SSTI Digest

Each year, the National Science Foundation releases a report on Science and Engineering Indicators, a voluminous compilation of data and analysis that looks at metrics which are particularly relevant to the field of technology-based economic development. Beginning in 2020, future versions of Indicators could look very different from their predecessors, according to a presentation by NSF program director Beethika Khan.

In an executive order issued last month, President Trump wrote that the nation is facing a skills crisis. In response, and in order to develop “a national strategy to ensure that America’s students and workers have access to affordable, relevant, and innovative education and job training that will equip them to compete and win in the global economy,” the president established a National Council for the American Worker. That focus on skills and the future workforce was also present in two recent reports (one from the National Skills Coalition and the other from an independent task force of the Council on Foreign Relations [CFR]) urging action on the topic.

The Employment and Training Administration has published the availability of up to $100 million for Trade and Economic Transition National Dislocated Worker Grants (DWGs), with funding amounts of up to $8 million for each award. This grant will enable successful applicants to address ongoing or emerging workforce and economic challenges by providing training and career services to dislocated workers seeking reentry into the workforce, and increasing their skill levels to become competitive for growing or high-demand employment opportunities.

The deadline for all Economic Transition DWG application packages filed in response to this announcement www.grants.gov is September 7, 2018.

Approximately 30.2 percent of NIH-funded research studies produce false positive results that make those studies not replicable by other researchers, according to a recent study from researchers at Queensland University of Technology (AU). The authors of the study contend that the reproducibility crisis is driven by “publish or perish” incentives to increase the quantity of their papers at the cost of quality. They contend this publish or perish mentality is most prevalent at large, established “parent” labs (those with 50 or more NIH-funded papers). In these labs, established researchers, young researchers, and students are under pressure to publish their work leading to methodological and other process mistakes that create false positives and reduce reproducibility.

After considerable growth in the number of startups raising a first round of venture capital financing between 2009 and 2014, there has been a geographically widespread contraction, according to new research from Ian Hathaway at the Center of American Entrepreneurship, a D.C. based advocacy group. In America’s Rising Startup Communities, Hathaway explores the geography of first venture capital financing across U.S. metropolitan areas over the last eight years, finding that just 10 metro areas account for more than two-thirds of all first financings. From 2009 to 2017, the number of startups receiving a first financing increased by 84 percent, and more than one-third of regions saw an increase in deals.

On July 31, OMB Director Mike Mulvaney distributed a memo outlining eight priority R&D subjects and five practices for leveraging R&D resources more effectively. The White House intends for the memo to serve as guidance in the development of budget submissions from the executive departments and agencies for FY 2020.  Basic and applied research are to be emphasized in the agency R&D plans, which would be a shift from data on recent trends released by the National Science Foundation the day before the Mulvaney memo. NSF found that the development side of R&D in the FY 2017 federal R&D obligations, passed in May of the first year of the Trump administration, increased by 7 percent from the year prior, while research expenditures actually declined by 3 percent.

The research priorities for FY 2020, according to the new OMB memo, should be:

The emerging blockchain industry has recently caught the attention of some state political leaders and economic development officials as a potential driver of economic growth as well as a potential solution to improve government services. To support economic growth, states are working on creating flexible regulatory sandboxes to allow blockchain-based startups to test their products. The states also hope to position themselves as destinations for startup growth in the nascent industry. Other states have started to adopt blockchain technologies to assist in the provision of services to their citizens.

Blockchain regulatory sandboxes

Due to the emergent nature of blockchain technology and its potential impact on the financial, insurance, and legal services industries, several states are working to develop the regulatory framework to protect consumers while allowing the industry to grow. Recent announcements include:

After a record-long delay, President Donald Trump this week announced his intent to nominate a director for the White House Office of Science and Technology Policy — Kelvin Droegemeier, who is the current secretary of science and technology for the state of Oklahoma. The announcement has generated excitement within the science and tech community, and C. Michael Carolina, executive director of the Oklahoma Center for the Advancement of Science and Technology (OCAST) called Droegemeier the “perfect choice.”

President Donald Trump signed the Strengthening Career and Technical Education for the 21st Century Act, a reauthorization of the Perkins Act, on Tuesday, giving states greater control over setting their own goals for career and technical education (CTE), a change from the current law that requires states to get program goals approved by the secretary of education. And while there is a slight increase in overall spending for career education grants, it is still lower than historical funding levels for Perkins. 

The Perkins Act is a $1.2 billion program that was last overhauled by Congress in 2006 and was due for reconsideration in 2016, but got bogged down in partisan disagreements. The new bill is a bipartisan compromise that allows states to set their own goals for career and technical education programs without the education secretary’s approval, requires them to make progress toward those goals, and makes other changes to federal CTE law.

NASA has indicated it is facing broad, workforce-related challenges that can have a negative impact on programs over the long run; over half of its workforce is more than 50 years old, for instance. One recent announcement from its Minority University Research and Education Project (MUREP) may be a small step to help address some of those challenges.  MUREP’s Innovations in Space Technology Curriculum (MISTC) program has awarded $1.4 million total to five minority-serving colleges to help develop their STEM courses that will contribute to the preparation, training and development of NASA's future workforce.

The U.S. Small Business Administration recently announced its intention to award up to seven contracts for entities to lead regional innovation cluster initiatives. While two of the awards are partially set-aside for qualified small business, the remaining five are being competed full and open, meaning any entity is eligible. Each contract will be for a base year and four option years, with a base-year price not-to-exceed $500,000. An overview webinar will be held by the Program Office on Aug. 8, 2018, beginning at 4:00- p.m. EDT, and a link to this webinar will be provided on the solicitation’s FedBizOpps page.  Proposals are due Friday, Aug. 24.

New Jersey, long considered a state-leader in technology-based economic development prior to the Great Recession, has committed to reinvesting in its innovation economy. In addition to the legislature overwhelmingly approving a bill to reconvene the New Jersey Commission on Science and Technology — the state’s primary technology-based economic development organization — Gov. Phil Murphy also announced several other initiatives to support innovation and entrepreneurship in the state.