SSTI Digest

On average, Black households engaged in entrepreneurial activity have a higher rate of return on their business in comparison to Hispanic and white households, according to an Economic Commentary from the Federal Reserve Bank of Cleveland. Public policy encouraging and supporting minority entrepreneurship and innovation pays profits as well as social dividends, the study reveals. The average yield of equity invested in a business, regardless of the household’s involvement in the business, is 5.6% for Black households, 4.6% for white households and 2.5% for Hispanic households.  However, white households tend to have higher percentages of business ownership and entrepreneurship than their Black and Hispanic counterparts. About 15.4% of white households invest in private business in some form and the entrepreneurship rate is 12.4%. This rate is significantly higher than Black households, of which 5% are entrepreneurs and 0.9% are passive investors, and Hispanic households where business ownership rates are 6.4% and entrepreneurship rates are 5.6%.  The authors note that the rates of entrepreneurship and business ownership among white…

The 2020 pandemic was unique when it came to changes in the labor market. Unlike in previous recessions, most layoffs from the pandemic were temporary. While employment is back to pre-pandemic levels, the recovery has been uneven across states and industries, leaving some states still with a deficit while others have grown past 2019 levels. Utah, for example, according to an economic commentary by Martin DeLuca and Roberto Pinheiro of the Cleveland Fed, observed employment growth above 6% since 2019, while Vermont remains 6.5 percent below its 2019 average employment. Similarly, while services and sales occupations are down 6% and 7%, respectively, since 2019, the authors found that management and computer and engineering occupations are up 7% and 10%, respectively. This uneven recovery may be due to the differences in regulations between states. The authors found that more stringent COVID-19 containment measures were associated with lower population growth, indicating some out migration from these states. The pandemic did change the distribution of workers with the introduction of more remote work, influencing economic activity all around, but this shift may be…

The NIST (National Institute of Standards and Technology) Manufacturing Extension Partnership (MEP), a national public-private partnership initiative within the US. Department of Commerce dedicated to serving small and medium-sized manufacturers through 51 state centers, including Puerto Rico, recently released its Fiscal Year (FY) 2022 Client Impacts data following a survey of more than 9,000 manufacturing-related clients and businesses.  The MEP network reported assisting U.S. manufacturers in achieving the following: creating or retaining over 116,700 jobs; saving $2.5 billion in costs; generating $18.8 billion in new or retained sales; and, producing $6.4 billion in new client investments. In total, building upon survey results and center metrics, this national network of MEP Centers in FY 2022 interacted with more than 33,500 manufacturers; for every one dollar of federal investment last year, the MEP National Network generated $35.80 in new sales growth and $40.50 in new client investment, which translated into more than $5.6 billion in new sales. During this same time, for every $1,353 of federal investment, the network either created or retained one…

A report many years in the making was released this week by the National Academies of Science, Engineering and Medicine (NASEM) that, for the first time in the organization’s history, confronts racism in its title. After the summer of 2020, following the murder of George Floyd and the Black Lives Matter protests, federal agencies and private foundations prioritized sponsoring a report on antiracism and diversity, equity and inclusion, focused on science, technology, engineering, math and medicine (STEMM). The resulting Advancing Antiracism, Diversity, Equity, and Inclusion in STEMM Organizations: Beyond Broadening Participation aims to move beyond promoting numeric diversity and outlines actions that STEMM leaders and gatekeepers can take to “foster a culture and climate of antiracism, diversity, equity, and inclusion that is genuinely accessible and supportive to all.” NASEM appointed the Committee on Advancing Antiracism, Diversity, Equity and Inclusion in STEM Organizations — what Co-chair Gilda Barabino, president of the Olin College of Engineering, in a webinar announcing the release of the report called one of the most diverse committees the National Academies had…

The U.S. Treasury Department announced that the government will begin taking applications May 31 for the first $4 billion of the $10 billion Qualifying Advanced Energy Project Credit program and tax break for solar-and-wind projects in low-income communities. This credit is part of the Inflation Reduction Act and will be available for projects including manufacturing fuel-cell components, adding carbon-capture equipment to existing facilities or processing critical minerals. The department announced $1.6 billion of the initial funding round will be reserved for places where coal mines or coal-fired power plants have closed. According to the Wall Street Journal, the administration plans to publish a list of Census tracts that qualify for the money. The places must either contain a coal mine closed since 1999 or a coal power plant retired after 2009 or be adjacent to such a Census tract.

The Economic Development Administration (EDA) recently issued a Request for Information (RFI) on the Regional Technology and Innovation Hub (Tech Hubs) program. The RFI will help the agency gather information from stakeholders to inform the design and administration of Tech Hubs designation, planning, and implementation awards.

The U.S. Environmental Protection Agency (EPA) has announced initial guidance on the design of the Greenhouse Gas Reduction Fund (GGRF) program, created under the Inflation Reduction Act. EPA published two Federal Assistance Listings outlining key parameters of the grant competitions that will ultimately award nearly $27 billion to leverage private capital for clean energy and clean air investments across the country. EPA will hold two competitions to distribute the funding — a $20 billion general and low-income assistance competition and a $7 billion zero-emissions technology fund competition.  The $20 billion competition will award competitive grants to eligible nonprofit entities that will collaborate with community financing institutions like green banks, community development financial institutions, credit unions, housing finance agencies and others.  The $7 billion competition will award grants to states, Tribes, municipalities, and eligible nonprofit entities to enable the deployment of residential rooftop solar, community solar and associated storage and upgrades in low-income and disadvantaged communities.  The programs will align with…

The U.S. National Science Foundation announced a new $60 million investment led by NSF's Directorate for Technology, Innovation and Partnerships — the Accelerating Research Translation, or ART, program. The program will build capacity and infrastructure at higher education institutions that are needed to strengthen and scale the translation of basic research outcomes into impactful solutions and practice. Through ART, NSF will provide up to $6 million per award over four years to academic institutions that have demonstrated strong basic science and engineering research but are eager to grow their translational research activities and develop the associated requisite infrastructure. Proposals should have a blend of educational and training opportunities; activities to grow capacity for research in the short and long terms; and, specific activities that show significant promise for translating research results to practice in the short term. An introductory webinar is planned for Tuesday, Feb. 21.

After a busy election season that saw gubernatorial elections in 36 states, newly elected and re-elected governors delivered their annual State of the State addresses, kicking off new programs and reviewing the conditions of their states. SSTI reviews the speeches every year and covers news of new developments and initiatives the governors have highlighted as they relate to the innovation economy. New programs are laid out here in the governors own words as excerpts from their State of the State or budget addresses. Not all governors delivered a State of the State, and some that did may not have revealed new innovation-related initiatives and so are not included in our coverage. Common initiatives among the governors that touched on innovation included an emphasis on workforce, education and broadband; water issues for Western governors; and, clean energy. Alabama Gov. Kay Ivey delivered her 2023 State of the State on March 7 and called on legislators to “look ahead and crate an economic development strategy for the 2030s.” “… I am calling on you to get behind our playbook for economic success, what I am calling The Game Plan.” “We will…

The Angel Capital Association (ACA) reports seed stage investments accounted for almost 60% of the total angel deals in 2021, up from 50% in 2020.  These seed stage angel investments represented more than half of the $950 million invested by 180 ACA member groups in 2021.  ACA estimates that portfolio companies raised more than $5 billion, suggesting leverage of more than 5X their initial angel investments. Based on member-submitted direct investment data, the 2022 Angel Funders Report provides an overview of early stage investment trends. Angel investments in health and life sciences firms surpassed those in software, fintech, and hardware. Medical technology and health technology markets, while down from 2020’s COVID-driven levels, remained the leading verticals in 2021. Diversity in angel investments proved to be a mixed bag in 2021. Women-led firms landed fewer deals, but those initial investments increased by an average of $99,000 to reach an average initial investment of $296,000. The average initial investment in Black-led firms was about 50% less, dropping from $299,000 in 2020 to $146,000 in 2021. Meanwhile, initial angel investments in companies with…

Deputy Secretary of Commerce Don Graves called on business leaders to “lean into” partnerships with the public sector to strengthen the United States’ position as a global tech leader during remarks at a recent Information Technology Industry Council (ITI) summit. In his speech, Graves emphasized the crucial role that innovation in business models, human capital, and talent management strategies, including diversity and inclusion, play in driving U.S. tech leadership domestically and abroad.

This week, the U.S. Department of Commerce updated its timeline for funding opportunities that support semiconductor and related manufacturing, as well as relevant R&D facilities. The department still intends, as first stated in its strategic plan last fall, to make funding for chip fabrication facilities available later this month. The funding opportunity for related manufacturing will be made available in “late spring.” The announcement, which was made over email, states that funding to support the construction of semiconductor R&D facilities is planned for “early fall” but does not specify if that opportunity would encompass all or just some of the research centers and networks funded in the CHIPS and Science Act.  Separately, the agency made two public notices for information collection that appear to be related to the CHIPS manufacutring funding in the Federal Register for comment: one is a meeting request form (comments open until Feb. 13) and one is a notice of interest form (comments open until Feb. 23). SSTI’s Tech-based Economic Development Community of Practice recently discussed these programs in its webinar overviewing…