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Last week, SSTI looked at an academic research study on the impact that accelerator feedback has on firms. This week, we examine two recent academic studies that looked at the impact accelerators have on regional innovation systems. In the first study from researchers at USC and Rice University, Fehder and Yael Hochberg found that the introduction of an accelerator into a metro area helped to stimulate startup capital. In another recent study, two City University of New York researchers and one from Michigan State University contend that there are three distinct types of accelerators that serve different roles in an innovation system. They include deal-flow makers, welfare stimulators, and ecosystem builders.

At the end of this month, applications are due for two of the federal government’s most notable programs for funding clusters and regional innovation initiatives: the SBA’s Regional Innovation Clusters (RIC) program and the EDA’s Regional Innovation Strategies (RIS) program. As practitioners develop their proposals for these programs, it is worth considering potential lessons learned from the successes of previous awardees and the major challenges they have faced.

The National Science Foundation (NSF) released updated Science and Engineering (S&E) State Profiles – an online portal that provides state-level rankings and totals of S&E data for the 50 states, District of Columbia, and Puerto Rico. The portal also provides a data tool that allows users to compare up to seven states or download entire data sets. In the most recent update, NSF allows user to explore data for the years 2015 to 2017. S&T indicator by state include, but are not limited to:

Each year, the National Science Foundation releases a report on Science and Engineering Indicators, a voluminous compilation of data and analysis that looks at metrics which are particularly relevant to the field of technology-based economic development. Beginning in 2020, future versions of Indicators could look very different from their predecessors, according to a presentation by NSF program director Beethika Khan.

The Employment and Training Administration has published the availability of up to $100 million for Trade and Economic Transition National Dislocated Worker Grants (DWGs), with funding amounts of up to $8 million for each award.

After considerable growth in the number of startups raising a first round of venture capital financing between 2009 and 2014, there has been a geographically widespread contraction, according to new research from Ian Hathaway at the Center of American Entrepreneurship, a D.C. based advocacy group. In America’s Rising Startup Communities, Hathaway explores the geography of first venture capital financing across U.S. metropolitan areas over the last eight years, finding that just 10 metro areas account for more than two-thirds of all first financings. From 2009 to 2017, the number of startups receiving a first financing increased by 84 percent, and more than one-third of regions saw an increase in deals.

The emerging blockchain industry has recently caught the attention of some state political leaders and economic development officials as a potential driver of economic growth as well as a potential solution to improve government services. To support economic growth, states are working on creating flexible regulatory sandboxes to allow blockchain-based startups to test their products.

President Donald Trump signed the Strengthening Career and Technical Education for the 21^st Century Act, a reauthorization of the Perkins Act, on Tuesday, giving states greater control over setting their own goals for career and technical education (CTE), a change from the current law that requires states to get program goals approved by the secretary of education.

The U.S. Small Business Administration recently announced its intention to award up to seven contracts for entities to lead regional innovation cluster initiatives. While two of the awards are partially set-aside for qualified small business, the remaining five are being competed full and open, meaning any entity is eligible. Each contract will be for a base year and four option years, with a base-year price not-to-exceed $500,000. An overview webinar will be held by the Program Office on Aug. 8, 2018, beginning at 4:00- p.m. EDT, and a link to this webinar will be provided on the solicitation’s FedBizOpps page.  Proposals are due Friday, Aug. 24.

The House and Senate have agreed to the John S. McCain National Defense Authorization Act for FY 2019. As anticipated, the legislation addresses many small business and innovation policies. Changes relevant to tech-based economic development affect SBIR, advanced manufacturing, and partnerships with defense labs.

SSTI board member Bruce Mehlman, a former George W. Bush administration official and founder of Mehlman Castagnetti Rosen & Thomas, recently published a midterm election presentation that has been discussed by numerous DC publications. Mehlman included an analysis of the last 10 senatorial midterm elections (see slide 15). The results suggest that incumbent senators of a different party than the president are very likely to win reelection, even in states carried by the president.

For the first time, the Chinese venture capital (VC) market has surpassed the U.S. VC market in total dollars invested in Q2 of 2018, according to Crunchbase. Driven by mega rounds and strong corporate VC, Chinese startups were able to raise more VC money in Q2’18 than their American counterparts. The strong Q2 for Chinese’s firms was driven by a very strong April.