SSTI Digest

The U.S. National Science Foundation announced awards totaling approximately $40 million to support research and STEM workforce development in Delaware, Guam, Kentucky, Louisiana, and Vermont, according to a January 22 NSF press release. These grants are part of the NSF Established Program to Stimulate Competitive Research (NSF EPSCoR). “Strengthening Partnerships for Advancing Research Capacity in Delaware” is led by the University of Delaware and delivered in partnership with the Delaware EPSCoR State Committee, Delaware State University, Delaware Technical Community College, Goldey-Beacom College, and Wilmington University. The award abstract, notes that the project is expected to strengthen the data and intellectual property infrastructure among the participating institutions, boost interdisciplinary team-based research, improve communication and access to STEM programming, and support entrepreneurial training.  “Optimizing Research Infrastructure in Guam” is led by the University of Guam in collaboration with Guam Community College. The project’s award abstract states the funding enables “student research experiences to employ a near-peer mentoring…

The Appalachian Regional Commission (ARC) recently awarded  $14.5 million in Appalachian Regional Initiative for Stronger Economies (ARISE) grants for five projects. ARISE is ARC’s multi-state initiative that aims to drive large-scale, regional economic transformation through collaborative projects. These awards included $3,980,996 awarded to Morehead State University to build the aerospace workforce in Kentucky and West Virginia. The university will use ARISE funding to expand its SpaceTrek initiative, which addresses the region’s aerospace workforce deficits. Academic institutions will collaborate with industry partners to implement the SpaceTrek summer program and SpacePrep explorations workshops. These programs will introduce pre-college students to higher education opportunities and careers in aerospace and provide an immersive experience in aerospace subdisciplines, including electronics, telecommunications, and data analysis. ARC awarded $2,870,702 to Thrive Regional Partnership to expand three collaborative capacity-building programs in Alabama, Georgia, and Tennessee. The partnership will use ARISE funds to expand three…

The U.S. Department of Treasury has announced its approval of $801.4 million in SSBCI funding for eleven U.S. states and territories: Arkansas, Delaware, Guam, Kentucky, New Jersey, Puerto Rico, Rhode Island, Tennessee, the U.S. Virgin Islands, Wisconsin, and Wyoming. The addition of these states and territories means 46 states and three territories have been approved for State Small Business Credit Initiative (SSBCI) funding. Treasury has now approved over $7 billion in SSBCI funding. This news comes alongside the upcoming two-year anniversary of the passage of the American Rescue Plan Act on March 11, 2021. Arkansas Arkansas has been approved for up to $81.6 million to operate seven programs: a capital access program, two loan participation programs, two loan guarantee programs and two equity/venture capital programs. The state allocated $15 million to the loan guarantee program and $7.5 million to the loan participation program, with a focus on reaching underserved businesses. The equity/venture capital programs have been allocated a combined $46 million to invest in high growth companies across the state. Delaware …

The recently approved Inflation Reduction Act with new incentives for electric vehicle ownership and energy efficiency is likely to continue a trend among states for the location of major economic development projects, a trend toward everything mega—megasites, megadeals, mega factories, and mega projects. These large-scale manufacturing projects typically feature incentives from state and local governments, such as access to shovel-ready megasites or large tax incentive packages. These new "mega" trends have raised the stakes and increased competition between states as they advocate for the bid of electric vehicle and battery companies looking to expand. The most recent announcement came as Panasonic Corporation committed to building a new $4 billion factory for electric vehicle batteries in Kansas, planning to create over 4,000 jobs. The Panasonic deal featured an $892 million incentive package with payroll rebates, investment tax credits, funds to cover training and education costs, and sales tax exemptions for construction. Kansas was not the only state vying for the Panasonic plant — Oklahoma was planning to offer a $698 million incentive package to draw the company…

The last of the governors have delivered their State of the State addresses. With 36 gubernatorial elections this fall, many governors appeared to be more conservative in their addresses this year, speaking more about past accomplishments rather than rolling out new programs. This week features comments from California, Louisiana, Nevada and Ohio’s governors as their addresses related to the innovation economy. California Gov. Gavin Newsom (March 8) Gov. Gavin Newsom talked about transformation in the state’s public education system, including free community college. “Infrastructure, research and development, investing in our conveyor belt for talent, the finest system of higher education anywhere in the world: our CSUs, UCs and community colleges. And ensuring society provides a hand up when people need help, maintaining, maintaining our pro-immigrant policies and welcoming refugees from around the world.” Louisiana Gov. John Bel Edwards (March 14) Noting that the state has “hundreds of millions in surplus, even more in current year excess, and billions in federal funding through the American Rescue Plan and the Infrastructure Investment…

The National Institute of Standards and Technology (NIST) is accepting applications to operate Manufacturing Extension Partnership (MEP) centers in Kentucky, Nebraska, Rhode Island and South Dakota. The NIST Hollings Manufacturing Extension Partnership funds 51 centers in all 50 states and Puerto Rico which provide experts who enhance the performance of local manufacturers. Funding awards will include almost $19.8 million to support small and medium-sized manufacturing companies in the four listed states. Eligible applicants include U.S.-based nonprofit organizations, higher education institutions, states, U.S. territories, and local or tribal governments. Already existing MEP centers in good standing that have received assistance for 10 consecutive years may also apply. Centers must recompete for awards every 10 years, and the MEP centers in each of these states are approaching that point. NIST anticipates awarding the following amounts to manufacturing centers in each state during an initial five-year performance period: Kentucky, $6,217,500 Nebraska, $3,978,500 Rhode Island, $6,021,500 South Dakota, $3,561,000 More information on the funding…

Attracting investment to a coal-dependent region with a state-of-the-art AgriTech research and development center is under consideration in Kentucky while Rhode Island is proposing greater investment in developing its blue economy. Kentucky Gov. Andy Beshear and Rhode Island Gov. Daniel J. McKee have both targeted new innovation initiatives to grow their state’s economy in their recently proposed budgets. Beshear’s proposed 2022-2024 budget calls for $75 million to support a state-of-the-art AgriTech research and development center in the heart of Eastern Kentucky, focusing on controlled-environment agricultural production, horticultural innovation, and technological solutions to the agricultural and food supply challenges facing North America. It is expected that this project, along with companion initiatives, would attract well-paying jobs and national and international investment in Kentucky’s most coal-dependent and economically disadvantaged region.  His budget also proposes an investment of $10 million from the general funding in FY 2023 to the city of Covington to support the construction and fit-out…

A new commentary from a senior policy analyst at the Federal Reserve Bank of Cleveland examines the extent to which disparities exist between Black and whites in labor market outcomes such as levels of labor force participation, unemployment rates, and earnings. Economic inclusion trends have been studied at the national level, but this commentary takes a look at how those disparities vary within and across states with a specific look at the Fourth Federal Reserve District states of Kentucky, Ohio and Pennsylvania. Relying on monthly data from the Current Population Survey (CPS), the Fed analyst, Kyle Fee, examined differences in state-level outcomes for Blacks and whites in the employment rate, the labor force participation rate, the unemployment rate, and real median hourly earnings. He found that states generally mirror national trends, but the degree of economic inclusion varies over time and across states. For instance, the national black and white (BW) gap in employment shows cyclical behavior where the gap increases during a recession, peaks once the recession ends, and slowly declines during expansions. In 2007 before the Great Recession, the national BW…

Across the country, the governors have begun delivering their State of the State addresses, an annual ritual where they have the opportunity to review where the state’s economy stands and preview their plans for the coming year. This year’s remarks reflect the dire conditions most states are experiencing with the pandemic, economic fallout, racial strife and national political upheaval. Despite the heavy focus on states’ efforts to respond to the pandemic, governors have struck a hopeful note and are focusing on recovery. Some governors have noted that the fallout in their state was not as severe as they originally anticipated and there are resources for new initiatives. Some, like Arizona and Virginia are considering gaming revenue to boost their budgets, while legalization of marijuana is being pursued in Connecticut, Kentucky (medical marijuana) and Virginia. Each year, SSTI reviews each of the governors’ addresses for news about initiatives affecting the innovation economy in our Tech Talkin’ Govs series, and this week we bring you the first round of those addresses looking at Arizona, Arkansas, Connecticut, Georgia, Idaho, Iowa, Kansas, Kentucky, Nebraska, New…

Governors’ focus on initiatives particular to their state in this latest round of state of the state addresses. As SSTI continues to review the speeches for new innovation proposals, we found states continuing to focus on education with more attention on teacher salaries and efforts extending all the way down to pre-K with a recognition that the future workforce is influenced by many factors. Florida is also hoping to grow its aerospace and manufacturing sectors, while Kentucky’s new governor is looking to ag tech and sports betting as new revenue sources. Occupational licensing reform is also a recurring theme in many states this year, along with clean energy and renewable fuels. Florida Gov. Ron DeSantis attributed the in-migration of residents from other states to the lack of a state income tax in Florida, and said he will continue that policy with the expectation that further growth will ensue. “We have the good fortune to be attracting investment and business activity and have good potential for further growth in aerospace, financial services, health care and manufacturing.” “We have a good [occupational licensing] reform bill pending before…

Earnings for Appalachian manufacturing workers grew 3.4 percent from 2012 through 2017 to an average of $63,583. The growth is in the Appalachian Regional Commission’s Industrial Make-up of the Appalachian Region, 2002-2017, which reviews employment and wages by sector across the region. Appalachian workers overall saw earnings increase by 3.7 percent over the five years. In the rest of the country, manufacturing wage growth was 1.2 percent or 3.3 percent across all sectors. Wage growth was uneven within the region. Southern Appalachia saw the greatest gains, with 5.2 percent growth, driven in large part by Georgia’s increase of 6.5 percent. Appalachian counties adjacent to metros saw the largest increases (6.4 percent near large metros and 5.8 percent near small ones), although these gains still leave an earnings gap compared to metro-based manufacturing employees in the region. The comparatively strong percentage gains for manufacturing employees in Appalachia has not closed much of the earnings gap with workers outside the region. In 2017, the average manufacturing employee outside of Appalachia earned $79,098 — $15,515 more than those working…

Democrats made some gains in Virginia’s Legislature, and in Kentucky, the governor’s seat looks to be turning over to a Democrat, but the current Republican is requesting a recanvass in the close race. If those results hold, Democratic challenger and current Attorney General Andy Beshear will take the seat from incumbent Gov. Matt Bevin, ending the state’s Republican trifecta (where one party holds the governorship and both chambers of the legislature). Mississippi’s gubernatorial seat remained in Republican control, while the gubernatorial election in Louisiana takes place on Nov. 16, and the incumbent Democratic governor there is seeking another term. Following Tuesday’s elections, the divided government in Virginia turned into a Democratic trifecta in Virginia, as Republicans lost their hold in both the House and Senate. Those outcomes and results from several state legislative elections, along with the results of several innovation-related initiatives, are highlighted below.