SSTI Digest

SSTI Note: Benchmarking innovation-driven entrepreneurship and the impacts of other science, technology and venture development activity in your state or region is more important than ever in the post-pandemic economy. Understanding the gains made prior to the onset of the coronavirus – and the inevitable setbacks resulting from its economic shocks – will be important for helping to build support and momentum for your initiatives going forward. The Illinois Innovation Index provides one useful model to approaching university entrepreneurship activity across institutions and geography. For more than a decade, the Illinois Science & Technology Coalition has published the annual Illinois Innovation Index, tracking entrepreneurship and commercialization flowing from ten of the state’s public and private universities. This latest Index, released May 18, reported the largest volume yet of startup creation – 1,064 from 2014-2019, creating approximately 3,300 jobs. This marked the first time a five-year period has surpassed 1,000 startups for the Index. As well as growing in sheer number, the startups created over the past five years raised the highest amount of…

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…

Education, infrastructure and budgets are all on the minds of the governors in this latest review of state of the state addresses. With more than half the governors having completed their outlooks by the end of January, this week we review the speeches through the end of month and find repeated attention to education, energy and budgeting issues, with a statewide lottery being introduced in Alaska, new energy legislation in Illinois, and South Carolina also proposed a funding increase for state universities that do not raise in-state tuition rates. This is the fifth installment of our Tech Talkin’ Govs series, where we comb through the addresses and bring you news of innovation initiatives in excerpts of the governors’ words. Alaska Gov. Mike Dunleavy focused on addressing the state’s budget problems: “While we contemplate the role of the Alaska people in solving our fiscal issues, any and all ideas should be explored. To that end, I’ll soon be introducing legislation to create a statewide lottery. Forty-five states have lotteries in place, and its past time for Alaskans and visitors to have the option to individually contribute to fixing Alaska’s fiscal…

Research universities and their partnerships with industry, including an institution’s research capacity, are important elements to building a state’s economy as well as the national economy and talent pipeline and workforce. Following on our review of higher education and commercialization programs, as well as our ongoing review of state activities in 2019 (see our stories on free tuition offerings, climate change and clean energy), this week we report on new university-industry partnerships, including research capacity activities, launched in 2019. The following programs represent some of those efforts. Alabama Earlier this month, the University of Alabama (UA) announced the launch of its Tide Research Partnership Program. The program is designed to strengthen UA’s research and development partnerships with industry, as well as encourage businesses and companies to sponsor research opportunities at UA, while also providing opportunities for students to work on real world solutions to current challenges. The program is managed by the UA Office for Research and Economic Development, and sets costs upfront for exclusive rights to possible…

Ten states from across the country have been selected as part of a unique program designed to grow and strengthen their manufacturers. Over the course of the next year, interdisciplinary state teams will meet together in Washington, D.C., and separately in their home states, to develop and refine strategies impacting manufacturing industries. Based on their specific needs and goals, participating states developed working teams with representatives from areas such as the private sector, governor’s offices, state workforce and economic development departments, Manufacturing Extension Partnership centers, and manufacturing trade associations, among others. The participating states are: Arizona, Colorado, Illinois, Maine, Maryland, Missouri, North Carolina, Pennsylvania, Vermont, and Wisconsin. “The Policy Academy process empowers states to make proactive decisions that can improve the competitiveness of their manufacturing industries,” said Dan Berglund, president and CEO of SSTI, which is helping to coordinate the academy. “Although each state is dealing with their own challenges and circumstances, there are a lot of opportunities for states…

As the states turn to tackling their budgets, governors are presenting their spending and revenue proposals, and SSTI continues to monitor these. Budget constraints and deficits are problems for governors in Connecticut and Illinois, and Connecticut’s governor is proposing expanding the sales tax base while focusing on loan forgiveness and clean energy. Education is on the agenda in Illinois where the governor is hoping to build prosperity through skills training and college affordability. And in New Hampshire, more money is being channeled to higher education initiatives, part of which could be funded by legalizing sports betting if the governor there gets his way. Connecticut Gov. Ned Lamont gave his first budget address, outlining his plan to address a looming budget deficit without raising the income tax as he promised on the campaign trail, and growing the state’s economy: “My sales tax reform would broaden the base so that digital goods are treated equally and more significantly that we are capturing a growing segment of the economy.  “Today, I’m inviting Connecticut businesses to step up and partner with me to help…

The ability of states to deliver the services promised to its residents relies on their fiscal soundness. With most states beginning their fiscal year in July, SSTI has reviewed the current fiscal standing for each state and here presents a snapshot of our findings. Most states ended their fiscal year with a surplus and continue to recover from the Great Recession, with a growing economy and job gains. However, they face continuing demands on their budgets, with expanded Medicaid payments and the growing opioid crisis confronting nearly every state. Such decisions affect the state’s ability to fund innovation efforts, from the amount of support available for higher education and STEM programs, to funding for entrepreneurship, and forging public private partnerships to strengthen innovation programming that the private sector cannot fully support. Our analysis found that some states that rely on the energy sector to fund their spending priorities continue to struggle, while others are already factoring in anticipated revenues as a result of new Supreme Court rulings involving gaming and online sales tax collections.

In an effort to support research collaboration among the state’s largest universities, Illinois Gov. Bruce Rauner’s proposed FY 2019 capital budget would provide $500 million for the University of Illinois Discovery Partners Institute in Chicago’s South Loop. The funds would serve as a state match for private donations from individuals, corporations, and other entities. Originally announced last October, the Discovery Partners Institute would provide a space for the state’s colleges and universities to work on targeted research projects in partnership with the private sector.

Governors are continuing their annual address to legislators and constituents and workforce development continues to take center stage, with the governor of Oregon rolling out a new five-step plan she hopes will invigorate the economy and close the skills gap while Oklahoma acknowledged difficult times and Tennessee says it may achieve an education goal two years ahead of schedule.

Breaking a two-year impasse, legislators in Illinois were able to pass a state budget that reinstitutes an R&D tax credit and implements workforce development programs. In California, the Governor’s Office of Business and Economic Development (Go-Biz) will see a 28 percent increase in funding, while other innovation initiative are receiving level funding. In other states whose budgets SSTI analyzed this week for TBED-related funding, we found that Innovate Mississippi was able to maintain state funding and new funding was appropriated for workforce development at the state’s community and junior colleges; a variety of programs were cut in North Carolina; and, Ohio will not get funding for a state office focused on commercializing research across key industries that the governor had proposed. More findings from California, Illinois, Mississippi, North Carolina and Ohio are detailed below.   California Go-Biz, the Governor’s Office of Business & Economic Development, received a 28 percent increase for the new fiscal year, growing to $6.531 million. The agency’s staff will grow from 22.0 full time equivalent positions to 33…

More than half of the country’s governors have delivered their state of the state addresses. Last week’s addresses tended to relate to the national election and the incoming administration, with some governors heralding the change and others pledging to try to reach a bipartisan understanding while standing firm on issues they believe in, like climate change in California. Although TBED issues may not have been at the forefront of the addresses, science, technology and especially innovation and higher education continue to receive attention. This week we zero in on comments delivered by governors in California, Hawaii, Illinois, Massachusetts, Minnesota, Montana and Utah. California Gov. Jerry Brown thanked those that were gathered to hear his address for their enthusiasm, noting that, “It is just what we need for the battle ahead. So keep it up and don't ever falter.” Instead of the usual address laying out his plan for the state, Brown used his address to focus on the state within the broader context of the country and its challenges. While he did not focus on technology issues, he did stress the science behind climate change and…