The AI market is projected to reach $4.8 trillion by 2023—a 25x increase in just 10 years, according to the UN Trade and Development (UNCTAD) 2025 Technology and Innovation report. The technology will be leap-frogging other “frontier tech markets,” including the Internet of Things, which currently dominates 36% of the market for emerging platform technologies. The super-charged AI market will impact up to 40% of global jobs, both positively and negatively.

From 2022 to 2023, domestic R&D expenditures increased 4%, or $29 billion, but remained nearly unchanged when adjusted for inflation. This apparent slowdown follows a streak averaging nearly 12% ($59 billion) year-over-year growth from 2018 to 2022, and 8% over the past decade from 2014 to 2023. Adjusting for inflation paints a different picture of the growth trends, with a more modest annual average of 8% from 2018 to 2022 and 6% over the past decade.

Commercializing patented inventions is a common goal of innovation policy, as it drives company revenues and regional economic growth. However, tracking the commercialization of inventions stemming from R&D is challenging. While programs like the Small Business Innovation Research (SBIR) program are explicitly designed to encourage commercialization, most evaluation tools rely on approaches that may be anecdotal or incomplete, such as surveys, case studies, or patent counts.

Long concentrated geographically, venture capital also is growing more concentrated in a small number of larger deals, as SSTI has reported in recent Digest issues. In fact, deals under $100 million—not a small figure in itself—have fallen by 71% according to SSTI’s analysis of PitchBook data. Even more troubling is evidence showing deals under $100 million are moving to later-stage investment and away from early-stage companies.

The U.S. National Science Foundation (NSF) is requesting information from the public to help shape potential future updates to its Key Technology Focus Areas (KTFAs). NSF’s KTFAs directly influence and shape innovation- and economic development-related programs.

SSTI has updated its Key Technology Area Investment Data Tool with new and refreshed data spanning January 1, 2013, through June 30, 2025. The tool comprises two interactive visuals and uses Pitchbook technology verticals selected to align with many of the key technology focus areas (KTFAs) defined in the CHIPS and Science Act of 2022 (CHIPS).

Over the past 40 years, many people involved in SBIR and empirical analysts in the research, finance, and technology sectors have said SBIR awardees, as a group, are uniquely important for America’s innovation goals.

Please note: this article is not intended as a comprehensive review of Public Law No. 119-21, nor should our reading of the law be treated as tax or legal advice.

The overlap between applicants and recipients of the three large regional innovation approaches attempted by the federal government so far continues with the July 9, 2025, NSF narrowing of the field for the second NSF Regional Innovation Engines competition to 29 semifinalists across the country.

This week’s 2025 off-year elections resulted in two new governors, solidified legislative Democratic majorities in New Jersey and Virginia, and the approval of significant ballot measures in California and Texas. While the gubernatorial campaigns centered on affordability and tapped into an electorate’s concerns about state and national economies, they also kick off speculation on the 2026 midterms.  

Just 19% of the approximately 25,000 census tracts potentially eligible for Opportunity Zone (OZ) designation are “More likely to attract OZ investment, with larger impact,” per the Urban Institute’s new OZ Designation Tool.1 The majority (68%) of potentially eligible tracts were found to be “Less likely to attract OZ investment,” while the remaining 13% were determined likely to attract capital regardless of OZ designation.

College is often the time when students discover which career path they want to pursue, through coursework, internships, and hands-on experiences. New research examining state minimum wage increases, however, shows how budget pressures can disrupt access to these formative opportunities and ultimately affect who enters STEM careers.  

The U.S. Department of the Treasury (Treasury) recently issued three new FAQs for the State Small Business Credit Initiative 2.0 (SSBCI) program. These FAQs clarify and reiterate the timeline for the end of the Capital Program, and the deadlines by which participating jurisdictions must request disbursement of any remaining allocated Capital Program funds.

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As the first group of Tech Hub awardees approaches the end of their first year of implementation funding, hubs are gathering their consortia to share progress and chart next steps. As part of SSTI’s work with the Technology-based Economic Development (TBED) Community of Practice, program director Casey Nemecek attended the annual consortium meetings for two hubs in October: the Sustainable Polymers Tech Hub and the Nevada Tech Hub.