innovation

Outlining the need for a new national effort to build regional innovation economies, a panel of experts gave testimony to the Research and Technology subcommittee of the House Committee on Science, Space and Technology, chaired by Rep. Haley Stevens (D-MI). The panel focused on how regions have developed their innovation economies and how those experiences could be replicated across the country with federal support. SSTI President and CEO Dan Berglund's testimony drew from SSTI members’ experience and his more than 35 years in the field to make the case that a robust federal response was required with a national strategy and federal funding to support state and local organizations as they develop regional innovation economies. The hearing comes as the U.S. Senate approved a regional technology hubs program, as part of the Endless Frontiers Act, which passed the Senate with bipartisan support this week (see related story).

As vaccination rates increase across the country and infections fall, the role of science in combatting the COVID-19 virus is front and center. Last week, we brought you stories about SSTI members’ efforts to help small businesses. In today’s story, we share additional feedback from our members that worked to find ways to fight the virus and others who pivoted to help their students continue to learn in a challenging environment.

Alabama is the latest state that is embracing innovation as a way to grow the state’s economy. On May 19, Alabama Gov. Kay Ivey signed legislation that grew from two top priority measures of the Alabama Innovation Commission — proposals discussed between SSTI and commission members in a meeting earlier this year. House Bill (HB) 540 establishes the Alabama Innovation Corporation, a public-private partnership that will serve as a catalyst for the state’s growing innovation economy, and HB 609 creates the Innovate Alabama Matching Grant Program that will promote research and development in the state. Both measures were passed unanimously in the state’s recently concluded legislative session. The initiatives are funded through the Education Trust Fund Budget (enacted May 11), with the Alabama Innovation Corporation receiving $4 million in funding, and the Alabama Matching Grant Program appropriated $5 million.

As the most ambitious innovation initiative that Europe has ever undertaken, the European Union (EU) recently launched the European Innovation Council (EIC) with a €10 billion (about $11.7 billion USD) fund that will provide both non-dilutive grants to and direct equity investments in innovative startups within the union. After a successful three-year pilot, the EIC is merging with the current Executive Agency for Small and Medium-sized Enterprises, and has already launched its first official program with a call for proposals worth €1.5 billion (approximately $1.8 billion USD).

Facing current challenges and a changing economy, Oregon is turning to innovation-based economic growth. Their new 10-year Innovation Plan focuses on ensuring a competitive position through four means — traded sector industries that constantly innovate; a robust entrepreneurial ecosystem; financial capital markets that are open to investing in innovative firms and entrepreneurs; and promoting itself as a place to start and grow in innovative company.

To bolster its already thriving technology sector, the city of Austin, Texas, has partnered with Opportunity Hub (OHUB) and others from industry and academia to bring a new Equity District to the city. Similar to the innovation district model, this new Equity District will be “anchored in equitable place-making and mobility for the fourth industrial revolution” by providing coworking space, entrepreneurship support programs, a platform for fostering networking and mentorship, re-skilling training and certificates, and an investment structure to increase early-stage investment in Black founders.

Last month, Gov. Laura Kelly (D), alongside former state governors Mike Hayden (R) and John Carlin (D), and the Lt. Gov. and Secretary of Commerce David Toland, announced “Framework for Growth”, the state’s first economic development plan in over 30 years. The plan, which was a year in the making, is a collaborative effort that involves input from over 2,000 Kansans, the staff of the Department of Commerce, and two former governors.

Ohio unveiled the Columbus Innovation District this week, marking the third such announcement in less than a year, with a $100 million commitment from JobsOhio, the state’s nonprofit economic development corporation. Other partners in the Columbus initiative include Ohio State University, which will contribute $650 million, and Nationwide Children’s Hospital, with a $350 million commitment. The district is intended to bring together globally recognized education and healthcare research institutions to help create in-demand jobs and fuel $3 billion in economic impact for Columbus and Ohio over the next 10 years.

A working paper from the Innovation Growth Lab (IGL) series featuring researchers from the Max Planck Institute for Innovation and Competition provides causal evidence on the effectiveness of innovation vouchers and adds to the argument for implementing small-scale government funding mechanisms like innovation vouchers. Innovation vouchers are designed to link small and medium-sized enterprises (SMEs) with external knowledge resources to promote small-scale innovations.

Already weakened before the pandemic, a new report from the National Defense Industrial Association (NDIA) finds that the health and readiness of the U.S. defense industrial base — composed of manufacturers, technology innovators, and systems integrators, research organizations, and suppliers — faces particularly large obstacles in the areas of innovation and supply chain. Assessed along eight different metrics, NDIA assigns an overall letter grade indicating the health and readiness of the defense industrial base. This year’s report assigned the final grade of a “C,” which is a passing grade, but leaves much room for improvement.