Governors in Massachusetts and Rhode Island have released details about their plans to boost innovative businesses in their respective states. Massachusetts Gov. Charlie Baker offered a strategic plan to guide his administration’s economic development efforts, with an emphasis placed on fostering a culture of innovation and entrepreneurship. Rhode Island Gov. Gina Raimondo announced the launch of three new incentive programs aimed at research-driven companies.

Many governors around the country have begun laying out priorities for the next legislative session. In the coming weeks, SSTI will review gubernatorial addresses and budget proposals related to economic development. This week, we highlight developments in Arizona, Maryland, Missouri and South Carolina.

Many governors around the country have begun laying out priorities for the next legislative session. In the coming weeks, SSTI will review gubernatorial addresses and budget proposals related to economic development. This week, we highlight developments in Delaware, Kentucky and Massachusetts.

Since the establishment of the Tennessee Promise in 2014, the first statewide free community college effort, community college systems and states are outlining their own strategies to make a two-year education free for students in their region in attempt to create an educated, qualified workforce that addresses the needs of industry and promotes economic prosperity. While it may remain too early to judge the benefits and the costs of these programs – lawmakers and educational professionals remain divided on the issue. 

A bipartisan group of 17 governors signed the Governors’ Accord for a New Energy Future – a joint commitment to support the deployment of renewable, cleaner and more efficient energy technologies and other solutions to make the U.S. economy more productive and resilient as well as spur job creation in member states.

Falling demand for office real estate and public transit, greater need for flexible child care and requirements for reskilling are some of the insights gained into the future of Massachusetts’ workforce.

South Carolina’s innovation economy is benefiting from funding and support to academic institutions and tech startups from the South Carolina Research Authority (SCRA). According to its annual report, SCRA produced an economic impact of over $1 billion in the state in 2021, an increase of about 5.4 percent from 2020. SCRA is a nonprofit corporation chartered by South Carolina to develop the state as a top innovation destination. SCRA and its affiliates provide loans and investments to South Carolina-based companies.

The South Carolina Research Authority (SCRA) had an economic impact of over $1.15 billion in FY 2022, through follow-on funding, grants awarded, investments made by affiliate SC Launch Inc, job support and more,  according to their annual report. This total is an increase of almost 15% from their economic impact in FY 2021. The report was compiled by SCRA with assistance on the economic impacts provided by the University of South Carolina Darla Moore School of Business. 

Massachusetts legislators are debating the future of Gov. Charlie Baker’s $918 million economic development proposal, including investments in local infrastructure, emerging technologies, community-based innovation, brownfields cleanup, Gateway Cities development and workforce development. The proposal would implement several of the action items from Baker’s economic strategic plan, issued last November, over the next five years.

To build 21^st century workforces in key S&T sectors, several new public-private initiatives have been launched in South Carolina, New Jersey, Utah, and Montana. These initiatives are intended to better align the educational training of students with the needs of industries that each respective state has identified as a key industry cluster. Target industries include advanced manufacturing, aerospace, biotechnology, chemistry and plastics, and cyber security.

South Carolina

Proposed state budgets in Louisiana, Massachusetts and North Carolina show support for innovation and higher education, with some states better positioned in their levels of support while some programs are experiencing cuts. North Carolina unveiled new programs supporting a variety of tech-based economic development initiatives, while Louisiana is restoring full funding for its state scholarships for residents despite its budget deficit.

While many universities maintain startup investment funds targeted at growing university-affiliated startups, several universities are looking beyond their walls for investment opportunities that will create a return on investment (ROI), but also support economic prosperity. Through these investment funds, universities are able to make strategic investment in startups that will contribute to the future growth of their community, region and state. Massachusetts provides a recent example where MIT will invest $25 million in local startups.

Proposed under previous South Carolina Gov. Nikki Haley, the state’s FY 2017-2018 budget request calls for approximately $3.5 billion to be spent on K-12 and higher education funding including:

The big data technology and services market is expected to grow at a compound annual rate of 23.1 percent over the 2014-2019 forecast period, with annual spending projected to reach$48.6 billion in 2019, according to a 2015 study from IDC – a market research firm. Hoping to leverage this exponential growth into research and economic development opportunity, several universities are fund raising to establish new big data R&D Centers in the communities they serve.