In 2016, approximately 46.7 percent of small- and medium-sized manufacturing firms (SMMs) receiving services from Manufacturing Extension Partnership (MEP) centers expect challenges in the next three years related to employee recruitment, up from 19.1 percent in 2009, according to a recent survey of MEP client companies. While employee recruitment needs have grown over the last seven years, the top two challenges remained the same – cost reduction (70 percent of all respondents in 2016) and growth (53.5 percent). The findings come from an annual NIST MEP survey of their clients – small manufacturers across the United States.

Innovation in the energy sector requires strong leadership from the federal government to help mitigate potential risks, according to a recent report by the American Energy Innovation Council (AEIC), a project of the Bipartisan Policy Center. The AEIC is a group of ten private sector leaders that includes Bill Gates, the heads of industry giants like Dominion Energy and Southern Company, and retired leaders of corporations such as Lockheed Martin and DuPont.

U.S. companies spent 18 percent of their research and development dollars outside of the United States in 2013, according to data recently released by the NSF. The $73 billion in foreign R&D is concentrated in the information industry, pharmaceuticals, semiconductors, and automobiles and parts. Those four industries accounted for 52 percent of all foreign R&D performance by U.S.

New legislation in Maryland that takes effect in June provides $1 million in workforce development scholarships and builds on current apprenticeship programs, while also providing tax incentives for new and existing manufacturers to create jobs in areas of the state that need them most. Gov. Larry Hogan signed the More Jobs for Marylanders Act into law last week, a key piece of his jobs initiative. The new legislation establishes scholarships for eligible students enrolled in job training programs at community colleges, and contains measures to encourage high schools to offer additional vocational training, as well as requiring state agencies to analyze their registered apprenticeship programs.

U.S. Senators Cory Gardner (R-CO) and Gary Peters (D-MI) sent a letter requesting a 4 percent increase in appropriations for the National Science Foundation and National Institute of Standards and Technology to the Senate Appropriations Committee.

The White House announced an executive order to review the H-1B visa program, and the accompanying language suggests the administration’s interest in reforms to emphasize applicant skills and wages.

Office of Management and Budget Director Mick Mulvaney lifted the federal hiring freeze last week and asked agencies to plan for workforce reductions.

According to the most recent U.S. Bureau of Economic Analysis state personal income data, national per capita income grew 4.0 percent from 2015 to 2016, and growth since 2012 is at 12.0 percent. States are experiencing this growth disparately, however, with five-year growth rates ranging from -0.6 percent (North Dakota) to 17.6 percent (California). Over this period, few states experienced significant changes in their performance relative to their peers — just four states moved more than five rankings — but shifts between income quintiles and variable growth rates suggest that more movement will be witnessed over the next few years.

This weekend’s March for Science in Washington, D.C., and another 517 satellite locations across the globe, will be marked with teach-ins and rallies, and will be live-streamed as a virtual march as well. The march is intended to serve as “a call for politicians to implement science based policies, as well as a public celebration of science and the enormous public service it provides in our democracy, our economy, and our daily lives.”

This weekend also marks Earth Day, and the U.S. Census Bureau provided some facts pertaining to energy and the environment:

U.S. clusters looking to collaborate with European clusters are invited to an event taking place in Washington, D.C., during the TechConnect World Innovation Conference, on May 16, 2017. The seminar and matchmaking event is being organized by the European Cluster Collaboration Platform and BILAT USA 4.0. BILAT USA 4.0 seeks to support transatlantic cluster cooperation for strategic business partnerships and enhance, support and further develop the research and innovation cooperation between the European Union and the U.S.

In a report released this week, the U.S. Government Accountability Office (GAO) found that the 11 agencies participating in the Small Business Research (SBIR) and Small Business Technology Transfer (STTR) programs have varied in their implementation of fraud, waste and abuse prevention requirements. The ten requirements were put in place as part of the SBIR/STTR Reauthorization Act of 2011, following a 2009 congressional hearing regarding fraud in the programs.

The Federal Laboratory Consortium (FLC) held its national meeting this week, and the emphasis of many conversations around the conference site in San Antonio was how labs can implement new partnerships to yield greater tech transfer successes.

Here at SSTI, we receive requests from time-to-time from members looking to better understand their regional economy through data. Though the federal government has long been the largest provider of publicly available data, the mechanisms to explore it have been unwieldy. Now more than ever, users have options for interactive resources to explore government data and help inform decision making around economic development. This Digest article highlights many of the free tools and databases that are available.

As the relationship between technology and work continues to evolve, concerns abound, including its effects on jobs, education and business. The National Academy of Sciences, Engineering, and Medicine took a deeper look at the relationship and its impact, convening an expert committee to delve into the topic and set forth a research agenda. The resulting report, Information Technology and the U.S. Workforce: Where Are We and Where Do We Go from Here, explores the current state, trends, and possible futures of technology and work, as well as the possible implications for education, privacy, security and even democracy.

Among this year’s most talked about books on economic development is Richard Florida’s The New Urban Crisis. This commentary provides a brief overview of Florida’s book, a response to his conclusions, and insight into what the crisis may mean for economic development practitioners more broadly. 

As the state budgeting process comes to a close, SSTI will report over the coming weeks on actions taken by state legislatures to invest in economic growth through science, technology, innovation and entrepreneurship. Up this week is a look at commitments that legislatures in Arkansas and Idaho have made including funds for a new accelerator program, Manufacturing Extension Partnership (MEP) centers, and more than $14 million for a biosciences research institute.

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.

Age is a predictor of entrepreneurial success – and not in the ways that many might expect – according to a new National Bureau of Economic Research article. While the venture capital community and the media sensationalize young entrepreneurs like Mark Zuckerberg, the authors of Age and High-Growth Entrepreneurship – Pierre Azoulay, J. Daniel Kim, Benjamin Jones, and Javier Miranda – find that older entrepreneurs have more success.

PitchBook and NVCA released the 2018 Q1 Venture Monitor this week, and the data show that 2017’s trends toward fewer, larger deals are only accelerating into the new year. First financings are over $5 million for the first time since Q3 of 2006, and the average angel and seed deals are at their largest sizes in at least a decade — largely due to investments under $1 million now accounting for just 39 percent of disclosed deals.

Across the nation, R&D at colleges and universities plays an important role in generating promising inventions, training our STEM talent pipeline, and supporting regional economic development. An SSTI analysis of National Science Foundation data finds that higher-education R&D (HERD) is a multi-billion dollar industry that directly employs nearly one million personnel on projects and grants in the United States. However, the locations of R&D projects and personnel differ greatly by state and region.

May 1 marks the deadline to choose a school for students considering their college options. A new tool developed by the University of Texas system and the U.S. Census Bureau can give a real sense of what students graduating from that system can expect to earn as well as the average debt graduates carry. The tool, seekUT, reveals the average earnings from each of the majors at the different schools and branch campuses one, five and 10 years after graduation.

New Jersey is considering a state program for free tuition for community college which would be phased in over several years and Virginia is proposing money for a customized workforce recruitment and training incentive program in newly proposed state budgets. Both states have new governors who have revised their predecessors’ budgets, resulting in some additional TBED initiatives in the states.

New data analyzing the first cohort of Tennessee Promise students reveals a higher graduation rate and increased number of students earning a college credential when compared to the previous year’s non-Promise cohort. The inaugural class of Tennessee Promise students graduated from high school in 2015 and completed their five semesters of eligibility in December.

Venture development organizations (VDO), nonprofit organizations across the country investing in innovation startups to help grow their regional economies as well as earn a respectable return, saw at least 20 exits in the first quarter of 2018, based on data entered on Pitchbook.com. Here are some examples from the quarter:

For the economic development community as a whole, the issue of retaining and attracting talent is of the utmost importance. While a visualization in a Wall Street Journal article looks at where graduates move after college, an interactive analysis by the Pew Research Center examines where foreign student graduates work in the United States.

The federal government’s priorities for funding research and development do not necessarily match those of the general public, an analysis of ScienceCounts and National Science Foundation data suggests. ScienceCounts is a national nonprofit with the objective of enhancing the public's awareness of, and support for, federally-funded scientific research.

The Small Business Innovation Research (SBIR) program dubs itself as “America’s largest seed fund.” Three recent research articles add to the existing literature on the program. First, a study finds that SBIR supports high-risk efforts to convert R&D. A second study suggests that SBIR awardees are more likely to locate in denser regions but in less dense neighborhoods in those regions. A third study finds that SBIR awardees from federal agencies with more diverse workforces tend to perform better.