SSTI Digest

On June 14, 2023, NSF announced 34 semifinalists for the first-ever NSF Regional Innovation Engines (NSF Engines) competition. The NSF Engines will be led by universities, nonprofits, businesses, and other organizations from across U.S. states and territories. Each NSF Engine could receive up to $160 million over 10 years; actual amounts will be subject to a given NSF Engine's status and overall progress, as assessed annually. Congratulations to the SSTI members that are finalists—including FuzeHub, Kentucky Science & Technology Corporation, Louisiana State University, Ohio State University, Rocky Mountain Innovation Initiative (Innosphere) and Virginia Tech—and the many members participating as partners across the awards.

Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology (NIST) Director Laurie E. Locascio announced five leaders joining the CHIPS Research and Development Office within CHIPS for America.

The CHIPS R&D Office is responsible for four integrated programs that will generate innovations to make American semiconductor manufacturers globally competitive: 1) the National Semiconductor Technology Center (NSTC), 2) the National Advanced Packaging Manufacturing Program, 3) up to three new Manufacturing USA institutes dedicated to semiconductors (more info here), and 4) the CHIPS R&D Metrology Program.  

The new CHIPS R&D Office leaders, three of whom are internal hires from within the NIST lab system, are:

The upshot of the debt ceiling deal recently approved by Congress is that all nondefense discretionary spending will remain at its current level of $638 billion in FY 2024, which begins October 1. Additionally, some funds were marked for recission, including $150 million from the State Small Business Credit Initiative (SSBCI). All jurisdictions that have been approved or have applied for SSBCI funding will not see a decrease in their funds, according to an email from Treasury regarding SSBCI. SSBCI incentive allocation funds and Formula Technical Assistance (TA) Grant Program allocations for Tribal governments, states, territories, and D.C. also will not be affected by the legislation. More complicated is the impact the deal will have on funding for research, innovation, and education.

The National Oceanic and Atmospheric Administration (NOAA) has released its plans to invest $2.6 billion in coastal resilience funded by the Inflation Reduction Act (IRA). These funds will support communities on the frontlines of climate change, restore marine resources, improve weather and climate data and services, strengthen NOAA's research airplane and ship fleet, invest in critical infrastructure, and more. Of particular interest to Digest readers will be funding for ocean-based climate resilience accelerators and climate-ready workforce.

The $2.6 billion in climate investments will support coastal communities’ resilience to changing climate conditions through funding and technical assistance for capacity building, transformational projects that help protect communities from storms and flooding, the creation of quality climate-related jobs, and improved delivery of climate services to communities and businesses. These programs include:

Republican dissatisfaction with colleges and universities has been growing for some time. The Pew Research Center detected growing discontent with colleges and universities in 2012 and found that from 2015 to 2019, the number of individuals saying colleges and universities have a negative effect on the country went from 37% to 59%. This increase happened among Republicans, while Democrats and independents who lean Democratic remained largely stable and overwhelmingly positive. This trend is now apparent from recent legislation and political direction from conservative Republican states. Anti-DEI bills have been signed into law in North Dakota and Tennessee, and Florida has signed two anti-DEI bills into law. Texas has final legislative approval on two bills.

NSF designed the recently awarded NSF Engine Type 1 development awards to bring technology-based solutions to bear on many critical challenges facing our nation. These challenges include climate change and sustainability, and this week we are highlighting three SSIT members whose NSF Engine proposals focus on sustainability. SSTI member-led projects related to sustainability include the University of Texas at Austin’s project to research and develop energy and train the next-generation energy professionals (SSTI member Sandia National Laboratories is on this team), The Water Council’s project to advance water and energy technologies for the manufacturing and utilities sectors (SSTI member Wisconsin Economic Development Corporation is a partner), and the University of Hawai’i’s project to create a climate-resilient food innovation network.

Of 44 NSF Engine awards, nonprofits lead 11. The Water Council is one of them.

Corporate laboratories were hotspots for U.S. innovation for most of the twentieth century. Large firms, such as DuPont or Bell Labs, acted as epicenters for research and development activities, driving investment in frontier technologies underserved by university researchers at the time. By the 1980s, however, many of these powerhouses of industrial research began to cut back on their research programs, paving the way for universities and startups to emerge as new centers of innovation.

A recent research summary from the National Bureau of Economic Research, “The changing structure of American innovation,” describes this rise and fall of industrial innovation in the United States and a growing division of innovative labor between university-based research institutions and development-focused corporations.

Just before the 2023 Memorial Day weekend, the Texas Senate passed and sent the Texas CHIPS Act bill to the governor’s desk. The legislation creates the Texas Semiconductor Innovation Consortium in a bid to protect the state’s competitive standing for future federal funding and authorizes the Texas Semiconductor Innovation Fund. The recently passed Texas budget appropriates $1.3 million for the Consortium, but it does not appear that there is a dedicated appropriation in the budget bill for the Fund.

There are 19 institutions of higher education in the consortium that was formalized in the legislation, including SSTI members Texas State University and the University of Texas Austin. These higher education institutions, industry, and nonprofit stakeholders will develop a comprehensive strategic plan to ensure ongoing semiconductor innovation.

The Texas CHIPS Act also authorized the Texas Semiconductor Innovation Fund as the state pursues semiconductor manufacturing and design projects. Funding for the Texas Semiconductor Innovation Fund to would come from the state's General Revenue to be used to provide:

The recently awarded NSF Engine Type 1 development awards are intended to bring technology-based economic development to vast swaths of the US landscape, including those that Silicon Valley and Boston have long overshadowed. This week we kick off an examination of some of the proposals led by SSTI members that were selected by NSF for funding.

Five of the nine projects led by SSTI members are in EPSCoR states (Kansas State University, University of Nevada-Reno, University of South Carolina, University of Arkansas for Medical Sciences, and University of Hawai’i). Their projects span the U.S. and include such diverse areas as the Kansas State University-led project to develop biotechnology-based products for the biosecurity, biodefense, and biomanufacturing sectors, and the University of South Carolina-led project to develop cybersecurity solutions for maritime transportation.

Leveraging unique foundational assets

Have you ever wondered whether there is a federal program that supports tech-based economic development (TBED) strategies and initiatives--even if it doesn’t explicitly state that science, technology, innovation, or entrepreneurship are priority uses of funds? Actually, a wide variety of federal programs can support these programs. To help organizations identify sources of funding that could be useful, SSTI interviewed representatives from the Economic Development Administration (EDA) to understand better how they can use specific funding opportunities to support TBED activities.

Each year, more than 703,000 federally aided students enroll in one of the 1,800 career training programs, according to a Department of Education fact sheet. Unfortunately, the typical graduate of these programs leaves with unaffordable debt or earns less than a high school graduate in their state. Sometimes, these programs shut down with little warning, leaving students in the lurch. A recent study from the State Higher Education Executive Officers Association and the National Student Clearinghouse Research Center showed that, of closures that took place over 16 years, 70 percent of the students received insufficient warning that the closures were coming. The federal government absorbs the cost of many of these students’ loans, which they pass on to taxpayers.

Earlier today, the Economic Development Administration (EDA) announced the 2023 notice of funding opportunity (NOFO) for the Build to Scale program. State and local governments, nonprofits, higher education institutions, National Labs, and others can compete for $50 million to support new and expanded initiatives supporting regional commercialization, entrepreneurship, and capital formation efforts.