SSTI Digest

In a special feature this week, SSTI will examine a developing technology advancement that has been increasingly drawing public attention. This is the first of a two-part series examining blockchain and its implications for business and industry, with today’s story focusing on the technology, while next week will focus on its applications and challenges.

Blockchain, a newly emerging technology that stands as the web-based database platform behind bitcoin, is receiving more attention for the economic benefits it promises. While bitcoin has gobbled up headlines, blockchain has slowly developed a strong group of proponents that include leaders from Wall Street, big banks and investment firms that view the technology as a possible transformative advancement within finance and other tech-influenced industries such as government, supply chain, crowdfunding, telecommunications, gig economy and higher education. Blockchain is the technology that provides the possible secure, efficient pathway for billions of devices to transact and share information across diverse platforms.

As the United States undergoes a political transition, much remains to be seen in how the Trump Administration will approach the economy. One way to support economic development on both a federal and regional level is by leveraging research and development. Building capacity for scientific research is an underlying principle of the Innovative Science and Technology for Economic Prosperity (iSTEP) model – a comprehensive policy platform for converting the United States’ strength in R&D into greater economic prosperity – which has received bipartisan support from an overwhelming majority of voters.

The National Science Foundation (NSF) estimates that U.S. research and development (R&D) funding reached an all-time high of $499.3 billion in 2015 – an increase of approximately $21.6 billion over 2014 levels ($477.7 billion). The $21.6 billion increase marks the third time in three years that overall U.S. R&D funding grew by more than $20 billion – $20.4 billion in 2013 and $21.1 billion in 2014.

While overall R&D funding increased from 2014 to 2015, federally sponsored R&D fell to a record-low of 23 percent or $113 billion in 2015 – the lowest percentage share since 1953. The growth was mostly driven by the business sector reaching a record high 69 percent share of R&D funding ($355 billion). The $355 billion invested in R&D by businesses continues a long-term trend of private industry financing the majority of R&D activities in the U.S.

As you are likely aware, SSTI’s 2016 Annual Conference took place last week in Columbus, OH. The theme of Innovation with Purpose: Shaping Future Opportunities was addressed throughout the agenda, and people were particularly struck by the need to better-orient programs and services to address “Innovation’s Blindspot,” as defined during the keynote talk delivered by Ross Baird of Village Capital. During other moments in the conference, such as policy-focused discussion groups and sessions on improving metrics and communications, attendees were directly called to take actions that would benefit their programs and customers, as well as the innovation community as a whole.

Columbus, OH – Celebrating the 10th anniversary of its Excellence in Technology Based Economic Development awards, SSTI today announced four winners driving prosperity in their states and regions through innovative approaches to growing their economies and creating high-paying jobs.

“As we reach this 10-year milestone of recognizing excellence in initiatives that are happening throughout the U.S., it is a good measure of the dedication and entrepreneurial spirit that exists in a dynamic economy,” said Dan Berglund, president and CEO of SSTI. “This year’s award winners are examples of strong initiatives that have been recognized by their peers as successful programs. They, in conjunction with past winners, serve as models for those working to encourage prosperity through science, technology, innovation and entrepreneurship.”

In less than a week, about 300 professionals, stakeholders, policymakers, and others working to encourage economic prosperity through science, technology, innovation and entrepreneurship will gather in Columbus to hear and share the latest news, trends and advancements at the SSTI Annual Conference. It is fitting that the conference is being held in Columbus this year, as the city itself is being recognized for its activity and growth. Columbus recently was named by Money magazine as the Best in the Midwest in their Best Big Cities ranking.

While economic development issues have been taking a back seat to other discussions surrounding the presidential election, two state ballot initiatives address these issues directly and several other states feature educational initiatives. Engineering facilities at the University of Rhode Island and biomedical research in Montana would advance if ballot initiatives in those states pass on November 8. Both states are seeking passage of bond issues that would build facilities that would be used to expand or build facilities that benefit students or researchers in engineering and biomedical fields.

Twelve states have gubernatorial races in this year’s elections. After Indiana Gov. Mike Pence was recruited for the vice presidential ballot, Indiana voters have current Lt. Gov. Eric Holcomb on the ballot as the Republican candidate for governor. Some states have incumbent governors seeking re-election, including Montana, North Carolina, Oregon, Utah and Washington. Others have term-limited governors and are thus seeing new faces on the ballot, including Delaware, Missouri and West Virginia The remaining states have open races, including Indiana, New Hampshire, North Dakota and Vermont. SSTI provides an overview of the candidates and their economic development and education stances:

Delaware

As artificial intelligence (AI) is expected to become an increasingly large contributor to future U.S. economic growth, policymakers must be thoughtful about the technology’s implications related to federal R&D strategy, societal benefits, and public policy, according to two recently released reports authored by the National Science and Technology Council (NSTC) Subcommittee on Machine Learning and Artificial Intelligence. Preparing for the Future of Artificial Intelligence describes: how AI technology can help to advance social good and improve the way government operates; how regulations that affect AI technologies can be adapted to encourage innovation while simultaneously protecting the public interest; how to best ensure how AI applications can be fair, safe, and governable; and, the importance of developing a skilled workforce around AI technology.

The Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy (EERE) has launched the third round of the Small Business Vouchers (SBVs) pilot program. In this round of funding, DOE will commit up to $5 million in technical assistance from DOE national labs to help bring the next generation of clean technologies to market in nine technical areas of interest. Proposals are due November 10. For the third round, EERE hopes to increase new small businesses collaborating with the DOE national laboratories. As such, small businesses with little to no experience working with the DOE national labs are strongly encouraged to submit requests for assistance.

John Lettieri, co-founder of Economic Innovation Group (EIG) and its senior director for Policy and Strategy, and Pamela Lewis, the director of the New Economy Initiative (NEI), have joined the speaker line-up of the SSTI Annual Conference, Innovation with Purpose: Shaping Future Opportunities, as part of the Bold Ideas for Innovation with Purpose opening plenary session. EIG brings together leading entrepreneurs, investors, economists, and policymakers from across the political spectrum to address America’s economic challenges. NEI is one of the nation’s largest philanthropic partnerships, funded by 12 national and regional foundations and managed by the Community Foundation for Southeast Michigan. It is in its eighth year of innovative funding and the development of public/private partnerships that have helped create more than 17,000 jobs and 1,600 companies throughout southeast Michigan.

Whether measuring the nature of the economy or determining the impact of economic development programs, finding the right indicators and metrics is critical. And a new set of questions is arising for economic development practitioners: Who gets credit for impact when multiple organizations provide services to the same company? When impacts may be long-term, what is the best way to gauge success in the short term? These and other questions will be explored during the conference session on Measuring Impacts: Where We Stand and Where We Need to Go at this year’s annual SSTI conference. The session comes at a time when the Center for Regional Economic Competitiveness (CREC) recently released a white paper on common metrics used by economic development programs and when the World Economic Forum is seeking input on the design of its Global Competitiveness Index.