SSTI Digest

The SSTI Board of Trustees has appointed Nick Maynard, co-founder and CEO of US Ignite, as a member of the board. “I'm excited to work with Nick as he joins SSTI's board,” said Mark Skinner, CEO of SSTI. “Since meeting Dr. Maynard fifteen years ago, he has proven in my estimation to be one of the brightest, most thoughtful, solutions-oriented people in the country working to advance regional economic growth through innovation."  

After a nine-month hiatus, the Economic Development Administration has reopened its Public Works and Economic Adjustment Assistance programs with an updated Notice of Funding Opportunity. In the past, this funding has supported a variety of technology-based economic development projects, including research commercialization centers, business incubators and accelerators, revolving loan funds, workforce development initiatives, and regional strategic planning activities, as well as other infrastructure and economic development projects in economically distressed communities.  

SSTI has learned from Ben Page, deputy assistant secretary for economic development and chief operating officer in the U.S. Department of Commerce that U.S. Economic Development Administration is discontinuing funding for the University Centers, Trade Adjustment Assistance to Firms, and STEM Talent Challenge programs. The reason cited was budget constraints. 

SSTI recently examined the investment histories of 31 Venture Development Organizations (VDOs) across 20 states to quantify their impact and help to characterize how the broader technology-based economic development (TBED) community supports long-term innovation-driven economic and financial returns. Our top-level findings showed that  VDOs have invested in 4,600 companies,  VDO-backed companies employ 323,000 people and pay nearly $29 billion in annual wages,  companies supported by VDO investments have gone on to raise $25 billion, and  the median deal size for VDOs is $260,000. 

The U.S. National Science Foundation (NSF) Directorate for Technology, Innovation, and Partnerships (TIP) is inviting comments regarding the proposed collection of information for its Breakthrough Innovations Initiative application. According to the notice in the Federal Register, published on Sept. 19, 2025, they are launching this initiative “to enable researchers, innovators, and entrepreneurs to apply unconventional approaches to create game-changing technologies and translate discoveries into tangible applications and products.” TIP is proposing a streamlined application process with the aim of “accelerating timelines for selecting and conducting translational research….” They estimate that the data collection burden for the application form…

The National Science Foundation (NSF) National Center for Science and Engineering Statistics (NCSES) has recently updated 35 of its over 50 indicators covering education, R&D, and workforce, among other important topics. These indicators are available in two forms: the Science & Engineering Indicators and Science and Engineering State Profiles. …

Like the broader metric of R&D intensity, the prominence of R&D value added in a state’s economic output has shifted within several states over the past decade. Does it matter? For sustaining a state’s innovation competitiveness, it may, and subsequently it is important to know for many state and regional TBED initiatives. Proximity to the conduct of R&D has been well documented in empirical research to support strong regional innovation economies. Subsequently many TBED policies are designed to increase and maintain R&D activity within those boundaries as well as ensure the localized spillover effects are maximized. Determining where R&D activity is thriving and the size of its value added to the state’s GDP, particularly manufacturing-related R&D, may help inform those policy decisions. SSTI explores the latest data on state R&D value added in this Useful Stats article.

The U.S. National Science Foundation Regional Innovation Engines (NSF Engines) program  has narrowed the list of finalists advancing to the next stage of the program's second competition to 15 applicants—spanning critical technologies and applications ranging from enhancing energy grid security to maximizing the yield of critical minerals mining extraction to advancing quantum computing. The finalist teams, many of whom have been building their regional coalitions for a year or longer, are led by a range of organizations, including universities, nonprofits and private industry from across the United States. The finalists and their lead organizations are:   …

Large federal slice of patent pie looming? In an exclusive interview with Mike Allen on The Axios Show, U.S. Commerce Secretary Howard Lutnick floated the idea that the federal government should receive “half the benefits” of federal R&D, referring to a direct share of the financial returns from patents stemming from R&D funded by the federal government.

As the end of the fiscal year approaches, Congress is again at a critical juncture in reauthorizing the SBIR and STTR programs. With only two hearings (one each in the House and Senate Small Business Committees) held so far this year on the topic, Congressman Roger Williams (R-TX), Chairman of the House Committee on Small Business, introduced H.R.5100 on September 3 to extend the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, set to expire on September 30, 2025, for one year, “as is.” The bill passed out of committee on September 10.

As attention-grabbing as AI might be for the media and large investors (see previous SSTI analysis of AI investment), economic growth through innovation in life sciences and biotechnology is a priority for many state and regional TBED initiatives. The venture capital market recognizes that as well. In fact, Pitchbook estimates the broad biotechnology sector (comprising life science, pharma, health care, devices, etc.) captured 14% of all deals so far in 2025, making it the second largest investment group after info tech this year to date.

Understanding the composition of local economies requires looking beyond broad statewide or national trends. County-level data reveals the unique mix, or lack thereof, of industries and businesses in each area. Policy makers, by identifying which sectors drive employment and business activity within a locality, can influence the impact and design of regional innovation strategies to reflect local realities and potential.   The U.S. Bureau of Labor Statistics’ Quarterly Census of Employment and Wages (QCEW) allows examination of county-level employment and establishment counts across all private sectors at the 2-digit NAICS level. In this article, SSTI uses annualized private sector data for all provided 2-digit NAICS sectors at the county level for 2015 and 2024.