provisions that prioritize infrastructure spending, workforce development programs, and education. Infrastructure and capital projects in particular were popular among the proposed budgets, with Colorado’s budget allocating $281.6 million to improve technology infrastructure and Montana allocating $300 million for infrastructure, including $45 million to Eastern Montana communities impacted by oil and gas development. Notable provisions within the proposed budgets that are related to economic development are detailed below. Colorado Colorado Gov. John Hickenlooper unveiled his proposed FY2015-16 budget prior to this month’s election with an emphasis on education, transportation funding, capital construction projects, and technology infrastructure. The budget reflects requests of $26.8 billion in total funds with $10.3 billion requested from the General Fund. Under the proposal, Health and Human Services, K-12 Education, and Higher Education receive approximately 75 percent of all funds requested. Proposals within the…

Over the last several years, universities have been forced to reimagine ways that they engage with alumni beyond the traditional method of fundraising via alumni donations. These universities and their alumni associations want to increase alumni involvement and facilitate interactions between their high-achieving alumni, faculty, and students. Over this same time span, many universities have increased the size and scope of their entrepreneurship curricula and degree programs. These two trends have started to merge as there has been a rise in the number of alumni angel networks that connect the talents and capital of alumni with faculty and students looking to launch an entrepreneurial venture. In 2012, approximately 40 alumni angel networks were affiliated directly with a university or alumni association. The number continues to grow as groups affiliated with Boston College, Dartmouth College, and Virginia Tech University recently launched angel networks that connect high-worth alumni with student-led startups.  University of Southern California (USC) alumni recently founded GenYrator, a for-profit equity crowdfunding platform to spur investment by accredited…

A more innovative economy does not have to lead to greater inequality, as long as educational pathways exist for middle-skill workers, according to a new report from Jobs for the Future and Achieving the Dream. The groups’ Middle-Skill STEM State Policy Framework provides a set of strategic goals for states to link the community college experience with the needs of employers. States should better align community college programs with state economic development strategies, encourage engagement and apprenticeships with the private sector and implement incentives for schools to design more innovative STEM learning opportunities. Download the report…

Federal funds for science and engineering at American universities grew steadily from 2001 to 2008, jumped in 2009 and 2010 due to the American Reinvestment and Recovery Act (ARRA), and more or less returned to its original trajectory in 2011, according to survey data from the National Science Foundation (NSF). Federal S&E funding in most states followed a similar pattern. A few states, including Minnesota and Delaware, managed to sustain their level of federal S&E support after the Recovery Act funds ceased. In fact, Delaware increased its funding at a higher rate than any other state during the 2001-11 period, becoming the only state to more than double its level of federal support. NSF’s Federal Science and Engineering Support to Universities, Colleges and Nonprofit Institutions survey tracks more types of university support than other NSF surveys. The data includes federal R&D funding, but also federal support for fellowships, training grants, R&D plant and S&E instruction facilities. The latest release provides updates on FY10 and FY11, with breakdowns by state, funding agency, nature of support and institution. Total federal S&E…

A new report released last week by Hermann Hauser, one of Britain’s most renowned technology entrepreneurs, announces his support for the expansion of the UK’s Catapult Network, a series of national centers focused on innovating around specific industry areas. Hauser played a critical role in the launch of the Catapult Network and was tapped by cabinet officials to conduct a review of the program’s progress. In Review of the Catapult Network: Recommendations on the Future Shape, Scope and Ambition of the Programme, Hauser notes that in order to take advantage of its world-leading science base, the UK must drastically increase its funding for innovation programming and the size and scope of its Catapult Centers. The Catapult Network was established by Innovate UK in 2013 to drive economic growth along seven, soon to be nine, specific industry areas and are comprised of business-focused technology and innovation centers that connect businesses with access to world-leading technology and expertise. Innovate UK is the new name of what was once the Technology Strategy Board, the government’s arm for promoting innovation-based economic development.…

Three research-focused economic development organizations have released reports over the course of the last month detailing their progress in supporting economic growth, innovation, and beyond. The University of Massachusetts, the Georgia Research Alliance, and the Virginia Center for Innovative Technologies each use a different approach to measure their success and to communicate their impact to external stakeholders. The variety of releases demonstrates the range of approaches that organizations use to provide useful data in a format that attracts attention to their achievements. GRAThe Georgia Research Alliance uses an infographic to visually display their cumulative impact. According to the graphic, GRA’s annual economic impact is $825 million. This is comprised of $30 million directly spent by GRA to recruit talent, equip laboratories, seed promising startups companies, and support research, and is further leveraged by $395 million in direct spending by industry, universities, foundations and the federal government, with another $400 million in indirect spending that ripples across the state’s economy. GRA further supplements these quantitative…

The Department of Defense (DOD) released a federal funding opportunity (FFO) to establish an Integrated Photonics Institute for Manufacturing Innovation (IP-IMI). Administered by the Air Force Research Laboratory, the Integrated Photonics Institute will assist in developing an end-to-end photonics ecosystem in the U.S. and support photonics-focused research and development efforts across the country (see related Digest article). DOD requires a 1:1 match in private funds by the awardee – an over $220 million commitment from federal and private resources. Lead applicant eligibility is restricted to nonprofit organizations. However, applicants are encouraged to establish a regional consortium that includes members from academia, government and industry. Applications are due December 19. Read the announcement (FOA-RQKM-2015-0009)…

With about 82 percent of all U.S. state legislative seats up for election on Tuesday, Republicans took control of 11 chambers previously held by Democrats, according to the National Council of State Legislatures (NCSL). As of Wednesday, state legislative chambers stood at 68 Republican and 30 Democrat, with Nebraska’s unicameral legislature as non-partisan. Republicans gained majorities in the Colorado Senate (pending recounts), Maine Senate, Minnesota House, Nevada Assembly and Senate, New Hampshire House, New Mexico House, New York Senate, Washington Senate, and West Virginia House and Senate. Over the past decade, the number of divided state governments, with different parties in power in the legislature and the governorship, has trended downward. With Republican victories in several Democratic strongholds, that trend continues. Read updates from NCSL…

In case you missed it, the midterm elections were on Tuesday, resulting in Republicans taking control of Congress, several new governors, and five states endorsing minimum wage increases. Although the 146 state ballot measures up for vote were a quarter-century low, several proposals were relevant to the TBED community, as highlighted in a Digest article last week. Voters ultimately approved many of these proposals, although initiatives related to higher-education in North Dakota and Oregon both failed.  Issue Three in Arkansas was approved by voters, officially banning lobbyist gifts to state officials, prohibiting direct corporate and union contributions to candidates, and doubling the time needed before former politicians can become lobbyists. It appeared that the measure was headed to defeat, largely because in addition to these provisions, Issue Three also increases term limits to 16 years per office.  Colorado voters overwhelmingly rejected Proposition 105, an initiative to label genetically engineered foods, with more than 68 percent of voters saying no to the labeling. About $900,000 was contributed in support for the initiative, mainly from…

In two recent academic journal articles from the United Kingdom (UK), the authors look at the characteristics that lead to successful entrepreneurs and startup firms. In both articles, the founders’ business experience – both corporate and entrepreneurial – was a strong indicator of startup success, sustainability, and job creation. Their findings indicate that national innovation policies and entrepreneurial programs in the UK should shift from focusing almost solely on faculty-led university spinoffs and millennials to a more inclusive approach that also supports mid-career professionals launching entrepreneurial ventures. University of Glasgow researchers (Ross Brown and Colin Mason) found Scottish tech startups founded by mid-career professionals from the corporate world were more likely to become a high-growth firm (more than 10 employees) than university spinoffs, according to a recent study – Inside the High-Tech Black Box: A Critique of Technology Entrepreneurship Policy. These startups founded by mid-career professionals derived their competitive advantages from open innovation sources such as relationships with end-users and customers…