On September 28, California Gov. Jerry Brown signed SB 850 into law, which establishes a pilot-program that will allow 15 of the state’s community colleges to launch low-cost bachelor’s degree programs in vocational fields of high demand by state industries.

On the heels of a recent memo from the President’s Council of Advisors on Science and Technology (PCAST) highlighting the difficulty middle-skill workers are having finding a route into the modern economy, reports from two tech hotspots suggest that local action is needed to ensure that tech success translates into widespread economic prosperity.

California-based companies received about 56 percent of all U.S. venture capital dollars in 2014, the state's highest share of venture activity since the dot com boom of the early 2000s. Over the past 15 years, investment activity has steadily become more concentrated in California and a few other states. In 2009, about 67 percent of all deals and 74 percent of venture capital dollars flowed to the top five states. By 2014, those states' share of venture dollars grew to 80 percent, according to NVCA/Pricewaterhouse Coopers data.

Several governors released their proposed budgets over the last two weeks, and while some states continue to deal with budget shortfalls that prevent many new initiatives from coming into fruition, governors in Pennsylvania and North Carolina included numerous proposals focused on innovation and economic development. Additionally, governors in Louisiana and Massachusetts highlighted new workforce development proposals. 

Pennsylvania

Massachusetts is disproportionately affected by federal immigration policy, according to a recent report from the Mass Technology Leadership Council (MassTLC) – Growing 100K Tech Jobs: Trends, Insights, and Opportunities within the 2020 Challenge. The authors contend that the state’s universities and colleges educate a significant number of highly skilled immigrants from around the world in tech fields only to see them leave after graduation.

The U.S. Department of Commerce’s Economic Development Administration (EDA) announced a number of grants last week to aid regional innovation and entrepreneurship efforts through infrastructure improvements, the creation of new spaces, and business improvements in regions across the country. The grants fund projects in AR, AZ, CA, ME, MI, and OH.

Students at several California community colleges as well as California State University (CSU) campuses have access to a new incentive to graduate in four years through new state “promise” programs.  Gov. Jerry Brown Jr. signed SB 412 and AB 1741 creating “promise” programs that act in conjunction with a new 2025 Graduation Initiative, aiming to boost the number of students graduating from those institutions in four years to 40 percent. Success in the programs is intended to help address future workforce needs of California and improve achievement gaps.

Venture development organizations are reaching into new territory for funding partners and finding success in innovative models. Two new funds, the San Diego Tech & Life Science Investor Syndicate and Rev1 Fund I in Columbus, OH, have recently opened with less traditional funding sources, testing the waters of crowdfunding and heavy corporate backing, respectively. The San Diego fund, launched by CONNECT, allows anyone wanting to invest $1,000 the opportunity to participate alongside more experienced lead investors.

On August 10, Massachusetts Gov. Charlie Baker signed an extensive economic development bill (HB 4569) into law.

Over the last few weeks, Indiana and Michigan have announced the launch of manufacturing-focused innovation centers to help transform manufacturing sectors that are long-standing drivers of economic prosperity in their respective state into 21st century global hubs for manufacturing innovation. In partnership with key local industry partners, these centers are intended to help spur job creation while reimaging the role of manufacturing in their state through innovation.

A month after a federal court ruled that high-speed Internet service can be defined as a utility, four states have announced commitments to expand high quality, reliable broadband services to rural areas and other underrepresented groups. Two Midwest states, Wisconsin and Minnesota, will provide funding to help support projects that improve access to broadband and spur economic prosperity.

Bond issues supporting higher education goals got mixed results in Tuesday’s election. A bond issue in Rhode Island to be used for the renovation and construction of the University of Rhode Island’s College of Engineering buildings was a winner in this year’s election, receiving 59.3 percent approval. The bond issue that would have created the Montana Biomedical Research Authority was not as lucky, with 56.9 percent of voters there rejecting the measure.

Massachusetts needs an advanced manufacturing strategy, preferably one based on regional public-private consortia, according to a new report from the MIT Industrial Performance Center. In Strengthening the Innovation Ecosystem for Advanced Manufacturing: Pathways & Opportunities for Massachusetts, the group recommends that the state look to the federal Institutes of Manufacturing Innovation to develop its own manufacturing infrastructure.