SSTI Digest

New fiscal year (FY) 2021 Higher Education Research & Development (HERD) survey data released by the National Science Foundation (NSF) reveals a $3.4 billion (4%) increase in research and development (R&D) spending by institutions of higher education ($86.5 to $89.9 billion), driven almost entirely by a decades high federal government R&D funding increase of $3 billion.

The FY 2021 HERD is a survey of all 910 universities and colleges granting a bachelor’s degree or higher that also had R&D expenditures of at least $150,000 in FY 2020. Institutions that reported less than $1 million in R&D expenditures in the prior fiscal year were allowed to submit a “short-form” version of the survey; this made up 262 of the 910. While the 262 institutions were excluded from much of NSF’s provided tables and analyses, they only make up around $149 million – approximately 0.2% – of total higher-ed R&D expenditures.

SSTI has written a response to the U.S. Small Business Administration’s (SBA) proposed revisions to the Small Business Investment Company (SBIC) program, which aim to increase program participation. The proposed changes include reductions in licensing fees for first- and second-time funds, exceptions to the conflict of interest rules for follow-on financing, increasing access to credit for leveraged funds and a new “accrual debenture” option for SBICs.

Thirty-three states have been approved for at least one equity program through the State Small Business Credit Initiative (SSBCI) as of December 2022. The states are: Alaska, Arizona, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Vermont, Virginia, West Virginia.

With the Dec. 20 release of two Requests for Information (RFIs), the White House Office of Science and Technology Policy seeks public input to help guide the development and deployment of the National Biotechnology and Biomanufacturing Initiative, which is intended to use the two disciplines to advance innovative solutions in health, climate change, energy, food security, agriculture, and supply chain resilience.

The National Biotechnology and Biomanufacturing Initiative RFI seeks public responses on or before Jan. 20 to 17 specific questions contained within several broad topic areas:

The U.S. Department of Commerce recently launched the Capital Readiness Program grant competition, which will provide $93.5 million to help minority and other underserved entrepreneurs grow and scale their businesses and be administered by the Minority Business Development Agency.

The program will provide funding to incubators, accelerators and other eligible organizations to assist and train minority and other underserved entrepreneurs seeking resources, tools, and technical assistance to start or scale their businesses in high-growth industries such as healthcare, climate resilient technology, asset management, infrastructure, and more. MBDA’s Capital Readiness Program is funded by the Department of Treasury’s State Small Business Credit Initiative (SSBCI), and is intended to serve entrepreneurs and businesses that are applying, have applied, or plan to apply to SSBCI or other government programs that support small businesses.

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.

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.

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.

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.

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.

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.

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).