SSTI Digest

Many states across the country already have, or will soon have, signed budgets ready for the 2017 fiscal year.  Over the past few months, SSTI has examined gubernatorial addresses and proposed budgets for a preview of technology-based economic development spending in the coming year. This week, we take a look at what initiatives and spending levels survived spending negotiations in Alabama, Florida, Idaho and New Mexico, as well as an update on the budget situation in Pennsylvania.

AlabamaIn February, SSTI reported that Gov. Robert Bentley’s $1.9 billion fiscal year 2017 budget proposal included $7.5 million in funds for the Alabama Department of Economic and Community Affairs (ADECA), with another $202.4 million in earmarked funds. The enrolled bill, delivered to the governor last week, includes these allocations.

Illinois and Michigan are among the few states that support regular comprehensive examinations of the role higher education plays in the overall innovation economy. Organizations in both states recently completed studies on university-generated entrepreneurship, licensing, investment and employment, finding a steady rise in university economic impact over the past five years.  In both cases, the increase in university impact was linked to an expanding university role in supporting entrepreneurs and researchers. However, while the Illinois Science and Technology Coalition (ISTC) focuses on the creation of startups directly supported by university programs, the Michigan University Research Corridor (URC) takes a more expansive view, encompassing alumni entrepreneurs as a key pillar of university impact.

Last summer, SSTI and JumpStart Inc. conducted a survey of tech-based economic development (TBED) organizations on how groups use and invest in information technology tools. The goal of this survey was to gather a greater understanding of the basic challenges TBED organizations face with regard to information technology, as well as their self-identified strategic goals and whether they believe their IT spending priorities are helping them achieve these goals. Professionals from nearly 250 organizations, including universities, incubators, accelerators and economic development organizations took the survey, and the results are now available in the form of a whitepaper.

Earlier this month, SSTI highlighted recent research from the Information Technology and Innovation Foundation (ITIF) that detailed the critical role immigrants play in developing some of the most notable innovations in the U.S. While that study looked at particular inventions, new research from the National Foundation for American Policy (NFAP) finds that immigrants also play a major role in helping to found and nurture innovative startups. In an analysis of startup companies valued at $1 billion dollars or more, 51 percent (44 out of 87) were started by immigrants.

Despite its location more than 180 miles south of Gainesville, FL,  Sarasota County – which is far better known for its cultural and environmental amenities than industrial strength – will be home to the University of Florida’s first engineering extension office. Supported by more than $3 million in financial contributions from civic, philanthropic, and university organizations, the Sarasota County Innovation Station will be a physical location designed to encourage local students to look into UF's engineering program, provide internships through relationships with local businesses, and support startups and other entrepreneurial endeavors.

In partnership with the Appalachian Regional Commission (ARC), the Economic Development Administration (EDA) announced the availability of $65.8 million in new funding through the Partnerships for Opportunity and Workforce and Economic Revitalization (POWER) initiative. The POWER Initiative is a multi-agency effort aligning and targeting federal economic and workforce development resources to communities, regions and workers that have been affected by job losses in coal mining, coal power plant operations, and coal-related supply chain industries. The new funding will help communities and regions develop new strategies for economic growth and worker advancement.

According to the Federal Funding Announcement, funds are available for a range of activities, including:

America Makes, the National Additive Manufacturing Innovation Institute, announced the creation of the Additive Manufacturing Standardization Collaborative (AMSC) – an effort to coordinate and accelerate development of industry-wide additive manufacturing (AM) standards and specifications. In partnership with American National Standards Institute (ANSI), the collaborative will work with industry and other key stakeholders to identify existing standards as well as those in development, assess gaps, and make recommendations for areas perceived as needing additional standardization.

Florida Higher Education – Is the Cheapest Fiscally Sound? provides evidence for the connection between state funding for universities and productivity. Florida Research Consortium and Florida Chamber Foundation combine a variety of data to advance three connections: 1) state funding for universities is exponentially related to total funding for universities; 2) total funding for universities is related to research quality; and 3) research quality is related to productivity within Metropolitan Statistical Areas. Although the report should be read with caveats regarding causality and constructed indices, the evidence and argument are worth discussing with university research stakeholders. Read more at: http://www.floridaresearch.org/files/Florida%20Higher%20Education%20-%20Is%20the%20Cheapest%20Fiscally%20Sound.pdf.

To celebrate the one year anniversary of the TechHire Initiative, the Obama administration announced an expansion of the program with the addition of 15 new communities. The administration also announced activities and commitments to help support career and technical education. 

Several recent studies have identified the roadblocks that females face in Science, Technology, Engineering and Mathematics (STEM) fields. These two roadblocks include gender bias in the classroom and too few mentors in K-16 STEM fields. In an attempt to increase opportunities for females in STEM education, both federal and foundation funders have announced programs that will increase scholarship and internship opportunities for young women in STEM fields.

The Indiana Biosciences Research Institute (IBRI), first unveiled in May 2013, is a statewide public-private partnership advanced by BioCrossroads that considers itself the first industry-led collaborative life sciences research institute in the country. Late last month, the institute announced two new grants totaling $100 million that would support scientific innovation addressing metabolic disease and poor nutrition. 

Of the $100 million in grants announced by IBRI, $80 million would come from the Lilly Endowment, with $45 million granted unconditionally and the remaining $35 million subject to dollar-for-dollar matching, encouraging contributions from the broader life sciences community. The Eli Lilly and Company Foundation contributed $20 million, which qualifies for the endowment’s match. An additional $15 million remains to be matched.

Angel investors are an essential component of the global economy, supporting ideas and innovators at their very earliest stages. In 2014, more than 200,000 American angels invested about $24 billion in 73,000 startups, according to the Angel Capital Association (ACA). Little data, however, exists on who these investors are and how they make their decisions. ACA, Wharton Entrepreneurship and the John Huston Fund for Angel Professionalism at Rev1 Ventures are launching a nationwide survey of angel investors to learn more. Angels who take the survey will be eligible to be in a drawing to receive complimentary tickets for angel education events, including the 2016 ACA Summit, May 9-11, 2016, in Philadelphia. The survey is available at: http://www.theamericanangel.org/