SSTI Digest

Citing an 85-year record of promoting higher quality training and worker protection standards, the U.S. Department of Labor (DOL) has rescinded the short-lived Industry-Recognized Apprenticeship Program (IRAP) in favor of the established Registered Apprenticeship (RA) program. DOL found the IRAP program, instituted in 2017 , to be “a duplicative, lower-quality system that was not in the best interest of workers and industries.” DOL issued the final rule after President Biden directed federal agencies to review former President Trump’s Executive Order 13801 that established IRAPs. Biden had revoked the order in February 2021, and directed a review of the order and that any entities that had been established under the order be abolished, as appropriate and consistent with the law. The DOL stated in its release concerning the change that it would work with the third-party entities (known as Standard Recognition Entities or SREs) that had been authorized to evaluate and extend recognition to IRAPs  that “will work with previously recognized SREs and IRAPs to explore opportunities to become program sponsors or intermediaries in the RA system and will provide…

As Manufacturing Week kicks off on Friday, Oct. 7, the U.S. Census Bureau and Manufacturing USA are providing valuable manufacturing statistics and data to help inform policymakers and businesses, while also highlighting careers in the industry. The Bureau features many different resources that share statistics, infographics, webinars, and past stories that detail different aspects of the progress being made in manufacturing. According to the Bureau of Labor Statistics, close to 22,000 people started jobs in manufacturing this August, and 67,000 more people are working in manufacturing jobs than before the pandemic. As part of the celebration, some of the strides in manufacturing made by women in the industry are being highlighted. According to Census Bureau data, the share of women in manufacturing rose in every working-age category from 2010 until the pandemic hit in 2020. However, 2021 data show the numbers returning to pre-Covid levels, with women ages 55 to 64 going into manufacturing jobs increasing from 8.6% pre-pandemic to 9.1% in 2021.  Women also held about 25% of the managerial positions in manufacturing and earned 16% more compared to…

The U.S. Small Business Administration (SBA) recently announced 44 FAST awards, including 12 new awards,  totaling over $5.4 million, with each up to $125,000 for specialized training, mentoring, and technical assistance for research and development. The goal of the Federal and State Technology (FAST) Partnership Program is to strengthen the competitiveness of small businesses and startups to improve Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) program outcomes. This year’s $5.4 million is an increase of nearly $1.5 million over the prior fiscal year and an increase of nearly $3.5 million since 2010. SSTI's Innovation Advocacy Council has made it a priority over the past few years to encourage Congress to increase funding for FAST. During FY 2021 and 2022, FAST received $10 million in appropriations — following just $3 million in each of the preceding three fiscal years — and Congress has proposed greater increases for FY 2023 ($10 million in the Senate, and $8 million in the House). To learn more about the Innovation Advocacy Council and SSTI's work on the Hill, contact Jason Rittenberg (rittenberg@…

The Georgia Research Alliance (GRA) — a nonprofit working to grow Georgia’s economy through supporting research at state universities — recently announced that its portfolio of companies had raised more than over $2 billion in venture capital. These startups also had a high survival rate — 88% were still in business four years after launch, outpacing the national average of 44%. Along with this announcement, GRA released 2021 data on their economic impact on the state, demonstrating growth from the previous year. GRA’s portfolio now contains 226 startups, up from 195 in 2020. Additionally, these companies currently employ 1,710 professionals, a 22% increase from 2020, generated over $153 million in revenue and attracted over $37 million in public and private grants in 2021. The venture development program at GRA supports Georgia researchers at state universities by helping them bring inventions to market. They do so by providing seed grants, loans, and business counsel. GRA provides investments at an early stage when researchers have developed a proof of concept but still need to show market viability. Most invested projects — six out of 10 — eventually become…

In an effort to help to determine the economic impact of higher education institutions and hospitals within their regions and how reliant these regions are on these “anchor institutions” to drive their economy, the Federal Reserve Bank of Philadelphia developed an Anchor Economy Initiative. It recently published an Anchor Economy Report and created the Anchor Economy Dashboard, a new data set and website that measures employment, income, and gross value added from the institutions and hospitals, along with a new reliance index tool, for all 524 multicounty U.S. regions (394 metropolitan and 130 nonmetropolitan). An “Anchor Institution” is defined as an institution of higher education or hospital and the report found that across the 524 multicounty regions there are a total of 24,155 anchor institutions that contribute $1.7 trillion annually in goods and services to the U.S. economy, directly employ 10 million people, and indirectly create an additional 8 million jobs in other industries nationwide. The Anchor Economy Report also outlines the level of research funding awarded to anchor institutions. More than half (58%) of regions reported…

Representing one of the largest investments in the agency’s history,  the U.S. Department of Energy (DOE) has opened applications for the clean hydrogen hubs (H2Hubs) program. These regional hubs will be spread out across the country and receive $7 billion in funding. The H2Hubs Program will be managed by DOE’s Office of Clean Energy Demonstrations with support from the Office of Energy Efficiency and Renewable Energy. According to the DOE release about the funding opportunity, DOE expects  to select six to 10 hubs to jumpstart local economic growth and create good-paying jobs in an effort to build a clean energy economy, improve energy security, and fight climate change. Projects funded under this program are expected to include a plan to invest in disadvantaged communities and advance diversity, equity, and inclusion through their work. Concept papers are due by Nov. 7, 2022, and full applications are due by April 7, 2023. States began forming partnerships in the spring in anticipation of the announcement.   DOE has also released a draft of the National Clean Hydrogen Strategy and Roadmap with plans to release…

The U.S. Department of Defense’s Office of Local Defense Community Cooperation (OLDCC) recently announced the six winners under the Defense Manufacturing Community Support Program (DMCSP), with funding of approximately $30 million. Each organization received close to $5 million for long-term investments in critical skills, facilities, workforce development, R&D, and more with the goal of strengthening the national security innovation base. The six awards are listed below, while more information can be found on the OLDCC’s website. Mississippi Department of Employment Security-led Mississippi-Shipbuilding Industry Preparedness for National Security Consortium Board of Trustees of the University of Illinois-led Illinois Defense Manufacturing Consortium (ILDMC)  University of Rhode Island Research Foundation-led Rhode Island Manufacturing to Accelerate the Defense Ecosystem Consortium New Jersey Manufacturing Extension Program, Inc.-led New Jersey Defense Manufacturing Community Consortium SAE Government Technologies-led Supply Chain of Recovered Elements Consortium (SCORE) University of Texas at Austin-led Microelectronics Precision Rapid Innovation and…

Last week, the U.S. Department of the Treasury released clarifications and a request for information (RFI) related to its $500 million pool for State Small Business Credit Initiative (SSBCI) technical assistance. The new FAQs relate to the $200 million Treasury allocated to the states, and for which applications are due Oct. 14. Under SSBCI, these funds can be used to provide legal, accounting and financial advisory services to small businesses, and services can be provided with a contract to a “legal, accounting or financial advisory firm.” One new FAQ defines these firms as an entity that: makes providing these services a primary purpose; markets itself as providing these services; or, has at least 25% of its revenues or staff time related to these services. The other new FAQ clarifies that states can make subawards to a subdivision of the state. Treasury’s RFI seeks input on how the $200 million in technical assistance funds held by the agency could best be used to help small businesses. The key questions in the request ask about: gaps in available technical assistance; effective service deployment methods; considerations for grant or contracting processes;…

The Securities and Exchange Commission (SEC) recently published statutorily-required five-year inflation adjustments for various limits placed on crowdfunding, and the increases are substantial. The new revenue ceiling for an eligible company is increasing from $1.070 billion to nearly $1.235 billion. The total cap on the amount that can be raised via crowdfunding remains at the $5 million level added just last year, but the thresholds for new offering that require independent financials or a full audit have been increased to $618,000 and $1.235 million, respectively. For individuals, the changes mean that individuals with annual income or net worth under $124,000 can invest up to the greater of $2,500 or 5%. During 2021, crowdfunding offerings raised more than $1 billion — exceeding the total raised from 2016-2020.

On the heels of President Biden’s recent announcement of a Biotechnology and Biomanufacturing Initiative to boost the United States bioeconomy, the Congressional Research Service (CRS) has released The Bioeconomy: A Primer, which examines the future of the bioeconomy, explores the United States’ competitiveness in global bioeconomy efforts, and notes the current lack of federal coordination on building the bioeconomy. To address this lack of coordination, the report urges Congress to develop a more comprehensive national strategy for establishing the bioeconomy.    According to the report, transitioning to a bioeconomy has many benefits like transitioning to renewable materials, creating new industries and jobs, and boosting rural development. However, switching to a bioeconomy also creates complex challenges in developing policy alignment, ensuring equal access to bioproducts, and gaining consumer demand. The report features eight policy considerations including a focus on R&D investments, the promotion of regional bioeconomy efforts, the development of a strong bioeconomy workforce, and the creation of a sustainable and circular economy. The…

On Tuesday, the Senate passed a bill to extend the SBIR, STTR and related pilot programs through Sept. 30, 2025. The House is expected to act on the legislation next week, just ahead of the current expiration at the end of this month. In addition to reauthorizing the programs, the legislation makes changes to performance standards for companies with numerous awards, foreign risk management, topic solicitations, and requires several new reports by SBA and the Government Accountability Office (GAO). Program extension The bill extends all existing authorities and sets a new expiration date of Sept. 30, 2025. In addition to the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, the pilots extended are: Phase Flexibility – allows the National Institutes of Health (NIH), Department of Defense (DOD) and Department of Education to make Phase II awards without an initial Phase I award; Civilian Agency Commercialization Readiness – enables agencies to use a portion of their funds to further support promising Phase II technologies; NIH Phase 0 Proof of Concept Partnership – allows NIH to fund research institutions for…

A recent report by DocSend Inc., a subsidiary of DropBox, surveyed over 300 pre-seed startups, finding that on average, in terms of gender alone, mixed teams raise the most funds, while all-male teams raise the least. In terms of both gender and race, on average, mixed gendered teams with minority members raise the most funds while all-male teams with no minority members raise the least. These findings are consistent with prior studies in terms of reflecting the levels of access to funding opportunities, relative lack of investment in diverse teams, and systemic gender bias. In their study, DocSend divided the demographic makeups of startups into two different sets: Gender (all-female, all-male, mixed) and Gender/Race (all-male/no minority, all-female/no minority, all-female/minority, all-male/minority, mixed/no minority, mixed/minority), and measured the amount of funding raised and number of meetings held with VCs, among other variables. By gender, startup teams consisting of both males and females (mixed gender) generated the largest average amount raised ($970,000) and conducted the greatest number of meetings (49), while all-male teams raised the least ($…