For three decades, the SSTI Digest has been the source for news, insights, and analysis about technology-based economic development. We bring together stories on federal and state policy, funding opportunities, program models, and research that matter to people working to strengthen regional innovation economies.
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One persistent question in economic development policy is how incentives impact private sector investment decisions. Recent and ongoing research from Murillo Campello and Guilherme Junqueira of the University of Florida, published in the National Bureau of Economic Research working paper series, explores the impact of the Qualified Small Business Stock (QSBS) program on venture capital risk-taking. The researchers found that the availability of QSBS tax benefits strongly influences venture capital investment behavior, specifically in traditionally structured venture capital funds. They also found no similar behavior among angel or corporate investors, an insight that may hold important program design and policy lessons for the TBED community.
The U.S. Small Business Administration (SBA) has proposed updated commercialization performance standards for companies that win large numbers of Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) awards. The proposal would apply to firms that received more than 25 Phase II awards across all participating agencies during the previous five completed fiscal years. To remain eligible for new Phase I or Direct-to-Phase-II awards, those firms would need to show that a minimum share of their total revenue comes from sources other than Phase I and Phase II SBIR/STTR funding. The threshold would be 33% non-SBIR/STTR revenue for the FY 2027 assessment and 50% beginning in FY 2028, measured over the previous three completed fiscal years. Phase III revenue and other government contracts would count as non-SBIR/STTR revenue. Firms that do not meet the benchmark would be ineligible to submit proposals for new Phase I or Direct-to-Phase-II awards for one year. SBA says the updated standards are scheduled to take effect Nov. 15, 2026, after review of public comments, which are due by October 31.
With extensive cuts to federal research funding since January 20, 2025, one might wonder what impact this is having on scientists, both in the U.S. and abroad. Recently published results from a survey by AIP (American Institute of Physics) offer a snapshot of how more than 2,000 respondents from AIP’s member organizations view the impact of these changes.
The University of Alaska Board of Regents voted on Aug. 4 to eliminate higher tuition rates for out-of-state students. The unanimous vote is expected to be finalized in November, when the regents will set tuition rates for the 2027-28 academic year. University finance officials said the change is not expected to significantly reduce revenue, but it could help the University attract more students from outside Alaska.
Intellectual property-intensive industries account for 44% of private-sector GDP, 66 million jobs, and $1.58 trillion in commodity exports, according to a new report released by the United States Patent and Trademark Office this month. The report sheds light on how IP is distributed among various industries.
A recent flurry of new rules, both proposed and finalized, may interest small business owners or those who advise them.
The U.S. Small Business Administration (SBA) has proposed two new rules. The first, Revised Size Standards Methodology, will update SBA’s methodology for determining which businesses qualify as “small.” The second, on Small Business Size Standards, would consolidate the number of industry-specific size standards and raise size standard thresholds.
SSTI’s recent TBED Community of Practice webinar took up a practical question raised by the White House Office of Science and Technology Policy report, Science: A New Golden Age: if federal science policy shifts, what changes will universities, commercialization, and regional innovation organizations need to make?
The presentation outlined a research system that could look considerably different from the one that has developed since Vannevar Bush’s Science, the Endless Frontier.
Data reveal that policymakers should not equate strong Venture Development Organizations (VDOs) with private venture capital companies; the purpose of creating public policy to increase the availability of innovation-centered risk capital can be lost if one presumes VCs and VDOs are the same. While there are many similarities between individual VDOs and VC funds, important differences in industry concentration emerge when the two groups are compared in aggregate, which may result in different long-term economic impacts.
Effective VDOs are important drivers of regional innovation and of pushing emerging tech businesses forward. VC, on the other hand, can play an extractive role, particularly in markets with scarce equity finance options.
The National Center for Science and Engineering Statistics (NCSES), housed within the National Science Foundation (NSF), recently launched a new “Indicators Explorer” data visualization tool that allows users to quickly build line, bar, and column charts as well as various maps and other graphics from within the Indicators platform. The tool draws on 28 indicators across topics pertinent to S&E such as patents, research publications, R&D expenditures, and the STEM workforce. NSF expects to update the tool periodically with new indicators and data.
When a major employer closes, jobs disappear, buildings sit empty, and communities are left wondering what comes next. A new white paper from the Association of University Research Parks (AURP) and the International Economic Development Council (IEDC) looks at how that disruption can become a starting point for economic reinvention.
Colorado Gov. Jared Polis, the Colorado Office of Economic Development and International Trade (OEDIT), and leaders from the state’s business and innovation sectors recently announced the creation of a new public‑private partnership: the Governor’s Competitiveness Council. Led by members of the business community in collaboration with government officials, the council will develop a long‑term, statewide vision to strengthen Colorado’s national business competitiveness and greater enhance the state’s innovation ecosystem. The council will also craft a data‑driven strategy to benchmark Colorado’s competitive advantages and identify legislative, policy, and regulatory recommendations aimed at further strengthening the state’s economy.
Strong regional ecosystems connect universities, entrepreneurs, investors, manufacturers, workforce organizations, and state and local governments. Rather than supporting just isolated institutions, federal agencies are now investing in collaborative regional networks capable of translating research into new companies, industries, and jobs. The intent is not for every region to become the next Silicon Valley, but to enable regions to compete by organizing around what they already do well.
