Bank or venture capital (VC) financing? This is one of the toughest questions that aspiring entrepreneurs and small firms must answer. A recent academic study contends that VC financing may be the superior financing structure for early stage capital. However, several other studies contend that both bank and VC financing can help create and grow successful startups. For potential entrepreneurs, each provides strengths and weaknesses that are highlighted in the studies.

Australian Prime Minister Malcolm Turnbull announced a suite of new policies and investments aimed at catalyzing the nation’s economy through science, innovation and entrepreneurship. The National Innovation and Science Plan would fund university research, invest in K-12 and university STEM programs, limit the financial risks of entrepreneurship, invest in technology commercialization programs, and introduce a new class of visa for entrepreneurs. The changes would also enable equity-based crowdfunding and provide tax credits for early stage investment.

A number of governors around the U.S. have already begun rolling out budget proposals for the next legislative session. This week, SSTI examines gubernatorial spending recommendations related to research, commercialization, STEM education and entrepreneurship in Alaska, South Dakota and Utah. See our previous article on proposals in Florida and Wyoming.

The National Governors Association’s (NGA) Center for Best Practices launched the 2016 Policy Academy on Scaling Work-Based Learning – a pilot program in six states that blends work experience and applied learning to develop youth and young adults’ foundational and technical skills to expand their education, career and employment opportunities. The goal of the program is to connect 16- to 29-year-olds with middle-skills career opportunities in STEM-intensive industries such as advanced manufacturing, health care, information technology and energy.

New York Gov. Andrew Cuomo announced $2.25 billion in economic and community development awards as part of the fifth installment of the state’s Regional Economic Development Council (REDC) Initiative. Of this total, $1.5 billion over the next five years will go to the three regions (Central New York, Finger Lakes, and the Southern Tier) that were selected as the winners of the Upstate Revitalization Initiative.

Around the country, states are beginning to feel the fiscal impacts of falling oil prices.  In FY 2016, eight states enacted FY 2016 budgets below their FY 2008 levels, largely as a result of challenges associated with their oil and gas industry, according to the Fiscal Survey of States report by the National Association of State Budget Officers (NASBO). Similarly, a quarterly update of gross domestic product (GDP) by the U.S.

Recent doctoral recipients who enter the private sector are more likely to go to firms with high payrolls per worker and other business characteristics associated with high productivity, according to a new report – Wrapping it up in a person: Examining employment and earnings outcomes for Ph.D. recipients.

This week, congressional leaders reached a deal on spending that would prevent a federal government shutdown. The omnibus appropriations bill would fund the Economic Development Administration’s (EDA) Regional Innovation Program at $15 million, an increase of $5 million over the previous year. The Regional Innovation program is SSTI's highest legislative priority because of the flexible funding it provides for regional innovation activities. 

The National Telecommunications and Information Administration (NTIA), located within the U.S. Department of Commerce, announced that their closing deadline to submit nominations for the Digital Economy Board of Advisors has been extended to January 12, 2016.

As recently reported in the SSTI Digest, Congressional leaders were able to reach an agreement on federal spending that averted a government shutdown. The FY16 omnibus appropriations legislation and an accompanying bill related to tax provisions were signed by President Obama on December 18.

The U.S. Department of Commerce's National Institute of Standards and Technology (NIST) plans to fund up to two new institutes within the National Network for Manufacturing Innovation (NNMI). NIST's solicitation will be the first in which the funding agency has not predetermined the industry of focus for the institute, however, the agency is particularly interested in topics deemed critical by the President's Council of Advisors on Science and Technology (PCAST) Advanced Manufacturing Partnership. These include manufacturing robotics and biopharmaceutical manufacturing.

Virginia Gov. Terry McAuliffe announced the creation of a pay-for-performance workforce training program that will help Virginia workers acquire the industry certifications and occupational licenses that meet the needs of key businesses in each region of the state.

The U.S. Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy (EERE) recently released the first round of 33 awardees from the Small Business Vouchers Pilot program.  A total of $6.7 million will be awarded in the form of vouchers for assistance from DOE national laboratories of up to $300,000 a piece. Small cleantech businesses may be able to apply in nine technical categories. A second round of awards also has been announced, with a third to follow later in the year.

Angel investors are an essential component of the global economy, supporting ideas and innovators at their very earliest stages. In 2014, more than 200,000 American angels invested about $24 billion in 73,000 startups, according to the Angel Capital Association (ACA). Little data, however, exists on who these investors are and how they make their decisions. ACA, Wharton Entrepreneurship and the John Huston Fund for Angel Professionalism at Rev1 Ventures are launching a nationwide survey of angel investors to learn more.

The Indiana Biosciences Research Institute (IBRI), first unveiled in May 2013, is a statewide public-private partnership advanced by BioCrossroads that considers itself the first industry-led collaborative life sciences research institute in the country.

Several recent studies have identified the roadblocks that females face in Science, Technology, Engineering and Mathematics (STEM) fields. These two roadblocks include gender bias in the classroom and too few mentors in K-16 STEM fields. In an attempt to increase opportunities for females in STEM education, both federal and foundation funders have announced programs that will increase scholarship and internship opportunities for young women in STEM fields.

To celebrate the one year anniversary of the TechHire Initiative, the Obama administration announced an expansion of the program with the addition of 15 new communities. The administration also announced activities and commitments to help support career and technical education. 

Florida Higher Education – Is the Cheapest Fiscally Sound? provides evidence for the connection between state funding for universities and productivity. Florida Research Consortium and Florida Chamber Foundation combine a variety of data to advance three connections: 1) state funding for universities is exponentially related to total funding for universities; 2) total funding for universities is related to research quality; and 3) research quality is related to productivity within Metropolitan Statistical Areas.

America Makes, the National Additive Manufacturing Innovation Institute, announced the creation of the Additive Manufacturing Standardization Collaborative (AMSC) – an effort to coordinate and accelerate development of industry-wide additive manufacturing (AM) standards and specifications.

In partnership with the Appalachian Regional Commission (ARC), the Economic Development Administration (EDA) announced the availability of $65.8 million in new funding through the Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) initiative.

Despite its location more than 180 miles south of Gainesville, FL,  Sarasota County – which is far better known for its cultural and environmental amenities than industrial strength – will be home to the University of Florida’s first engineering extension office.

Earlier this month, SSTI highlighted recent research from the Information Technology and Innovation Foundation (ITIF) that detailed the critical role immigrants play in developing some of the most notable innovations in the U.S.

Last summer, SSTI and JumpStart Inc. conducted a survey of tech-based economic development (TBED) organizations on how groups use and invest in information technology tools. The goal of this survey was to gather a greater understanding of the basic challenges TBED organizations face with regard to information technology, as well as their self-identified strategic goals and whether they believe their IT spending priorities are helping them achieve these goals.

Illinois and Michigan are among the few states that support regular comprehensive examinations of the role higher education plays in the overall innovation economy. Organizations in both states recently completed studies on university-generated entrepreneurship, licensing, investment and employment, finding a steady rise in university economic impact over the past five years.  In both cases, the increase in university impact was linked to an expanding university role in supporting entrepreneurs and researchers.

Many states across the country already have, or will soon have, signed budgets ready for the 2017 fiscal year.  Over the past few months, SSTI has examined gubernatorial addresses and proposed budgets for a preview of technology-based economic development spending in the coming year. This week, we take a look at what initiatives and spending levels survived spending negotiations in Alabama, Florida, Idaho and New Mexico, as well as an update on the budget situation in Pennsylvania.