SSTI Digest

Eager to attract investment and spur startup activity, city and state officials launched entrepreneurship programs, high-tech R&D centers, and sector-specific facilities as part of the innovation hub trend in 2013.

Research suggests that cities and regions with strong, established tech sectors tend to produce more startups. For example, a white paper from the Kauffman Foundation found the recent adoption of entrepreneurship programs in many cities is more an indication of the underlying strength of the region and its base of talent on which those programs can build rather than a cause of startup activity.

In the latest of a series of announcements outlining MA Gov. Deval Patrick's spending strategy for the coming year, the governor has released his administration's FY14 Capital Investment plan, including details on economic development and education funding. As released, the plan would fund the Governor's Life Sciences capital program at $62.6 million, $13.4 million for the MA Broadband Institute program, $10 million to expand high-speed broadband in unserved areas, and $56.2 million for the state's public infrastructure funding program. STEM education programs also would receive enhanced funding, as outlined in the governor's recently released STEM strategic plan (see the November 12 issue). Another $4 million would support early education and afterschool programs through the new Early Education and Out of School Time Capital Fund. Read the announcement...

Several bills promoting skills development through Wisconsin technical colleges were passed as part of Gov. Scott Walker's workforce agenda introduced in September (see the Sept. 26, 2013 issue of the Digest). A measure to create a tuition reimbursement program for apprentices or businesses that employ them passed with near unanimous support in hopes of bridging the skills gap reported by employers. Another bill, SB 336, increases funding to expand the Youth Apprenticeship program. To help better prepare students for in-demand careers, SB 331 provides a $1,000 per student incentive payment for school districts to encourage students to earn industry-recognized certificates before graduating high school.

RoseAnn Rosenthal, president and CEO of Ben Franklin Technology Partnership of Southeastern Pennsylvania, was presented with the Iris Newman Award from the Alliance of Women Entrepreneurs.

Rob Wiltbank recently became the CEO of Galois. Prior to Galois, Wiltbank was a professor at Willamette University's Atkinson Graduate School of Management.

Ellen Williams has been nominated by President Obama to the key administration post of director of the Advanced Research Projects Agency-Energy, Department of Energy.

Efforts to make university funding dependent on performance outputs have done little to increase degree completion rates, according to researchers from the Wisconsin Center for the Advancement of Postsecondary Education (WISCAPE). A WISCAPE study finds that state initaitives to make university funding dependent on number of degree completions, student retention, job placement and other factors have had little to no effect on associate or baccalaureate degree completions. The researchers recommend further investigation into alternative evidence-based methods to improve public-university performance. Download the brief...

In conjunction with its annual Global Entrepreneurship Week, the Kauffman Foundation has released a report tracking per capita startup rates in 40 select U.S. metropolitan areas since 2006. The analysis reveals that startup rates have improved in metro areas, but remain well below pre-recession levels. Data also indicates that larger metros, those with populations greater than one million, have both endured and recovered from the recession slightly better than their less populous counterparts. Kauffman does not single out a single most entrepreneurial large metro, but notes that the Miami, Denver, Los Angeles and Dallas regions have performed impressively since 2006. Download the report...

Innosphere and the Colorado Enterprise Fund are joining forces to launch the Colorado Catalyst Fund, a $20 million community development venture capital fund. The model for the fund was drawn from existing community development venture funds established predominately on the East and West Coast, and will be the first of its kind in the state. The fund will be managed by the Community Development Venture Capital Alliance, which has formed or advised more than 40 of the 70 existing funds across the country. Read more...

An improved fiscal picture emerged for many states in 2013 with several states recently reporting year-end surpluses. Revenue growth and modified tax policies largely contributed to the rebound. Some analysts warn this trend could be short lived, however. State year-end balances are projected to fall by the close of FY14, according to a report from the National Conference of State Legislatures (NCSL), and fiscal analyses from states including Alaska, Connecticut and Illinois, point to large deficits on the horizon.

NCSL's August report pointed to strong general fund revenue growth of 5.3 percent above FY12 levels. In fact, 41 states, the District of Columbia and Puerto Rico reported year-over-year growth in FY13, and in five states, revenue grew by more than 10 percent. A much slower pace of 1.3 percent is projected for FY14, with appropriations budgeted to increase by 3.9 percent resulting in a spending and revenue mismatch.

Manufacturers often struggle with overcoming hurdles to growth, such as implementing new technologies and processes that will streamline operations. A new web-based platform launched in New York aims to address these challenges by connecting small- and medium-sized manufacturing businesses with statewide technology resources and expertise, including industry experts from the New York Manufacturing Extension Partnership, universities and private sector businesses. The initiative, called FuzeHub, allows companies to submit requests for assistance to a team of technical and manufacturing professionals with a quick turn-around time of 48 hours. Customer and market development, supply chain development, technology sourcing and technology transfer are some of the services offered. Read the announcement...

Case studies and outcomes from its initial connections with manufacturing companies are posted on FuzeHub's website: http://fuzehub.com/.

Last week the White House hosted a Google Hangout on the American Maker Movement and highlighted some dynamic programs that are turning the Maker Movement into a legitimate economic development tool for regions across the country.

Event speakers highlighted the rapidly shifting industrial climate in the U.S. as a main driver of the Maker Movement. Low-cost energy, low-cost data storage, and an increasingly skilled workforce are supporting the explosive growth of industrial artisan entrepreneurship. Cities across the country are moving to provide the cooperative workspace Makers need to develop, test, and scale their businesses.

Public institutions also are being transformed into Makers Spaces. The Pittsburgh Kids Museum serves as a national model for public support of Makers programs, providing public space and outreach events at local libraries for Makers programming.

Providing students with industry-relevant education and skills is the idea behind the Youth CareerConnect grant program, which will provide $100 million to implement curriculum for high schools to strengthen the talent pipeline. In partnership with the Department of Education, the Department of Labor will award 25-40 grants for individual or multistate projects using revenues from the H-1B visa program. The goals are to integrate both career and academic learning, provide work-based learning opportunities, better engage employers, and elevate industry training. Grantees must demonstrate a strong public-private partnership, which includes a local education agency, a workforce investment system entity, an employer, and an institution of higher education. Read the announcement: http://www.dol.gov/opa/media/press/eta/ETA20132231.htm.

This week, the White House Office of Science and Technology Policy (OSTP) released a wide-ranging roundup of new and ongoing efforts to leverage availability of large, accessible data sets to spur innovation. While many of these efforts were focused on supporting research on the potential of big data, several agency efforts are using the model of open data app competitions to fuel private-sector business creation. One of these efforts, the Department of Energy's American Energy Data Challenge, is capitalizing on successful experiments in big data competitions done at the regional and state level.

The OSTP report, released in conjunction with a "Data to Knowledge to Action" event this week details the investments made in large data set efforts since the White House kicked off its $200 million big data initiative last year. These include ongoing research projects at the National Science Foundation, the Defense Advanced Research Projects Agency, DOE, NASA, the U.S. Geological Survey and the National Institutes of Health.