SSTI Digest

Although they represent a small proportion of the total number of institutions in the U.S. higher education system, the impact of public research universities is profound and widespread, according to a recently released report from the American Academy of Arts and Sciences (The Academy). The report, which is divided in three sections, provides insight into how public research universities act as centers of discovery, drive economic development and social wellbeing, and serve their communities.

New Canadian Prime Minister Justin Trudeau released his administration’s 2016 proposed budget last week which, if passed, would allocate significant funds to scientific research and technology-based economic development. Throughout 2016 and 2017, the Canadian government will continue to develop an Innovation Agenda that fully describes their intentions, though the goal of developing an innovative and clean economy is one of the key pillars of the proposed budget. In total, C$2.3 billion (1.8 billion USD) would go toward strengthening science and research, while an additional C$334 million (257.2 million USD) would help to support business growth and innovation.

What leading indicators allow a national, state, regional, or local economy to rebound from an exogenous shock (e.g., economic downturn or natural disaster)?

What risk factors are common among economies that were not resilient to an exogenous shock?

The academic literature defines resilient economies as economies that are able to absorb an exogenous shock with limited negative impact on economic prosperity and their workforce. Several recent studies have identified leading indicators of economic resiliency include age of workforce, diversification of industries, and other key factors. Researchers also have found several risk factors that place economies at high risk of instability in the face of an exogenous shock including household and public fiscal solvency.

NASA is accepting applications for the Space Race Competition – a startup accelerator challenge that allows startups to license patented NASA technologies without any up-front costs and no minimum fees for up to three years. In partnership with the Center for Advancing Innovation (CAI), NASA will allow potential startup teams to choose one of 10 specially selected NASA technologies and develop a plan to commercialize it. Winners of the four-stage challenge will be enrolled in a business accelerator program that provides training in business fundamentals and access to mentorship from industry experts as well as prizes of $2,500 each. In addition to the $2,500 prizes, awardees have the opportunity to raise as much as $1.2 million seed funding from an unnamed, committed private investment fund. Applications are due May 1, 2016. More information is available at: http://technology.nasa.gov/spacerace.

The National Institute of Standards and Technology’s (NIST) Manufacturing Extension Partnership (MEP) intends to publish a federal funding opportunity (FFO) in July 2016 for MEP Centers in the 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.

U.S.-based nonprofit institutions or organizations, including existing MEP centers, are eligible to participate in the competition.  The cooperative agreements have a five-year period of performance with the opportunity to receive another five years of funding based on successful performance and availability of funds.

North Dakota led the country in per capita personal income gains between 2010-2015, according to data released by the Bureau of Economic Analysis (BEA). While average (mean) incomes rose 18.4 percent around the U.S. during that time, North Dakota incomes rose by 26.8 percent from $42,964 in 2010 to $54,376 in 2015. Changes in mean income can obscure discrepancies between demographic groups and concentration of wealth, but demonstrate some of the key economic trends of the last few years. For example, oil, coal and natural gas rich states, including North Dakota, experienced strong income growth in the early part of the decade, which has since leveled off or reversed. Meanwhile, income growth has begun to shift to states with a stronger foothold in healthcare and professional services, as well as the West and Southeast.

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: