SSTI Digest

Faced with one of the largest drawdowns in defense spending in American history, the Defense Manufacturing Assistance Program (DMAP) targeted affected companies and communities across Michigan, Ohio and Indiana for assistance. The program aimed to support economic stabilization and diversification across the region during the five-year period from 2013 to 2018. After five years of projects, an evaluation of DMAP found that for every one dollar that went into the program, companies obtained an average of $18 new dollars in additional revenue.

The effort was funded primarily by the Department of Defense’s Office of Economic Adjustment and led by the University of Michigan in partnership with Ohio State and Purdue. DMAP practitioners worked with more than 300 companies over this time, which led to approximately 20,000 jobs created and retained – including 662 new jobs – and $183 million in new sales. The program also helped drive innovation in these companies, resulting in 139 new products and 26 commercialized technologies.

While diversity plays a critical role in both improving the quality and increasing the rate of innovation, women and several minority groups remain underrepresented in STEM fields. Several studies find that improving the retention rate of women and other underrepresented groups in STEM at the college level can have significant impacts on improving the diversity and representativeness of the STEM workforce. For women and other underrepresented groups, the college experience can create unique roadblocks and barriers that ultimately cause them to switch majors or even leave college. Several recent studies have examined strategies to improve the retention rate of women and other underrepresented groups in STEM degrees at institution of higher education. The strategies range from pre-college STEM academies to establishing cohorts of underrepresented students.

For communities hoping to start and register an apprenticeship program, a new toolkit by the Department of Labor may offer some insight. Launched as part of National Apprenticeship Week (Nov. 12-18, 2018), “Building Registered Apprenticeship Programs” provides a guide to help start and register your apprenticeship program. The toolkit includes five steps: exploration of apprenticeships as a strategy to meet regional needs; partnerships with key players to develop the program; building the core components of the program; registration with the broader apprenticeship network; and, launching the program.

The New York state manufacturing report released this morning by the Federal Research Bank of New York is one of the brighter spots among the manufacturing surveys provided by the Fed banks each month.  Manufacturers in the Empire State remain fairly optimistic in the six-month outlook as new orders continued to grow, business conditions improved, and employment levels increased.

The Federal Reserve System released a new digital book – Investing in America's Workforce: Improving Outcomes for Workers and Employers – that challenges the existing American mindset that treats workers as a cost to industry. Instead, the authors contend that industry and communities across the country must view workers as assets that with investment can create significant returns including greater productivity, faster national income growth, and a more vibrant and satisfied pool of working Americans. To help shift this mindset, the book brings together more than 100 experts to explore contemporary research, best practices, and resources related to workforce development. The authors also propose a set of  steps to develop well-structured, effective workforce programs and public policy that could result in better economic outcomes for individuals, businesses, and their communities.

A community system and a technical college center were among the five recipients of the nation’s highest honor for quality, the Malcolm Baldrige National Quality Award, according to the National Institute of Standards and Technology (NIST) announcement released this morning.  A third community college system received recognition for establishing and maintaining a best practice in leadership.

The two education institutions were:

The Association of Public and Land-grant Universities (APLU) on Sunday announced what it is calling the “largest ever collaborative effort” to increase college access, close the achievement gap and award “hundreds of thousands” more degrees by 2025. The initiative, called Powered by Publics: Scaling Student Success, includes 130 public universities and systems working within clusters of four to 12 to both advance those goals and share aggregate data. The diversity of the institutions that are participating is intended to help create a playbook of success reforms that can then be used at other institutions.

The 2018 general election Tuesday proved to be a better day for Republicans in state legislative races across the country than would have been expected based on average losses for a midterm election. That said, it was also a good day, for the most part, for the political parties already in control of the statehouse chambers, regardless of affiliation: more chambers holding elections this year saw the party in control increase its numbers than lose seats.

Heading into Tuesday, four states had legislatures where the control of the two chambers was split between the Democrats and Republicans. With the election results, only Minnesota’s legislature remains divided.

Only seven state legislative chambers flipped parties after Tuesday’s election, far below the average of a dozen in most midterm elections.  Democrats picked up control of the Senate in Colorado, Connecticut, Maine and New Hampshire. Republicans secured control of the Minnesota Senate.  Minnesota and New Hampshire are the only two states to see control change in their House of Representatives, both switching to the Democrats.

With 36 governorships up for election — and more than half those open either due to retirements, term limits, or lost primaries — new faces were guaranteed in state offices across the country. As a result of Tuesday’s voting, 20 new governors will be taking office and 16 of 18 incumbent governors that were on the ballot on Tuesday will be serving another term (Illinois Governor Bruce Rauner and Wisconsin Governor Scott Walker were the only incumbent governors. defeated on Tuesday). Democrats flipped governor’s seats in seven states (Illinois, Kansas, Maine, Michigan, Nevada, New Mexico and Wisconsin), while Republicans picked up one (Alaska).  

SSTI reviewed all of the major party gubernatorial candidates’ platforms prior to the election, and here presents the election results for the 36 seats as well as the positions the winners had expressed on innovation and technology-based economic development issues.

Alabama

Since 2011, more than half of the nation's new investment in business research and development has come from California companies, and more than three-quarters has come from the top five states, according to an SSTI analysis of recently released NSF data. For the second time this year, the National Science Foundation’s (NSF) National Center for Science and Engineering Statistics (NCSES) has updated the data for the Business R&D and Innovation Survey (BRDIS),  a primary source of information on domestic and global business research and development expenditures. In 2016, companies reported nearly $317.7 billion in self-funded and self-performed domestic R&D, a $20 billion (7.0 percent) increase from the previous year, according to the updated data. This type of business R&D represented 4.0 percent of the gross state product in California and Washington in 2016, the most of any states.

SSTI has reviewed the results of ballot initiatives affecting innovation following Tuesday’s election. Higher education funding received support from voters in Maine, Montana, New Jersey and Rhode Island; however, a South Dakota measure aimed specifically at developing a fund to assist the state's postsecondary technical institutes and students was defeated. Additionally, Utah voters opposed using gas taxes to fund its schools. Several states had clean energy initiatives on their ballots, with mixed results. Arizona voters rejected a renewable energy amendment, while its neighbor, Nevada, saw voters pass one, and Washington state voters once again rejected a carbon emissions initiative.

Tuesday’s elections resulted in a Democratic majority in the House, but the changes for the next Congress go far beyond this outcome. Flipping party control means new chairs for every committee in the House; many Senate Republicans in leadership positions are reaching their party’s term limits, yielding new committee seniority; and, retirements and incumbent losses yield further changes. For the bipartisan issues of science and innovation, this shake up will produce new opportunities and uncertainties.

The changes to the House will be the most profound. By definition, a change in the majority party entails changing the chair of every committee. Rep. Jose Serrano (D-N.Y.) will now lead the appropriations subcommittee that funds commerce and science; Rep. Eddie Bernice Johnson (D-Texas) will likely chair the science, space and tech committee; and, Rep. Nydia Velázquez (D-N.Y.) will chair the small business committee.