SSTI Digest

Many metropolitan areas grapple with demographic shifts, labor shortages, and changing economic conditions, so understanding the factors that encourage former residents to return may help policymakers design more effective strategies for talent retention and regional revitalization. The Cleveland Fed's recent District Data Brief titled "Boomerang Migration: Which Regions Have the Most, and Can It Make a Difference?" examines the movement of individuals who return to their home regions after relocating elsewhere.  A better understanding of this “boomerang migration” may have implications for regional economic development, workforce stability, and population growth. By analyzing migration patterns and the characteristics of areas with higher return rates, this research provides valuable insights that can inform economic policies, workforce development initiatives, and housing strategies. The study offers a data-driven perspective on how local governments and economic development organizations might leverage…

The Small Business Innovation Research (SBIR) program is one of the federal government's most substantial investments for moving innovation from America’s small businesses into the private market or federal procurement in areas like defense, space, energy or transportation. States have launched a variety of funding programs, technical assistance efforts, and outreach initiatives to help ensure more of their own innovation-driven small firms can capture and succeed with SBIR. These programs act as a catalyst for innovation, accelerating the commercialization of new technologies and ultimately fueling local economic growth.  SSTI has updated our State SBIR/STTR Resource Guide to reflect new Federal and State Technology (FAST) Partnership Program awardees and recent changes to state-level initiatives. The guide includes a series of maps showing the types of support for SBIR/STTR companies by state. It also provides a downloadable Excel file of all…

A two-page proposal for a $40,000 Phase IA award? Phase II performance ratios required for companies receiving 10 and 25 Phase I awards over their lifetime? Halving the budget for STTR and shrinking university partner share? Creating a 0.25% carve-out of DOD SBIR funds for phase III awards up to $30M each? Limiting all federal technical assistance and outreach to 25 states with the fewest SBIR/STTR awards? Stronger, broader, tougher foreign risk requirements for the companies and agency due diligence?  Webinar: Starting down the path for SBIR reauthorization SSTI will hold a webinar to walk through the INNOVATE ACT as introduced on Monday, March 24 at 3:00pm (eastern). Interested technology-based economic development organizations may register here to attend or receive SSTI’s summary slide deck of the bill after the event. The “Investing in National Next-Generation Opportunities for Venture Acceleration and Technological Excellence” INNOVATE Act includes these proposals and a lot more as it was introduced on March 5, 2025, by Senator Joni Ernst (R-Iowa), the chair of the Senate Committee on Small Business and Entrepreneurship.  To…

By automating routine tasks, improving data analysis, and enhancing marketing efforts, AI can revolutionize how small firms conduct business—and that should impact the type of assistance technology-based economic developers offer their innovation-driven entrepreneurs. Understanding how small business owners perceive and utilize AI is crucial for developing strategies that support their growth and competitiveness.  One possible tool for aiding a reassessment of entrepreneurial support services might be a recent report by the Initiative for a Competitive Inner City (ICIC), AI in Business: How Small Business Owners Are Learning, Using, and Navigating Challenges with AI Tools. It delves into how small business owners are learning, using, and navigating the challenges associated with AI tools.  Over the past two years, AI tools have become more accessible, allowing small businesses to streamline operations and boost productivity. However, adopting AI is not without risks, particularly seen in concerns about information privacy.  The ICIC report reveals that AI use is widespread among small businesses, with about 89% of business owners indicating…

Frank Salomone has been hired as the associate administrator in SBA’s Office of Investment and Innovation. Salomone’s background includes more than 12 years as director of Segal Marco Avisors, an investment consultancy, and just over six years with Verizon Investment Management Corporation, according to his LinkedIn profile. He is a graduate of Iona University with a Bachelor of Business Administration and Master of Business Administration degree.

Wednesday, March 19, 3:00 pm EDT | ZoomNo charge; registration required. Fostering a thriving tech-driven ecosystem is essential for sustainable regional growth. Our panelists will explore key strategies to accelerate technology commercialization, support startups, attract investment, and build collaborative networks. From leveraging public-private partnerships to enhancing workforce development, we’ll discuss actionable insights that can help regions compete in an increasingly technology-driven world. Griffin St Louis, Sr. Program Manager—Maryland Innovation Initiative, TEDCO Brian Cuevas, Director—Office of Innovation Management, University of Southern Mississippi Angela Specht, Global Head—BARDA Alliance, Johnson & Johnson Jerry Coughter, Program Director—TBED CoP, SSTI Register here. This webinar was prepared by SSTI using Federal funds under award ED22HDQ3070129 from the Economic Development Administration, U.S. Department of…

Overall U.S. gross domestic product (GDP) has steadily increased over the past decade. However, the growth in the sectors which drive it has been uneven. Data from 2014 through 2023 reveals that sectoral contributions to private industry GDP have shifted from manufacturing (down 1.57 percentage points since 2014) and mining, quarrying, and oil and gas extraction (down 1.05), to professional and business services (up 0.85) and construction (up 0.72). Differences in the sectoral makeup of private industry GDP at the state level show that most states share similar primary sectors but vastly different second-largest sectors. Significant changes in federal policy may affect GDP composition going forward.  All data used in this article comes from the U.S. Bureau of Economic Analysis’ (BEA) GDP and Personal Income tables. Data used for GDP is in millions of current, not adjusted for inflation, USD, and is for private industries. All sectors and industries referenced are based on the 2017 North American Industry Classification System (NAICS) used by the BEA.   National overview Over the past decade of available data, from 2014 through 2023, the makeup of…

NOTE: The nation's community of technology-based economic development organizations has entered the annual report season, and we've already seen several releases from SSTI members. All document TBED's impact on advancing research, moving it to market, and helping businesses improve their profitability and competitiveness. To help the TBED community prepare their own annual reports, SSTI is speaking with a few of our members to learn more about their evolving approaches to preparing their annual reports. This week, we share insights from our third conversation based on an interview with Lizzette Arias, communications manager, and Arnold Liyai, program manager, from US Ignite. The first two parts of this series are available here and here. A fundamental truth of communication is that you must target your message to your audience. But how can you do that when creating one universal document to address all your stakeholders, including military members, municipal leaders, startup companies, and university researchers? US Ignite faces this challenge in producing its annual report, which covers its five programs: Platforms for Advanced Wireless…

On Feb. 10, Tennessee Gov. Bill Lee presented his 2025 State of the State address along with his FY 2025-2026 budget proposal and legislative agenda. Building on the theme of both his speech and agenda, “Tennessee innovates,” Lee seeks to position the Volunteer State as the epicenter of energy innovation, especially nuclear power. Over the past several years, the governor has presented a vision for Tennessee to lead the nation on nuclear energy initiatives and expand the state’s leadership in “the nuclear energy ecosystem.” In 2023, Tennessee established a Nuclear Energy Advisory Council through an executive order that was tasked to provide the administration with recommendations and guidance to advance the Volunteer State’s nuclear energy innovations and investment. Additionally, the state’s FY 2023-2024 approved budget funded the administration’s $50 million Nuclear Energy Fund to support nuclear power-related businesses and education/training programs across Tennessee. To date, the state has approved $13.5 million in grants, primarily to state universities, within that fund. In this year’s address and budget, the governor proposed several funding…

Research and development (R&D) tax credits are a common cornerstone of federal and state innovation policies and are offered to companies in hopes of spurring economic growth. But do R&D tax credits deliver the economic boost policymakers expect? Previous studies addressing this question often focused exclusively on either firm-level data or aggregate economic data. Firm-level studies typically found that R&D tax incentives significantly boost companies' investment in research and development. In contrast, macro-level analyses suggested a more modest impact on overall economic growth. A recent discussion paper from The Centre for Economic Performance (CEP) at the London School of Economics, How effective are R&D tax incentives? Reconciling micro and macro evidence, seeks to explain the gap between these two types of assessments. Authors Silvia Appelt, Matej Bajgar, Chiara Criscuolo, and Fernando Galindo-Rueda employ a dual approach by analyzing both micro-level data from individual firms and macro-level economic data. This approach allows them to assess how R&D tax incentives influence individual company behaviors and the broader economy and…

As this week’s recent research article mentions, R&D tax credits work, so it isn’t surprising several states have either proposed, amended, or enacted research and development (R&D) tax credits for both the current fiscal (2025) and new (2026) fiscal year in efforts to encourage innovation and economic growth. Some specifically target life sciences or biotechnology sectors while others focus on attracting new or existing companies and startups or to further develop life sciences and/or biotech sectors and hubs. The following is a brief wrap-up of some states that have recently introduced or implemented notable R&D credits in their innovation space. Connecticut Gov. Ned Lamont announced in his FY 2026-2027 biennial budget address on Feb. 5 that he was proposing to increase the state’s biotechnology R&D tax credit from 65% to 90%. Doing so would allow companies that make less than $70 million a year in sales to cash in their unused tax credits at a higher exchange rate than the current 65% exchange rate. The boost would cost the state about $1.8 million but result in multiple millions in increased economic activity at startups, industry boosters…

Higher education R&D (HERD) expenditures have steadily increased over time. They’ve soared past $100 billion in the most recent data year, fiscal year (FY) 2023, growing in every state. However, the gains are not shared equally in all fields of research. SSTI analyzed HERD Survey data, finding that in the 10 FYs since 2013, science R&D fields, led by the life sciences, were responsible for the largest dollar growths. In contrast, non-S&E fields, led by education, experienced the largest relative growth. SSTI has examined these shifts over the past decade at the national level and broken down expenditures by R&D field at the state and institutional level for FY 2023. This edition of Useful Stats provides the resulting comprehensive picture of HERD expenditures by R&D field.