SSTI Digest

Representatives from leading AI companies (Amazon, Anthropic, Google, Inflection, Meta, Microsoft and OpenAI) gathered at the White House on July 21 for the announcement of their voluntary commitment to “help move toward safe, secure, and transparent development of AI technology.” According to a White House statement, the companies have made commitments to ensuring products are safe before introducing them to the public, building systems that put security first, and earn the public’s trust.

The U.S. Small Business Administration (SBA) is implementing a final rule, effective Aug. 17, that adds a category of Small Business Investment Company (SBIC) that will make the program a better-fit for early-stage investment strategies. The most significant change in this direction is the creation of an accrual funding mechanism that enables licensed SBICs to receive a loan from SBA that is repaid only upon distribution events or at the end of a 10-year term. Additional changes include allowing fund investment strategies through a reinvestor SBIC license, modifying license fees, clarifying elements of nonprofit participation, and attempting to reduce program paperwork.

The White House has released a new report, Building the bioworkforce of the future: Expanding equitable pathways into biotechnology and biomanufacturing jobs. The five core recommendations in the report are intended to help propel continued investment in the bioeconomy and maintain the U.S.’ leadership in this sector. The report follows an Executive Order President Biden signed in September 2022.

The "CHIPS and Science Act" authorizes both the National Science Foundation (NSF) and the U.S. Economic Development Administration (EDA) to implement programs to enable regional technology development and economic and job growth through NSF Regional Innovation Engines (NSF Engines) and EDA Regional Technology and Innovation Hub (Tech Hubs) programs. To officially enable cooperation between the two agencies as they pursue these similar goals, NSF and EDA signed a memorandum of understanding MOU. The MOU allows for coordinating specific projects, programs, and facilities. The coordination may include research and education activities, facilities, centers, data infrastructure and outreach.

The Department of Defense (DOD) receives about $95 billion annually to support research and development efforts. But some members of Congress feared that requesting and allocating those funds took too long. It usually takes two years, which hinders response to evolving threats. The Senate addressed this issue in the Senate Report on the National Defense Authorization Act for Fiscal Year 2022, calling for the U.S. Government Accountability Office (GAO) to review DOD research funding flexibilities. GAO reports that service officials responsible for R&D efforts were not familiar with all of the flexibilities available to them.

Every year, inadequate childcare causes the US economy to take a $122B hit, according to a study by an economist at the University of Pennsylvania. This economic hit affects everyone—workers, businesses, and taxpayers. Parents lose income when they miss work to take care of a child. Businesses suffer from lower productivity when employees are absent. Taxpayers end up paying more when parents leave the workforce and generate fewer tax revenues. Future economic growth slows when tax revenues decline.

Last month, NIH came out with a policy statement that prohibits using generative AI to analyze or critique NIH grant applications and contract proposals. Specifically, as written in NIH Notice NOT-OD-23-149, “NIH prohibits NIH scientific peer reviewers from using natural language processors, large language models, or other generative Artificial Intelligence (AI) technologies for analyzing and formulating peer review critiques for grant applications and R&D contract proposals.” The problem with using generative AI in peer review is that it compromises confidentiality. As expressed in the notice, once information is loaded onto a generative AI platform, “AI tools have no guarantee of where data are being sent, saved, viewed, or used in the future, and thus NIH is revising its Confidentiality Agreements for Peer Reviewers to clarify that reviewers are prohibited from using AI tools in analyzing and critiquing NIH grant applications and R&D contract proposals. Such actions violate NIH’s peer review confidentiality requirements.”

It appears that innovation is contagious. Maps reveal that once there is a concentration of patents granted to inventors in one U.S. county, innovation starts to percolate in neighboring counties. And the phenomenon isn’t found only in established life sciences hubs like San Diego or Boston. SSTI observed this spillover effect in Washtenaw County, Michigan and Hennepin County, Minnesota, among other places. These data suggest that when a strong base is located, likely due to new companies and startups establishing themselves, innovation lays down its roots and spreads to other counties.

The U.S. Economic Development Administration has recently made multiple staff appointments for its national program offices. Cristina Killingsworth is now EDA’s deputy assistant secretary for policy and external Affairs, having formerly been chief of staff for the International Trade Administration. This new position blends responsibility for four national programs—Tech Hubs, Recompete, Build Back Better and Good Jobs challenges—with oversight of the agency’s legislative and public affairs activities. Eric Smith is now Tech Hubs program director, with Chivas Grannum filling Smith’s position as acting director of the Office of Innovation and Entrepreneurship Director. Scott Andes is now Recompete program director and Tech Hubs policy advisor, with Alex Jones taking on the role of director on an acting basis for the Build Back Better Regional Challenge program. For more information on EDA leadership, see: https://www.eda.gov/about/leadership.

The U.S. Environmental Protection Agency (EPA) recently launched two Notices of Funding Opportunity (NOFOs): the National Clean Investment Fund and the Clean Communities Investment Accelerator. The National Clean Investment fund provides $14 billion to provide accessible, affordable financing for tens of thousands of clean technology projects nationwide. The Clean Communities Investment Accelerator provides $6 billion funding and technical assistance to public, quasi-public, not-for-profit, and nonprofit community lenders working in low-income and disadvantaged communities

Over the past two decades, business has done most of the heavy lifting for research and development (R&D) funding. Calculated in the dollar value of 2012, business funding increased from $10.4 billion in 2000 to an estimated $36.0 billion in 2021.

Over the last month, the Department of Energy (DOE), National Science Foundation (NSF), and National Institute of Standards and Technology (NIST) have released plans for complying with a 2022 White House policy that requires scientific papers resulting from federally funded research to be freely available upon publication, sunsetting the current one-year embargo period by 2025.