SSTI Digest

In 1978, Massachusetts took a risk and made an $8.5 million investment into one of the earliest technology-based economic development (TBED) initiatives in the world. The commonwealth, among the states hard-hit by the global manufacturing restructuring underway at the time, which led to the deep recession of the early 80s, knew it needed to try something different to restore its economy and its long-term competitiveness. A new independent impact analysis of the cumulative impact from what became known as MassVentures, spanning its 46-year history, should serve as an example of what public seeding and sustained support for TBED can deliver as a highly effective, game-changing economic development strategy.  MassVentures President and CEO Charlie Hipwood said at the report’s release, “MassVentures is one of the most successful and impactful government-initiated programs on a per dollar basis in the United States.” The annualized impact figures and VC-envying returns bear out the proud statement. Based on an IMPLAN study conducted by the UMass Donahue Institute with MassVentures financial support, for every $1 million of taxpayer dollars (inflation adjusted),…

Tuesday, July 1 | 3:00 p.m. EST Whether your region is just beginning to address market failures in risk capital availability and performance for innovation-centered companies or your current efforts could use a refreshing check-in among peers, please plan to join us for the kick-off of our Innovation Finance Community of Practice Series.  This new educational series is intended to support the needs of technology-based economic development professionals who design, develop, manage and evaluate public-private risk and growth capital funding programs. The first session will focus on giving people a chance to weigh in on the proposed curriculum and providing an opportunity for participants to identify topics they would like to explore in more depth in the coming months. Looking forward, you will have an opportunity through a variety of introductory, advanced and expert sessions and tools to present your experiences, learn from real-world examples of field professionals, and apply your new knowledge toward increasing the outcomes from your innovation finance initiatives. You can sign up for SSTI’s Innovation Finance Community of Practice and register…

On June 3, SSTI will host a webinar exclusively for Innovation Advocacy Council members to receive an in-depth update on many of the confusing factors in play in the federal policy and budget environments—the key factors influencing the future of your state, regional and university TBED strategies. IAC partners at Van Scoyoc & Associates will be on hand to provide the latest news from the Hill and answer questions to help make sense of any new developments. From reconciliation to rescissions to possible impoundment to skinny and full budgets, the FY2025 and FY2026 budget process is one for future history books and too complicated for TBED leaders to stay fully abreast of while meeting your mission objectives. That’s where the IAC comes in! Keeping track of these developments and helping us map our best funding strategies for the best service delivery is why IAC has partnered with the amazing VSA team.  The Innovation Advocacy Council is the only group exclusively dedicated to educating Congress on the full spectrum of federal investments in public-private technology-based economic development initiatives, efforts proven to help grow stronger regional…

The list of technology-based economic development initiatives within the newly created Technology and Innovation Office of the New Mexico Economic Development Department covers the spectrum of critical policy aspects required for a strong state innovation economy: increasing R&D, business incubation, targeted emerging technologies and strong existing assets, startup capital, venture development, and innovation talent development and recruitment. With Governor Michelle Lujan’s signing of House Bill 20, which commits nearly $93M of public dollars—much or most requiring private match—the new office represents a serious investment from a state of just over 2.1 million people. The new Technology and Innovation Office will absorb the former Office of Strategy, Science and Technology and will include the following priorities:  $40 million to establish the Research, Development and Deployment Fund; $20 million for quantum technologies and business incubation; $5 million for infrastructure for innovation hubs; $5 million for operational support for incubators, accelerators, and venture studios; $8 million for grants in advanced energy; $4 million for science and…

Note: TBED101 is a new, occasional series for Digest readers visiting and revisiting fundamental topics for nurturing strong regional innovation economies. SSTI is introducing this series, with EDA support, as the field has entered one of its most significant periods of disruption and change in its 45-year history. Separately, SSTI members will be able to participate in more in-depth explorations of the issues in the coming months as part of their membership. Consider joining here. In public policy discussions and popular media, the terms “critical technologies” and “emerging technologies” are frequently invoked—but their meanings are often conflated. For policymakers, clearly distinguishing between the two is essential, as each category carries distinct policy imperatives for funding, regulation, and national security. Emerging technologies are primarily defined by their novelty and developmental stage. They represent the…

If you’re leading a knowledge work[1] organization and considering introducing generative artificial intelligence into your workflow, it likely would be helpful to know how its use may impact the day-to-day aspects of your team’s work, and the potential risks involved.  A recent study by researchers at the University of Chicago and Argonne National Laboratory provides a resource for understanding organizational adaptation of generative AI. They surveyed science and operations employees in the lab to learn about their perceptions and concerns of the potentially transformative or possibly disruptive technology. With responses divided between science and operations workers, the researchers then conducted follow-up interviews with one-third of the group. Their findings are relevant to knowledge-based organizations beyond national labs: the dichotomy between knowledge specialists and operations workers can be found in many science and non-science organizations. Also, similar to banks and government institutions, national labs regularly deal with sensitive data that heightens concerns and real risks regarding privacy and security. When surveyed employees…

For the United States to achieve greater security in chip manufacturing, the critical sector requires a much larger, better trained workforce. Between 2020 and 2022, annual postings for semiconductor jobs tripled from about 8,000 to almost 25,000, according to a new report, “The challenge of building a regional semiconductor workforce pipeline: What regions can learn from Austin, Texas and an agenda for cross-regional learning” from the Institute for Networked Communities (INC). As noted in the report, analysts expect that between 2023 and 2030, the industry will grow 33%, an increase of 115,000 jobs. At current degree completion rates, approximately 67,000 jobs would go unfilled. The INC report illustrates what it takes to build an industry-driven workforce system in the semiconductor industry based on the experience of Austin, Texas. The co-authors Francie Genz, Ryan Donahue, and Erin Sparks delve into what other regions can learn from Austin and why a cross-regional learning and action network is needed. “The stakes for getting regional workforce strategy right in the semiconductor space couldn’t be higher,” said Francie Genz, CEO of INC, in an email. “…

The White House Fiscal Year 2026 discretionary budget proposal outlines a significant shift in federal spending priorities, proposing substantial reductions in innovation and non-defense discretionary funding, which, if enacted by Congress, would impact scientific research and regional economic development support across numerous federal agencies.  The initial release of the White House's FY2026 budget proposal is characterized as a "skinny budget," indicating that it provides a high-level overview of the administration's discretionary spending priorities without the detailed line-item specifics contained in a full budget request. The proposal aims for a $163 billion cut in non-defense discretionary funding, a 22.6% reduction from the previous fiscal year.  Regional Innovation supportWithin the Department of Commerce (DOC), the National Institute of Standards and Technology (NIST) would see a reduction of $325 million. The administration has already signaled its intention to eliminate the Manufacturing Extension Partnership program, which has provided technical…

The United States faces intense competition in global markets for advanced technology industries. The Information Technology and Innovation Foundation (ITIF) article, "The State Hamilton Index: Most states underperform in advanced industries" by Meghan Ostertag reveals a concerning trend regarding the geographic distribution and overall strength of advanced industries within the U.S. The 2025 State Hamilton Index indicates that most U.S. states lag behind both the global average and China in their concentration of employment in advanced industries deemed crucial for economic growth and national security. Only four states don’t lag across multiple sectors, and only one beats China.  ITIF warns of the systematic challenge with the U.S. underperforming the world average in employment concentration in the Hamilton Index industries. The industries are  information technology (IT) and information services, including software and internet services; computer, electronic, and optical products…

The SSTI Board of Trustees has appointed Kristy Campbell, president & chief operations officer at Rev1 Ventures, and John Fernandez, chief executive officer at The Mill, as members of the board.  “I look forward to working with Kristy and John as new board members,” Dan Berglund, SSTI’s president, said with their appointments. “Both are proven, inspiring leaders, have been long time friends of SSTI, and demonstrated strong commitments to advancing the TBED community.”

SSTI has recently expanded its staff to include Aaron Hagar as their vice president for innovation finance. Hagar brings over twenty years of experience spanning biomedical research, heath care, public policy, and technology-based economic development to share with SSTI's members. He has significant experience building partnerships, creating innovative solutions, shaping public policy, and developing data-driven strategies. “I’m excited to have Aaron join the SSTI team,” CEO Mark Skinner said. “SSTI will be in a much stronger position to serve the needs of the nation’s community of non-profit venture development organizations, SSBCI venture programs, and innovation finance initiatives. Aaron brings a rich depth of knowledge of publicly supported finance programs, fresh energy and creativity, and a tremendous understanding the public-private collaboration required to achieve financial and economic development returns simultaneously. For the past thirteen years, Hagar has worked at the state level to support entrepreneurs and startups in Wisconsin. Most recently, he served for over eight years as vice president of…

America's Seed Fund returns to the J.W. Marriott in Austin, Texas, for the SBIR/STTR Spring Innovation Conference from June 9 -11.  SSTI Weekly Digest readers may use these discount codes to reduce their cost for attending: Full SBIR/STTR Program | Register Now Use code 25SBIR20 for a 20% discount when you select the "SBIR/STTR Program Only" registration option. This includes the Keynote Session, SBIR/STTR panel sessions, and access to the SBIR Pavilion in the Expo Hall. Free Access to the Expo Hall Only | Register Now Use code 25SBIREXPO at checkout when you select the "TechConnect Expo Floor Only" registration option. This includes the Keynote Session and access to the SBIR Pavilion in the Expo Hall. Registrants will directly access SBIR agency representatives in the SBIR Pavilion and Expo Hall. The Expo Hall also features over 100 organizations and companies, providing a space to connect with innovators, technology scouts, investors, and federal agency representatives.