SSTI Digest

Between 2010 and 2015, job and establishment growth was substantially lower in U.S. counties where broadband is less available and technologies are less likely to be adopted, according to new research from the Purdue Center for Regional Development. To measure county-level digital divide, authors from the center developed the Digital Divide Index (DDI), which factors in demographics, jobs, and other establishment trends in the U.S. Notably, the index is comprised of two parts to make it more useful to policymakers and practitioners: an infrastructure score and an adoption score. Each of these scores are comprised of four measures as a way to differentiate between the mere presence of broadband in a community and factors that may predict its adoption. The authors suggest that broadband efforts should be rooted in a local context; for some areas, it may make more sense to improve broadband infrastructure, while for others, more effort should be placed on increasing digital literacy or exposure to technological benefits.

Citing national security concerns, the Trump administration made headlines this week when they ordered that chipmaker Broadcom stop pursuing its $117 billion bid for its largest competitor, Qualcomm. While the current role of the federal government has captured attention, it is worth noting the contributions of federal and higher ed technology commercialization policies– themselves innovative at the time – to both companies’ origins: Qualcomm’s roots trace back to an SBIR award, while Broadcom is the result of a UCLA spinoff and generous entrepreneurial leave granted by the institution.

The Government Accountability Office identified eight trends having strong effects on both the federal government and society as a whole, and those included in the science and tech section of the report are suggested to be critical to the country’s competitiveness. The trends are part of the larger 2018-2023 strategic plan for the office, whose mission is to ensure that Congress is aware and informed, and to help improve the performance and ensure the accountability of the federal government. The trends analysis outlines the current situation, key uncertainties and implications of each trend. In the area of science and technology, the GAO identified five emerging technologies that may transform society: genome editing; artificial intelligence and automation; quantum information science; brain/augmented reality; and cryptocurrencies and blockchain.

In a shift from its past economic development efforts, the U.S. Department of Commerce FY2018-2023 strategic plan would move the department to focus almost exclusively on being a commercial services entity. The plan’s points of emphasis are on streamlined permitting and regulations, with direct government activity primarily reserved for common good services — e.g., economic data, cybersecurity and IP protection. References to activities providing direct support for businesses and regional economies are ranked as lower priorities or nonexistent. EDA is left out of not only the descriptions of how the department’s bureaus will contribute to strategic objectives, but also out of the list of offices comprising the department.

As the U.S. Senate works toward a vote on a bipartisan bill targeted at lifting regulations for some banks, several studies published within the last year have looked at the impact community banks have had on serving small- to mid-sized businesses (SMBs) across the country. Historically, community banks have been the loan originator for nearly 60 percent of business loans made to SMBs and have served as drivers of economic growth and opportunity in rural and underserved communities. The reports highlight the impact of these community banks on small business lending pre and post Great Recession; the resiliency of SMB lending activities by these banks during the Great Recession; and policy recommendations to support community banking.

As explored in last week’s Digest, the presence of Eds and Meds institutions can positively influence the levels of human capital in a region, but the need to keep costs low can hinder their overall growth. SSTI’s analysis subsequently found that employment in Eds and Meds industries increased in every state from 2005 to 2015. This article looks at Eds and Meds employment for the largest metropolitan areas in the United States.  Mid-sized regions in the Northeast like Rochester, New York (4.4 percentage points), New Haven, Connecticut (2.9 percentage points), and Harrisburg, Pennsylvania (2.3 percentage points) experienced the largest growth in per-capita employment in Eds and Meds industries between 2010 and 2015.

Defining “Eds and Meds”

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

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.

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.

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.