SSTI Digest

As 2020 came to a close, we received word that former Pennsylvania Gov. Dick Thornburgh had passed away on Dec. 31. Obituaries in the New York Times, Washington Post and Pittsburgh Post-Gazette, rightly focused on his tenure as U.S. Attorney General and his two terms as governor, including his handling of Three Mile Island shortly after becoming governor. But I would like to focus on his legacy as it relates to technology-based economic development (TBED) and as a person.

Before America had a pandemic to fight, U.S. governors collectively expected 10.8 percent more revenue to work with in FY 2021 than current estimates projected in the latest National Association of State Budget Officers (NASBO) survey. Thirty-five states reported in the semi-annual survey released Dec. 23 that general funds had not met expectations for FY 2020; 19 states made mid-year cuts as a result.

The United States Patent and Trademark Office (USPTO) has issued a request for comments regarding the development of a national strategy to build a more demographically, geographically and economically inclusive innovation ecosystem. The request is a follow up to the inaugural meeting of the National Council for Expanding American Innovation (NCEAI), which first met virtually in September 2020. The council consists of industry leaders, academics, and scientists and will help guide the development of USPTO’s national strategy. The request outlines a set of questions grouped by general themes such as “Creating Innovators” and “Practicing Innovation.” Responses by the public to these questions will provide USPTO and NCEAI with a broad overview of what those in the innovation economy would like to see changed and contribute to the development of the national strategy. Comments are due by Feb. 8, 2021. The USPTO has seen renewed energy for crafting the conditions that allow for more diverse and representative patent applicants. The Study of Underrepresented Classes Chasing Engineering and Science Success (SUCCESS) Act, which passed in 2018, required the USPTO to…

Near the end of 2020, Congress passed the FY 2021 defense authorization (overriding a presidential veto) and folded multiple policy bills into the joint appropriations and coronavirus relief bill. This legislation includes new authorizations for semiconductor research facilities, clean and renewable energy innovation, and new studies of assets for critical research areas. Innovation-related policies within the National Defense Authorization Act (NDAA) for FY 2021 include the following: The law contains significant portions of the CHIPS Act, including permission for the Secretary of Commerce to establish a National Semiconductor Technology Center and a Manufacturing USA center focused on semiconductors, and a Department of Defense-led semiconductor research network. Note that all of these are subject to the availability of appropriations. There are several minor adjustments to Small Business Innovation Research (SBIR), the most significant of which appears to be direction to the Department of Defense to use more full contracts, rather than temporary contracts, for awardees. The bill unifies rules related to disclosures of current R&D funding across federal…

The National Institute of Standards and Technology (NIST) has continued to follow through on improvements to federal technology transfer proposed through the Return on Investment initiative. In December, the agency revealed legislative text for statutory changes and, on Monday, released a notice of proposed rulemaking related to Bayh-Dole. The legislative package contains 10 proposals that primarily relate to updating Stevenson-Wydler’s authorization of federal technology transfer processes. Proposed changes include allowing cooperative research and development agreements (CRADAs) to extend to 12 years, increasing the annual cap on patent royalties paid to federal employees, and authorizing all contractor-operated labs to use the newer agreements for commercializing technology (ACT) partnership models. Many of these changes were already included in a bill presented by the Republicans on the House science committee early in 2020 that did not pass during the session. The notice of proposed rulemaking suggests numerous changes to the regulations governing the commercial use of inventions developed from federally-funded research. Many of the revisions are described…

A thriving innovation economy requires a robust R&D enterprise — with participation by academia, government, and the private sector. As a substantial performer and funder of R&D in the United States, the strength of private industry’s R&D activity in a region can provide an indication of the region’s capacity for bringing innovative technologies to market. Using data from the recent release of the National Science Foundation’s 2018 Business Enterprise R&D Survey, this SSTI analysis shows that while total R&D performed domestically by private companies in 2018 increased over 2017, as did the share of the R&D that was paid for by companies, this was not the case for all states.

The relief bill passed last night falls short of assisting states that face strains on their budgets and increasing demand for assistance from their constituents. However, the bill does provide $900 billion for the first broad COVID-19 relief package to pass since the CARES Act was signed into law on March 27th. The major items in this legislation are the extension of unemployment insurance benefits, direct payments to individuals, and a new round of loans through a modified Paycheck Protection Program. No broad funding for state and local funding is included, but there are several provisions that will support specific activities. Small Business Assistance The legislation provides $284 billion for a new round of forgivable PPP loans (including the $137.5 billion remaining in the program). Even companies that have already received one loan can be eligible. Business size is limited to 300 employees, and the business must have experienced at least a 25 percent reduction in revenues between the same quarters in 2020 and 2019. Several new types of businesses are now eligible, including 501(c)(6) nonprofits. There are several changes to the forgiveness process…

The final FY 2021 budget provides $1.4 trillion in total federal funding, including increases in some programs affecting the innovation economy. Among SSTI’s Innovation Advocacy Council priorities: EDA’s Build to Scale received an appropriation of $38 million, SBA’s Regional Innovation Clusters received $6 million, and SBA’s Federal and State Technology (FAST) program received $4 million. These are just a few of the federally-funded initiatives that support regional innovation economies and a wide range of federal R&D activities. Department of Commerce EDA: Build to Scale – $38 million (+$5 million from FY 2020) – At least $30 million for the Venture Challenge and $6 million for the Capital Challenge EDA: STEM Apprenticeships – $2 million (no change) EDA total funding – $346 million (+$13 million) NIST: Manufacturing Extension Partnership – $150 million (+$4 million) NIST: Manufacturing USA – $16.5 million (+$0.5 million) NIST: Scientific & Technical Research & Services – $788 million (+$38 million) Minority Business Development Agency – $48 million (+$6 million) – Designates $9 million for broad agency announcements with a focus on innovation…

In a year that has seen the economy drop off a cliff, unemployment skyrocket and racial discrimination shock the consciousness of a nation, one might think all hope is lost. But there are those who are working to take this moment in time and re-emerge on the other side a stronger, more inclusive nation. As many workers face the prospect of a job that may never return, Americans in a more comfortable position who have been able to shift their work to remote locations have applauded the work of those left on the front lines during the current pandemic. And a realization that the economy wasn’t always working for all, and the American dream was becoming more of a nightmare for large segments of the population, is coalescing into action for better jobs and greater inclusion. This week, an alliance of workforce partners has begun to release a suite of tools designed to help those who have worked to build their skills through experience, but lack a four-year degree. A recent report reveals how those who have worked to build their skill set have nonetheless experienced stagnant or downward wage trajectories. Turning that tide to a more positive outcome is the driving force behind many in the workforce development field. In this story we look at the efforts of Opportunity@Work and the Center for Workforce and Economic Opportunity at the Federal Reserve Bank of Atlanta, both of which are part of Markle’s initiative known as Rework America Alliance.

The clean energy sector has continued to feel the economic strain brought on by the COVID-19 pandemic, with many businesses citing the need for additional federal assistance to prevent future employee layoffs and furloughs. Third Way, working together with the Clean Energy Business Network, recently released their second survey of clean energy firms and the impacts that the COVID-19 pandemic has caused to their business. The survey found that over 70 percent of clean energy businesses have continued to be negatively affected by the pandemic, mirroring the results of Third Way’s initial survey of clean tech firms that was conducted in July. In contrast, the United States Census’ most recent Small Business Pulse Survey found 20.7 percent of businesses classified as professional, scientific, and technical services have been impacted. The recent Third Way report also noted that 55 percent of the survey respondents received Paycheck Protection Program (PPP) loans, with 48 percent of participating businesses reporting that they would apply for additional PPP funding if the program were to return. Beyond the need for immediate federal COVID relief, the participating…

The incoming Biden administration continues to outline its priorities for the Federal Communications Commission. According to the Brookings Institution, net neutrality, broadband access and 5G security will be among the next administration’s top policies. Executing on these priorities will require both a new FCC chair and legislative action.   Repealing 2018’s Restoring Internet Freedom Order appears to be a primary goal for the Biden administration, allowing for the reestablishment of net neutrality through a return to 2015’s Open Internet Order. Brookings notes that because of Americans’ increased reliance on the internet due to the COVID-19 pandemic, a Biden FCC “could go further and explicitly prohibit data caps, zero-rating, and interconnection fees within a net neutrality rulemaking.” Beyond net neutrality goals, the incoming administration has expressed a desire to continue the FCC’s work toward bridging the digital divide and increasing the availability of broadband internet access to rural areas throughout the country. In addition to the commission’s current Rural Digital Opportunity Fund, which recently awarded over $9 billion in Phase I funding…

In nearly every research institution, there are individuals who achieve oversized impacts. In the academic environment, publications and citations were the traditional standard bearers for advancing science, engineering and discovery — unfortunately, tenure and title are still stubbornly tied to these measures in universities. Patents became the next tier for measuring performance many years ago. Beyond scientific advancement, however, a paper or patent that isn’t applied or put to practical use has little real value from the perspective of national competitiveness or economic development.  Increasingly, researchers who invent and see through the commercialization of their patents and technologies are being celebrated for impacts to both their fields of study and the economy. The National Academy of Inventors (NAI) has recognized more than 1,400 such people since 2010 through its Fellows program, adding 175 of them this year from more than 100 universities and governmental or nonprofit research institutions across the planet.  Collectively all of these high-impact NAI inventors have produced more than 13,000 licensed technologies, helped to create more…