SSTI Digest

The list of technology-based economic development initiatives within the newly created Technology and Innovation Office of the New Mexico Economic Development Department covers the spectrum of critical policy aspects required for a strong state innovation economy: increasing R&D, business incubation, targeted emerging technologies and strong existing assets, startup capital, venture development, and innovation talent development and recruitment. With Governor Michelle Lujan’s signing of House Bill 20, which commits nearly $93M of public dollars—much or most requiring private match—the new office represents a serious investment from a state of just over 2.1 million people. The new Technology and Innovation Office will absorb the former Office of Strategy, Science and Technology and will include the following priorities:  $40 million to establish the Research, Development and Deployment Fund; $20 million for quantum technologies and business incubation; $5 million for infrastructure for innovation hubs; $5 million for operational support for incubators, accelerators, and venture studios; $8 million for grants in advanced energy; $4 million for science and…

For the United States to achieve greater security in chip manufacturing, the critical sector requires a much larger, better trained workforce. Between 2020 and 2022, annual postings for semiconductor jobs tripled from about 8,000 to almost 25,000, according to a new report, “The challenge of building a regional semiconductor workforce pipeline: What regions can learn from Austin, Texas and an agenda for cross-regional learning” from the Institute for Networked Communities (INC). As noted in the report, analysts expect that between 2023 and 2030, the industry will grow 33%, an increase of 115,000 jobs. At current degree completion rates, approximately 67,000 jobs would go unfilled. The INC report illustrates what it takes to build an industry-driven workforce system in the semiconductor industry based on the experience of Austin, Texas. The co-authors Francie Genz, Ryan Donahue, and Erin Sparks delve into what other regions can learn from Austin and why a cross-regional learning and action network is needed. “The stakes for getting regional workforce strategy right in the semiconductor space couldn’t be higher,” said Francie Genz, CEO of INC, in an email. “…

States with economies based on resource extraction are among the least diversified in the country—they know well the boom-and-bust cycles that come with that concentration. Innovation and entrepreneurship represent a path out of that boom-bust cycle, and New Mexico’s recently updated economic development strategy, Empower and Collaborate: New Mexico's Economic Path Forward, hints at wanting to build on that recognition in its planned actions for the coming years. The forward-looking strategy, which began in 2021 and further refined in 2023, details actions to expand New Mexico’s economy away from reliance on natural resource extraction while also shifting away from traditional sector-based job creation strategies towards addressing structural economic challenges that affect all sectors. It seeks renewed commitment to long-term planning, supporting regions transitioning away from coal, and helping cities foster the partnerships, infrastructure, and assets necessary to grow existing businesses and industry clusters.   Specifically, the plan outlines recommendations and initiatives to improve the quality of New Mexico’s higher education and training…

In this week’s continuing coverage of gubernatorial addresses as they discuss the innovation economy, the following highlights have been selected from five of the eight State of the States or budget addresses given between Jan. 17 and Jan. 28, 2025, by the governors from Maine, Missouri, New Mexico, Utah, and Wisconsin. Information on previous 2025 State of the States and/or budget addresses can be found here. Additional addresses and states will be covered in future Digest issues. 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 growing stronger innovation economies have not been completely overlooked. On Jan. 28, Maine Gov. Janet Mills presented her State of the Budget address to lawmakers. Citing a tight fiscal environment and the leveling off of…

FYI This Week, a science policy newsletter from the American Institute of Physics, reported in their November 25 article Commerce aims to commit CHIPS money before Trump returns that “Commerce Secretary Gina Raimondo said … she is trying to allocate all the semiconductor manufacturing and research funds appropriated by the CHIPS and Science Act before President Joe Biden leaves office." Since Raimondo made that statement, the U.S. Department of Commerce (DoC) has announced the following CHIPS and Science Act Awards: Up to $35.5 million awarded to BAE Systems Electronic Systems, a BAE Systems Inc business unit. The award is intended to support the modernization of the company’s Microelectronics Center in Nashua, New Hampshire. Up to $23.9 million awarded to Rocket Lab, the parent company of space power provider SolAero Technologies Corp. The award is intended to help the company create a “robust and resilient” supply of space-grade solar cells that power spacecraft and satellites. The company’s facility is in Albuquerque, New Mexico. The investment is expected to create over 100 direct jobs. Up to $75 million in direct funding awarded to Absolics, an affiliate of the…

After a busy election season that saw gubernatorial elections in 36 states, newly elected and re-elected governors delivered their annual State of the State addresses, kicking off new programs and reviewing the conditions of their states. SSTI reviews the speeches every year and covers news of new developments and initiatives the governors have highlighted as they relate to the innovation economy. New programs are laid out here in the governors own words as excerpts from their State of the State or budget addresses. Not all governors delivered a State of the State, and some that did may not have revealed new innovation-related initiatives and so are not included in our coverage. Common initiatives among the governors that touched on innovation included an emphasis on workforce, education and broadband; water issues for Western governors; and, clean energy. Alabama Gov. Kay Ivey delivered her 2023 State of the State on March 7 and called on legislators to “look ahead and crate an economic development strategy for the 2030s.” “… I am calling on you to get behind our playbook for economic success, what I am calling The Game Plan.” “We will…

The U.S. Department of the Treasury announced 11 additional states whose SSBCI plans have been approved: Alaska, Idaho, Iowa, Massachusetts, Minnesota, Missouri, Nebraska, Nevada, New Mexico, Ohio, and Utah. This is in addition to the 20 states that have been approved this year: California, Hawaii, Kansas, Maryland, Michigan, West Virginia, Arizona, Connecticut, Indiana, Maine, New Hampshire, Pennsylvania, South Carolina, South Dakota, Vermont, Colorado, Montana, New York, North Carolina and Oregon. Funds aim to make capital more accessible for underserved communities and increase economic growth and opportunity. Alaska has been approved to receive $59.9 million across four state programs. The largest program of the four is the Alaska Loan Guarantee Program, which will receive $32 million and aims to provide funding to small businesses that have decreased revenue, according to Alaska’s News Source. In addition to the loan guarantee program, $15.9 million will be allocated toward a loan participation program, $10 million will go towards an equity and venture capital program and $2 million will be allocated to a collateral fund program. Idaho has been approved for…

The New Mexico Economic Development Department released a new strategic plan that identifies core challenges to the state and a multi-part approach to the future. The six challenges include talent attraction, misalignment between higher education and industry, public sector “dominance” of innovation, and concentration in a few industries. The plan includes recommendations related to the state’s innovation economy: develop state-sponsored investment funds to match investments in target industries; help academic researchers to advance new technologies; establish persistent funding for incubators and accelerators; fund university-industry research partnerships; and, develop a mentorship network across entrepreneurship support organizations in the state. The state funded the strategic planning process through a grant from the U.S. Economic Development Administration, and SRI International developed the plan. In a press release announcing the plan, Gov. Michelle Lujan Grisham issued an executive order to review the state’s licensing and permitting requirements (another recommendation).

More than half of the nation’s governors have given their State-of-the-State addresses, and in this week’s coverage of the addresses, we complete our review of those that addressed their constituencies through January. As the COVID-19 crisis highlighted the need for greater broadband connectivity and affordability, we again see the state leaders focusing more attention on building out those capabilities. Diversifying state economies also plays a role in Alaska, Hawaii and New Mexico, while opportunities for development through renewables features in addresses from Nevada and New York. In addition to those states, this week’s installment takes a look at innovation-related initiatives set forth in addresses from the governors of Delaware, Indiana, Massachusetts, Michigan, Missouri, Montana, and Utah. Alaska Gov. Mike Dunleavy, Jan. 28, talked about increasing the self-reliance of the state, especially in light of the pandemic and the threat of ports that serve the state closing. In addition to strengthening the agriculture sector and growing the mariculture industry, Dunleavy said he planned to “begin conversations with industry stakeholders to determine what…

In general, the effect of the pandemic on states’ budgets due to the wave of business, retail, and commerce shutdowns, as well as other reduced economic activity across the nation, is not entirely known, or too early to forecast; however, a number of states are beginning to experience the initial impacts of a substantial downturn. With several states having already enacted their 2020-21 budgets, special sessions are expected later this year to deal with declining revenues. Others ended sessions early without a new fiscal year spending plan in place. Many are also acting quickly to help mitigate the effects of lost revenues and an increased demand for services. Some of the states’ impacts and actions are outlined below. Alaska officials report that the drop in global oil prices will likely add $300 million to the state's current year (2020) budget deficit. The Alaska Journal of Commerce reports the state Legislative Finance Division told lawmakers that the state could experience a $600 million revenue reduction in the 2021 fiscal year, which starts July 1. In Arkansas, lawmakers were called into special session to address an estimated $353 million hit to the state’s…

Proving that innovation is appealing to states regardless of their size or political leanings, new initiatives in both Democratic and Republican states, as well as large states like California and small states like Vermont, are driving innovation agendas into action in areas ranging from clean energy and aid for students and colleges, to new venture capital investments and bond financing to support business collaborations with higher education to help translate cutting-edge research into products and companies. It is important to note that these new initiatives are in addition to important work that is already occurring in many states. SSTI continues to bring you news of these actions as governors, legislatures, and economic development organizations capitalize on proven programs to build out their innovation economies, with several examples provided here. In Arizona, Gov. Doug Ducey’s proposed budget includes $10 million in one-time General Fund support that would provide the state match portion for Arizona’s public universities to pursue major competitive national research grants. It is part of a larger $165 million plan put forward by the Arizona Board of Regents…

The economy, workforce and climate change continue to surface in governors' state of the state addresses. While today’s strong economy allows most governors to reflect on how the states have grown, preparing for the next downturn continues to be a point of concern. As SSTI continues to review the addresses for news of new innovation-related initiatives, we find Delaware proposing increased investment in its economic infrastructure, while renewable energy standards are at play in states like Delaware, Hawaii, and Maine. And Wisconsin’s governor pledged to create a commission to focus on rural prosperity and another to consider redistricting across the state. Those and more innovation initiatives are excerpted from the governors’ remarks below. Delaware Gov. John Carney outlined his priorities for strengthening Delaware’s economy as he starts his fourth year as governor: “I’ve asked our Chief Information Officer, James Collins, to lead a new effort to connect state government with Delawareans through technology. This will be a game changer for our state. Together, we’ve also invested over $30 million in the Higher Education Economic Development Fund. We…