SSTI Digest

A new map of broadband access based on Federal Communications Commission (FCC) data offers a granular look at the internet options available to Americans. Based on data submitted by internet service providers through FCC’s Form 477, the map provides insight on the types and speeds of internet access available on a block-by-block basis across the country. Notably, the maps do not include information on the cost of internet service. 

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.

The National Science Foundation’s new strategic plan argues that the U.S. must continue investing in world-class research, develop a globally competitive scientific and engineering workforce, and foster greater understanding of science and technology among the American public. However, the pressure of new priorities and level funding proposed for FY 2019 have yielded some surprising directions for the agency’s planned investments. Research and innovation process goals Building the Future; Investing in Discovery and Innovation places particular emphasis on broadening participation in STEM workforce. NSF indicates it will continue to invest in programs that directly advance the STEM workforce, as well as research on what the workforce of the future will require and improved methods to provide the requisite skills and diversity. To these goals, the agency’s FY 2019 budget proposal includes a slight increase for undergraduate STEM funding (up 0.4 percent). NSF decreases funding in what it describes as its two most significant graduate programs — Graduate Research Fellowship (down 15.3 percent) and NSF Research Traineeship (down 1.4 percent)…

For decades, state and local economies have leaned heavily on their anchor institutions during times of economic uncertainty and transition. An analysis finds that total employment in “Eds and Meds” industries increased in every state from 2005 to 2015. This article breaks down the growth and geography of Eds and Meds employment at the state level, while next week’s issue of the Digest will explore this data by metropolitan area. Authors Tim Bartik and George Erickcek make the case for hospitals and universities as economic development levers in “The Local Economic Impact of Eds & Meds: How Policies to Expand Universities and Hospitals Affect Metropolitan Economies.” They suggest that increasing employment at Eds and Meds institutions could enable them to serve more students or patients who would not otherwise spend money in a particular area, which in turn encourages economic development. These effects mainly manifest themselves at the metropolitan level, and are more pronounced for colleges and universities than hospitals. The presence of Eds and Meds institutions can also help residents improve their skills, spur entrepreneurship, and…

Investments in STEM education, apprenticeship programs, and tech-focused tuition assistance are among a handful of proposals included in the “Marshall Plan for Talent” last Thursday. The plan includes $100 million in talent investments and utilizes a three-pronged approach to training by addressing K-12 education, higher education and the state’s existing workforce. The funds would come from savings due to a state bond refinancing, according to the governor. Of the $100 million proposed in the plan, approximately $50 million would go toward certificate programs and new equipment for schools and universities, $25 million would support student scholarships, $20 million would fund career exploration programs, and $5 million would help address a shortage in teachers in high-demand career fields, according to Crain’s Detroit Business. Announced last week, these funds are on top of the new investments in workforce development announced in the governor’s proposed budget earlier this month. The plan would support a bevy of new and established initiatives. For K-12 education, the plan proposes to train educators to teach computer science and…

The World Economic Forum (WEF) identified cybersecurity breaches along with environmental degradation caused by human-induced climate change, as the top two risks to the global economy over the next 10 years, according to the 2018 Global Risks Report, the Forum’s annual survey of nearly 1,000 experts from across the planet.  With evidence mounting of Russian hacking of the U.S. elections in 2016, increasingly common cyberattacks on the mega databanks of several of the country’s largest corporations, and computer viruses growing more serious in their potential disruption, the WEF concerns seem justified.

Three recent news items shed important light on educational attainment and economic well-being and one promising approach to increasing educational attainment among lower income people. While the Pew Research Center finds the share of college-educated young adults in the U.S. workforce is higher than ever before, the Economist reports that the “return on investment” in getting a college degree is leveling off. And as the number of individuals holding a degree and participating in the workforce increases, so has the number of jobs that now require higher credentials even though those requirements may not be necessary. The Pew Research Center has reported that the share of college-educated young adults in the workforce in the U.S. is higher than ever before (40 percent of employed 25- to 29-year olds in 2016). And The Economist reports that it is a phenomenon that is being observed in many countries around the world, including Canada, Japan and South Korea. However, the assumption that such degrees will help boost economic growth and social mobility is not necessarily true, The Economist holds. The evidence shows that the “return on investment…

The tax law signed at the end of last year introduced a provision that will significantly affect many economic development offices and related nonprofits across the country: “contributions to capital” will now typically be included in a corporate taxpayer’s gross income. Previously, grants, free land and certain types of tax credits from governmental units or civic groups to support capital expenses were tax-free awards for the beneficiary. Since the signing of the bill, many of these awards are now taxable. The exact circumstances under which previous awards were exempt and new awards are not are complicated: Bloomberg provides a detailed analysis of the law and its implications, pending further guidance from the IRS.  Another nation-wide change to economic development incentive practices was implemented by the Governmental Accounting Standard Board’s statement 77 requiring tax abatement disclosures by governments. The statement has since been updated by a new implementation guide for fiscal years beginning July 1, 2017 or later. States and municipalities have long received criticism for their incentive practices, but required disclosures…

For hundreds of years, libraries have helped drive American innovation by serving as a trusted resource and providing information to a wide range of individuals. As libraries continue to implement their own initiatives in this space, policymakers across the country have recently turned to them as a way to level the playing field around workforce development and entrepreneurial support. Research from the Information Policy and Access Center at the University of Maryland finds that nearly 100 percent of libraries offer broadband connectivity, and more than one-third offer small business development resources (36.5 percent) and workspace for mobile workers (43.7 percent). In recent years, libraries are increasingly focusing their efforts on fledgling entrepreneurs, according to the American Library Association’s Office of Information Technology and Policy. In The People’s Incubator: Libraries Propel Entrepreneurship,  author Charlie Wapner cites numerous examples of how public libraries are complementing public and private efforts to develop entrepreneurial capacity, including: boosting access to capital; advancing intellectual property knowledge and…

The World Economic Forum’s (WEF) latest survey of more than 1,000 experts and decision makers on the likelihood and impact of 30 global risks over a 10-year period found four areas of concern: environmental degradation; cybersecurity breaches; economic strains; and geopolitical tensions. Despite experiencing a year-long global economic recovery, the survey revealed that respondents are pessimistic about the year ahead (59 percent say they expect an increase in risk for the year, compared to 7 percent who expect declining risks). The report cautions that we are struggling to keep up with the pace of change and are pushing systems to the brink. The latest annual Global Risks Report compiled by the WEF asserts the world has moved into a new and unsettling geopolitical phase. This year, WEF has added a new series of reports examining the possibilities of dramatic future breakdowns as well as reassessing past surveys to the report to broaden the analytical reach. Just as in 2017, the environment was the greatest concern cited by experts, while cyber threats are growing in prominence, with large-scale cyberattacks ranking third in terms of likelihood. Rising cyber…

The U.S. Small Business Administration has announced its 2018 road tour connecting entrepreneurs with next generation R&D ideas to early stage funding led by the SBA’s Small Business Innovation Research and Small Business Technology Transfer programs. Each stop in the 18-state road tour will be hosted by a local organization, and program managers from the 11 participating federal agencies will conduct one-on-one meetings with attendees, take part in targeted panels, and share insights into how their agencies make funding decisions. The SBIR/STTR programs provide $2.5 billion in early stage funding to small businesses each year in a wide variety of technology areas such as unmanned systems, advanced materials, health, cybersecurity and defense.  The SBIR/STTR programs execute over 4,000 new awards annually.  The national road tour schedule for 2018: The Southern Tour will run from April 16-20, with stops in Chattanooga, Tennessee; Huntsville, Alabama; Little Rock, Arkansas; Jackson, Mississippi; and Baton Rouge, Louisiana. The Eastern Tour will run from June 18-22, with stops in Rochester, New York; Pittsburgh, Pennsylvania; Columbus, Ohio;…

The White House released a budget this week that would substantially reduce federal spending for innovation and entrepreneurship. Regional Innovation Strategies and the entire Economic Development Administration, Manufacturing Extension Partnership, Advanced Research Projects Agency – Energy, Innovative Technology and Advanced Vehicles loan programs, Growth Accelerator Program and Regional Innovation Clusters would all be eliminated. Only in an addendum related to last week’s budget deal does the administration suggest funding workforce and several agencies’ R&D at or near FY 2017 levels. Still, whereas the previous two budgets featured nearly-universal cuts to non-defense initiatives, the FY 2019 budget provides better insights into the administration’s priorities.