SSTI Digest

NSF’s Regional Resilience Innovation Incubator (R2I2) project has awarded Phase 1 funding to six teams, each addressing specific regional climate challenges and demonstrating solutions. The award includes funding for a seventh team to create the R2I2 National Office, which will support the collective and coordinated implementation of R2I2 award activities.

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. “…

Forty-one states and Puerto Rico will vote on 151 statewide ballot measures this fall.    Many of this year’s measures focus on abortion; citizenship or electoral system reforms (such as Arizona’s Proposition (Prop) 133 and Missouri’s Amendment 7, which would prohibit ranked-choice voting, while Idaho’s Prop 1, Nevada’s Question 3, and Oregon’s Measure 117 would establish ranked-choice voting); criminal justice or drug use policies (including the legalization of recreational (Florida, North Dakota, and South Dakota) or medical (Nebraska) marijuana, as well as certain psychedelic substances (Massachusetts could be the third state to legalize psilocybin); and minimum wage increases. Voters in Alaska, California, Massachusetts, and Missouri will decide on minimum wage increases, with Nebraska voters deciding on an initiative requiring paid sick leave for employees. In Arizona, voters will decide whether tipped workers should be paid 25% less per hour than minimum wage. A dozen initiatives would impact tech-based economic development—providing funding for initiatives, changing the electoral or redistricting system, altering taxes, or modifying the governance of higher education.

Thirty-six states held gubernatorial contests in Tuesday’s (Nov. 8) mid-term elections. By the end of the last week, winners in 32 states had been chosen. As of today, contests in Arizona, Nevada and Oregon have been called; while votes continued to be tallied in Alaska, which held its first ranked choice general election. Gov. Mike Dunleavy maintains a substantial lead and appears he will be re-elected. As such, Dunleavy will be the first governor to be elected to back-to-back terms in the state since former Democratic Gov. Tony Knowles won reelection in 1998. Results from gubernatorial elections and ballot measures that were not available at last week’s writing are detailed below. With the elections finalized in Arizona and Oregon, the new year will see 12 states headed by a female governor; Oregon’s Gov.-elect Tina Kotek will join Gov.-elect Maura Healey in Massachusetts as one of the first openly lesbian governors. Democrats were able to flip Arizona, Maryland and Massachusetts, while the GOP flipped Nevada. Republicans will maintain a slight advantage with 26 states having a GOP governor in January. (Before the mid-term election, Republicans held 28 states…

Five additional state plans for the State Small Business Credit Initiative (SSBCI) have received approval from the U.S. Department of Treasury, bringing the current total of announced states to 19. Over the past month, Treasury announcedthat plans in Colorado, Montana, New York, North Carolina and Oregon were approved. Some details on the plans are outlined below. Colorado has been approved for $104.7 million, which will fund three state programs. The Colorado Venture Capital Authority has been allocated almost $60 million to invest in two venture capital funds per year for three years in order to assist small businesses in need of investment capital. Separately, $35 million will fund Cash Collateral Support, a collateral support program that will assist small businesses and non-profit organizations in securing credit. Finally, $10 million will fund CLIMBER Loan Fund, which will provide working capital loans to help small businesses recover from the pandemic.  Montana has been approved for $61.3 million to fund the MT SSBCI 2.0 Loan Participation Program, which aims to increase the number of eligible CDFI and non…

ESS Inc., a company that closed a deal to go public earlier this month, was able to leverage public capital at its early stages to accelerate its success as a startup. Founded in 2011, the Wilsonville, Oregon, based company manufactures batteries for long-duration energy storage applications. In 2012, ESS Inc. received a Phase I Small Business Innovation Research (SBIR) award from ARPA-E, and additional grant support from the Oregon Nanoscience and Microtechnologies Institute (ONAMI), an SSTI member. ONAMI is an Oregon-based non-profit that provides grants, equity funding and business development guidance to startups engaged in research-based scientific innovation. It receives funding from Business Oregon, also an SSTI member.

Facing current challenges and a changing economy, Oregon is turning to innovation-based economic growth. Their new 10-year Innovation Plan focuses on ensuring a competitive position through four means — traded sector industries that constantly innovate; a robust entrepreneurial ecosystem; financial capital markets that are open to investing in innovative firms and entrepreneurs; and promoting itself as a place to start and grow in innovative company. The state’s first plan was created in 2006, and the new plan, commissioned by Business Oregon and facilitated by TEConomy Partners, notes that while progress has been made, “access to opportunities in innovation-oriented fields has been unequal,” and calls for a focus on engaging all citizens. “We believe that economic justice is a fundamental precursor to achieving an equitable outcome for all segments of our population,” it says. And in order to drive change in the state’s economy, efforts to address broadband accessibility and affordability, a thriving talent base and robust R&D enterprise are needed, it notes. In creating a roadmap to build the plan, actions such as supporting Centers of Innovation…

In general, the effect of the pandemic on states’ budgets due to the wave of business, retail, and commerce shutdowns, as well as other reduced economic activity across the nation, is not entirely known, or too early to forecast; however, a number of states are beginning to experience the initial impacts of a substantial downturn. With several states having already enacted their 2020-21 budgets, special sessions are expected later this year to deal with declining revenues. Others ended sessions early without a new fiscal year spending plan in place. Many are also acting quickly to help mitigate the effects of lost revenues and an increased demand for services. Some of the states’ impacts and actions are outlined below. Alaska officials report that the drop in global oil prices will likely add $300 million to the state's current year (2020) budget deficit. The Alaska Journal of Commerce reports the state Legislative Finance Division told lawmakers that the state could experience a $600 million revenue reduction in the 2021 fiscal year, which starts July 1. In Arkansas, lawmakers were called into special session to address an estimated $353 million hit to the state’s…

Reviewing another slate of governors’ state of the state and inaugural addresses reveals some recurring themes. With a focus on maintaining gains made since the Great Recession and increasing budgets, many governors are holding off on major new initiatives, but are proposing means to increase broadband access, diversify their economies, build renewable energy efforts, and increase their rainy day funds in case of an economic downturn. SSTI presents part 2 of our Tech Talkin’ Govs series, with coverage of governors in Colorado, Connecticut, Oregon, Virginia, West Virginia and Wyoming. 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. Colorado Gov. Jared Polis reiterated his goal of reaching 100 percent renewable energy in the state by 2040 and desire to expand broadband: “As Governor, my goal is to lead the statewide transition to a clean, sustainable, and growing economy. It is imperative for our climate, our security, our health, and our economic growth for all Coloradans. We will lead…

Action toward improving the availability and speed of broadband in rural areas is emerging as an early theme in 2019, continuing activity from 2018. Oregon, Washington and the USDA all announced new initiatives last month. In mid-December, the USDA announced the availability of $600 million in grants and loans to support improvement of broadband accessibility across rural America. Funding is split into three equal pools. Up to $200 million may be awarded as grants (deadline for proposals is April 29); $200 million may be awarded as low-interest loans (applications due June 28); and $200 million may be distributed in a mix of grants and loans (proposals are due May 29).  Projects funded through this initiative must serve communities with fewer than 20,000 people with no broadband service or where service is slower than 10 megabits per second (mbps) download and 1 mbps upload.

SSTI has reviewed the ballot initiatives across the country that affect innovation. Several states have energy initiatives on their ballots, while higher education funding is at play in Maine, Montana, New Jersey and Rhode Island. Utah could become only the second state to fund its schools through gas taxes, if a measure there is passed. At the same time, four states have ballot issues addressing redistricting commissions which could have a significant impact on state legislative makeup when lines are redrawn after the 2020 census.

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.