SSTI Digest

Seeking fundamental changes in access to and equity in science, technology, engineering, math and medicine (STEMM) education, the White House Office of Science and Technology Policy (OSTP) and participants from across sectors met and sought ways to ensure the STEMM ecosystem is equitable and inclusive. OSTP, along with the American Association for the Advancement of Science (AAAS), and with support from the Doris Duke Charitable Foundation (DDCF), have launched the STEMM Opportunity Alliance (SOA), a national initiative to lead and coordinate this and future cross-sector action to achieve equity across STEMM fields. To date, more than $4 million has been committed to launch SOA with more than 90 partners signing onto the effort. SOA outlined five key areas for action that will help bring about change and “ensure the diversity that is necessary for the increased performance and innovative ideas that are needed to keep the United States competitive.” They include: Foster a more just society by ensuring greater access to opportunities for economic prosperity; Coordinate a national effort across many sectors; Ensure scientific excellence; Maintain U.S.…

Federal innovation and entrepreneurship initiatives would receive substantial new funding under the text of the omnibus spending bill shared on the morning of Dec. 20 by the Senate Committee on Appropriations. The legislation, which totals $1.7 trillion and covers both regular FY 2023 appropriations and supplement funding, provides a total of $1.8 billion for programs authorized by this year’s CHIPS and Science Act and increases funding for multiple long-standing efforts — including each of the SSTI Innovation Advocacy Council’s priority programs. The legislation is expected to pass Congress this week, before the current funding agreement expires on Dec. 23. The SSTI Innovation Advocacy Council asked Congress for additional funding in FY 2023 for Regional Technology and Innovation Hubs (following its authorization in the CHIPS and Science Act), Build to Scale, FAST and Regional Innovation Clusters. The omnibus bill includes new or increased funding for each of the Council’s priority programs. A note on FY 2023 vs. supplemental funding: This year’s omnibus provides funding through both regular FY 2023 appropriations and through supplemental funding. In the short…

In a hearing this week, lawmakers expressed bipartisan support for EDA’s innovation programs and for providing appropriations for the newly-authorized Regional Innovation and Technology Hubs. On Dec. 14, the House Subcommittee on Research and Technology held a hearing on “Building Regional Innovation Economies.” This panel, convened by subcommittee Chairwoman Haley Stevens, emphasized the Economic Development Administration’s Build to Scale, Build Back Better Regional Challenge and newly-authorized Regional Technology and Innovation Hubs (Tech Hubs) programs. The witnesses, who included EDA administrator Alejandra Y. Castillo, spoke to the significant and positive impact EDA funding has had for local economies. This hearing was a follow-up to last summer’s session, in which SSTI president and CEO Dan Berglund testified, before the CHIPS and Science Act authorized Tech Hubs and before EDA made its Build Back Better Regional Challenge awards. During this week’s hearing, members of the science committee from both sides of the aisle seemed supportive of EDA’s role in encouraging regional innovation and interested in further funding for the agency. Chairwoman Stevens…

A recent report outlines over 100 initiatives that could boost the semiconductor industry. The Arizona Commerce Authority and Boston Consulting Group recently collaborated on a National Semiconductor Economic Roadmap (NSER) to advance semiconductor competitiveness in the United States. The report features input from over 80 industry leaders, education institutions, and public sector leaders across the nation to outline a 10-year, industry-led action plan for the semiconductor industry, focusing on infrastructure, supply chain, workforce, and entrepreneurship. The reliance on international partners within the semiconductor industry has created shortages in the U.S.'s aerospace, defense, and energy infrastructure, and shifts in domestic manufacturing capacity have weakened the nation's semiconductor industry. The success of the investment possible through the CHIPS and Science Act will rely on effective collaboration, which inspired the NSER. The roadmap states that with this investment, the U.S. could capture between 16-28% of global industry capital rather than a projected 8% and increase the U.S. share of global capacity to 11-16% in 2033 instead of 8%. The…

A recently released International Energy Agency (IEA) report states that renewables are set to account for over 90% of global electricity expansion over the next five years, with China retaining a 75-90% share in global renewable manufacturing capacity. China has released its 14th 5-year plan and is expected to account for almost half of the new global renewable power capacity additions over the 2022-2027 period. Meanwhile, the US Inflation Reduction Act has provided new support and long-term visibility for the expansion of renewables in the United States. Because of the war in Ukraine, many European governments and businesses are looking to rapidly replace Russian gas with alternatives. And according to the IEA, the amount of renewable power capacity added in Europe in the 2022-27 period is forecast to be twice as high as in the previous five-year period. Additionally, India’s biofuel demand and production are projected to increase 70% over 2022- 2027, thanks primarily to its goal of reaching 20% percent ethanol blending by 2025 and rising gasoline demand. If countries maintain trade policies that limit imports and favor domestically produced photovoltaic…

In an effort to help rural citizens retain their resources and wealth, the U.S. Department of Agriculture (USDA) Secretary Tom Vilsack announced the investment of $981 million to help create new and better market opportunities  expanding essential services for rural people, businesses and entrepreneurs in 47 states, Guam and the Virgin Islands.  USDA is making 242 awards through eight programs specifically designed to create economic opportunity; the Biofuel Producer Relief Payments Program , Business and Industry (B&I) Loan Guarantees, Community Facilities Guaranteed Loan Program, Rural Cooperative Development Grant Program, the Rural Economic Development Loan and Grant Program, Rural Innovation Stronger Economy Grants program, the Rural Microentrepreneur Assistance Program and the Water and Waste Disposal Loan Guarantees. Two awards were made under the RISE Program, which offers a 4-year grant, awarded competitively with a minimum of $500,000 and maximum of $2,000,000. It offers grant assistance to create and augment high-wage jobs, accelerate the formation of new businesses, support industry…

In addition to last week’s Digest story on all state expenditures, the National Association of State Budget Officers’ (NASBO) 2022 State Expenditures Report detailed information on higher education expenditures, finding a 9.4% increase (from $225 to $247 billion) in total higher education expenditures over the past fiscal year, a sizable increase from the 1.7% increase experienced from FY 2020 to 2021. State funds for higher education increased 9.3% and federal funds saw an increase of 12.1%. This represents a large growth in state fund spending (from -0.3% in FY 2021), yet a decrease in momentum for federal fund spending (from 15% in FY 2022). Federal funds do not typically make up a large portion of a given state’s overall expenditures for higher education (15.2% in FY 2022, compared to 10.1% in FY 2019); however, NASBO attributes FY 2022’s continued growth to higher education-specific COVID-19 relief funding, totaling $3.3 billion in FY 2020, $9.9 billion in FY 2021 and $10.4 billion in FY 2022. Much of this funding comes from programs like the Higher Education Emergency Relief Fund (HEERF), CARES Act, Coronavirus Response and Relief Supplemental Appropriations Act…

Recognizing that innovation ecosystems require broad networks of partners working together and knowing that many institutions of higher education (IHEs) lack the research capacity to be able to participate in external partnerships, the NSF Directorate for Technology, Innovation and Partnerships invites proposals from Minority-Serving Institutions (MSIs), Predominantly Undergraduate Institutions (PUIs), and two-year institutions with limited or no research capacity to apply for the support necessary to become equitable partners with teams competing under the current and subsequent NSF Engines program funding opportunities. The recently announced solicitation, Enabling Partnerships to Increase Innovation Capacity (EPIIC), anticipates awards of up to $400,000 per awardee institution from a pool of $20 million, to provide the opportunities for these institutions to participate in one or more aspects of an emerging innovation ecosystem, spanning workforce development, use-inspired research, and the translation of research to practice through the creation of new or expanded partnerships. The goals of awards made under this solicitation are to enable awardees to:…

Since the widespread usage of the internet in the 1990s, the question of who has access to broadband and the definition of high-speed internet has bedeviled federal, state and local officials.  Attempts to map which addresses have access to high-speed service date back at least 20 years. The latest iteration, a new national broadband map released by the Federal Communications Commission (FCC) will be used to ensure that the $42.45 billion federal investment from the Bipartisan Infrastructure Law’s Broadband Equity, Access, and Deployment (BEAD) Program makes its way to the areas most in need of broadband service when it is allocated to states on June 30. With challenges to the map due by Jan. 13, SSTI urges state and local policymakers to take a close look at the map and encourage your residents to provide feedback on the map. Six SSTI staff members living in California, Georgia, Maryland and Ohio had varying experiences on the real-life accuracy of the information contained in the map. Staff that identified problems with the map found that it tended to have errors in addresses (e.g., incorrect numbers or missing entirely) and overstating providers that could or…

Earlier this week, the U.S. Department of the Treasury announced the approval of seven additional states’ programs for State Small Business Credit Initiative (SSBCI) funding, totaling over $1.6 billion: Florida, Georgia, Illinois, Louisiana, North Dakota, Oklahoma and Virginia. A short summary of these states’ plans, all of which include investment capital, are available below: Florida has been approved for up to $488.4 million to operate a total of five programs. Enterprise Florida, Inc., with the First Florida Capital Finance Corporation, will administer a collateral support program, loan participation program, and loan guarantee program. Florida has allocated the bulk of their total funding, $250 million, to the collateral support program. The Florida Department of Economic Opportunity will run a capital access program. Lastly, Enterprise Florida, Inc., with the Florida Opportunity Fund, have been allocated $100 million to administer the Florida Venture Capital Program with the goal of making equity co-investments in new and emerging Florida companies Georgia has been approved for up to $199.6 million, and will also operate five programs. The Georgia…

The National Association of State Budget Officers’ (NASBO) 2022 State Expenditures Report found total state spending to have grown an estimated 7.3% between fiscal years (FY) 2021 and 2022 ($2.66 to $2.86 trillion), 1.5 percentage points higher than the 36-year average growth of 5.8% per annum. This increase in state spending can be largely attributed to an 18.1% surge in general fund spending from FY 2021 to 2022 (following an increase of just 2.2% from FY 2020 to 2021) — the highest rate in the 36-year history of NASBO’s State Expenditure Report history. State spending from outside of the general fund (including bonds) also increased by 5.2% (to $725 billion), while state expenditures from federal funds declined by 0.2% (to $1.08 trillion). State general fund spending increased in all program areas, ranging from a 0.1% growth in public assistance to a 245.8% growth in transportation. Federal funding is estimated to have declined by 0.2% in FY 2022, mainly due to FY 2021’s elevated funding levels from aid-based programs such as the American Rescue Plan Act (ARPA) and Coronavirus State and Local Fiscal Recovery Fund (CSLFRF). However, NASBO reports that federal…

State government agencies’ expenditures for research and development totaled nearly $2.5 billion in FY 2021, an increase of 1.1% from FY 2020, but far below the year-over-year inflation of 6.4% when measured in February 2022. The findings on state R&D were recently reported by the National Center for Science and Engineering Statistics (NCSES). The sluggish state spending was exacerbated by real decline in extramural share of federal R&D spending in FY 2021. Intramural R&D by feds grew from 30.7% of total in FY 2020 to 35.8 percent in FY 2021 (see https://ncses.nsf.gov/pubs/nsf22323). While the report finds that state R&D spending remains largely focused on applied R&D, it continues to shift toward experimental development (+23.7%) and away from basic R&D (-8.1%).  While  health-related R&D remained the largest category of state agency R&D in FY 2021 with over $1.0 billion in expenditures, increasing just 0.3% from FY 2020, R&D on environmental and natural resources declined from $448 million in FY 2020 to $429 million in FY 2021, but remains the second-largest functional area. Energy-related R&D increased 5.1% in FY…