SSTI Digest

This week, U.S. Secretary of Commerce Penny Pritzker announced the first 12 communities to participate in the federal government’s multi-agency Investing in Manufacturing Communities Partnership (IMCP) initiative. The initiative will concentrate federal economic development spending across agencies and departments on key manufacturing regions with strong economic strategies in place. Eleven federal agencies and programs, managing  $1.3 billion in federal economic development assistance, will coordinate their efforts to support the strategies developed by the 12 designated communities. Federal agencies will use the local plans to make targeted investments in public-private partnerships to strengthen regional manufacturing and the competitiveness of the U.S. economy.

The St. Louis Economic Development Partnership, a group created when the St. Louis County Economic Council and the city’s St. Louis Development Corp. merged last year, has released an ambitious economic strategy for the region. Planners are calling for collaboration between the region’s economic development organizations and startup initiatives, such as Accelerate St. Louis, VentureWorks and the ongoing $100M early stage investment initiative. The plan provides tactics and metrics in six categories, designed to leverage the significant growth the region has experienced since 2010. Plan stakeholders have set the goal of becoming a top 10 region for entrepreneurs and the fastest growing major metro region for foreign born residents by 2020. Download the plan…

In 2012, U.S. science and engineering graduate programs saw a small 1.7 percent drop in enrollment by U.S. citizens and permanent residents, according to data from the National Science Foundation (NSF). Enrollment by foreign students, however, rose by 4.3 percent. NSF notes that 2012 is the second year in a row that saw very little increase in citizen enrollment, following five years of growth in the range of 2-3 percent. Enrollment by female graduate students, who make up about 43 percent of the total graduate student population, decreased by 0.1 percent, the first decline for that group in 10 years. Strong growth in a few engineering fields, including chemical engineering, mechanical engineering and materials engineering, led to a rebound in overall engineering enrollment following a decline the previous year. Read the report…

You talk about your program often, tout its success and share with stakeholders your program’s impact. Why not let the entire country in on your good work? Telling your story helps generate buzz about the value of investing in science, technology and innovation to create vibrant regional economies and improve our nation's competitiveness. All you have to do is send us a five-page narrative describing your most successful innovation-focused efforts. Tell us: What you did, How you do it, How it is funded, How it works, and Why you should be recognized. Winners are announced during a special ceremony at SSTI’s annual conference in Chicago, September 14-16 and are provided a forum to showcase their initiative. Applications due June 17. Learn more: http://www.sstiawards.org/.

Building on a bare bones structure for privatizing economic development established last session, Gov. Pat McCrory outlined a plan for transitioning the state’s Department of Commerce to a public-private partnership, effective July 1. The move, according to the governor, will allow for more flexibility to support businesses and achieve savings for the state. Several innovation-focused investments also were presented as part of the recommended state budget adjustments for FY15, including matching and incentive funds for early stage, high-tech companies and funding to assist campuses in commercializing technology.

Ivy Estabrooke has been named the executive director for the Utah Science and Technology Research initiative. She replaces former Executive Director Ted McAleer, who stepped down in January.

Catherine Lang, Nebraska’s director of Economic Development and Commissioner of Labor, has resigned to pursue a job in the private sector.

Tricia Braun has been named vice president of Economic and Community Development of the Wisconsin Economic Development Corporation.

Megan Lucas has been named the CEO for the Region 2000 Business and Economic Development Alliance.

U.S. angel investors returned to their pre-recession level of activity in 2013, according to the latest release from the University of New Hampshire’s Center for Venture Research (UNH CVR). Investment had plummeted during the economic crisis of 2007-09, and grew over the next few years. Last year however, investment dollars jumped by 8.3 percent and deals increased by 5.5 percent over the previous year. Total investments reached $24.8 billion in 2013, near the market high of $26 billion achieved in 2007. Some of this growth is attributable to the rise in media sector investments, which overtook healthcare as the second most important sector.

Previous UNH CVR showed that the angel activity hit a long-time market low in 2009. After an already weak 2008, investment dipped 8.3 percent to $17.6 billion. That year, 57,225 firms received angel support from about 260,000 active investors. In 2010, investment dollars recovered by a healthy 14 percent, followed by a 12.1 percent increase in 2011. In 2012, dollars remained fairly steady, with only 1.8 percent growth.

While it is common for states, regions or cities to develop economic strategies when times get rough, the Valley Prosperity Partnership hopes to capitalize on the unprecedented job growth the Red River Valley has experienced in recent years to build a more innovative economy. A new, five-year action agenda, drafted in partnership with Fourth Economy, offers many possible action items for the region, which includes parts of North Dakota and Minnesota. Priority areas include talent attraction and development research output, entrepreneurial activity, water management, infrastructure development and marketing.

The Red River Valley region straddles the North Dakota-Minnesota border, incorporating the cities of Fargo, Grand Forks, Grafton and the Wahpeton-Breckinridge region. In recent years, growth in this region has far outpaced the national economy, according to the authors, though a number of barriers have put a ceiling on the success of the region.

J.B. Pritzker, the successful businessman who has helped ignite Chicago’s entrepreneurial ecosystem, will keynote SSTI’s 2014 Annual Conference, Regional Prosperity Through Innovation, being held in Chicago, September 14-16.

Michigan now has 44 percent more venture capital firms and 86 percent more investment professionals than it did in 2009, according to a report released by the Michigan Venture Capital Association. While the state ranks near the middle of the pack for total venture investment dollars and per capita investment, the size of its venture capital community has shown strong growth over the past five years, led by healthy life science and information technology industries. The total amount of capital under management has also grown, from $1.1 billion to $1.6 billion during that period. Investment activity in Michigan appears to be increasingly targeted to smaller deals, resulting in twice as many deals in 2013 as in 2009. Download the report…

More than 75 percent of U.S. manufacturers report a moderate to severe shortage of skilled workers, according to a recent study by Accenture and The Manufacturing Institute.  While most manufacturers plan to increase their U.S.-based production over the next five years, many report that these plans are being hindered by the lack of skilled, and especially highly-skilled, workers. More than 80 percent perceived that the U.S. has a moderate to severe problem with the availability of highly-skilled labor.   Read the study…

Business dynamism, a measure of firm destruction and creation in an economy, has steadily declined in the U.S. over the past 30 years, according to a study released by the Brookings Institution by Ian Hathaway and Robert Litan. Dynamism has long been considered a key element of innovative economies, indicative of entrepreneurship and labor market mobility. The U.S. decline appears to have been consistent across industries and geographic areas. In an update to the original article, Hathaway and Litan clarified that their study was not proposing an explanation for the trend, which other sources had linked to the rise of the retail and service sectors or to specific government policies. Read the report…