SSTI Digest

In this week’s continuing coverage of gubernatorial addresses as they discuss the innovation economy, the following highlights have been selected from five of the eight State of the States or budget addresses given between Jan. 17 and Jan. 28, 2025, by the governors from Maine, Missouri, New Mexico, Utah, and Wisconsin. Information on previous 2025 State of the States and/or budget addresses can be found here. Additional addresses and states will be covered in future Digest issues. With revenues for many states relatively consistent with forecasters’ expectations, lawmakers, with a few exceptions, continue to maintain cautious or constrained views of their funding priorities and proposed initiatives. As a result, many governors in SSTI’s analysis of addresses delivered so far this season speak more to previously implemented programs and their continued successes rather than rolling out many new programs. However. new priorities growing stronger innovation economies have not been completely overlooked. On Jan. 28, Maine Gov. Janet Mills presented her State of the Budget address to lawmakers. Citing a tight fiscal environment and the leveling off of…

FYI This Week, a science policy newsletter from the American Institute of Physics, reported in their November 25 article Commerce aims to commit CHIPS money before Trump returns that “Commerce Secretary Gina Raimondo said … she is trying to allocate all the semiconductor manufacturing and research funds appropriated by the CHIPS and Science Act before President Joe Biden leaves office." Since Raimondo made that statement, the U.S. Department of Commerce (DoC) has announced the following CHIPS and Science Act Awards: Up to $35.5 million awarded to BAE Systems Electronic Systems, a BAE Systems Inc business unit. The award is intended to support the modernization of the company’s Microelectronics Center in Nashua, New Hampshire. Up to $23.9 million awarded to Rocket Lab, the parent company of space power provider SolAero Technologies Corp. The award is intended to help the company create a “robust and resilient” supply of space-grade solar cells that power spacecraft and satellites. The company’s facility is in Albuquerque, New Mexico. The investment is expected to create over 100 direct jobs. Up to $75 million in direct funding awarded to Absolics, an affiliate of the…

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 U.S. Department of the Treasury announced 11 additional states whose SSBCI plans have been approved: Alaska, Idaho, Iowa, Massachusetts, Minnesota, Missouri, Nebraska, Nevada, New Mexico, Ohio, and Utah. This is in addition to the 20 states that have been approved this year: California, Hawaii, Kansas, Maryland, Michigan, West Virginia, Arizona, Connecticut, Indiana, Maine, New Hampshire, Pennsylvania, South Carolina, South Dakota, Vermont, Colorado, Montana, New York, North Carolina and Oregon. Funds aim to make capital more accessible for underserved communities and increase economic growth and opportunity. Alaska has been approved to receive $59.9 million across four state programs. The largest program of the four is the Alaska Loan Guarantee Program, which will receive $32 million and aims to provide funding to small businesses that have decreased revenue, according to Alaska’s News Source. In addition to the loan guarantee program, $15.9 million will be allocated toward a loan participation program, $10 million will go towards an equity and venture capital program and $2 million will be allocated to a collateral fund program. Idaho has been approved for…

Taking what Gov. Mike Parson called a “bold step to support high-tech entrepreneurship, innovation and growth,” the Missouri Technology Corporation (MTC) released an Implementation Plan built off an earlier strategic plan (Catalyzing Innovation Report) designed to build the state’s innovation and entrepreneurship ecosystems. A key element in the implementation plan is the creation of a $17 million grant program to expand entrepreneurial capacity, with $8.5 million of that funded through MTC’s FY 2023 general revenue appropriation and a match of $8.5 million through the IDEA Fund Co-Investment Program’s venture capital activities. The Implementation Plan outlines how MTC will lead the implementation of some of the strategies and action items recommended in the Catalyzing Innovation Report, and provide support for other items. MTC is also expected to develop, pilot and launch new grant programs to address gaps that were identified in the strategic plan. Those programs are planned to create regional nodes that will allow entrepreneurs direct access to resources in their regions, support physical infrastructure needed for entrepreneurs, and develop a digital…

Missouri has a new tool to support the advancement of entrepreneurship and innovation across the state. The Missouri Technology Corporation (MTC), in partnership with TEConomy Partners LLC., identified strategic recommendations and actions to drive innovation and entrepreneurship in Missouri developed under the Missouri Innovation and Entrepreneurship Strategy Steering Committee. The report says that MTC has had significant impacts on the state's economy, revealing that its total program portfolio has generated an economic activity return of $100.74 back to the state for every $1 invested. A situational analysis of Missouri's innovation economy identified five key challenges inhibiting economic growth including: an inability to meet investment demands; inaccessibility of support services; untapped potential in state research institutions; lack of participation in innovative endeavors; and lack of connectivity within Missouri's ecosystem. Awareness of these challenges prompted the creation of a new strategic plan featuring five thematic areas to address each of the five challenges. These thematic areas include Fund, Grow and Scale, Launch, Inspire, and Connect. Each…

In the largest single gift in the history of Missouri higher education, $300 million has been donated to support Missouri S&T that will enable the university to establish a new school of innovation and entrepreneurship, among other things. The benefactors are St. Louis businessman Fred Kummer, a graduate of the school who credited the education he received there with his success, and his wife. The Kummers’ gift will be channeled into a new not-for-profit foundation that will support several new initiatives at Missouri S&T including: The Kummer School of Innovation, Entrepreneurship and Economic Development, a new school within the university that will combine business-related academic programs with new programs related to innovation and entrepreneurship at the bachelor’s, master’s and Ph.D. levels.  A new, independent, university-affiliated R&D entity that will include four new research centers focused on infrastructure, advanced manufacturing, artificial intelligence and autonomous systems, and environmental and resource sustainability. This new entity will serve as the university’s node for partnerships with industry, public and private…

Eleven states are holding gubernatorial elections this year with nine incumbents seeking reelection, two of which are facing off against their lieutenant governor. Only one governor, Steve Bullock in Montana, is term-limited and unable to seek reelection. In Utah, Gov. Gary Herbert is stepping down from the position he has held for 10 years. While many of the races this year will reflect referendums on the current governor’s response to the COVID-19 pandemic, many of the candidates have announced their innovation and economic development initiatives. In the final stretch of the gubernatorial race, here are some of the candidates’ innovation-related policies, positions and prior accomplishments. Delaware In Delaware, Republican Julianne Murray is running against incumbent Democrat John Carney. According to her campaign site, Murray will spur entrepreneurship by cutting taxes, streamlining regulations, and adopting a uniform permitting code to help reopen and grow small businesses. She created the “Small Business Bill of Rights”, a document that outlines the rights and privileges of small businesses in Delaware.   Carney, with help from his Division…

Missouri Gov. Mike Parson last week announced that $1 million of the state’s CARES Act funding will be used to create a grant for nonprofit and university-based coworker and incubator facilities. The grant will be administered by the Missouri Technology Corporation (MTC). Organizations will be reimbursed with grant funds for expenses related to updating the facilities to encourage social distancing, adopting enhanced sanitation protocols or acquiring PPE to comply with the guidelines of the public health emergency. More information about the program can be found here. Unfortunately, these new funds represent replacement, rather than additive, funding for MTC. Prior to this program, Parson announced he would be withholding MTC’s entire $1 million 2021 budget as part of cutbacks to state spending due to the COVID-19 public health emergency. The state organization supports startups through direct co-investments, matching grant programs, provides funding to nine innovation centers and entrepreneurial support programs. The CARES funding will support some of these initiatives but others will be funded through other federal resources or else lapse for the current year.

In general, the effect of the pandemic on states’ budgets due to the wave of business, retail, and commerce shutdowns, as well as other reduced economic activity across the nation, is not entirely known, or too early to forecast; however, a number of states are beginning to experience the initial impacts of a substantial downturn. With several states having already enacted their 2020-21 budgets, special sessions are expected later this year to deal with declining revenues. Others ended sessions early without a new fiscal year spending plan in place. Many are also acting quickly to help mitigate the effects of lost revenues and an increased demand for services. Some of the states’ impacts and actions are outlined below. Alaska officials report that the drop in global oil prices will likely add $300 million to the state's current year (2020) budget deficit. The Alaska Journal of Commerce reports the state Legislative Finance Division told lawmakers that the state could experience a $600 million revenue reduction in the 2021 fiscal year, which starts July 1. In Arkansas, lawmakers were called into special session to address an estimated $353 million hit to the state’s…

Governors’ focus on initiatives particular to their state in this latest round of state of the state addresses. As SSTI continues to review the speeches for new innovation proposals, we found states continuing to focus on education with more attention on teacher salaries and efforts extending all the way down to pre-K with a recognition that the future workforce is influenced by many factors. Florida is also hoping to grow its aerospace and manufacturing sectors, while Kentucky’s new governor is looking to ag tech and sports betting as new revenue sources. Occupational licensing reform is also a recurring theme in many states this year, along with clean energy and renewable fuels. Florida Gov. Ron DeSantis attributed the in-migration of residents from other states to the lack of a state income tax in Florida, and said he will continue that policy with the expectation that further growth will ensue. “We have the good fortune to be attracting investment and business activity and have good potential for further growth in aerospace, financial services, health care and manufacturing.” “We have a good [occupational licensing] reform bill pending before…

Ten states from across the country have been selected as part of a unique program designed to grow and strengthen their manufacturers. Over the course of the next year, interdisciplinary state teams will meet together in Washington, D.C., and separately in their home states, to develop and refine strategies impacting manufacturing industries. Based on their specific needs and goals, participating states developed working teams with representatives from areas such as the private sector, governor’s offices, state workforce and economic development departments, Manufacturing Extension Partnership centers, and manufacturing trade associations, among others. The participating states are: Arizona, Colorado, Illinois, Maine, Maryland, Missouri, North Carolina, Pennsylvania, Vermont, and Wisconsin. “The Policy Academy process empowers states to make proactive decisions that can improve the competitiveness of their manufacturing industries,” said Dan Berglund, president and CEO of SSTI, which is helping to coordinate the academy. “Although each state is dealing with their own challenges and circumstances, there are a lot of opportunities for states…