Tech Talkin’ Govs 2025: Innovation emphasized in governors’ State of the State addresses—Part 3

In this week’s continuing coverage of gubernatorial addresses as they impact the innovation economy, the following highlights have been selected from three of the eight State of the States or budget addresses given between Jan. 28 and Feb. 5, 2025, by the governors from Indiana, Mississippi, and South Carolina. This is the first address for Indiana's new governor, and it provides evidence of economic development being one of his top priorities. Information on previous 2025 State of the States and/or budget addresses can be found here and here.

Upcoming addresses and states will be covered in future Digest issues.

With the start of the new year, most governors deliver State of the State addresses or Budget addresses laying out their priorities for the coming year. With revenues for many states relatively consistent with forecasters’ expectations, lawmakers, with a few exceptions, continue to maintain cautious or constrained views of their funding priorities and proposed initiatives. As a result, many governors in SSTI’s analysis of addresses delivered so far this season speak more to previously implemented programs and their continued successes rather than rolling out many new programs. However, new priorities for growing stronger innovation economies have not been completely overlooked.

Indiana Gov. Mike Braun gave his first State of the State address on Jan. 29. Braun announced that his administration will continue to focus on building a skilled Indiana workforce through a new initiative, the Hoosier Workforce Investment Tax Credit, which will incentivize employers to invest in employee skills training and development. Believing that education is also workforce development, the governor promised continued support for programs around the state in which students get hands-on training in manufacturing and other industry skills and engagement with Indiana companies throughout their training to ensure placement of skilled or qualified employees. Braun also announced the restructuring of the Indiana Economic Development Corporation (IEDC) to expand their mission and focus on programs that will benefit all areas of the state, existing employers, and IEDC partnerships with other agencies. He also introduced the creation of an Office of Entrepreneurship and Innovation that seeks to focus on Main Street entrepreneurs, communities, and small businesses with resources and assistance and would oversee programs to drive innovation and create jobs. This new office would report directly to the governor and would be overseen by the Indiana Commerce Secretary.

On Jan. 29, Mississippi Gov. Tate Reeves delivered his State of the State address in which he again pitched his priority to eliminate the state’s income tax. Reeves discussed the importance of positioning Mississippi as a leader in energy – both in its technology and production. He announced that his administration would be working with the private sector to develop plans for all forms of energy—nuclear, solar, wind, and natural gas—to drive greater innovation, investment, workforce development, and job creation within the state.

On Jan. 29, South Carolina Gov. Henry McMaster became the state’s longest-serving governor and delivered his eighth State of the State address. The governor proposed an agenda for the new year to build upon successes from earlier in his term. In particular, the governor discussed the need for the state to continue exploring technological advances related to energy, including nuclear power, to ensure future economic development and population growth. McMaster discussed the SC Nexus for Advanced Resilient Energy consortium developed by the South Carolina Department of Commerce and winning the U.S. Department of Commerce’s Economic Development Administration’s designation as one of the 12 Regional Technology and Innovation Hubs in the country with a focus on power. The governor also announced that for the sixth consecutive year, he is requesting a tuition freeze for in-state students who attend public colleges, universities, and other higher learning institutions in South Carolina. In exchange, the schools would receive metric-based appropriation and incentives.

This article was prepared by SSTI using Federal funds under award ED22HDQ3070129 from the Economic Development Administration, U.S. Department of Commerce. (The statements, findings, conclusions, and recommendations are those of the author(s) and do not necessarily reflect the views of the Economic Development Administration or the U.S. Department of Commerce.