SSTI Digest

U.S. Department of the Treasury recently awarded $125 million to 43 nonprofits and community-based organizations, including SSTI member University of Arkansas for Medical Sciences. The money came via the American Rescue Plan Act- (ARPA-) funded (CRP) Capital Readiness Program. The CRP enables small businesses to access technical assistance through organizations that provide services to underserved businesses.

The current award distribution builds upon the $300 million already announced or deployed through the Small Business Administration's (SBA) Community Navigator Program and the Treasury Department's State Small Business Credit Initiative (SSBCI). Administered by the Minority Business Development Agency (MBDA), the CRP is also the most significant initiative in the over 50-year history of that agency, according to a fact sheet from the White House.

Health is one of the most pressing issues in the U.S. Now, thanks to National Science Foundation's Type I NSF Engine development awards, teams throughout the U.S. will be focusing on technology-based solutions to this issue. This week we highlight three SSTI members whose NSF Engine Awards concentrate on health. These include Emory University’s project to advance health equity and diagnostic technologies (SSTI member Georgia Tech is also on this team), The Arkansas Center for Health Improvement’s (a health policy center administratively housed within SSTI member The University of Arkansas for Medical Sciences) project to promote fair health and economic outcomes in Arkansas, Louisiana, and Mississippi, and Washington University-St. Louis’ project to advance neuroscience technologies to improve cognitive wellness.

A tri-state challenge

The National Science Foundation announced 16 finalists for the first-ever NSF Regional Innovation Engines (NSF Engines) competition, spanning a range of key technology areas and societal and economic challenges highlighted in the "CHIPS and Science Act." The NSF Engines will link up with local and regional partners to expand innovation nationwide and create collaborative and inclusive technology-driven innovation ecosystems.

The lead organizations for the 16 teams are:

Arizona State University

Current Innovation, NFP (IL)

FUZEHUB, Inc. (NY)

ICAMR, Inc. (FL)

Kentucky Science & Technology Corporation

Louisiana State University

Michigan State University

New Mexico Trade Alliance

North Dakota State University, Fargo

Rocky Mountain Innovation Initiative, Inc. (CO) (NY)

SUNY at Binghamton

The Industrial Commons (NC)

University of Chicago

University of Minnesota-Twin Cities

University of Texas at El Paso

Wake Forest University School of Medicine (NC)

SSTI has released a new data tool that defines investment activity, one indicator of the vibrancy of a region’s innovation economy, in each of 18 technology areas. Comprising two interactive visuals and a downloadable data file, this tool includes the number of investment-backed companies, investment deals, and amount of capital invested by state, year (2013-June 2023), and investment stage (e.g., seed, angel, venture) for technology verticals that were selected to align with many of the key technology areas defined in the CHIPS and Science Act and included in the U.S. Economic Development Administration (EDA) Tech Hubs program.

Image of the state-level investment data visualization.

With a GDP of over $23 trillion in 2021, the United States has the world's largest economy, according to the latest available data from the World Bank. Yet, the U.S. falls behind such countries as Israel and Korea when it comes to how much is spent on research and development (R&D) in proportion to GDP. For example, Israel and Korea spend 5.56% and 4.93% of their GDP on R&D compared to the U.S.’ 3.46%.

GDP is the sum of a region’s economic output, measuring economic productivity and innovation capacity. R&D is the process of generating new knowledge to create a novel product, service, or method. This article uses national expenditures on R&D calculated as a percentage of GDP to provide a standardized metric of R&D intensity. Later, a breakdown of the performing sectors of R&D is provided.

Exploring these metrics allows for establishing a benchmark of competitiveness. This article uses data from the World Bank and the Organization for Economic Co-operation and Development (OECD). Data includes GDP, gross domestic expenditure on R&D (GERD) as a percentage of GDP, and GERD by performing sector from 1960-2022 when available.

A report from ITIF warns that China is catching up with the U.S. in private R&D funding. If this trend continues, China could surpass the U.S. in innovation in nine critical advanced technology sectors: aerospace and defense, electronic and electrical equipment, general industrials, industrial engineering, pharmaceutical and biotechnology, software and computer services, technology and hardware equipment, alternative energy, and automobiles and parts.

Looking at the numbers from 2021, when U.S.-headquartered firms spent twice as much on R&D as the global average in these sectors combined, the nation could be confident in its leadership position in innovation. However, when the authors compared the performance of firms in each country with the global average after adjusting for the size of each country’s economy, they found that China is increasing its R&D spending at an accelerated rate and could catch up to the U.S. by 2034.

In 1862, during the Civil War, Congress passed the Land-Grant Agricultural and Mechanical College Act of 1862 (a.k.a. the Morrill Act of 1862). This legislation extended educational opportunities for many White working-class Americans. But it did little to extend education to Black people. The Morrill Act of 1890 passed 28 years later created new land grant institutions to address the issue of Black peoples’ access to higher education. But racial inequities between the two land-grant systems have persisted into the present day. And as noted in The Century Foundation’s (TCF’s) paper, “Nourishing the Nation While Starving; The Underfunding of Black Land-Grant Colleges and Universities,” even though the 1890 universities have many proud accomplishments, the cumulative damage from unequal treatment between the 1862 and 1890 universities is significant.

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.

Among the steps they will take are:

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.

Ongoing areas of cooperation as well as future areas of potential cooperation could include: