Tech Talkin’ Govs 2018, part 2: AL, CO, GA, IN, KS, NE, SD, WA focus on education, workforce
SSTI’s Tech Talkin’ Govs feature returns as governors across the country roll out their state of the state addresses. We review each speech for comments relevant to the innovation economy, and bring you their words directly from their addresses. In this second installment, we present excerpts from governors in Alabama, Colorado, Georgia, Indiana, Kansas, Nebraska, South Dakota and Washington.
SSTI’s Tech Talkin’ Govs feature returns as governors across the country roll out their state of the state addresses. We review each speech for comments relevant to the innovation economy, and bring you their words directly from their addresses. In this second installment, we present excerpts from governors in Alabama, Colorado, Georgia, Indiana, Kansas, Nebraska, South Dakota and Washington.
Workforce development and/or apprenticeship programs receive attention in all of the below excerpts. The Alabama governor said she is seeking an additional $50 million for higher education, while the Georgia governor talked about reorganizing their technical college system. In Indiana the governor is challenging the state economic development department to create thousands of new jobs and said in the first quarter the state will begin to make strategic investments to build and support more innovation and entrepreneurship through the already established $250 million Next Level Indiana Trust Fund.
Recent Research: Customized services are cost-effective economic development tools
Financial incentives for company recruitment and retention still dominate state and local economic development expenditures, but recent research estimates that extension programs and customized job training can accomplish development goals in a more cost-effective manner. Despite this, customized services get, on average, five cents of public investment for every dollar that traditional financial incentive strategies receive.
Financial incentives for company recruitment and retention still dominate state and local economic development expenditures, but recent research estimates that extension programs and customized job training can accomplish development goals in a more cost-effective manner. Despite this, customized services get, on average, five cents of public investment for every dollar that traditional financial incentive strategies receive.
Growing tech hub of Salt Lake City hosting SSTI annual conference
SSTI is excited to announce Salt Lake City as the site for the 2018 Annual Conference, which will be held Dec. 3 through 5, with the Utah Science Technology and Research Initiative (USTAR) as the host partner.
SSTI is excited to announce Salt Lake City as the site for the 2018 Annual Conference, which will be held Dec. 3 through 5, with the Utah Science Technology and Research Initiative (USTAR) as the host partner.
“We are excited to bring the conference to Salt Lake City, and we think attendees will have a lot to learn from the growing technology hub,” said Dan Berglund, president and CEO of SSTI. “Many places are struggling with ways to grow their innovation economies and Salt Lake City has been able to turn those struggles into positive growth that people will be able to learn from during the conference.”
VC funding tops $70B for second time, 2017 MoneyTree Report
In this first part of a two-part series, SSTI will look at the common themes and trends of 2017 that were highlighted in the 2017 MoneyTree Report. In part two, SSTI will provide insights on some potential new trends observed last year that may continue to affect the investment of venture capital in 2018.
In this first part of a two-part series, SSTI will look at the common themes and trends of 2017 that were highlighted in the 2017 MoneyTree Report. In part two, SSTI will provide insights on some potential new trends observed last year that may continue to affect the investment of venture capital in 2018.
The U.S. venture capital industry’s annual funding topped $70 billion in 2017 for the second time ever, according to PricewaterhouseCoopers (PWC) and CB Insights' 2017 MoneyTree Report. The $71.9 billion invested marked a 6.8 percent increase from 2016 — the record high-water mark of $76.8 billion was achieved in 2015.
DOE publishing fewer funding opportunites, SSTI finds
The Department of Energy’s annual portfolio of federal funding opportunities (FFOs) — an announcement for the solicitation of research applications on a specific technical area — published on grants.gov declined by more than 45 percent between 2012 and 2017 from 81 FFOs in 2012 to 44 FFOs during the last calendar year. The decline had the most significant impact on the number of FFOs published in technical areas related to renewable energy, energy efficiency, and storage/other energy-related systems.
The Department of Energy’s annual portfolio of federal funding opportunities (FFOs) — an announcement for the solicitation of research applications on a specific technical area — published on grants.gov declined by more than 45 percent between 2012 and 2017 from 81 FFOs in 2012 to 44 FFOs during the last calendar year. The decline had the most significant impact on the number of FFOs published in technical areas related to renewable energy, energy efficiency, and storage/other energy-related systems.
For first time, American R&D expenditures surpass $500 billion
Estimates indicate that R&D expenditures in the United States reached $510 billion in 2016, marking the first time this total has eclipsed the half-trillion mark, according to recently released National Science Foundation data. The majority of R&D expenditures and performance comes from the private sector.
Estimates indicate that R&D expenditures in the United States reached $510 billion in 2016, marking the first time this total has eclipsed the half-trillion mark, according to recently released National Science Foundation data. The majority of R&D expenditures and performance comes from the private sector. From 2011 to 2016, R&D growth kept pace with the economy as a whole, and R&D intensity – measured as R&D expenditures as a share of gross domestic product – was essentially flat. The analysis finds, though, that federal expenditures on R&D decreased during this period.
State governments help spur investments in R&D
Expenditures for R&D from state government agencies increased by 17.3 percent from FY 2011 to FY 2016, reaching $2.3 billion, according to data from the Survey of State Government Research and Development, a survey sponsored by the National Science Foundation’s National Center for Science and Engineering Statistics (NCSES). Nearly two-thirds of this total – 64 percent – came from just five state governments (California, New York, Texas, Florida, and Ohio).
Expenditures for R&D from state government agencies increased by 17.3 percent from FY 2011 to FY 2016, reaching $2.3 billion, according to data from the Survey of State Government Research and Development, a survey sponsored by the National Science Foundation’s National Center for Science and Engineering Statistics (NCSES). Nearly two-thirds of this total – 64 percent – came from just five state governments (California, New York, Texas, Florida, and Ohio).
States take cautious budget measures for FY 2018
States enacted cautionary budgets for 2018 with general fund spending projected to grow 2.3 percent in fiscal 2018, the lowest increase since 2010, according to the most recent NASBO survey. The National Association of State Budget Officers (NASBO) released its Fiscal Survey of the States showing caution on the part of policymakers following two years of sluggish revenue growth and spending pressures.
Community colleges continuing trend to offer four-year degrees
This past summer Ohio joined a growing number of states that allow community colleges to offer four-year degrees when it enacted legislation allowing community colleges, state community colleges, and technical colleges to apply to offer applied bachelor’s degrees. If approved, the programs will join a growing number of applied baccalaureate degree programs being offered by community colleges across the country.
This past summer Ohio joined a growing number of states that allow community colleges to offer four-year degrees when it enacted legislation allowing community colleges, state community colleges, and technical colleges to apply to offer applied bachelor’s degrees. If approved, the programs will join a growing number of applied baccalaureate degree programs being offered by community colleges across the country. The trend has met with resistance from some higher education institutions, while students and employers voice their support.
What the tax plan means for innovation
The Republican tax plan passed Congress this week. The legislation, which is part tax cut — $1.5 trillion over 10 years — and part reform — replacing multiple deductions and credits with overall lower rates — will affect the U.S. economy for years to come. Education, employment, capital access and business investment are likely to be directly affected as soon as next year, and, if state budgets hold any value as predictors, regional innovation economies will be particularly affected through future reductions in federal spending.
Council, governor request nearly $40 million to support Wyoming’s economic growth, diversification
The executive council of ENDOW, an economic development initiative started by Wyoming governor Matt Mead, has announced its preliminary recommendations to diversify and grow the state’s economy, including statewide programs to support tech-based economic development that total more than $36 million.
The executive council of ENDOW, an economic development initiative started by Wyoming governor Matt Mead, has announced its preliminary recommendations to diversify and grow the state’s economy, including statewide programs to support tech-based economic development that total more than $36 million. Notable among the recommendations are $6 million for a proposed Wyoming Research and Innovation Fund that provides matching funds as a way to leverage federal R&D opportunities and $5 million to develop a new organization called Startup:Wyoming, which would administer the Fund and provide support to entrepreneurs throughout the state.
New NIH pilot provides free SBIR application assistance
Eligible small businesses who have not previously won an SBIR/STTR award from the NIH are able to apply for help through a pilot initiative, the Applicant Assistance Program (AAP).
Eligible small businesses who have not previously won an SBIR/STTR award from the NIH are able to apply for help through a pilot initiative, the Applicant Assistance Program (AAP). The primary goal of the AAP is to increase participation in the SBIR program by businesses that are owned or controlled by individuals who are traditionally underrepresented in the biomedical sciences. The pilot is aimed at helping small R&D businesses and individuals successfully apply for Phase I SBIR/STTR funding from the National Cancer Institute (NCI), National Institute for Neurological Disorders and Stroke (NINDS), National Heart, Lung and Blood Institute (NHLBI).
Achieving an equitable innovation economy
A range of equity-based strategies to support scale-up programming for small-scale manufacturers are among the findings of a recent report from the Urban Manufacturing Alliance (UMA).
A range of equity-based strategies to support scale-up programming for small-scale manufacturers are among the findings of a recent report from the Urban Manufacturing Alliance (UMA). In Making, Scaling and Inclusion, UMA found that the economic development field is hungry for strategies that remove employment barriers and build the talent of low-income and economically disadvantaged communities to drive economic growth in their cities and the report offers guidance for building equitable innovation economies.
$1.3 billion deal leads acquisition-heavy Q4 for VDO-backed exits
Most of the baker’s dozen of fourth quarter exits SSTI reviewed for publicly-sponsored venture investments reveal local employment likely to remain in place after the deals close, regardless of the deal structure. During the past three months, companies that 20 venture development organizations (VDOs) had invested in participated in at least 10 acquisitions, with seven resulting in operating subsidiaries under the new parent firm. Also in the mix for the quarter are one initial public offering (IPO), one sale of intellectual property and one leveraged buyout.
Looking Forward: The significance of a near record number of new governors
One year from now, at least one-third of the states will have a new person sitting in the governor’s chair due to the retirement or term-limit of 17 current governors. The number of new governors could be higher than the guaranteed 17 new governors because there are 36 gubernatorial seats up for grabs. For those questioning the import of a large new class of governors, one does not need to look beyond the last two major waves of new governors — 2010 when 26 new governors came into office and 2002 when 20 new governors did — to see the impact that large classes of governors can have not just on their individual states, but the field as a whole.
Some experts remain skeptical of the ‘skills gap,’ both sides of debate agree on solutions
In 2016, a study – Skill Demands and Mismatch in U.S.
In 2016, a study – Skill Demands and Mismatch in U.S. Manufacturing – found that approximately 75 percent of manufacturers showed no signs of hiring difficulties. This study and others (including a 2015 study from Iowa State University) are reigniting a long held economic development debate over the ‘skills gap’ – a contention that there is a mismatch between the abilities employers seek in candidates and the capabilities of workers developed by the educational/workforce development systems. Challenging the conventional wisdom put forth by employers, pundits, and policymakers, these studies seem to indicate that the problem does not lie with the U.S. workforce development and educational system. Instead, the problem stems from two primary issues at the firm level:
- A lack of employer-sponsored training; and,
- A lack of competitive wages.
Shifting nature of careers and skills
Creative, digital, design and engineering occupations all have bright outlooks, along with architectural and green occupations, according to a recent report from Nesta, a global innovation foundation. Nesta took into account five major trends in mapping out how employment is likely to change in the future, and the implications for skills.
Manufacturing Day addresses misperceptions, opens doors
First observed in 2011, Manufacturing (MFG) Day started as a grassroots movement intended to draw the public’s attention to manufacturing and its career opportunities and has become an annual celebration meant to inspire the next generation of manufacturers. Since 2012, both public and industry participation in MFG Day activities have grown, as has its overall scope and goals.
First observed in 2011, Manufacturing (MFG) Day started as a grassroots movement intended to draw the public’s attention to manufacturing and its career opportunities and has become an annual celebration meant to inspire the next generation of manufacturers. Since 2012, both public and industry participation in MFG Day activities have grown, as has its overall scope and goals. This year, an effort is being made to reach out to millennials, many of whom have an outdated image of manufacturing, to connect with a younger workforce vital to filling the openings in an increasingly digital manufacturing industry.
3rd quarter exits for VDOs span industry sectors
Seventeen venture development organizations (VDOs) from across the country shared in the success from a baker’s dozen exits posted in Pitchbook during the third quarter of 2017. Information tech companies lead the pack, but seven come from other sectors of the economy including life sciences, vehicle manufacturing, materials, polymers, robotics, and chemicals – demonstrating the important role VDOs may play in broadening innovation’s contributions to regional economies.
Seventeen venture development organizations (VDOs) from across the country shared in the success from a baker’s dozen exits posted in Pitchbook during the third quarter of 2017. Information tech companies lead the pack, but seven come from other sectors of the economy including life sciences, vehicle manufacturing, materials, polymers, robotics, and chemicals – demonstrating the important role VDOs may play in broadening innovation’s contributions to regional economies.
Snapshots of all 13, along with two more late Q2 deals, follow in SSTI’s third article looking at the economic development impacts of nonprofit and publicly-backed VDOs. The first two stories are available here (Q1:17) and here (Q2:17).
States of Innovation 2017: Clean & renewable energy policy
This week we begin a series on state legislation pertaining to the innovation economy that has been enacted this year around the country. This first installment of the States of Innovation 2017 series deals with clean and renewable energy.
States have passed more than 230 bills related to clean and renewable energy to date in 2017, according to the National Conference of State Legislatures (NCSL). Broadly, the legislation can be divided between policies directly supporting energy innovation — through R&D expenditures or targeted economic development initiatives — and policies implementing structural changes —through the regulatory environment, incentives for production facilities, renewable portfolio standards and other requirements. This breadth of activity clearly demonstrates that clean and renewable energy is of high interest throughout the country, but will be challenging to innovators and entrepreneurs planning development over time or across states.
House passes bill enhancing SBIR
The U.S. House this week passed H.R. 2763, which would amend the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs in several significant ways. Most notably, the bill would extend by five years the “assistance for administrative… costs,” which is used for outreach initiatives and some business and market assistance initiatives across agencies.
Fed initiative to reimagine, reframe workforce development efforts
The Federal Reserve System has announced a new initiative intended to invest in America’s workforce and improve outcomes for both employers and workers.
The Federal Reserve System has announced a new initiative intended to invest in America’s workforce and improve outcomes for both employers and workers. To introduce the Investing in America’s Workforce initiative, the System released a new report analyzing information from nearly 1,000 leaders in the field to identify the current state of the field, important challenges, and strategies for improving items such as human capital, access to jobs, and innovative funding for workforce development programs.
SSTI Conference Brief: Successful strategies for strengthening deal flow
One of the hottest topics at SSTI’s 2017 Annual Conference centered on helping communities build the investment system necessary for local entrepreneurs and startups to thrive. Led by several panels of experts, the conversations around this topic led to many great ideas, thoughtful solutions, and tough realities. This week we begin a series of stories on how tech-based economic development organizations can help communities ensure a vibrant investment system.
While rural entrepreneurship declines, rural businesses nearly match urban peers’ innovativeness
Two recent reports provide good news and bad news regarding innovation in America’s rural areas. Only one in six individuals living in rural areas was self-employed in 2016 — down from one in four in 1988, according to a new issue brief from the Small Business Administration (SBA). This represents a decline of nearly 20 percent over that span of time.
States of Innovation 2017: Free tuition moving into more state toolboxes
This week we continue our series on state legislation pertaining to the innovation economy that has been enacted this year around the country. This second installment of the States of Innovation 2017 series deals with free tuition.
This week we continue our series on state legislation pertaining to the innovation economy that has been enacted this year around the country. This second installment of the States of Innovation 2017 series deals with free tuition.
A number of states took action to increase the education and skills of their workforce by implementing free or greatly reduced tuition programs at either community colleges or state colleges. The move to increase access to higher education while not new, took up increased urgency this year. With Arkansas, Florida, Kentucky, New York, North Carolina, Rhode Island and Tennessee all taking action this past year, Maine and North Carolina were among others considering other options but as of today’s publication not moving the proposals forward.