Expanding the federal research tax credit and making it permanent could help generate $10 billion per year in research activity, according to a report from the U.S. Department of Treasury's Office of Tax Policy. Treasury also suggests that the enhanced credit could expand use of the credits, which already generate a one-to-one match in research spending and help support almost one million jobs. The current credit, which has been reauthorized temporarily 14 times since its introduction in 1981, is set to expire at the end of the year.

The Department of Agriculture (USDA) and the Department of Energy (DOE) announced the Biomass Research and Development Initiative (BRDI) — a $30 million initiative to support up to 10 research and development (R&D) projects focused on advanced biofuels, bioenergy and high-value biobased products. Projects should propose integrated science and engineering research in three technical areas of interest:

The Economic Development Administration (EDA) in partnership with 15 other federal agencies and bureaus intends to commit $33 million in direct federal funding and provide technical assistance resources for the Jobs and Innovation Accelerator Challenge — a new public-private initiative focused on supporting and accelerating the growth of regional innovation clusters that exhibit high-growth development potential. Approximately 20 industry clusters will be selected through a nationwide competitive process that includes all industry sectors.

The U.S. Department of Treasury has released details on its latest funding approvals from the State Small Business Credit Initiative (SSBCI). Eleven states, and Washington, D.C., are slated to receive a portion of the $360 million that will be used to expand state small business lending and capital programs. In order to qualify, states must demonstrate that their relevant programs will generate at least $10 in new private lending for every $1 in federal funding.

The Obama administration recently announced two directives to accelerate the commercialization of research and provide small businesses with streamlined access to federal resources. In his announcement, President Obama tied the directives to his administration's recent jobs push, and noted the need to bypass Congress in order to quickly implement the changes.

The U.S. Senate has passed an FY12 funding bill encompassing appropriations measures for the Department of Agriculture; Commerce, Justice and Science; and Transportation and Housing and Urban Development. The bill includes funding for NASA, the National Institute of Standards and Technology, and the National Science Foundation, as well as other technology agencies and programs. By combining the separate appropriations bills, the Senate hopes to increase its leverage in conferences with the House.

The Economic Development Administration (EDA) announced the Strong Cities, Strong Communities (SC2) Pilot Challenge, a $6 million pilot initiative to assist economically challenged municipalities in creating long-term economic development plans. Under the SC2 initiative, the EDA will select six pilot communities from across the country. To be eligible for the SC2 initiative, the applicant must be a local government that meet all the economic distress criteria described in the announcement and has a current population of at least 100,000.

The National Science Foundation (NSF) has released a breakdown of federal research and development (R&D) funding by research area. The report includes FY10 spending, FY11 preliminary spending levels and proposed FY12 levels. In 2010, national defense led the list of research priorities, receiving 59 percent of all U.S. R&D spending. Health research captured another 21.5 percent of spending. NSF provides tables for each research area that separate spending by federal agency and program.

The Securities and Exchange Commission (SEC) announced its first proposed rule that will help make equity-based crowdfunding a reality. The proposed rule (Rule 506) will allow for the general solicitation and general advertising of securities. At this point, however, the rule will only apply to accredited investors — an individual with income of more than $200,000 per year or a net worth of over $1 million dollars, excluding the value of the investor's primary residence.

The National Science Foundation (NSF), in partnership with NASA, the National Institutes of Health and the U.S. Department of Agriculture awarded nearly $50 million to grantees for the development and use of robots that cooperatively work with people to enhance individual human capabilities, performance and safety.

On September 17, 2012, the U.S. Patent and Trademark Office (USPTO) implemented seven provisions of the Leahy-Smith America Invents Act of 2011 (AIA) including:

To reflect an evolving mission that expands the scope of genomics research, the National Institutes of Health (NIH) announced a major reorganization that will establish four new divisions to constitute the National Genome Research Institute's Extramural Research Program. The multi-divisional structure will help the institute pursue its enhanced mission for using genomics to advance medical science and improve human health, which has become a greater focus from its original mission to unravel the Human Genome, according to NIH.

Unless Congress and the White House take action by the end of the year, across-the-board spending reductions will go into effect for all federal agencies as a result of provisions in the Budget Control Act of 2011. The budget sequestration would reduce defense discretionary funding by 9.4 percent and non-defense funding by 8.2 percent from the 2011 baseline.

A briefing on the planned Pilot Institute on Additive Manufacturing will be held May 16, 2012, in Arlington, Va. The pilot institute is envisioned as the initial step in building the National Network for Manufacturing Innovation (NNMI) proposed by President Obama earlier this year. The meeting will acquaint potential candidates with the NNMI Pilot Institute concept and the associated technology needs in the areas of additive manufacturing. Attendance at the May 16 event is not a prerequisite for submitting a proposal.

The Economic Development Administration (EDA) released the third round of the i6 Challenge to spur high-growth entrepreneurship. EDA and its partners will commit up to $6 million to establish six proof-of-concept centers that promote American innovation, foster entrepreneurship and increase the commercialization of ideas into viable companies. These centers incorporate a range of services from technology and market evaluation, through business planning and mentorship and on to early stage access to capital. Organizations eligible for i6 challenge grants include U.S.

Following up on President Obama's advocacy of American manufacturing in the State of the Union address, the White House has released a document detailing the administration's manufacturing strategy. The strategy includes the formation of a new national network of Manufacturing Technology Acceleration Centers (MTACs), which will focus on moving technology into the products and processes of small- and medium-sized manufacturers. The National Institute of Standards and Technology's Manufacturing Extension Partnership program would oversee the initiative.

This week, President Obama unveiled a new, long-term initiative to further understanding of the human brain. The Brain Research through Advancing Innovative Neurotechnologies (BRAIN) Initiative, the latest in a series of federal Grand Challenges, would attempt to reproduce the scientific and economic gains of the Human Genome Project. In FY14, the administration plans to invest $100 million in the initiative, with key operations within the Defense Advanced Projects Agency (DARPA), the National Institutes of Health and the National Science Foundation.

Ahead of the president' FY 2014 budget proposal release date (April 10, 2013) and amid federal sequestration, the U.S. Government Accountability Office (GAO) released two reports that contend duplication, fragmentation and a lack of cooperation between federal agencies may plague federal support for wind energy deployment and entrepreneurial assistance. To address these issues, the GAO reports recommend enhanced collaboration between agencies and consolidation of funding programs.

To encourage communities to strengthen their industrial ecosystems, the U.S. Department of Commerce has announced it will make awards to up to 25 communities to launch implementation strategies. The solicitation for the awards will be released in May, and awards of up to $200,000 each will be issued by the end of September. The awards are one part of a four–phase plan announced by Deputy Secretary of Commerce Rebecca Blank last week that also includes listening sessions and a proposal to award five to six communities $25 million each.

NASA, USAID, the State Department and Nike have partnered to issue an innovation challenge for inventors to develop new, sustainable materials and methods for manufacturing fabric. The winners will have their technology presented at NASA's 2013 LAUNCH System Challenge Forum in Pasadena, CA. The LAUNCH Forum is directed by a council of entrepreneurs, scientists, government, academia, and business leaders and is used by NASA to promote sustainability initiatives, including projects related to global health, renewable energy, and agriculture.

Last week, the Obama administration announced that it would commit $200 million to establish three new manufacturing innovation institutions in 2013 (see the May 8, 2013 issue of the digest).

Earlier this month, National Oceanic and Atmospheric Administration (NOAA) released their five-year plan for R&D activities that align with the agency's long-term goals within a rapidly changing society and environment. The plan, entitled Research and Development at NOAA: Environmental Understanding to Ensure America's Vital and Sustainable Future, calls for expanding socioeconomic and integrated ecosystems research and improving its internal and external technology development partnerships.

Threats to America's cybersecurity continue to make headlines, underscoring the growing importance of protecting our country's digital infrastructure. As national security experts continue to grapple with how to address the challenge, the federal government is stepping up to coordinate state cybersecurity efforts. In an effort to promote our country's economic security and boost innovation and competitiveness, the National Institute of Standards and Technology (NIST) is working with states and the private sector to develop a framework for national cybersecurity standards.

The Department of Energy's guaranteed loan program has made headlines as automotive company Tesla paid back over $450 million in federal loans nine years ahead of schedule. Tesla's move highlights the potential of federal loan programs to support the growth of renewable energy industries by investing in companies that are developing new technologies such as lithium batteries and electric cars.

A report from authors Samantha Bradley, Christopher S. Hayter, and Albert N. Link explores the burgeoning role of proof-of-concept centers (PoCC) in supporting the country's innovation infrastructure. The report suggests that shifting dynamics in the global economy will continue to increase the importance of PoCCs in supporting regional innovation and national competitiveness.