SSTI Digest

A trio of recent reports reflect the pernicious effects the pandemic is having on small businesses. Last month, a survey from the Society for Human Resource Management (SHRM) found that 52 percent of small businesses expected to be out of business within six months. SHRM President and CEO Johnny C. Taylor, Jr., called it “the most alarming findings to date.” The Census Bureau has also developed a new survey intended to measure the effect of the pandemic on small businesses, which is running from April 26 to June 27. Its results are being published weekly and it, too, has revealed large to moderate negative effects of COVID-19 on small businesses, but noted that “the majority expect to return to usual level of operations within the next six months.” And a new report from Facebook and the Small Business Roundtable reflects which businesses are still operational and which are not. The Census Bureau’s Small Business Pulse Survey (SBPS) was designed to be useful to governmental and agency stakeholders, and the businesses and policymakers they serve, while also being short and simple to accommodate businesses and encourage a robust response rate. The content of the…

The House and Senate have both passed a bill that would alter the SBA’s Paycheck Protection Program. Businesses will now have up to 24 weeks to use forgivable funds, instead of the original eight weeks. The portion of the costs that must be spent on payroll has been reduced from 75 percent to 60 percent. The bill also changes many of the original legislation’s hard deadlines from the end of June to Dec. 31. The legislation needs to be signed by the president before going into effect, and the SBA will need to write new guidance to clarify the impact of the changes on eligible costs and forgiveness. A survey by the National Federation of Independent Business reported earlier this week that 7 percent of businesses would have reached the 8-week limit by Monday, and nearly two-thirds of businesses would have reached it by the end of the month. The survey did not find much additional appetite for PPP loans, but with $511 billion approved through June 3, the SBA has more than $135 billion in loan volume still available to small businesses.

The pandemic’s negative impact on enrollment at institutions of higher education is getting even more complicated. New figures show that the number of students that have completed the Free Application for Federal Student Aid (FAFSA), a figure that serves as an indicator for postsecondary enrollment, has decreased. And a new proclamation from the president that restricts entry to the U.S. by graduate students and researchers from China may also affect higher education enrollment figures. According to The Hechinger Report, if international student enrollment decreases, the economic fallout will be severe, as it nationally accounts for about $2.5 billion in tuition and fees. Since schools closed in mid-March, FAFSA application completion by high school seniors has decreased by 3.3 percent, and the same is happening with those already enrolled in college, with overall renewals decreasing by five percent, according to the National College Attainment Network. According to The 74, with schools being shutdown, school counselors who normally play a large role in assisting students with the application process are struggling to provide that same support from afar, severely…

The Small Business Administration (SBA) recently rolled out a new website for the SBIR/STTR program which SBA administers. Reorganized and including new landing pages for entrepreneurs, support organizations, and federal agencies, the new page provides quicker and easier access to the right information. For entrepreneurs interested in the SBIR/STTR program, the new landing page provides information on how to confirm eligibility, register and edit company information, and apply for funding. There are also links for video tutorials, contacts for local assistance, a schedule of events, and several success stories. The new website provides support organizations with a landing page that shows local awards, allows organizations to view training activities and submit their own events. The landing page also provides links to the Federal and State Technology (FAST) Partnership Program and the Growth Accelerator Fund Competition (GAFC) pages. The new landing page for federal agencies now provides swifter access to information on how to procure technologies, share success stories, and access additional agency and program data. Additionally, the new page is…

Join us for a special SSTI webinar on June 9th, when U.S. Economic Development Administration representatives will share information regarding $1.5 billion in economic development grants available for coronavirus response and recovery efforts at the local, state and regional levels. The EDA team also will discuss the pending innovation and entrepreneurship challenge component of the funding. Join us to learn more about qualifying for grants, which types of project support/assistance will be funded, how to apply, and more. There will be time for Q&A at the end of the presentation. Date and time: June 9 at 2 p.m. EDT Speakers: Dana Gartzke, Performing the Delegated Duties of the Assistant Secretary of Commerce for Economic Development, U.S. Department of Commerce, Economic Development Administration Joel Frushone Director, Office of External Affairs and Communications, U.S. Department of Commerce, Economic Development Administration Craig Buerstatte, Director, Office of Innovation and Entrepreneurship, U.S. Department of Commerce, Economic Development Administration Register today!

Last week, the U.S. Department of Energy (DOE) announced that the Cybersecurity Manufacturing Innovation Institute (CyManII) will be led by the University of Texas San Antonio (UTSA). CyManII will lead a national consortium with partners from industry, universities, and three DOE National Laboratories (Idaho, Oak Ridge, and Sandia). Its focus: to make U.S. manufacturing more energy efficient and cyber secure by tackling two key obstacles in manufacturing: securing automation and securing supply chain networks. Over five years, the institute will leverage up to $70 million in federal funding, subject to appropriations, and will be matched by over $40 million in private cost-share commitments. Through cutting-edge R&D, CyManII will develop an enhanced understanding of evolving cybersecurity threats to manufacturing, develop new cybersecurity technologies and methods, and share key insights with U.S. manufacturers; addressing those vulnerabilities and securing the U.S. manufacturing sector. With more than 25,000 square feet of space, the National Security Collaboration Center at UTSA will be home to CyManII where it will conduct administrative, contracting, and…

Last week, the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) named Mojdeh Bahar as the new associate director for innovation and industry services (ADIIS). The ADIIS provides oversight for the key extramural and technology transfer programs of NIST and is responsible for enhancing the successful transfer of new technologies from NIST’s world-class research laboratories to commercial markets, reporting on behalf of the federal government impacts from the $150 billion federal investment in research, and technology transfer policy development and implementation. Bahar previously held technology transfer roles at the Department of Agriculture (USDA) Agriculture Research Service and National Institutes of Health (NIH), held leadership roles with the Federal Laboratory Consortium for Technology Transfer, has won numerous awards, and has spoken both nationally and internationally on topics such as intellectual property, technology transfer and commercialization, business development, and licensing.

A bipartisan, bicameral group of legislators have introduced bills that would make a five-year commitment to increase America’s investment in R&D by $100 billion, while also investing $10 billion in regional technology hubs. Senators Chuck Schumer (D-NY) and Todd Young (R-IN) and Representatives Ro Khanna (D-CA) and Mike Gallagher (R-WI) introduced the Endless Frontiers Act, which articulates both investments. The R&D funding would be housed under a new Directorate for Technology within the National Science Foundation. This directorate would have “DARPA-like authorities” to advance research and applications within 10 technology areas, including artificial intelligence, quantum computing, advanced manufacturing, biotechnology, and materials science. Beyond funding R&D, activities authorized to the directorate include funding new scholarships and training programs, developing test facilities, and coordinating with regional innovation ecosystems. The section on regional technology hubs would authorize the Department of Commerce, working through both the Economic Development Administration and the National Institute of Standards and Technology, to fund…

The largest increases in per capita income for metropolitan and micropolitan statistical areas (MSAs) within the United States have occurred primarily within the Western, Mountain and Great Lakes states, according to data recently released by the Bureau of Economic Analysis. Nearly every MSA experienced greater income levels in 2018 when compared to their 10-year average. More than 180 out of 385 MSAs experienced an income increase of greater than 10 percent in 2012 dollars, while only two MSAs (Enid, OK and Clarksville, TN-KY) measured lower income in 2018 than over their 10-year average. The MSAs with the largest per capita income increase when compared to the previous decade were: San Jose-Sunnyvale-Santa Clara, CA – 26 percent Midland, MI – 23 percent Fayetteville-Springdale-Rogers, AR – 22 percent Elkhart-Goshen, IN – 22 percent Napa, CA – 21 percent St. George, UT – 20 percent Wheeling, WV-OH – 20 percent Midland, TX – 19 percent Provo-Orem, UT – 19 percent Boulder, CO – 18 percent When comparing 2018 to 2017, the BEA found that "no state had a decline in real personal income," noting that, "states with the slowest growth in real…

Advances in science and technology have lifted the United States out of past economic downturns, and Americans are eager for a new commitment to research and innovation to be made now. Even at the outset of unprecedented economic conditions, more than 90 percent of the electorate supported expanded efforts to strengthen the key elements of a knowledge-driven economy. These are among the findings of a recent poll conducted by GQR and TargetPoint Consulting for SSTI. Registered voters were asked to review a proposal to focus on converting our nation’s strength in research into new businesses and jobs, the Innovative Science & Technology for Economic Prosperity (iSTEP) initiative. Overwhelmingly, voters view science and innovation policy as a means for improving the economy in the future, with 92 percent saying they believe it can change the American economy for the better. That support crossed party lines, gender, income, and employment status. Voters also showed strong interest in supporting a candidate that backs the iSTEP initiative, with that support holding across party lines; 78 percent of Republicans and 83 percent of Democrats said they would…

SSTI is launching a new initiative to improve innovation policy across the country with support from the Ewing Marion Kauffman Foundation. To achieve the goal of improving innovation policy, SSTI will be working with its members and other entrepreneurial support organizations to cultivate new policy champions from the ground up. Over the next 18 months, SSTI will be working with 35 or more organizations to encourage and facilitate meetings around the country where state and/or federal lawmakers meet with the organizations that support tech- and innovation-driven entrepreneurship. These meetings will help drive home the importance of science, tech, innovation and entrepreneurship to their regional economies, and this understanding will lead to an interest in supportive policies. SSTI will provide assistance to hosting organizations in advance of the meetings and also engage in follow up communications with the lawmakers to solidify the connections between the topics discussed at the meetings and impactful policy proposals. This initiative is being supported by the Ewing Marion Kauffman Foundation as part of their America’s New Business Plan grant…

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…