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Although the growth of young entrepreneurial businesses has increased it has not yet returned to pre-Recession levels, according to new research from the Kauffman Foundation. The Kauffman Index of Growth Entrepreneurship measures the growth of entrepreneurial businesses in the United States. In 2016, the index experienced the largest year-over-year increase in the last decade, according to its authors, Kauffman researchers Arnobio Morelix, E.J. Reedy, and Joshua Russell. Despite this uptick, however, entrepreneurial growth is still down compared to the levels experienced in the 1980s and 1990s.

The Department of Energy’s (DOE) Office of Energy Efficiency and Renewable Energy (EERE) released a notice of intent to establish and sustain a Clean Energy
Manufacturing Innovation Institute for Reducing Embodied-Energy and Decreasing Emissions (REMADE) in materials manufacturing. The $70 million funding opportunity
will be released in June to enable the development and widespread deployment of key industrial platform technologies that will dramatically reduce life-cycle

As the National Science Foundation (NSF) celebrates its 66th birthday, NSF’s Director France Córdova unveiled a nine-point research agenda to shape the federal agency’s future for the next several decades. These nine big ideas are intended to “illustrate how increased support for the type of basic research that NSF funds could help answer pressing societal problems,” according to an article from sciencemag.org. NSF’s leadership also hopes to build public and subsequent federal government support for significant federal investments in its agenda as well as spark the interest of industry and foundations to invest alongside the federal government. In addition to NSF’s release of a proposed long-term research agenda, two reports focused on Big Data and advanced computing infrastructures were also released by the federal government in May.

Although many leaders of high-tech incubator and accelerator programs do not currently offer targeted programs to ensure inclusivity of all populations, they have conveyed they would like to do so, according to new research from the Initiative for the Competitive Inner City (ICIC), with financial support from JP Morgan Chase. The research brief, which was unveiled this week as part of Detroit’s Startup Week, draws on interviews with more than 75 entrepreneurship, incubator and accelerator program managers to identify barriers to inclusivity and present potential strategies that could increase the participation rates of women and minority entrepreneurs.

One of the recurring characteristics of entrepreneurs, based on numerous biographies and case studies, is a driven self-confidence that may border, in some circles, as excessive or even narcissistic. Closer scrutiny, of course, shows there is no such thing as the “self-made” person, but entrepreneurship still is described often as a heroic, lone-wolf quest. Is it paradoxical to advocate for and even expect mentoring and “how to” entrepreneurship training to work? Wouldn’t “real” entrepreneurs leading promising startups succeed without the advice? A recent working paper describes an experiment that attempted to address this issue.

SSTI is excited to announce the 2016 SSTI Excellence in TBED awards program. For the last nine years, SSTI has recognized initiatives that greatly impact state and regional economies a national competition showcasing effective and innovative approaches to building tech-based economies. To mark the program’s 10th anniversary, we will be announcing several changes to the program the next couple weeks – so stay tuned!

In this week’s Digest, we wanted to highlight several of the key dates for the 2016 competition:

In Moneyball: The Art of Winning an Unfair Game — a New York Times bestseller by Michael Lewis from 2003 – the author focuses on the successful approach of Major League Baseball’s (MLB) Oakland Athletics and its general manager Billy Beane’s use of an analytical, evidence-based, sabermetric approach to assemble a competitive baseball team. Conventional wisdom of the time focused on traditional scouting and non-advanced statistics.

Because they focus on attracting mature firms through relocation incentives, job creation strategies at the state level are often misguided, according to the Center on Budget and Policy Priorities. Despite this, many metropolitan regions are increasingly focusing their efforts on attracting and retaining the high-growth firms responsible for an oversized share of job growth and economic output. While considerable research has focused on the important role that startups and high-growth firms play in the national economy, relatively little has been done to apply a regional lens to this phenomenon. New research, tracks high-growth firms over a multiple-year period to assess how their changing operations can inform regional economic development.

Todd Connor, CEO of Bunker Labs, begins his pitch in front of a Startup Week event in Columbus, Ohio with a compelling statistic. In the six years following WWII, 50 percent of returning veterans started their own businesses. Today, only 6 percent of post-9/11 vets do the same, despite surveys showing four times that number would like to do so.  What has changed to lead to such a contrast and entrepreneurship gap?

The latest Angel Resource Institute (ARI) survey of returns for nearly 250 angel investments reveals the number of projects failing to breakeven during their liquidity events is up sharply since before the Great Recession – nearly 35 percent more are losing money for their angels than ARI found in a 2007 survey.  In 2007, 52 percent of liquidity events failed to reach 1x, while that figure has grown to 70 percent in 2016. Add to that, angel investors are holding companies in their portfolios 12 months longer on average, 4.5 years in 2016, than they did in the first study.

A mixture of success and trepidation accompanied 2016 legislation introduced in  several states to create, extend, or recapitalize angel tax credit programs. While legislation in Arizona’s legislature failed due to a lack of support, angel tax credit bills in Kansas and Tennessee passed easily with broad support from their governors, lawmakers, and the public. In North Dakota, the state’s angel tax credit program faces an unclear future due to concerns about transparency and oversight. To stimulate investments in West Virginia’s startup community, Gov.

SSTI’s 2016 Annual Conference is November 1-3 in Columbus, Ohio. The agenda will cover the entire innovation ecosystem, including accessing capital, supporting entrepreneurs, developing clusters and expanding R&D. We would appreciate your help identifying specific session topics. Provide your input by responding to this brief survey by May 18—and you will be entered to win a free registration for an SSTI webinar. Take the survey...

Are you interested in influencing the design and development of national policy solutions to challenges in the innovation economy? The U.S. Department of Commerce is seeking applications for membership on the prestigious National Advisory Council on Innovation and Entrepreneurship (NACIE), which advises the secretary on fundamental issues affecting state, regional and university based innovation initiatives.

To mark the 10th anniversary of the SSTI Excellence in TBED awards program, we have made some exciting changes to the categories. Since last year, we have combined some categories with the intent of better reflecting the ever-evolving field of tech-based economic development and added a new category to reflect burgeoning activity in a new area.

Vice President Joe Biden announced a $100 million competition to expand tuition-free community college programs that connect young Americans to in-demand jobs. To support a growing trend of free community college programs, America’s Promise Job-Driven Training grants (America’s Promise Grants) will provide federal funding for the creation and expansion of regional and sector partnerships between community colleges, local industries, other training providers, employers, and, the public workforce system targeted at in-demand middle and high-skilled jobs across the country.

The United States Department of Agriculture (USDA) announced last month the availability of more than $11 million in grants to support rural broadband through its Community Connect grant program, which seeks to help fund broadband deployment into rural communities where it is not yet economically viable for private sector providers to deliver service. For FY 2016, the minimum grant amount is $100,000, while the maximum award is $3 million.

While the first quarter of 2016 was slow for venture capital investments in the United Kingdom (UK), recent weeks have seen significant new developments in both financing and converting technologies from six UK universities into the marketplace.  The goal of these new funding initiatives is, in part, to improve the survival rate of small- and medium-sized businesses (only 45 percent of all UK startups survive beyond the first five years).

A new report from the Lumina Foundation finds the U.S. is making progress in the number of Americans holding high-quality credentials beyond high school diplomas. For the seventh straight year, the percentage of the country’s working age population (age 25-64 years) with a quality post-secondary credential increased, reaching 45.3 percent in 2014. Even with the progress that has been made, however, the U.S.

The Department of Energy (DOE) announced today that they are seeking proposals for a new Clean Energy Manufacturing Institute, a part of the National Network for Manufacturing Innovation (NNMI). The $70 million Modular Chemical Process Intensification Institute will focus on developing breakthrough technologies that increase the energy efficiency of manufacturing processes used across an array of U.S. industries.

The Small Business Administration (SBA) announced the 2016 Growth Accelerator Fund competition. In its third year, the SBA will commit up to $3.95 million for accelerators and other entrepreneurial ecosystem models to compete for monetary prizes of $50,000 each. This year, the SBA will partner with several other federal agencies – NIH, NSF, Department of Education, and USDA – to provide additional prizes to accelerators that assist entrepreneurs with submitting proposals for the Small Business Innovation (SBIR) and Small Business Technology Transfer (STTR) programs. Applications must be submitted by June 3.

Wells Fargo & Company released a five-year, company-wide corporate social responsibility (CSR) strategy that includes significant commitments to inclusion, innovation, small business lending, and community investment. Its 2020 social commitment will target three commitment areas – diversity and social inclusion; economic empowerment; and, economic sustainability.

Coming off a record setting year, industry analysts contended that there would be a more cautious U.S. venture capital industry (VC) in 2016 with discussion of a VC bubble. However, in Q1 of 2016, venture capitalists invested more than $10 billion for the ninth consecutive quarter with little concern over a bubble. In total, VCs invested $12.1 billion in 969 deals in the Q1 of 2016, according to the MoneyTree Report from PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA). At the same time, U.S. venture capital firms raised $12.0 billion for 57 funds during Q1 of 2016, making it the strongest quarter for funds raised since Q2 of 2006, according to the Fundraising Report by Thomson Reuters and NVCA. A review of the data indicates continuation of trends in where venture capital is being invested, the decline of investment in seed stage companies, and increasing corporate venture capital activity with 20.6 percent of funds invested in Q1 of 2016 coming from corporate venture capital.