SSTI Digest

As the potential nexus of tech-based economic development and community development, cities play an important role in not only making their cities attractive to startups that help drive economic prosperity, but also in bringing together community members to take collective action and generate solutions to common problems. In an attempt to address both of these important issues, several metros have announced new city-backed investment funds that support both startup growth and impact the lives of city residents. These city-backed investment funds are intended to help create, expand, and retain high growth startups. Efforts are being undertaken in Sacramento, Kansas City, San Antonio, and Montreal.  The City of Sacramento will commit up to $1 million to make investments in startups in 2016 according to techwrie.net. As part of a $10 million plan to bolster the city’s innovation economy, the fund is an one element of a plan to create 500 new startups over the next five years (almost doubling the city’s current startup community) while also improving quality of life for local residents. The newly formed mayoral tech council will oversee the selection of…

You talk about your program often, tout its successes (?) and share with stakeholders your program’s impact. Why not let the entire country in on your good work? The SSTI Excellence in TBED awards program can provide your organization with that national audience of your peers! All you have to do is send us a five-page narrative describing your most successful innovation-focused efforts and our expert panel of judges will select the initiatives that best exhibit the value of investing in science, technology, innovation and entrepreneurship to create vibrant regional economies and improve our nation's competitiveness. Winners are announced during a special ceremony at SSTI’s Annual Conference in Columbus, November 1-3, and are provided a forum to showcase their initiative. Applications are due July 15 by 5:00 P.M. ET. Learn more and apply at: http://www.sstiawards.org/.

The Senate Committee on Small Business and Entrepreneurship held America Without Entrepreneurs: The Consequences of Dwindling Startup Activity last week. Citing the decades-long decline in new business creation as a motivating factor, senators’ remarks and questions identified regulation and student debt as contributing factors to this decline and to supporting basic research and immigration policy as potential solutions. The majority of the discussion focused on geographic disparities in innovation and how to better share the promise of economic prosperity going forward. Ranking member Sen. Jeanne Shaheen (D-NH) and Senators Tim Scott (R-SC), Heidi Heitkamp (D-ND) and Chris Coons (D-DE) asked questions about geographic diversity to the hearing’s panelists. Economic Innovation Group co-founder John Lettieri praised legislation by Senators Cory Booker (D-NJ) and Scott that would defer capital gains taxes on monies reinvested in distressed areas. Donna Harris, co-founder of 1776, argued for more support for mentorship, a goal that could be met through Sen. Heitkamp’s bill to provide entrepreneurship grants to EPSCoR-eligible areas. Kauffman Foundation…

The angel investor market in 2015 had a slight increase in investment dollars and in the deal size according to a new report from the Center for Venture Research (CVR) at the University of New Hampshire. In The Angel Investor Market in 2015: A Buyers Market, CVR reports that total angel investments in 2015 were $24.6 billion – an increase of 1.9 percent over 2014. CVR also reported that the total number of entrepreneurial ventures that received angel funding in 2015 declined by 3.1 percent from 2014 – in total 71,110 startups received funding. The result of these two trends was larger deal sizes for 2015 – an increase of 5.1 percent larger from 2014. CVR concluded that these findings, combined with yield rates and valuations data, indicate that angels were selective in their investment behavior in 2015. While CVR contends that the angel market was robust in 2015 – approximately $24.6 billion in investments – they also believe that the selectivity of angels and decrease in valuations over the last three years indicates a continuing market correction in valuations. Other findings include: Software maintained its top sector position with…

The Employment Training Administration (ETA) released solicitations for a total of 12 ApprenticeshipUSA Single Industry Intermediary Contracts and ApprenticeshipUSA Multiple Industry Intermediary Contracts to become national ApprenticeshipUSA partners and have a leading role in the Sectors of Excellence in Apprenticeship (SEAs) in several key industries. Through these grants, ETA will commit up to $7.5 million to start or scale national apprenticeship programs that meet the occupational and skill needs of their industries. The department will award both single and multi-industry contracts to national organizations – such as industry associations, joint labor management organizations, workforce groups, educational institutions, and consortia of organizations – that will provide financial and technical assistance to employers pursuing apprenticeship training. The single-industry contracts will support the growth of apprenticeship programs in the healthcare, construction, transportation and logistics, energy, manufacturing, and information and communications technology sectors. The department will also award up to four multi-industry contracts to organizations…

With the U.S. facing an anticipated skills gap of two million manufacturing jobs by 2025, SME – a national manufacturing workforce development organization – launched the SME High School Membership program – a free online platform to “educate the next generation on the value of manufacturing and encourage careers in the field.” The new platform is the expansion of a pilot program that engaged more than 600 high school students via memberships, which included SME’s 16 PRIME (Partnership Response In Manufacturing Education) schools. Utilizing STEM Premier’s online platform, students can create a digital profile to showcase their skills and abilities; receive customized academic and career guidance; match up with $20 billion in scholarship opportunities; and, directly connect with colleges and companies looking to recruit. The program also will offer high school students access to: Mentorship programs – High school student members can connect virtually with professionals in the industry to learn about careers and real-life manufacturing experiences; SME knowledge and resources – An online platform that…

More than 85 percent of the nation’s total income growth between 2009 and 2013 went to the top 1 percent of earners, according to a recently released report from the Economic Policy Institute (EPI). Furthermore, the top 1 percent captured at least half of all income growth in 24 states between 2009 and 2013, and the entirety of income growth in 15 of those states during the same timeline. Since the 1970s, every state has seen a rise in income inequality, as measured by the ratio of top 1 percent to bottom 99 percent income, according to the report. While similar studies have analyzed this issue at the national or state level, this report marks the first time income inequality has been assessed by metropolitan area and by county, according to an EPI press release.  The authors also measure the distribution of the income generated by the economy since the end of the Great Recession, observing that the average income of the bottom 99 percent in the United States grew by 0.7 percent between 2009 and 2013, compared to a 17.4 percent increase for the top 1 percent of earners. In Income Inequality in the U.S. by State, Metropolitan Area, and County, the authors,…

This week, the Appalachian Regional Commission (ARC) and the Department of Commerce’s Economic Development Administration (EDA) announced that FY 2016 funds for the Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) program are now available. Now in its second year, POWER is a multi-agency effort to invest federal economic and workforce development resources in communities and regions negatively impacted by changes in the coal economy. In total, the EDA is making an additional $19.6 million available for POWER project grants under the agency’s Economic Adjustment Assistance program, while the ARC is making $45 million available under the Appalachian Area Development Program. There is no pre-defined eligibility list of impacted coal communities, though POWER funds are intended for those regions that can demonstrate how changes in the coal economy may result in job losses and layoffs in sectors such as coal mining, coal-fired power plants, and/or related manufacturing/ transportation logistics supply chain businesses and industries.  EDA expects to make individual POWER grants ranging between $250,000 and $1.5 million, on…

The Clinton campaign released on Tuesday, Hillary Clinton’s Initiative on Technology & Innovation, a wide-ranging platform with a heavy emphasis on technology-based economic development. Most of the coverage emphasizes her proposals for universal broadband access, computer science education, and student-debt forgiveness for entrepreneurs. The plan also explicitly supports policies sought by SSTI members, including increased support for the Regional Innovation Program and using a portion of federal research budgets for commercialization capacity building grants. Secretary Clinton’s agenda defines five broad pillars: Building the Tech Economy on Main Street; Investing in World-Class Digital Infrastructure; Advancing America’s Global Leadership in Tech and Innovation; Setting Rules of the Road to Promote Innovation While Protecting Privacy; and, Smarter and More Innovative Government. The first pillar includes proposals most relevant to the SSTI community. Secretary Clinton states an intention to invest in STEM education through grants geared toward improving student access, training computer science teachers and new support for advanced…

Deadline Extended Until July 15, 2016! SSTI has extended the due date for SSTI Excellence in TBED Awards applications to July 15, 2016. We hope the extended time will help you perfect an organizational narrative that is worthy of national recognition. The application process is as simple as one, two, three: First, view our online version of the 2016 Excellence in TBED Awards brochure. Second, review the category descriptions, entry guidelines, and evaluation criteria. Finally, complete the registration form and upload your five-page narrative with cover sheet (PDF or Word document) by July 15. Visit sstiawards.org to learn more about the program and access our suite of application resources.                                                                                      

The Department of Labor’s (DOL) Employment and Training Administration (ETA) announced the second phase of the ApprenticeshipUSA program – a $175 million national effort intended to help states and regions provide pathways for workers to acquire the skills and knowledge needed for good-paying jobs in fields such as information technology, healthcare, advanced manufacturing, building trades, cybersecurity, and business services.  In this second phase, ETA will commit up to $50.5 million for ApprenticeshipUSA State Expansion Grants to help states: Integrate apprenticeships into their education and workforce systems; Engage industry and other partners at scale to expand apprenticeships to new sectors and populations; Support the state’s capacity to conduct outreach and work with employers to start new programs; Provide support to expand opportunities for at-risk youth, women, people of color, Native Americans and individuals with disabilities – groups typically under-represented in registered apprenticeships; and, Implement state innovations, incentives and system reforms. ETA intends to make up to 33 total grants. Eligibility is restricted to…

The National Institute of Standards and Technology’s Hollings Manufacturing Extension Partnership (NIST-MEP) released a federal funding opportunity (FFO) for the operation of MEP state centers in 11 states – Delaware, Hawaii, Iowa, Kansas, Maine, Mississippi, New Mexico, Nevada, North Dakota, South Carolina, and Wyoming.  The objective of the MEP Center program is to provide business and technical services to small- and medium-sized manufacturers within the state of operation. NIST anticipates awarding one five-year cooperative agreement for each of the 11 identified states. Nonprofit and institutions of higher education are eligible to oversee the operation of MEP state centers.  MEP will host information webinars on July 21 at 2:00 P.M. ET and July 26 at 2:30 P.M. ET. Proposals are due Sep 27.