SSTI Digest

Since 1991, every state has added good jobs for workers without  four-year degrees in skilled-services industries like healthcare and finance, but fewer than half have added good jobs for similar workers in blue-collar industries like manufacturing, according to The Good Jobs Project, an initiative of The Georgetown University Center on Education and the Workforce. The project, which released a state-by-state analysis this week, focuses on the concentration and distribution of “good jobs” – those that pay above a living wage and are available to workers without a bachelor’s degree – by geography and industry. While the total number of good paying jobs for workers without a B.A. grew from 27 million in 1991 to 30 million in 2015, the share of good jobs available to workers without a B.A. declined from 60 percent to 45 percent over that same time. In general, good jobs available without a B.A. are concentrated in the most populous states, though some smaller states also have a high share of good jobs. The report’s authors find that across every state, good jobs increasingly require postsecondary education and training, but…

Beyond their traditional focuses on patenting and licensing, universities should reconsider how their technology transfer efforts can contribute more broadly to economic prosperity, according to a new report from the Association of Public and Land-Grand Universities (APLU) Commission on Innovation, Competitiveness & Economic Prosperity (CICEP). The report, Technology Transfer Evolution: Driving Economic Prosperity includes four briefs on topics relevant to redefining the field: engaging the local regional ecosystem; redefining expectations of tech transfer offices; adapting innovation management structures; fostering an entrepreneurial culture; and, supporting university startups. SSTI staff members contributed to the individual briefs and served on the commission’s advisory committee. Ultimately, for institutions aiming to evolve their technology transfer activities, the report includes four guidelines:  Success in technology transfer should not be measured by revenue, but by contributions to economic prosperity; Technology transfer must better integrate and align with the broader economic engagement efforts of the university; Strategic resource…

From investment returns to education savings, R&D incentives and more, tax policy and innovation are inextricably linked. Not surprisingly, the U.S. House GOP’s tax plan, released last week and updated through a significant amendment on Monday, could have significant impacts on the innovation economy. Current[1] proposals with implications for innovation include: Venture Capital & Startups Employees receiving stock options from private companies (e.g., startups) may defer income taxes for up to five years (via Rep. Kevin Brady’s amendment, per Axios). The plan retains the Qualified Small Business Stock Rules, which can benefit investors and founders by limiting income tax payments on certain stocks held for at least five years (per the National Venture Capital Association). Carried interest provisions, which allow fund managers to pay capital gains taxes on the “carry” portion of their fees, would be allowed so long as the carry period is at least three years — this is an extension over current law and the initial bill, which both require one year of holding (via Rep. Brady’s amendment, per CNBC). Capital gains tax rates…

Following reforms to the Community Development Financial Institution (CDFI) application process, four of the five venture capital funds that applied for CDFI financial assistance funding in FY 2017 were awarded. In trying to increase the impact of CDFIs by supporting their growth, reach and performance, the Fund implemented reforms to the application, making it easier for CDFIs to demonstrate their impact with an award regardless of what type of financial institution they are — they can be banks, credit unions, loan funds, microloan funds or venture capital providers. The four VC funds that received awards were Fund Good Jobs, Kentucky Highlands Investment Corporation, Launch New York, Inc. (which is also newly certified this year), and National Community Investment Fund. In total, the last round saw more awardees overall than ever before in the history of the CDFI Fund. The CDFI Fund works to promote economic revitalization and community development through mission-driven financial institutions that take a market-based approach to supporting economically disadvantaged communities, and invests federal dollars alongside private sector capital. From the establishment…

The innovation economy is a featured component of both newly elected governors’ agendas, with each showing support for TBED-related initiatives in their platforms. In New Jersey, Governor-elect Phil Murphy (D) has pledged to reclaim the state’s innovation economy while in Virginia Governor-elect Ralph Northam (D) proposed a new workforce development plan focused on “the new-collar jobs of the 21st century.” In New Jersey, Murphy has vowed to reclaim the innovation economy through a variety of means including: getting new advancements to market; making higher education and community colleges more affordable; developing a STEM-oriented K-12 curriculum along with “alternative pathways to success,” including apprenticeship programs and vocational training; lowering tuition and fees at public two- and four-year colleges; increasing state funding for R&D; convening an innovation cabinet with leaders from inside and outside government; increasing access to capital for small businesses and startups; and, providing computer science education to every child in the state’s public schools. In Virginia, Northam is proposing a new…

While traditional economic development within the states has shifted to an economy more reliant on innovation, many policy discussions remain mired in acknowledging just some of the more recognized tech-based regions, says the Information Technology and Innovation Foundation (ITIF) in its latest report. However, as economic indicators reveal that all states’ economies incorporate some degree of innovation as a driver of their economy, the 2017 State New Economy Index measures states’ capacities to function in this new economy. The index builds on seven prior editions and uses 25 indicators across five different categories to measure how well each state is positioned to succeed in an economy driven by technological innovation. The economic categories are: Knowledge jobs Globalization Economic dynamism The digital economy Innovation capacity The top 10 states, each with a score above 75 are: Massachusetts (96.6), California (84.7), Washington (84.5), Virginia (81.7), Delaware (80.4), Maryland (78.9), Colorado (78.3), New Jersey (7.6 percent), Utah (77.3), and Connecticut (76.4). Each past State New Economy Index has used slightly different indicators…

The third annual National Apprenticeship week will be celebrated next week, with more than 700 activities planned across the country to showcase programs, facilities and apprentices. For those still interested in participating through an open house, skills competition, or other event, there is still time to register your event. Later this month, National Entrepreneurs’ Day will be celebrated on Nov. 21. Earlier, the White House declared all of November entrepreneurship month with a statement focused on entrepreneurs’ need for regulatory relief and IP protections and expanding opportunities for women. Global Entrepreneurship Week will also be celebrated the week of Nov. 13-19, encompassing events and competitions in 160 countries and supported by a network of of more than 15,000 partner organizations.

The United States has no global equal when it comes to scientific output, producing more publications than China, Germany, and the United Kingdom combined, according to the recently updated Nature Index. The index, a product of the scientific journal Nature, measures output of high-quality research in the natural sciences at both the national and state levels. However, the most recent update finds that U.S. contributions have declined in both absolute and relative terms since 2012, and if current trends remain, China could become the world’s top contributor by 2027. As the image below notes, California, Massachusetts, New York, and Maryland contribute the most to the United States’ score in the index. In the past five years, reduced contributions from states like these have made the biggest dents in the country’s overall score, according to Nature. From 2012 to 2016, the majority of states saw a decline in their contribution to the Nature Index.  The release of this year’s index is contextualized by research from leading scholars in the field. In her commentary, for example, Julia Lane of New York University suggests that…

Since no single measure of performance can completely capture the important role that research universities play as drivers of economic growth in the innovation economy, a different approach is required, according to new research from BioCrossroads and TEConomy Partners. Using Indiana as a case study, The Importance of Research Universities highlights the multitude of ways that research universities contribute to prosperity, including economic development, enhanced capabilities of human capital, knowledge expansion and innovation, and societal well-being and quality of life. In Indiana, the report’s authors find that the direct economic impacts of the state’s three main research universities’ (Indiana University, Purdue University and the University of Notre Dame) research expenditures are more than four times that of the famous Indianapolis Motor Speedway. Similar to an analysis of Michigan’s University Research Corridor highlighted by the Digest last year, the TEConomy research is notable for its multi-faceted approach to analyzing the impacts of research universities. To assess the broader importance of research universities, the TEConomy…

Around the country, free or greatly reduced tuition programs at institutions of higher education – oftentimes called “promise scholarships” – are being increasingly utilized as a way to support education and workforce development. With a focus on those programs occurring at the community level, a new interactive database from the Upjohn Institute sheds light on more than 85 examples of place-based promise programs, including their history, their scope, and their impacts. Last month, SSTI examined recent legislation around promise scholarships in seven states, including Tennessee, whose program provides two years tuition-free at state community or technical colleges. Now in its fourth year, that program has exceeded most application expectations: 62,860 of the state's 74,000 graduating seniors in public and private schools – 85 percent – applied for the program, according to The Tennessean. 

This week we continue our series on state legislation pertaining to the innovation economy that has been enacted this year around the country. This third installment of the States of Innovation 2017 series deals with innovation and entrepreneurship-focused tax credits. Over the past year, state lawmakers in approximately have looked to grow innovation and entrepreneurship in their respective states by introducing and expanding tax credit efforts intended to increase the availability of startup capital, support R&D activities, facilitate business growth, and spur job creation. The two most common types of tax credits proposed to support innovation at the state level are angel tax credit programs and R&D tax credit programs. In addition to these two areas, states also proposed other tax credits intended to support job creation and business growth.

Connecticut and Wisconsin both ended their protracted budget negotiations with the governors signing budgets in late September and late October. Faced with budget constraints and uncertainty about the spending plan, Connecticut’s funding for economic and community development is decreasing along with funding for the state’s MEP center and Manufacturing Supply Chain program, with no general funds provided for them in the second year of the biennium. Wisconsin appears to be maintaining its status quo on TBED-related initiatives and has increased funding to universities that increase enrollments for “high-demand” degree programs, making $5 million available on a competitive basis.