SSTI Digest

The European Union is engaged in a debate about changing its systems for R&D funding, the first potentially significant changes since its current framework program began in 1984. A group of 15 individuals from research and industry selected by the European Commission last year has submitted a report, Align, act, accelerate, which gives recommendations for overhauling the system. These recommendations are aimed at the remaining three years of Funding Program 9 (FP9)—Horizon Europe (2025-2027) and preparing for the next European Research and Innovation Framework Programme, FP 10 (2028-2034).

The report notes that changes are in order now, especially considering the decline in Europe’s global importance in research, innovation, and technology. The report acknowledges various weaknesses of research, development, and innovation (RD&I) in the current EU system, including:

The U.S. National Science Foundation Regional Innovation Engines (NSF Engines) program announced that 71 teams are advancing to the next stage of the second NSF Engines competition. Of the 71 teams invited to submit full proposals to the NSF Engines program, 23—or nearly one-third—are led by nonacademic organizations; 13 are led by organizations new to NSF funding; 23 are led by organizations located in NSF Established Program to Stimulate Competitive Research (EPSCoR) jurisdictions; and nine are led by a minority-serving institution. In addition, nearly half of the teams received an NSF Engines Development Award.

These 71 teams are expected to submit full proposals by February 2025. This solicitation is consistent with NSF’s FY2025 budget request; however, NSF’s ability to make new NSF Engines awards will be based on pending congressional appropriations.

Whether one calls them transformational or disruptive, challenging or exciting, topics like generative AI, Big Tech, climate change, and geopolitical/economic issues will have significant influences on the future focus and efforts of every organization employing readers of this newsletter. There hasn’t been a forum for the field to talk about all of it openly and honestly—until December, that is. 

SSTI is quite excited to announce one of the most important conversations on the future of regional innovation policy and practice will be taking place at our Annual Conference when we get to eavesdrop on a conversation among two well-known, widely respected and acknowledged experts on global innovation policy and technology-based economic development.

The Appalachian Regional Commission (ARC) awarded $33.5 million to 12 collaborative, multi-state projects designed to drive large-scale economic transformation. Funded through ARC’s Appalachian Regional Initiative for Stronger Economies (ARISE), these projects bring together more than 145 partners across all 13 Appalachian states to strengthen workforce and educational opportunities, infrastructure, and entrepreneurship. Four of the 12 awards have direct ties to innovation and tech-based economic development.

Among the recipients are: 

A new White House national security memo (NSM) builds on last year’s Executive Order on AI and calls for the U.S. government to act quickly to the use of AI capabilities in service of national security. It also specifies actions to improve the security and diversity of chip supply chains, among other directives.

The NSM states, “If the United States government does not act with responsible speed and in partnership with industry, civil society, and academia to make use of AI capabilities in service of the national security mission—and to ensure the safety, security, and trustworthiness of American AI innovation writ large—it risks losing ground to strategic competitors.”

Manufacturing industries accounted for approximately $372 billion, or 54%, of all domestic business enterprise R&D (BERD) expenditures in 2022, up 36% from $274 billion in 2018. Despite this increase of nearly $100 billion over the past five years, the share of BERD expenditures in manufacturing industries has decreased eight percentage points from its 2018 value of 62%. Meanwhile, companies in nonmanufacturing industries captured by the BERD survey outpaced their counterpart’s growth, having increased $152 billion, or 91%, over the same period, leading to an eight percentage point increase in share of total—from 38% to 46%.

Congress authorized $10 billion over five years for regional tech hubs to improve America’s competitiveness and regional economies. To date, Congress has appropriated only $541 million for the program—just 5% of the authorized level—of which a $459 million downpayment was provided though the FY 2023 disaster supplemental. SSTI is working with other technology and innovation organizations to encourage Congress to act and fund the program through annual appropriations, supplemental funding, and the proceeds of spectrum auctions—a new means that would be made possible by the Senate’s Spectrum and National Security Act. If you represent or participated in one of the 370 regions that applied originally or want to compete for funding in future solicitations, sign on to a joint letter by November 12.

The letter can be found here with the form to sign here.

Last week, as the SSTI Board considered the year that is ahead, the Board asked Dan Berglund to reconsider his decision from earlier in the year to step down. While the election results are uncertain, one certainty now is there will be a change in presidential administration. The Board felt it was important for the field for Berglund to guide the organization through one more presidential transition-- this will now be his fifth. Presidential transitions and possible changes in party control of the House and Senate represent windows of opportunity for our field-- to explain what we do, the impact we're having and the resources needed to have greater impact. “I see the potential impact we can have and am excited about the opportunity this next year presents. To best achieve that impact, we're splitting the President & CEO role into two positions,” said Berglund. As President, Berglund will continue to lead SSTI as he has since its founding in 1996. He will also be the staff lead for SSTI’s Innovation Advocacy Council.

Growing your local or state economy through innovation and technology-based economic development most often feels like a full-sprint ultramarathon. It doesn't help that so many external influences on how you do your job seem to change the rules and landscape thrown at you all the time. Take Nov 5, for example. You need a break! But you also need time to pause, think, and strategize with your teammates for the coming year. There is a way to achieve both simultaneously, and I love it! More...

Congress authorized $10 billion over five years for regional tech hubs to improve America’s competitiveness and regional economies. To date, Congress has appropriated only $541 million for the program—just 5% of the authorized level—of which a $459 million downpayment was provided though the FY 2023 disaster supplemental. SSTI is working with other technology and innovation organizations to encourage Congress to act and fund the program through annual appropriations, supplemental funding, and the proceeds of spectrum auctions—a new means that would be made possible by the Senate’s Spectrum and National Security Act. If you represent or participated in one of the 370 regions that applied originally or want to compete for funding in future solicitations, sign on to a joint letter by November 1.

The letter can be found here with the form to sign here.

While both gross domestic product (GDP) and population have steadily increased across the United States over the last decade, the growth of business enterprise R&D (BERD) expenditures has surged ahead at an even faster pace. Nationwide, BERD as a percentage of GDP has jumped over 0.75 percentage points over the past decade, rising from 1.91% in 2013 to 2.66% in 2022, while BERD per capita has more than doubled from approximately $1,020 to $2,075 over the same time. This edition of Useful Stats will explore in depth the varied changes in BERD intensity metrics at the national and state levels over the most recent decade of available data.

The data used in this article is from the most BERD survey for business R&D values and the U.S. Bureau of Economic Analysis for GDP and population.

The Treasury Department has recently approved an additional $106 million in SSBCI dollars for tribal governments: $102 million as part of the Capital Program and $4 million as part of the Technical Assistance (TA) Grant Program. With this most recent wave of announcements, and including two $2 million Small Business Opportunity Program (SBOP) awards made to tribal governments, Treasury has now approved applications for over $520 million in overall SSBCI dollars to tribal governments.