Proving that innovation is appealing to states regardless of their size or political leanings, new initiatives in both Democratic and Republican states, as well as large states like California and small states like Vermont, are driving innovation agendas into action in areas ranging from clean energy and aid for students and colleges, to new venture capital investments and bond financing to support business collaborations with higher education to help translate cutting-edge research into products and companies.

In 2019, the administrations and legislatures in many states grappled with if and how to adjust state economic development initiatives to leverage the federal Opportunity Zone (OZ) program. The actions of 12 states that implemented new activities are described below.

North Carolina is gaining ground nationally in its innovation capacity and the number of innovation-oriented establishments in the state has increased by twice the national rate, according to a new report from the North Carolina Board of Science, Technology and Innovation.

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.

Since 2005, the One North Carolina Small Business Program has made 423 SBIR/STTR matching awards worth nearly $26 million to more than 250 businesses throughout the state. A new assessment, which updates an earlier report, provides academic rigor to a standard program review. The results indicate that even beyond survey-based attestations to the program’s value, there is a statistically-significant impact of North Carolina’s funding for the competitiveness of recipients.

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.

Last week Pennsylvania Gov. Tom Wolf issued an executive order directing the Department of Environmental Protection (DEP) to join the Regional Greenhouse Gas Initiative (RGGI), joining nine other Northeast and Mid-Atlantic states in a market-based collaboration to reduce greenhouse gas emissions from power plants and combat climate change. And in North Carolina, Gov.

Earnings for Appalachian manufacturing workers grew 3.4 percent from 2012 through 2017 to an average of $63,583. The growth is in the Appalachian Regional Commission’s Industrial Make-up of the Appalachian Region, 2002-2017, which reviews employment and wages by sector across the region. Appalachian workers overall saw earnings increase by 3.7 percent over the five years.

SSTI’s Annual Conference in Providence, Rhode Island, held September 9-11, showcased successful programs, addressed challenges and examined trends and new developments across the innovation economy. We always like to welcome back old friends and are encouraged to see new faces. Said one long-time attendee, “I used to say this is the place to network with the most experienced and sophisticated practitioners.

The ability of states to deliver the services promised to its residents relies on their fiscal soundness. With most states beginning their fiscal year in July, SSTI has reviewed the current fiscal standing for each state and here presents a snapshot of our findings.

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.

SSTI and conference host Rhode Island Commerce Corporation are pleased to announce Gov. Gina Raimondo is scheduled to deliver welcoming remarks during the opening plenary session and officially kick off SSTI’s Annual Conference in Providence on September 10!

SSTI has reviewed the ballot initiatives across the country that affect innovation. Several states have energy initiatives on their ballots, while higher education funding is at play in Maine, Montana, New Jersey and Rhode Island. Utah could become only the second state to fund its schools through gas taxes, if a measure there is passed. At the same time, four states have ballot issues addressing redistricting commissions which could have a significant impact on state legislative makeup when lines are redrawn after the 2020 census.

Arizona

While job openings surpassed 7.1 million in August, companies across the country still are struggling to attract staff with relevant skills. To address this issue, states are developing new workforce development efforts to address the increased demand.

An evaluation of the One North Carolina Small Business Matching Fund, a statewide initiative providing grants of up to $50,000 to recent SBIR/STTR awardees, suggests that the program is achieving its goals of creating high-skill, high-wage jobs.

Rhode Island Gov. Gina Raimondo has announced the first three projects for the state’s Innovation Campus Program, an effort to support the commercialization of academic research in key industries such as cybersecurity, data analytics and agricultural technology. The centers, in partnership with the University of Rhode Island and located in Kingston and Providence, will receive a combined $12 million from the state. The funding stems from a $20 million innovation bond approved by the state’s voters in 2016.

Due to the effectiveness of employer-sponsored training program, U.S. states are working to build partnerships with industry partners that leverage public resources to help develop a 21st century workforce that addresses specific industry needs. Over the last month, partnerships have been announced between states and key industry leaders including AGCO, CVS, Tesla, and the U.S. Chamber of Commerce Foundation. Some of those collaborations are detailed below.

North Carolina and Tennessee are implementing new initiatives to get students in their states the help they need to either complete degrees or training that will help improve workforce development in those states. North Carolina’s governor recently added a new line of grants dubbed “Finish Line” grants, to help students that are struggling with non-academic problems complete community college.

Research universities and their partnerships with industry, including an institution’s research capacity, are important elements to building a state’s economy as well as the national economy and talent pipeline and workforce.