For three decades, the SSTI Digest has been the source for news, insights, and analysis about technology-based economic development. We bring together stories on federal and state policy, funding opportunities, program models, and research that matter to people working to strengthen regional innovation economies.

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NSF awards $40 million to help build diverse STEM workforce

The National Science Foundation recently announced the four 2022 NSF INCLUDES awardees. These new alliances will each receive $10 million over five years to contribute to building an inclusive STEM workforce. The awardees will tackle issues like increasing data science capacity at minority-serving institutions (MSIs), increasing the representation of Native American and Alaska Native students in STEM fields, and supporting equitable pathways to postdoctoral fellowship positions.

The 2022 NSF INCLUDES Alliances are:

New National Defense Strategy stresses investing in emerging technologies

The 2022 National Defense Strategy, released last week, emphasizes the need to accelerate the Pentagon’s capacity for buying and deploying emerging technologies. Technology sectors called out as targets include advanced materials, artificial intelligence, biotechnology, clean energy, directed energy, hypersonics, microelectronics, quantum science and space. The report indicates that the Department of Defense (DOD) is considering R&D funding, ecosystem support and adapting civilian technologies among the tools it will use to pursue emerging tech.

Other technology-related priorities discussed in the report include:

Election 2022: Gubernatorial campaigns reveal positions on innovation initiatives

Thirty-six states are holding gubernatorial elections this November, with voters in eight of those states (Arizona, Arkansas, Hawaii, Maryland, Massachusetts, Nebraska, Pennsylvania, and Oregon), choosing a new governor to replace a term-limited incumbent. In two states, Connecticut and Georgia, the incumbent is facing a re-match with their 2018 opponent, while in Alaska and Maine, the incumbent is being challenged by his/her predecessor, whom they defeated in 2018. Florida Gov. Ron De Santis is being challenged by former Gov. Charlie Crist, who previously switched his party affiliation from Republican to Democrat. In five states — Alabama, Arizona, Iowa, Michigan, and Oregon ­— women incumbent governors and opposing candidates are competing to either retain or gain the executive seat.

Many of the candidates have announced their innovation and economic development initiatives, and as we enter the final stretch of these gubernatorial races, the following are some of the candidates’ innovation-, economic- or workforce-related policies, positions and prior accomplishments.

Alaska

Bill Walker (I)

NSF announces new $30M program to grow the nation’s STEM workforce

The National Science Foundation (NSF) recently announced a new initiative — the Experiential Learning for Emerging and Novel Technologies (ExLENT) initiative and seeks proposals to address barriers in the STEM workforce by encouraging partnerships among industry, educational, and government organizations. The program estimates giving out 25 to 35 ExLENT awards that will last up to three years with a total budget of up to $1,000,000, with a total anticipated funding amount of $30 million. This initiative is part of a larger effort to expand the STEM workforce needed to solve significant societal challenges like climate change and clean energy and address rapidly evolving emerging technologies.

Would an increase in the quantity of NIH SBIR awards impact their overall quality?

In a recent study titled Does NIH select the right healthcare ventures through the SBIR grant program?, researchers from Rutgers University and the University of Connecticut took advantage of the 2009 American Recovery and Reinvestment Act (ARRA) to conduct a natural experiment. The opportunity was available due to the National Institutes of Health (NIH) decision to use ARRA dollars to fund additional Phase I SBIR awards from general SBIR competitions, and the researchers compared these 19 ARRA-funded awards to the other 479 Phase I awards that were first funded in the same competitions with regular appropriations.

Higher Education enrollment continues to decline; admissions officers reveal concerns over early numbers

Higher education enrollment dropped 1.1% between fall 2021 and 2022, a slight reprieve from historic COVID-induced drop-offs, as revealed by new preliminary data from the National Student Clearinghouse. Since fall 2020, enrollment has decreased by a combined 3.2% for graduate and undergraduate enrollment, representing a drop of approximately 1.5 million students since the onset of the COVID-19 pandemic.

Between fall 2021 and 2022, undergraduate enrollment declined in 27 of the 42 states where sufficient data are available, with Alaska (-5.2%), Kansas (-4.6%), and Michigan (-4.6%) losing the most undergraduate students while New Hampshire (+6.8%), New Mexico (+4.3%), and South Carolina (+3.7%) gained the most.

2020 BERD data shows an increase of over $45 billion in domestic R&D spending

Despite COVID-induced setbacks continuing to keep some people out of offices and laboratories, new Business Enterprise Research and Development Survey (BERD) data reveals that domestic research and development (R&D) spending, although slowing, is still on an uptrend. From 2018 to 2019, business R&D spending increased by 11.8% (from approximately $441 billion to $492 billion), with new data showing a further increase of 9.1% from 2019 to 2020 ($492 billion to $538 billion).

The $538 billion in total R&D expenditures for 2020 can be broken down into two main categories: company funded R&D (approximately $466 billion) and R&D funded via other sources (approximately $71 billion). Company funded R&D saw an increase of 8.7% over the prior year, while funding from other sources leapt 11.7%.

Tech industry is booming, but women’s participation continues to lag

In another illustration of how women’s participation in the tech industry continues to lag, SmartAsset recently released its annual report looking at Best Cities for Women in Tech. The report finds country-wide, the percentage of women in STEM is growing, but that growth is occurring at a dwindling rate, and that women make up only about 20% of the field’s total workforce. Detroit, Michigan, has the highest percentage of women tech workers (41.7%), according to SmartAsset. Irvine, California, was cited as having the lowest percentage (18.9%) of women tech workers. The report shared statistics for women’s participation in STEM in other cities as it relates to the industry growth with that area and their income.

NIST solicits information to improve CHIPS and semiconductor industry

The National Institute of Standards of Technology (NIST) is seeking public input through Requests for Information (RFIs) for two programs under the CHIPS Act. Under Secretary of Commerce for Standards and Technology and NIST Director Laurie E. Locascio refers to the U.S.’s leadership role in semiconductor manufacturing as “critically important to our prosperity and national security” as they are key components in artificial intelligence and quantum computing. Locasio notes that in order to achieve this, America needs a “whole-of-nation” approach, justifying the two RFIs under different CHIPS programs.

 The CHIPS for America initiative involves two main components: the provision of financial incentives to encourage investment in domestic semiconductor manufacturing, and the establishment of collaborative networks for research and innovation that will ensure an enduring technological edge.

Positive trends in deal counts, fundraising, according to new VC report

Between federal interest rates over 3% and post-pandemic economic impacts that affect macroeconomic trends, many have predicted a continued decline in venture capital outcomes, only some of which has held true through Q3. 

Overall deal counts were higher than anticipated, according to the most recent PitchBook Venture Monitor that covers Quarter 3. The report captures 11,871 deals so far in 2022 (with another 1,765 that PitchBook estimates to have occurred but have not yet been formally identified) with a total value of $194.9 billion. Both deal activity and value would be a decline from the historic high of 2021 but on track to exceed all other years since 2012. 

NSF Engines program revises deadline, directions for Type-2 proposals

The U.S. National Science Foundation’s Regional Innovation Engines (NSF Engines) program has revised the Broad Agency Announcement (BAA) for Type-2 NSF Engines program proposals, moving the deadline up to Jan. 18, 2023, among other changes, which are detailed in the revised BAA and key related resource documents that were published on Oct. 17, 2022. NSF added new preparation and content requirements, along with requirements for a Region of Service map and Mandatory Disclosure document. The NSF Engines is a new program intended to foster innovation ecosystems across the U.S. through partnerships across industry, academia, government, nonprofits, and others. More information is available here.

$2.8B announced for manufacturing EV batteries and grid

In a move to strengthen the domestic manufacturing of batteries for electric vehicles (EVs), the U.S. Department of Energy (DOE), announced $2.8 billion for 20 companies in 12 states to extract and process battery materials and manufacture components while creating good-paying jobs. The projects will be funded by the Bipartisan Infrastructure Law and will be matched by recipients to leverage more than $9 billion for the production of clean energy.

DOE reports that the funding is the first phase of $7 billion in total provided by the Bipartisan Infrastructure Law to strengthen the domestic battery supply chain by supporting upstream materials processing to create the precursor materials for batteries. Additional funding opportunities are expected to be forthcoming to continue to fill gaps in and strengthen the domestic battery supply chain.