SSTI Digest

Critical issues for the innovation economy seemed to play a prominent role early in this presidential campaign cycle. Bernie Sanders pushed to make college debt free, Republicans  incorporated H-1B visas into their immigration stances and Hillary Clinton proposed a platform to support innovation. After one presidential and the vice-presidential debate, however, innovation, technology and education have received very limited attention. However, moderators for Sunday’s debate will be looking at the top 30 questions voted on by the public for possible inclusion in the next debate. The current top 30 suggestions indicate the public wants to hear answers to real policy questions, including a few on the economy and education. There is still time for you (and colleagues, friends, etc.) to help ensure that some of the more relevant items are selected. Innovation, technology and education issues in the overall top 30 questions: How will you support a free and open Internet? – 17,228 votes - Major issues include net neutrality, copyright control, market dominance by incumbents and the privatization of internet governance. How do you plan to bring the U.S.…

The U.S. Department of Commerce’s Economic Development Administration (EDA) announced a number of grants last week to aid regional innovation and entrepreneurship efforts through infrastructure improvements, the creation of new spaces, and business improvements in regions across the country. The grants fund projects in AR, AZ, CA, ME, MI, and OH. San Pedro, CA – A $3 million grant to AltaSea business hub will fund infrastructure improvements at City Dock No. 1 at the Port of Los Angeles, which will aid in the development of new ocean-related technologies. The hub will provide access to the deep-ocean and research space to study ocean-related problems. It is expected to create 220 jobs and attract $120 million in private investment over a six-year period. Phoenix, AZ – A warehouse in Phoenix will get new life as a makerspace through a $3 million grant to the Maricopa County Community College District and Gateway Community. The space will be used by students and individuals to access the tools and equipment needed to generate ideas and develop products. Akron, OH – A business incubator space will be created with the support of a $…

Cornell University has been selected to host a new Innovation Corps (I-Corps) node through a grant provided by the National Science Foundation (NSF). It, along with four other existing hubs, received new grants ranging between $3.4 million and $4.2 million to be awarded over a five-year period. The I-Corps nodes are designed to support research and innovation and teach entrepreneurship in higher education. The New York area node, with Cornell University as the lead institution and partners Rochester Institute of Technology and the University of Rochester, is intended to increase the success rate of technology startup teams forming in colleges and universities in the Northeast, including upstate NY. A network of business mentors for academic inventors will be established through the new node and the evaluation team will work to achieve economic development, education, and workforce development outcomes. Other I-Corps nodes receiving new grant funding are the Bay Area node, D.C. area node, Midwest, and South nodes. The I-Corps nodes provide research infrastructure and training to help researchers transition fundamental science and engineering discoveries to the marketplace…

More than 48,500 are employed in West Virginia’s STEM-related fields, according to an October survey, A Survey: STEM Jobs in West Virginia in 2015, commissioned by TechConnect WV and the West Virginia Department of Commerce. The survey, which used data from 2015, found that 48,553 people, or 6.7 percent of the state’s workforce, are employed in science, technology, engineering or math (STEM)fields – ranking the state higher than the national average of 6.2 percent (as of May 2015). The reported average hourly wage in West Virginia for a STEM-related job is $28.89. And those STEM jobs support another 190,000 jobs in West Virginia, including 56,600 workers employed in the healthcare sector, and 2,420 employed as post-secondary educators in STEM-related subjects. Anne Barth, executive director of TechConnectWV, said the survey shows the state has a “solid innovation economy” and its results are critical to altering the perception that West Virginia lacks in the knowledge economy.  The report gives TechConnectWV and the state’s Department of Commerce evidence to present to policymakers to assist in their planning for the state’s…

Because existing evidence points to the presence of broadband as having a positive connection to the economic health in rural areas, numerous states and the federal government have made increasing broadband in these places a top priority.  In particular, many rural areas view broadband as an important tool in attracting entrepreneurs and other creative-class employees. Although this tactic is well intentioned, new research suggests that the association between expanded rural broadband availability and the proliferation of entrepreneurship and creative-class employees may not be as strong as one might think, and that the relationship may actually be negative. In a recently released peer-reviewed article appearing in The Review of Regional Studies, authors Kelsey Conley and Brian Whitacre of Oklahoma State University ask, Does Broadband Matter for Rural Entrepreneurs and Creative Class Employees? Using broadband data from the Federal Communications Commission and the National Broadband Map, and creative class and entrepreneurship data from the USDA and the Bureau of Economic Analysis, the authors analyze the relationship between broadband adoption/availability and…

Venture development organizations are reaching into new territory for funding partners and finding success in innovative models. Two new funds, the San Diego Tech & Life Science Investor Syndicate and Rev1 Fund I in Columbus, OH, have recently opened with less traditional funding sources, testing the waters of crowdfunding and heavy corporate backing, respectively.  The San Diego fund, launched by CONNECT, allows anyone wanting to invest $1,000 the opportunity to participate alongside more experienced lead investors. Rev1 Fund I gathered significant backing from community corporate powerhouses located in Columbus, such as Nationwide, Cardinal Health, and Worthington Industries. It also has the backing of institutions like Ohio State University and the Columbus Foundation, as well as government backing from Ohio Third Frontier. The funding models present two ends of the spectrum of defining community involvement for venture development organizations. The San Diego Tech & Life Science Investor Syndicate expects to invest in about six deals a year, helping to fund early stage technology and life sciences startups in San Diego.  Crowdfunding has been…

After an extremely strong venture capital market in 2015, the industry seems to show the signs of a decline driven by both cautious and fatigued investors. Three recent studies from Pitchbook and CB Insights indicate that there are several reasons why venture capital firms and other investors have been more cautious so far in 2016 including: mixed economic growth numbers; a volatile political climate; and, more security in private markets. The long-term effects of those trends can be seen in the findings of these reports including: Most tech companies are exiting for less than $50 million, according to a recent report from CB Insights – The H1 2016 Global Tech Exists Report; Early stage pre-money valuations have dropped by 6.2 percent from 2015’s 10-year high average valuation high of $40.1 million in the first half (H1) of 2016, according to a study from Pitchbook – 1H 2016 VC Valuation Report; Unicorns – startups with $1 or more billion valuations – have declined from 43 in 2015 to only 11 through the first half of this year, according to Pitchbook’s 2016 VC Unicorn Report. As VCs and other investors move to late-stage,…

Students at several California community colleges as well as California State University (CSU) campuses have access to a new incentive to graduate in four years through new state “promise” programs.  Gov. Jerry Brown Jr. signed SB 412 and AB 1741 creating “promise” programs that act in conjunction with a new 2025 Graduation Initiative, aiming to boost the number of students graduating from those institutions in four years to 40 percent. Success in the programs is intended to help address future workforce needs of California and improve achievement gaps. SB 412 supports eligible students in their pathways to a four-year degree through priority registration and academic advising. The California Promise program is open to students taking 30 units per year at select campuses and is designed to prioritize Pell-eligible and first-generation students, as well as those from underrepresented areas of the state.  At the same time, the California College Promise Innovation Grant program – established through AB 1741 – creates a $15 million grant program to incentivize community college districts to establish programs with the goals of…

Millennials internalized the effects of the most recent recession and revealed their beliefs about the economy and jobs future in a recent poll conducted by EY, a professional services company, and the Economic Innovation Group. Nearly one-third believe their community is still in a recession and 78 percent are worried about having good-paying job opportunities, according to the poll. Hard work is an important factor to get ahead in life, say 88 percent of the 18-34 year olds, and two-thirds say having a college education is important, but just 49 percent believe the benefits of a college education will be worth the cost. More than half feel a great deal of confidence about the military and colleges and universities, but other institutions such as the government, organized religion and the news media garner far less confidence.  While 78 percent consider entrepreneurs successful and 62 percent have considered starting their own business, 42 percent cite the lack of financial means as the top obstacle to launching a startup.  Instead, Millennials appear to prefer to climb the corporate ladder, with 44 percent saying the best way to advance their career is by staying at…

The Economic Development Administration (EDA) requests public comment on the overarching regulatory framework for the Regional Innovation Program. Comments should focus on the structure and implementation of the Regional Innovation Program, including Regional Innovation Strategies (RIS) grants. Through the RIS program, EDA awards grants for capacity-building programs that provide proof-of-concept and commercialization assistance to innovators and entrepreneurs, as well as operational support for organizations that provide essential early stage funding to startup companies. Comments should address one or more of several topics including, but not limited to: Purpose and scope of the Regional Innovation Program and/or RIS program; Program eligibility and matching share requirements; and, RIS Application components, evaluation, and selection criteria.  Comments must be submitted by November 21. 

Over the last several months, the Economic Development Administration (EDA) has announced millions of dollars in grants to support tech-based economic development efforts in communities across the country (see recent Digest articles from August 18 and September 8). The most recent announcements of grant funding will provide targeted funding to expand and build facilities that support entrepreneurial/business development in Oklahoma, Pennsylvania, and Wyoming as well as workforce efforts in South Carolina. Each of the grants also addresses a specific regional need or key industries including growth in advanced manufacturing sectors, attraction of foreign direct investment, and support for key regional tech-focused industries such as agriculture and healthcare. Oklahoma Two organizations located in Oklahoma City will receive $1.9 million in grants to provide business and technical support to manufacturing and service companies and to purchase critical equipment needed to boost workforce training opportunities in the medical sector. The Oklahoma Center for Advancement of Science and Technology (OCAST) will receive $1 million to provide business and technical…

U.S. research and development (R&D) performance rose to $477.7 billion in 2014 – an increase of $21.1 billion over 2013, according to a recent National Science Foundation (NSF) InfoBrief. When adjusted for inflation, growth in U.S. total R&D performance (1.2 percent annually between 2008 and 2014) matched the average pace of U.S. gross domestic product (GDP). Of the $477.7 billion in R&D funding, approximately 63 percent ($300.1 billion) went to experimental development with the remaining 37 percent supporting basic research ($84 billion) and applied research ($93.6 billion). In line with a two-decade trend, the business sector remained the largest performer of U.S. R&D – accounting for $340.7 billion (71 percent) of the total in 2014. Industry was also the largest funder of R&D, accounting for $318.6 billion (67 percent) of the 2014 total. Approximately 98 percent of industry-funded R&D was directed at companies to perform the R&D. The federal government was the second largest funder with $119.8 billion (25 percent);  $34.4 billion of its funding was dedicated to R&D at federal agencies, $34.1 billion to…