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.

In this final coverage of gubernatorial addresses as they discuss the innovation economy, the following highlights have been selected from State of the States or budget addresses given between Feb. 18 and March 14, 2025, by the governors from Florida, Illinois, North Carolina, and Ohio.  Information on previous 2025 State of the States and/or budget addresses can be found here, here, here, and here.

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

The Appalachian Regional Commission (ARC) recently awarded  $14.5 million in Appalachian Regional Initiative for Stronger Economies (ARISE) grants for five projects. ARISE is ARC’s multi-state initiative that aims to drive large-scale, regional economic transformation through collaborative projects.

Forty-one states and Puerto Rico voted on 151 statewide ballot measures this fall. Many measures focused on abortion, citizenship, or electoral system reforms. Three measures with direct connection to innovation all were approved by voters, augmenting the strong track record tech-based economic development initiatives have when they are placed directly before voters. The three measures were for vocational-technical school scholarships in Arkansas, a $25 million R&D bond issue in Maine, and a $160.5 million higher ed facilities bond bill in Rhode Island. Voters have previously approved R&D bond measures in Maine and Rhode Island. SSTI highlights more information on those and other initiatives that could have or will impact economic development in individual states.

On average, Black households engaged in entrepreneurial activity have a higher rate of return on their business in comparison to Hispanic and white households, according to an Economic Commentary from the Federal Reserve Bank of Cleveland. Public policy encouraging and supporting minority entrepreneurship and innovation pays profits as well as social dividends, the study reveals.

The average yield of equity invested in a business, regardless of the household’s involvement in the business, is 5.6% for Black households, 4.6% for white households and 2.5% for Hispanic households. 

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.

The U.S. Department of the Treasury announced 11 additional states whose SSBCI plans have been approved: Alaska, Idaho, Iowa, Massachusetts, Minnesota, Missouri, Nebraska, Nevada, New Mexico, Ohio, and Utah. This is in addition to the 20 states that have been approved this year: California, Hawaii, Kansas, Maryland, Michigan, West Virginia, Arizona, Connecticut, Indiana, Maine, New Hampshire, Pennsylvania, South Carolina, South Dakota, Vermont, Colorado, Montana, New York, North Carolina and Oregon.

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.

A new commentary from a senior policy analyst at the Federal Reserve Bank of Cleveland examines the extent to which disparities exist between Black and whites in labor market outcomes such as levels of labor force participation, unemployment rates, and earnings. Economic inclusion trends have been studied at the national level, but this commentary takes a look at how those disparities vary within and across states with a specific look at the Fourth Federal Reserve District states of Kentucky, Ohio and Pennsylvania.