SSTI Digest

2023 was a watershed moment in the history of the bachelor’s degree. Against a backdrop of a historically tight labor market, persistent talent shortages, and rising skepticism of the value of higher education, numerous state governments and major corporations dropped college degree requirements for many of their jobs.

The Distressed Area Recompete Pilot Program, a program authorized by the CHIPS and Science Act, targets areas where the share of prime-age (25-54 years) employment is significantly lower than the national average. The program’s goal, according to a press release from EDA, is “closing this gap through flexible, locally-driven investments.” EDA has selected six implementation awardees for funding from the 22 Recompete Finalists, with individual award amounts to be finalized in the coming months. 

In a recent State of the Science address, National Academy of Sciences President Marcia McNutt called attention to what she sees as an alarming trend: the federal contribution to basic research is stagnating while industry funding is rising. The federal share of U.S. spending on basic research, she said, was down from about 60% in 2011 to 40% in 2021. The fall is mostly the result of a sharp increase in basic research funding from industry (see this SSTI article and this National Science Board report for more details on this topic). McNutt proposed that a national research strategy should strive to reverse this trend so that the federal government regains its leadership position in funding basic research. McNutt’s reasoning is that ultimately, industry-funded basic research will not be the best way to maintain U.S. leadership in innovation. She cautioned that industry primarily engages in basic research that serves the company’s own interests and is not often shared with researchers outside of the company. She noted that while industry performs 75% of the R&D in the U.S., it only accounts for 6% of the publications, attributing the low number of publications to…

Following its announcement of implementation awards to 12 Tech Hubs regions, the U.S. Economic Development Administration made Consortium Accelerator Awards of $500,000 to each of the additional 19 Tech Hubs designated regions. This funding should enable regions to continue dedicated efforts to strengthen their strategies and partnerships and to pursue alternative sources of implementation project funding.

This year’s legislative sessions saw a handful of governors and lawmakers proposing noteworthy reforms or other changes to their states’ institutions of higher education—from system overhauls to the expansion of tuition-free community college programs—all in efforts to align their state’s education investments with current and future workforce needs, as well as address future costs under tightening budgets. Restructuring higher education systems In February, Oklahoma Gov. Kevin Stitt announced a general plan that called for the consolidation of his state’s 25 public universities and colleges. He called on lawmakers to craft and pass legislation that would incentivize higher education institutions to fulfill state workforce needs; tasked the boards of regents to consolidate colleges that were not meeting workforce demands; and asked both bodies to remove redundancies in the state’s higher education system by consolidating some institutions. Seemingly, a formal plan from the administration was not fully realized nor released beyond its initial announcement in the governor’s address. Subsequently, lawmakers established the Workforce Development Revolving…

Note: This brief quasi-book review/book synopsis is the first item in an experimental new section of SSTI’s newsletter, potentially joining other regular sections such as Useful Stats, Fed/Leg News, State News, Member Updates, and Recent Research. Its periodic continuation after the contributions we present over the summer will depend on feedback from our members and Digest readers. Comments may be shared with skinner @ ssti.org Balancing innovation and equity is a perennial challenge in economic development. Neil Lee’s newest book, Innovation for the Masses: How to Share the Benefits of the High-Tech Economy, tackles this issue head-on, arguing that innovation and equity are not mutually exclusive but can—and should—be pursued in tandem. For our readers, this may seem an obvious point, but innovation’s track record suggests otherwise. Lee’s thorough examination provides valuable insights into how to achieve this equilibrium. Lee lays a strong foundation by dedicating the first third of the book to overviewing the current discourse on innovation. While this section might (for better or worse) give you flashbacks to past economics classes, it sets the…

The positive impacts of addressing any single priority for reducing greenhouse gas (GHG) emission could be of only marginal benefit without simultaneous efforts along other key priorities, warns the U.S. Department of Transportation (DOT). DOT Report to Congress: Decarbonizing U.S. Transportation lays out three strategies for reducing greenhouse gas emissions that DOT argues must be enacted in unison if the U.S. is to make significant progress in meeting its GHG emission goals. By way of example of why a holistic or coordinated approach is required, the reports notes that increases in vehicle driving and the movement of goods have canceled out the GHG emissions benefits of improved fuel economy in the US. The report's data indicate that the transportation sector generates the largest portion (33%) of emissions in the U.S. DOT outlines three strategies deemed critical for reducing the sector’s share of the problem: increasing convenience, improving efficiency, and transitioning to clean options. Increasing convenience involves designing systems to minimize the necessity of moving people and goods from one place to another. The authors suggest supporting active…

On Aug. 1, Massachusetts lawmakers ended their 19-month formal session. In the flurry of legislation that was passed, the Legislature failed to agree on the governor’s proposed $3.5 billion economic development package (the Mass Leads Act), which featured $2.8 billion in bond authorizations combined with tax credits and considered a top priority for both the administration and legislative leaders.

The U.S. Department of Commerce has announced a new $25 million Good Jobs Challenge Notice of Funding Opportunity for investment in high-quality, locally led workforce training programs that lead to good jobs. EDA anticipates making 5-8 awards ranging from $1 to $8 million, which are expected to be announced in winter 2024. Projects that align with and advance a Tech Hub designee’s strategy are eligible to earn up to five award points, according to the NOFO (pg. 45). Applicants must implement training for jobs that advance key technology focus areas as established by the CHIPS and Science Act of 2022, which include advanced energy, biotechnology, robotics, and semiconductors, according to the Commerce Department’s press release. Each applicant is eligible to earn up to 105 points. Criteria include project impact and feasibility (20 points), the strength of the sectoral partnership (15 points), the readiness of the sectoral partnership (15 points), regional needs and alignment (15 points), equity (15 points), the strength of employer partnerships (10 points), and regional investment and sustainability (10 points). On alignment with Tech Hubs designees,…

The U.S. Department of Commerce and Natcast, the operator of the National Semiconductor Technology Center (NSTC), recently announced the site selection process for the first three CHIPS for America Research and Development (R&D) facilities for the NSTC and National Advanced Packaging Manufacturing Program (NAPMP). The goal of these facilities, as outlined here, is to allow U.S. innovators to collaborate and solve the most challenging problems in microelectronics. Due to the different timelines and technical requirements, there will be a separate site selection process for each facility, while still including an integrated assessment of all the factors considered in each selection process. The first facility is the NSTC Administrative and Design Facility, which will serve as the location for key operations of the NSTC, including hosting Natcast administrative functions, meeting space, and programmatic activities. ​This facility is expected to be in a region with a thriving semiconductor design ecosystem, an existing semiconductor workforce, and proximity to universities with advanced microelectronics research. The selection process for this facility will be run by…

Significant differences between the House and Senate versions of the FY 25 budget numbers for science and the quadrennial election cycle might explain the increased language one hears concerning national security, competitiveness and global economic conditions. Data presented in a July issue brief by the National Science Board (NSB), however, should help raise the issue to encourage honest discussion about how the federal government will take on the challenges to U.S. leadership in innovation. Additionally, a new paper from the Aspen Strategy Group et al. provides supporting arguments to the NSB facts and policy recommendations to help address educational aspects of what many in the innovation space consider a growing or looming crisis for the country. In A Changed Science and Engineering Landscape, NSB documents the People's Republic of China (PRC) rise in prominence in science and engineering due to that nation's ample and sustained commitment to funding R&D, which is now "bearing fruit." They note that the PRC has surpassed the U.S. in the number of international patents, with a meteoric rise from only 10,000 international patents in 2009 to nearly 70,000 by 2023…

The U.S. Department of Defense released requests for information regarding a new loan program for critical technologies that will be launched through the Office of Strategic Capital. The office, launched in 2022, has focused on a Small Business Investment Company-Critical Technologies (SBICCT) license that can provide technical and cybersecurity expertise and resources to funds willing to concentrate their portfolios on certain tech.