The Small Business Innovation Research (SBIR) program is one of the federal government's most substantial investments for moving innovation from America’s small businesses into the private market or federal procurement in areas like defense, space, energy or transportation.

Many metropolitan areas grapple with demographic shifts, labor shortages, and changing economic conditions, so understanding the factors that encourage former residents to return may help policymakers design more effective strategies for talent retention and regional revitalization.

In this final coverage of gubernatorial addresses as they discuss the innovation economy, the following highlights have been selected from State of the States or budget addresses given between Feb.

California Gov.

A recent Executive Order from the White House could jeopardize the Community Development Financial Institution (CDFI) Fund and put at risk investments in small businesses. The EO calls for the “non-statutory components and functions” of several governmental entities, among them are the CDFI and the Minority Business Development Agency, “to be eliminated ...

Readers may have noticed the most populous states end up topping many of the statistical tables related to economic development. Normalizing the data by some relevant, related measure can provide a higher quality look that is a little closer to the “apples to apples” appeal that might help influence some policy issues. For this week’s edition of Useful Stats, SSTI is exploring research intensity as a component of state gross domestic product (GDP) and the research load “carried” by each member of the R&D personnel within the state’s higher education community.

The launch of a new private equity firm in central Ohio is a reminder of the continuing ripple effects of a decades-long strategy of cultivating an innovation system. If the State of Ohio hadn’t created and provided sustained funding over decades for its integrated array of technology-based economic development programs, the founders of a newly launched private equity firm wouldn’t be in the position now to commit to helping more mid-market companies succeed in central Ohio.

In this week’s continuing coverage of gubernatorial addresses as they impact the innovation economy, the following highlights have been selected from three of the eight State of the States or budget addresses given between Jan. 28 and Feb. 5, 2025, by the governors from Indiana, Mississippi, and South Carolina. This is the first address for Indiana's new governor, and it provides evidence of economic development being one of his top priorities.

President Trump’s nominee to become Secretary of Commerce, Howard Lutnick, cleared the Senate Committee on Commerce, Science and Transportation on Feb. 4 by a vote of 16 to 12. A floor vote is expected soon, possibly still this week. Among the agencies within the Commerce Department are two agencies that support core elements of regional innovation and technology-based economic development more broadly.

Answering the question of what impact a flat 15% F&A reimbursement rate would have on the nation’s SBIR startups requires real data. The data doesn’t currently exist that we are aware of.

A Feb.

In a recent executive order, The White House is calling for the federal government to establish a Sovereign Wealth Fund (SWF) that will "promote fiscal sustainability, lessen the burden of taxes on American families and small businesses, establish economic security for future generations, and promote United States economic and strategic leadership internationally.”

NOTE: The nation’s community of technology-based economic development organizations has entered annual report season, and already we've seen several released from SSTI members. All document the impact TBED can have for advancing research, moving it to market, and helping businesses improve their profitability and competitiveness.

The Feb.

The National Science Foundation, on behalf of the White House Office of Science & Technology Policy (OSTP), is providing the opportunity for public input toward the development of a national Artificial Intelligence (AI) Action Plan, as directed by President Trump’s Executive Order 14179.

As the federal R&D budget has grown, peer review committee compositions changed, and federal research awards have grown in size, the threshold to obtain the designation as a Carnegie R1 university of $50 million in total research spending to earn the designation was met by 42 additional universities for the first time, bringing the total to 187 nationwide.

The National Science Foundation issued a brief statement to invited NSF Engines proposers last week indicating its decision to delay the Feb. 11 deadline for the current competition for Regional Innovation Engines to a new date yet to be determined. The explanation states, “NSF anticipates a revision to the NSF Regional Innovation Engines program solicitation (NSF-24-565).

The Senate confirmed Howard Lutnick as the Secretary for the Department of Commerce on Tuesday, Feb. 18, by a vote of 51-45. Trade talks and tariff negotiations are expected to be top priorities for the secretary as the agency is expected to undergo several structural changes during the coming months.

SSTI is following personnel and policy changes across the federal government that will likely affect programs of importance for innovation-driven businesses and for growing stronger regional innovation systems across the country. There have been several announcements in the past week alone, so this week’s federal news column is fairly lengthy.

In this week’s continuing coverage of gubernatorial addresses as they discuss the innovation economy, the following highlights have been selected from the State of the States or budget addresses given between Feb. 5 and Feb. 13, 2025, by the governors from Connecticut, Maryland, New Hampshire, and West Virginia.

The U.S. Senate confirmed Kelly Loeffler to run the Small Business Administration by a vote of 52-46 on Wednesday, Feb. 19. Spending more than two decades in technology and financial service businesses, Loeffler is a former owner of the WNBA team, the Atlanta Dream and served in the U.S. Senate by appointment from 2019-2021.

NOTE: The nation's community of technology-based economic development organizations has entered annual report season, and we've already seen several releases from SSTI members. All document the impact TBED can have on advancing research, moving it to market, and helping businesses improve their profitability and competitiveness.

Higher education R&D (HERD) expenditures have steadily increased over time. They’ve soared past $100 billion in the most recent data year, fiscal year (FY) 2023, growing in every state. However, the gains are not shared equally in all fields of research.

As this week’s recent research article mentions, R&D tax credits work, so it isn’t surprising several states have either proposed, amended, or enacted research and development (R&D) tax credits for both the current fiscal (2025) and new (2026) fiscal year in efforts to encourage innovation and economic growth. Some specifically target life sciences or biotechnology sectors while others focus on attracting new or existing companies and startups or to further develop life sciences and/or biotech sectors and hubs.

Research and development (R&D) tax credits are a common cornerstone of federal and state innovation policies and are offered to companies in hopes of spurring economic growth. But do R&D tax credits deliver the economic boost policymakers expect? Previous studies addressing this question often focused exclusively on either firm-level data or aggregate economic data. Firm-level studies typically found that R&D tax incentives significantly boost companies' investment in research and development.