SSTI Digest

For the United States to achieve greater security in chip manufacturing, the critical sector requires a much larger, better trained workforce. Between 2020 and 2022, annual postings for semiconductor jobs tripled from about 8,000 to almost 25,000, according to a new report, “The challenge of building a regional semiconductor workforce pipeline: What regions can learn from Austin, Texas and an agenda for cross-regional learning” from the Institute for Networked Communities (INC). As noted in the report, analysts expect that between 2023 and 2030, the industry will grow 33%, an increase of 115,000 jobs. At current degree completion rates, approximately 67,000 jobs would go unfilled. The INC report illustrates what it takes to build an industry-driven workforce system in the semiconductor industry based on the experience of Austin, Texas. The co-authors Francie Genz, Ryan Donahue, and Erin Sparks delve into what other regions can learn from Austin and why a cross-regional learning and action network is needed. “The stakes for getting regional workforce strategy right in the semiconductor space couldn’t be higher,” said Francie Genz, CEO of INC, in an email. “…

Recent headlines have been full of discussion on cryptocurrencies and speculation on significant changes in federal policy related to the technology. Anticipating federal action, leaders of several states are exploring ways to get their own jurisdictions involved in the space. Here are some recent examples, drawing from proposed legislation to implemented policies and structures for acceptance of the financial innovation: States Considering Bitcoin Reserves Alabama lawmakers are mulling the creation of a bitcoin reserve. The state recently established a Blockchain Study Commission, which held its inaugural meeting in July 2024, to explore how blockchain technology could benefit Alabama and how the state might regulate it. Also, Alabama Rep. Mike Shaw announced that he intended to introduce legislation focused on the regulation of cryptocurrency and blockchain technologies. These two coupled actions seek to understand the technology’s implications for economic development in the state and advance Alabama’s cautiously proactive approach to integrating blockchain and digital assets into the state’s financial and regulatory framework. Meanwhile, Alabama State Auditor…

FYI This Week, a science policy newsletter from the American Institute of Physics, reported in their November 25 article Commerce aims to commit CHIPS money before Trump returns that “Commerce Secretary Gina Raimondo said … she is trying to allocate all the semiconductor manufacturing and research funds appropriated by the CHIPS and Science Act before President Joe Biden leaves office." Since Raimondo made that statement, the U.S. Department of Commerce (DoC) has announced the following CHIPS and Science Act Awards: Up to $35.5 million awarded to BAE Systems Electronic Systems, a BAE Systems Inc business unit. The award is intended to support the modernization of the company’s Microelectronics Center in Nashua, New Hampshire. Up to $23.9 million awarded to Rocket Lab, the parent company of space power provider SolAero Technologies Corp. The award is intended to help the company create a “robust and resilient” supply of space-grade solar cells that power spacecraft and satellites. The company’s facility is in Albuquerque, New Mexico. The investment is expected to create over 100 direct jobs. Up to $75 million in direct funding awarded to Absolics, an affiliate of the…

After a busy election season that saw gubernatorial elections in 36 states, newly elected and re-elected governors delivered their annual State of the State addresses, kicking off new programs and reviewing the conditions of their states. SSTI reviews the speeches every year and covers news of new developments and initiatives the governors have highlighted as they relate to the innovation economy. New programs are laid out here in the governors own words as excerpts from their State of the State or budget addresses. Not all governors delivered a State of the State, and some that did may not have revealed new innovation-related initiatives and so are not included in our coverage. Common initiatives among the governors that touched on innovation included an emphasis on workforce, education and broadband; water issues for Western governors; and, clean energy. Alabama Gov. Kay Ivey delivered her 2023 State of the State on March 7 and called on legislators to “look ahead and crate an economic development strategy for the 2030s.” “… I am calling on you to get behind our playbook for economic success, what I am calling The Game Plan.” “We will…

The U.S. Department of the Treasury announced nine additional states whose SSBCI plans have been approved: Arizona, Connecticut, Indiana, Maine, New Hampshire, Pennsylvania, South Carolina, South Dakota, and Vermont. This is in addition to the five states approved earlier this year: Hawaii, Kansas, Maryland, Michigan and West Virginia. The state plans for the awards will support underserved businesses, innovation programs, investing for startups and more, detailed below. Arizona has been approved for $111 million across three different state programs. Two venture capital programs, Arizona Venture Co-Invest and Arizona Multi-Fund Venture, will split $87 million of the total approved funds. The rest of the allocated funds will go towards the Arizona Loan Guarantee Program. The three programs will all aim to support underserved businesses by creating greater access to capital.  Connecticut has been approved for $119 million, which will be allocated to CT Innovations Equity Fund, a venture capital program, and CT Works Fund, a loan participation program. The state will also be launching two new funds from Connecticut Innovations, The Connecticut Future Fund and…

Several more State of the State addresses were delivered already this month, leaving just a few states yet to go and the pandemic and recovery from the pandemic, not surprisingly, continue to feature heavily in governors’ plans. Energy opportunities, tax cuts, broadband and shifts in the model for higher education are in play in this week’s review of addresses from California, Florida, New Hampshire and Wyoming. California Gov. Gavin Newsom, March 9, delivered his third State of the State address in a virtual presentation from Dodger Stadium – one of the nation’s largest community vaccination sites. Newsom called for “a path to close inequities. There is no economic recovery without economic justice.” “We have more scientists, engineers, researchers, and Nobel laureates than any other state. To keep this conveyor belt for talent moving, we will keep investing in UC, CSU, and community colleges,” Newsom said. “California has the most innovation, venture capital, and small-business investment in this country. We will keep fostering every small entrepreneur—the drivers of our GDP.” He said the state will invest in a $10 billion infrastructure program that will…

Eleven states are holding gubernatorial elections this year with nine incumbents seeking reelection, two of which are facing off against their lieutenant governor. Only one governor, Steve Bullock in Montana, is term-limited and unable to seek reelection. In Utah, Gov. Gary Herbert is stepping down from the position he has held for 10 years. While many of the races this year will reflect referendums on the current governor’s response to the COVID-19 pandemic, many of the candidates have announced their innovation and economic development initiatives. In the final stretch of the gubernatorial race, here are some of the candidates’ innovation-related policies, positions and prior accomplishments. Delaware In Delaware, Republican Julianne Murray is running against incumbent Democrat John Carney. According to her campaign site, Murray will spur entrepreneurship by cutting taxes, streamlining regulations, and adopting a uniform permitting code to help reopen and grow small businesses. She created the “Small Business Bill of Rights”, a document that outlines the rights and privileges of small businesses in Delaware.   Carney, with help from his Division…

Two more governors have delivered their state of the state addresses over the past two weeks, with help for students taking the stage in New Hampshire while California’s governor enumerated the state’s growth and strengths, but devoted most of his remarks to the ongoing problem of homelessness. There are just a few remaining addresses, and SSTI will continue to cover the governor’s remarks and bring you excerpts of their speeches as they relate to their innovation initiatives. New Hampshire In Feb. 13 address, Gov. Chris Sununu lauded the state’s population growth, credited the state’s workforce initiatives and said the state is now ranked as the third most popular destination in the Northeast for millennials. “Last year we announced the creation of the New Hampshire Career Academy — an innovative program that allows for students in New Hampshire schools to receive a high school diploma, associate's degree, and a guaranteed job interview — all at no extra cost to the student or taxpayer. And just last week, we officially opened enrollment in the program at our community colleges. Students can start signing up now. …” “… Last year, I budgeted for…

New Mexico Gov. Michelle Lujan Grisham became the latest governor to propose a plan for free tuition, with what has been called the “one of the most ambitious attempts to make higher education more accessible.” If approved, the plan would allow in-state students to attend any of the 29 state public colleges or universities, regardless of income. It is designed as a “last-dollar” program. If approved, it would be just the second state to offer full tuition coverage to its residents (New York offers the Excelsior scholarship, which will be fully phased in in 2020), according to New Mexico’s governor. The New Mexico program would be “an absolute game-changer” for the state, according to the governor, who said in a prepared release that higher education has been a victim of the recession and that by making college more accessible to students in the state, the state would in turn see improved economic growth, improved outcomes for workers and families, and a better trained and better compensated workforce. While New Mexico’s efforts are still in the proposal stage and Virginia’s governor has announced that he will…

As the states turn to tackling their budgets, governors are presenting their spending and revenue proposals, and SSTI continues to monitor these. Budget constraints and deficits are problems for governors in Connecticut and Illinois, and Connecticut’s governor is proposing expanding the sales tax base while focusing on loan forgiveness and clean energy. Education is on the agenda in Illinois where the governor is hoping to build prosperity through skills training and college affordability. And in New Hampshire, more money is being channeled to higher education initiatives, part of which could be funded by legalizing sports betting if the governor there gets his way. Connecticut Gov. Ned Lamont gave his first budget address, outlining his plan to address a looming budget deficit without raising the income tax as he promised on the campaign trail, and growing the state’s economy: “My sales tax reform would broaden the base so that digital goods are treated equally and more significantly that we are capturing a growing segment of the economy.  “Today, I’m inviting Connecticut businesses to step up and partner with me to help…

With 36 governors being sworn in following the November elections, 20 of those being new faces and 16 who were re-elected, this year’s inaugural and state of the state addresses promise new ideas along with proposed resolutions to existing challenges. As the governors present their plans to constituents, SSTI revisits our Tech Talkin’ Govs series. The first round of addresses presented here reveals new initiatives in education and building the workforce in Idaho, green energy initiatives in Maine, collaboration in Massachusetts, the largest economic investment in workforce in the state’s history in New Hampshire, and more. Today’s coverage includes highlights from governors in Idaho, Maine, Massachusetts, New Hampshire, North Dakota, and South Dakota. Follow along in the coming weeks as we continue to cover all of the governors’ addresses for 2019, bringing you excerpts of their words, promises and programs that touch on the innovation economy. Idaho Gov. Brad Little delivered his first state of the state address on Jan. 7 and said that education is his top priority for the state budget: “I will continue to focus on…

The ability of states to deliver the services promised to its residents relies on their fiscal soundness. With most states beginning their fiscal year in July, SSTI has reviewed the current fiscal standing for each state and here presents a snapshot of our findings. Most states ended their fiscal year with a surplus and continue to recover from the Great Recession, with a growing economy and job gains. However, they face continuing demands on their budgets, with expanded Medicaid payments and the growing opioid crisis confronting nearly every state. Such decisions affect the state’s ability to fund innovation efforts, from the amount of support available for higher education and STEM programs, to funding for entrepreneurship, and forging public private partnerships to strengthen innovation programming that the private sector cannot fully support. Our analysis found that some states that rely on the energy sector to fund their spending priorities continue to struggle, while others are already factoring in anticipated revenues as a result of new Supreme Court rulings involving gaming and online sales tax collections.