SSTI Digest

After a historic election night, the winners of the gubernatorial elections in 11 states appear to have been chosen. Barring a dramatic swing in votes, all of the nine incumbent governors have been reelected to a second or third term. In Montana, Rep. Greg Gianforte (R) has flipped control of the governor’s seat, and in Utah, Spencer Cox (R) has defeated Chris Peterson (D). Many of the incumbent governors held strong approval ratings going into election night and won their voters’ approval for another term as the country tries to inch out of the pandemic and recover economically. SSTI previously reported each of the candidates’ innovation and technology-based economic development platforms prior to the election. What follows is a review of the unofficial election results from Tuesday night and a look and actions each governor may take in another term.

Delaware

As of this writing, control of Congress remains officially undecided, although the end result will likely be status quo: Republican control of the Senate and Democratic control of the House. While the discourse and activity around major legislation may not change, there will be changes to the committees that most strongly impact science and small business legislation. The new members will not be determined until the next session, but multiple departures from these committees are already known.

Senate

More special purpose acquisition companies (SPACs) have been formed in 2020 than in the last several years combined. These entities have helped some high-profile unicorns go public recently, including DraftKings and Nikola Corp. PitchBook recently suggested, backed by several transactions involving electric vehicle companies, that SPACs may be well-suited to taking companies with relatively high product costs public. Here are five things for tech-based economic development practitioners to know about SPACs.

1. SPACs provide an alternative path to going public

Nearly half of voters within battleground states have a deep level of trust in scientists, according to a recent study conducted by Third Way. This represents a significant increase from the 21 percent of voters who held scientists in high esteem in 2016, and is in line with Pew Research Center’s earlier report that found 39 percent of U.S. adults trust science and believe scientists act in the public’s best interest.

Apprenticeships, which will be celebrated during National Apprenticeship Week beginning Nov. 8, are receiving renewed attention and being highlighted as an avenue of economic mobility. Two recent reports highlight the opportunities of apprenticeships, the promise they hold for economic mobility, their expanding reach and a new effort in California to reach 500,000 apprenticeships by the year 2029.

Growing out of a local initiative in central Kentucky, the Federation for Advanced Manufacturing Education (FAME) began as a way to build a talent pipeline among Toyota Motor North America and a few other firms and has now grown into a national model of employer-provided training through a network of nearly 400 companies in 13 states. A report from Opportunity America and the Brookings Institution examines the program from the perspective of its benefits for students and what exactly has made it work by examining the oldest and most developed state network – Kentucky FAME.

In an effort to help Alabamians advance into higher-paying careers and understand how higher income from new careers can establish a path toward self-sufficiency, the state of Alabama and the Federal Reserve Bank of Atlanta have partnered to launch a new career tool. The Dashboard for Alabamians to Visualize Income Determinations (DAVID) is designed to help low-income workers fearful of the benefits cliff (the sudden loss of public assistance as income increases) attain economic self-sufficiency as they plan for future career development. Gov. Kay Ivey said in a release that the tool will help Alabama reach its attainment goal of adding 500,000 credentialed workers to the workforce by 2025.

New analysis from the World Economic Forum (WEF) forecasts an 85 million global loss in jobs by the year 2025 due to pandemic-induced increase in technology adoption. While social distancing measures such as remote work have already brought many white collar workers into the “future of work,” the quickened pace of technology adoption and automation across all sectors will create greater employment challenges for lower paid and lower skilled workers. The WEF’s Future of Jobs Report 2020 also indicates that the jobs created to work with these new technologies could reach 97 million by 2025. However, business leaders and the public sector must take action to promote equitable workforce development and prepare all workers for the jobs of the future.

First-time beginning students looking to pursue post-secondary education tumbled this fall, showing a 16.1 percent decrease nationally when compared with last year’s figures, according to recently released data from the National Student Clearinghouse Research Center. That decline was even worse at community colleges, down 22.7 percent compared to a 1.4 percent increase the previous year. All told, undergraduate enrollment is down 4.0 percent compared to the same time last year, while graduate enrollment saw a 2.7 percent increase, amounting to an overall college enrollment decrease of 3.0 percent as of Sept. 24.

In 2018, 5.8 million students at colleges and universities within the United States were either the children of first-generation immigrants or were immigrants themselves, which accounted for 28 percent of the total student population and was a noticeable increase from the 2.9 million enrolled in 2000. This data serves as the foundation of a new report from the Migration Policy Institute, Immigrant-Origin Students in U.S. Higher Education: A Data Profile, that explores the growing role first- and second-generation immigrants play within the nation’s higher education landscape.

The Appalachian Regional Commission (ARC) announced $43.3 million for 51 projects in the region’s coal-impacted communities. More than half of the awards will support recovery-to-work efforts or broadband initiatives. To date, ARC has awarded over $238 million and supported 293 projects. Funding for the awards is made available through the POWER (Partnerships for Opportunity and Workforce and Economic Revitalization) Initiative, an initiative that aims to help communities and regions that have been affected by job losses in coal mining, coal power plant operations, and coal-related supply chain industries due to the changing economics of America’s energy production.

In Washington and Brussels, lawmakers are increasingly vocal about expanding the application of antitrust rules within the tech sector. Recent activity includes a report from Democrats on the House antitrust subcommittee, the Trump administration preparing an antitrust suit against Google, and the European Union (EU) considering new antitrust rules following billions of dollars in fines to major tech companies. While much of these actions’ coverage focuses on how changes would affect the companies that are being targeted by these efforts, the impacts would affect the entire tech sector.

In a recently revised working paper from the Center for International Development at Harvard University, the contemporary rise of populism is explained in a new light, that of unfair economic outcomes, often in the form of low social mobility. In his paper Social Mobility Explains Populism, Not Inequality or Culture, Harvard Growth Lab’s Eric S. M. Protzer explores the close correlation between areas of low social mobility and those that have experienced a rise in populist thinking.

Noting that “the realities of populist movements are threatening long-standing democratic institutions and practices,” Protzer points to Hungary and Turkey as examples of countries that have descended into authoritarianism after electing populists early on. He suggests that populism be confronted to ward off similar trajectories in other nations, and that to do so its roots must be understood.