SSTI Digest

Ninety-one percent of apprentices find employment after completing their program with an average starting wage above $60,000, according to a new report from the Department of Commerce’s Economic and Statistics Administration (ESA). In The Benefits and Costs of Apprenticeships: A Business Perspective, ESA researchers performed a case study analysis of 13 apprenticeship programs launched by businesses and intermediaries from a variety of occupations, industries, and regions. The study focused on identifying answers to three questions:

What motivated them to create apprenticeships? What are the costs and benefits? And, if not apprenticeships, how else would they fill their workforce needs?

The authors report that companies found value in the program and identified benefits that more than justified the costs and commitments (financial and otherwise) they made to the apprentices. Areas that benefited from the apprenticeship model included:

Targeted investments in robotics research and development are critical to America’s competitiveness, according to a new roadmap authored by a group of more than 150 robotics experts across academia and the private sector. The plan, From Internet to Robotics: A Roadmap for US Robotics, presents potential research priorities for the field and discusses the workforce development, legal, ethical, and economic ramifications of automation technologies.

The U.S. Department of Commerce announced this week that 35 organizations will receive nearly $15 million in funding to create and expand cluster-focused, proof-of-concept and commercialization programs, and early stage seed capital funds through the Economic Development Administration’s (EDA) Regional Innovation Strategies (RIS) program. The organizations, including nonprofits, institutions of higher education, and entrepreneurship-focused organizations, reach urban and rural areas across the U.S.

The awards include the program’s first investments in historically black colleges and universities (HBCUs) in the South through NexusLA, a wholly-owned subsidiary of Research Park Corporation. Byron Clayton, CEO of NexusLA, said that the award will increase the diversity of the deal flow pipeline. Clayton said he saw a unique opportunity in partnering with Louisiana’s HBCUs, realizing their vast potential could be a valuable asset in the venture.

One of the greatest assets in transforming STEM education is so simple it is often overlooked: a child’s innate sense of curiosity. Harnessing that curiosity and engaging students in activities that instill a sense of wonder and discovery can help legitimize behaviors that are core to the practice of science and engineering. Experiences that invite play, tinkering, discovery and risk are valuable tools that can reach across every audience to increase an interest in STEM activities, and reach more students, according to STEM 2026.

More than 40 percent of people trained as scientists and engineers indicate they are either working outside their field of study or working in a field only somewhat related, according to a recent study. Findings reveal that the majority of those working outside their academic major choose to do so voluntarily, and they are more likely to become entrepreneurs. Less than 25 percent of educational mismatches occur because of labor market conditions. Instead, workers are choosing different jobs due to changing career interests or family obligations.

An increase in electricity generation from renewable energy sources and policies driving a shift to clean energy are revealed in a new report from the Georgetown Climate Center that highlights 19 states’ progress toward a cleaner and more efficient electricity system. Progress includes a 40 percent increase in wind energy capacity nationally, and a 577 percent increase in solar capacity growth between 2011 and 2014.

Last week, the basics of the blockchain platform as well as the potential that it presents as an emerging industry were presented in the Digest. In this week’s post, the use of blockchain platforms and applications for the fintech industry as well as other industries that could see disruption due the introduction of the blockchain are explored. In addition, several efforts to spur the development of blockchain technologies and associated applications made by industry, government, and nonprofit organizations will be highlighted.

Blockchain and Fintech

Over the last two months, the Economic Development Administration (EDA) has made nearly $35 million in investments intended to spur economic prosperity across the country including nearly $28 million for communities impacted by transformations in the energy industry. These efforts are intended to unlock the potential of regional assets including community members, local institutions of higher education, and regional industies by funding entrepreneurship, innovation, research and development (R&D) activities, and other capacity-building efforts. Among these investments, the EDA announced the winners of the University Center Economic Development Program Competition; and, Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) Initiative.

Regional activities supporting innovation and entrepreneurship are reaching across U.S. borders, forming new partnerships with organizations from neighboring countries to broaden their impact and leverage their strengths. Beyond traditional trade relationships, these activities are promoting new opportunities for longer term collaborations with potential to benefit the U.S. and its neighbors. In these cases, a recent trend is that regional technology-based economic development activities are beginning to expand to border nations as a way to maximize impacts.

Through September 2016, the United States has traded nearly $800 billion in goods with Canada and Mexico – 29.6 percent of the nation’s total trade and a rate nearly double that of with China (15.4 percent), according to year-to-date data from the U.S. Census Bureau.  This trade is especially pronounced in metro areas along the federal border, where regional economic development is beginning to take on a broader meaning.

Twelve gubernatorial seats were up for election Tuesday, five of which were held by incumbents seeking reelection. Four of those – Montana Gov. Steve Bullock (D), Oregon Gov. Kate Brown (D), Utah Gov. Gary Herbert (R) and Washington Gov. Jay Inslee (D) – were reelected for second terms. In North Carolina, Democratic candidate and State Attorney General Roy Cooper has a lead of less than one percent over incumbent Gov. Pat McCrory. Gov. McCrory has not conceded and the result is pending a canvass of votes, which may not be complete until November 18.

As of this publication, there are seven new governors taking office:

·         Democratic Congressman John Carney won the seat in Delaware.

·         Republican Lt. Gov. Eric Holcomb won in Indiana.

·         Republican and former Navy Seal Eric Greitens won in Missouri.

·         Republican Chris Sununu won in New Hampshire.

President-elect Donald Trump made strong appeals during his campaign to restore economic opportunity for workers, particularly those displaced by changes in the manufacturing and energy sectors. An economy driven by transforming America’s scientific research into good-paying jobs and high-growth businesses would deliver on the promises Trump made to voters. SSTI has a policy agenda to provide entrepreneurs and investors with the support they need to make this transition to an innovation economy.

Currently, this policy agenda is available to the Trump transition team through SSTI’s Executive Memorandum for Presidential Candidates. The memorandum documents broad public support for the platform, including backing from 86 percent of Republicans and 82 percent of people who believe the American economy is getting worse. Notably, citizens across the political spectrum are willing to pay for this initiative – even through new taxes on cigarettes (76 percent) or by closing corporate loopholes (75 percent).

Bond issues supporting higher education goals got mixed results in Tuesday’s election. A bond issue in Rhode Island to be used for the renovation and construction of the University of Rhode Island’s College of Engineering buildings was a winner in this year’s election, receiving 59.3 percent approval. The bond issue that would have created the Montana Biomedical Research Authority was not as lucky, with 56.9 percent of voters there rejecting the measure. Two other economic development measures fared well with Arkansas voters approving (65.22 percent) a referendum removing caps on state-issued bonds to help finance economic development projects and services. Alabama voters also approved (59.22 percent) an amendment giving communities the power to create zones to attract industry to the state.