SSTI Digest

As state budgets move into the legislatures for final negotiations and approvals, the last of the governors have addressed their constituents and put forth their proposals. While a renewed sense of hope is seeping into the latest addresses, governors are still cautious and guarded in proposing new programs. Broadband, small business, education and workforce initiatives continue to be among the innovation-related initiatives announced by the state leaders, with the intent that those efforts will also boost the economic recovery of the states. Louisiana Gov. John Bel Edwards, in acknowledging the unusual circumstances of his April 12, 2021, State of the State address (he gave it from the A.W. Mumford Stadium on the campus of Southern University as opposed to a usual address inside the House chamber due to COVID-19 safety precautions) sounded a hopeful note, saying, “A new day is dawning with every shot in every arm.” In addition to the pandemic, Louisiana is still recovering from the two hurricanes that hit its coast, and the governor said that “no state is more adversely impacted by climate change….” He said the state will be a leader in reducing carbon emissions…

As the new administration settles in, the Economic Development Administration (EDA) has updated its investment priorities — the guiding principles behind all of its competitive grants. Changes to the priorities are outlined below so that participants in local innovation economies are better able to align their proposed programs to these federal priorities. The EDA’s new list of investment priorities includes seven points, with the inclusion of “Equity,” “Technology-Based Economic Development (TBED),” and “Environmentally-Sustainable Development” being three notable changes. The list of EDA’s investment priorities, including commentary on their differences from previous administrations’ priorities, is as follows: Equity – absent in the Trump administration EDA’s list, and although the Obama administration included “Underserved Communities” as its sixth and final priority, the Biden administration’s EDA specifically places “Equity” at the top of its new list. It also identifies racial equity as a priority (identifying “women, Black, Latino, and Indigenous and Native American persons, Asian Americans, and Pacific Islanders as traditionally disadvantaged populations…

If venture capital was water, then sea levels continue to rise.  Yet more and more innovation-based startups across the country seemingly are being left high and dry as private venture capitalists continue to push their money into bigger, later stage deals. Investors seem increasingly set to cruise toward cashing in on the currently hot exit path of public listings. All of the key metrics in the latest Pitchbook-NVCA Venture Capital Monitor suggest many of the youngest innovation opportunities have been left out of recent VC activity, a trend that typically hurts those geographic areas receiving less VC than national averages.  Pitchbook reports the total venture capital invested during the first quarter of 2021 nearly doubled the amount invested in Q1 2020, logging 92.6 percent more dollars flowing into portfolio firms. This explosive growth comes in the wake of the record year that 2020 proved to be for the VC industry.  Fundraising “also proceeded at a record-setting pace with $32.7 billion raised across 141 funds. For perspective, $79.8 billion was raised in 2020, the current annual record,” the authors write. The survey found a record three-…

The Department of Defense is seeking comments and information on President Biden’s Executive Order, “America’s Supply Chains,” which directs several federal agency actions to secure and strengthen the country’s supply chains. The U.S. Department of Commerce is also seeking public input on a licensing or other pre-clearance process for entities engaging in certain information and communications technology and services transactions (ICTS Transactions). The defense department is seeking input from consumers and producers, as well as those with relevant expertise, on increasing transparency; diversifying sources of supply and production; establishing and strengthening manufacturing of value-added products; research, development and demonstration priorities to support production and advanced manufacturing base for materials; and, more. The deadline for submitting comments is April 28, 2021, and the full announcement is available here. Additionally, on Jan. 29, 2021, the commerce department published an interim final rulemaking on the implementation of Executive Order 13873, “Securing the Information and Communications Technology and Services Supply Chain,”…

A presidential budget provides, in theory, a strategic vision for the more than $1 trillion in annual, discretionary spending of the federal government. In practice, Congress will pass a spending bill that reflects its own will. The value of the president’s budget is the window it offers into the administration’s priorities. The Biden-Harris Administration’s skinny budget indicates priorities that should excite those working to build regional innovation economies. As a reminder, the Trump administration’s budgets would have reduced or eliminated many programs — and even some entire agencies — that support tech-based economic development (as well as initiatives in other policy areas). The administration used its budget to make a clear statement about its interest in seeing a much smaller federal government. Congress, of course, was unwilling to pick up these proposals even halfway. Presidents’ budgets do not pass as proposed — even when Congress is controlled by the same party. The final FY 2022 budget will ultimately be a greater reflection of congressional than presidential will. Presidents can always use influence and political power to push Congress to…

Last week, the Biden-Harris administration released an initial budget proposal for FY 2022 discretionary appropriations. The document (referred to in Washington as a “skinny budget,” not because of the overall size of spending but because it serves as more of an outline or framework for the full budget proposal which will come in May) clearly emphasizes the importance of climate change, economic opportunity, equity and health as cross-cutting priorities. For regional innovation economies, these priorities would translate into significant increases in R&D funding, as well as additional funds for tech-based economic development activities. The budget document that is available now is not a full presidential budget recommendation, which is expected in mid-May and, therefore, does not provide a suggested funding level for every federal initiative. Instead, the budget is a messaging document highlighting new efforts and existing activities that the administration would like to expand or otherwise emphasize. This insight into the president’s priorities is particularly useful early in the administration, when the government has not had much of an opportunity to shape programs through actions. Highlights from the budget proposal by agency are available below.

A total of $29 million in grants will be awarded to 44 organizations across the country as part of the Scaling Pandemic Resilience through Innovation and Technology (SPRINT) Challenge provided by the Economic Development Administration. The SPRINT Challenge, with grants ranging from between $200,000 to $750,000, was developed last year with the goal of addressing the health and economic risks brought on by the COVID-19 pandemic through investments in entrepreneurship and innovation. The 44 awardees highlight a wide range of organizations, including nonprofits, higher-education institutions, and entrepreneurial-based groups. Among the winners were a number of SSTI members, including: Launch NY ($750,000) – solving challenges to accessing entrepreneurship support and capital caused by coronavirus by transitioning to virtual mentorship and new financing programs for technology-based startup companies. Medical Center of the Americas Foundation working together with the Texas Manufacturing Assistance Center ($750,000) – establishing a Product Supply and Development Lab to support medical product supply chains and encourage innovation and development of new medical…

While the new administration is rolling out a new infrastructure proposal that includes $100 billion over an 8-year period for greater broadband coverage and affordability, the states have been busy in 2021 with their own broadband proposals. Governors across the country are responding to the digital divide that became even more obvious during the pandemic as students struggled to access online learning, individuals turned to the internet for telehealth appointments, and much of the workforce pivoted to remote work arrangements. This week, we take a look at some of the new broadband proposals revealed in the governors’ State-of-the-State addresses or proposed budgets. Arizona – Gov. Doug Ducey proposed more than $40 million in funding for rural broadband expansion. Some of the funding is dedicated to expanding the Rural Broadband Development Grant Program, a program working to accelerate the development of rural broadband infrastructure directly to homes and businesses. Arkansas - Gov. Asa Hutchinson proposed $30 million in funding to expand high-speed internet into more rural areas of the state. California -  A $10 billion infrastructure bill is…

Although the nation’s nonmetropolitan economies are less reliant on the R&D activity performed by institutions of higher education than the economies of urban areas, researchers in some rural areas show levels of higher education R&D (HERD) expenditures per R&D employee that are on par, or even exceed, their urban counterparts. Policy makers may wish to consider and prioritize the relative “outsized” importance of HERD funding and related research personnel in future policy decisions and public investments that are geared toward select smaller communities and rural places. For instance, innovation-oriented entrepreneurship concentrates around R&D-rich, knowledge centers, and this data indicates that there are non-metropolitan areas that fit that description. However, despite the relative wealth of R&D resources and potential economic development opportunities in these nonmetropolitan research hotspots, it may be difficult to sustain vital TBED-related support functions in some smaller markets without public support. Public support may be required in these areas to make such locations sufficiently attractive for the private risk capital and innovation…

In its effort to support a more diverse tech talent pipeline in the state, the Delaware Prosperity Partnership (DPP), in partnership with JPMorgan Chase, has outlined a plan to boost the tech workforce in the state and help diverse populations’ access pathways into IT. DPP, the nonprofit state economic development agency in Delaware, completed its work on a strategic plan to achieve those goals, that it says is dependent on the state’s ability to align state polices and resources to accelerate the impact of the IT talent strategy. It is estimated that nearly 75 percent of information technology (IT) workers in Delaware are men and 60 percent are white. Only 15 percent of the IT workforce in the state is Black or Latinx, DPP says. The plan will enhance competitiveness of local industries and help residents of all backgrounds explore career opportunities in IT. DPP partnered with 50 local stakeholders representing Delaware businesses, nonprofits, education, and workforce development organizations to create the plan, which addresses three factors: the importance of IT to employers, the accelerated digitization of work exacerbated by the pandemic, and upskilling…

This week, Treasury posted key dates for the State Small Business Credit Initiative, a $10 billion program funded in the American Rescue Plan Act. Per its website, Treasury intends to release the amount of funding available to each state by April 12; states will be required to submit a letter of intent to participate by May 10; and, final applications from states will be due by Dec. 11. The amount of funding available to Tribal governments will be released on May 10, with notices of intent to apply due June 11. The information was provided as part of a refurbished web presence for SSBCI that also moved the original program reports and guidelines to a new location. SSTI is tracking SSBCI developments closely and will continue to share updates as they are available. For more information on the program, contact Jason Rittenberg (rittenberg@ssti.org).

NIST’s Manufacturing Extension Partnership (MEP) is working with the Association of Public and Land-grant Universities (APLU) to support projects partnering universities and MEP centers to encourage adoption of advanced technologies by small- and medium-sized manufacturers (SMMs). APLU is working with Innovation Associates and Jim Woodell & Company to select three collaborative university-MEP pilot projects to develop and test different models of technology transitioning. APLU is currently soliciting two-page, pre-proposals from university-MEP applicant teams by April 16. Teams are encouraged to create sustainable models involving connections with the broader ecosystem of state technology organizations, community colleges, federal labs, Manufacturing USA institutes and others. Transitioning to manufacturers the new technologies under development in partnership within and independently at universities will be critical to future U.S. competitiveness — advances in digitization, the use of smart sensors, robotics, simulation technologies, advanced materials, nanomanufacturing, and additive manufacturing techniques. The purpose of the current project is to…