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Numerous foundations are investing in and partnering with anchor institutions to support inclusive and equitable community and economic development, according to a new report from the Funders’ Network for Smart Growth and Livable Community. The report, Anchored in Place: How Funders Are Helping Anchor Institutions Strengthen Local Economies, stems from a study by the Anchor Institutions Funders’ Group (AIFG), a working group established by the Funders’ Network. The report also includes case studies on how funders are working with anchor intuitions in Albuquerque, Baltimore, Chicago, Denver and Minneapolis-St. Paul.

With a July 1 start to the fiscal year in most states, several states that were at an impasse over their budget faced at least partial shutdowns. Last minute negotiations restarted services in both Maine and New Jersey, while Illinois, which has been operating without a budget since 2015, faces threats of a downgrade in their credit rating if a deal cannot be reached. This week we present our findings of innovation funding from seven states, including $2 million in funding for a new public-private economic development organization in Delaware, an increase in funding in Louisiana for the state’s scholarship program for higher ed, and cuts to higher ed funding in Missouri, which also saw a severe drop in its funding to the Missouri Technology Corporation. Efforts in Maine, New Hampshire, Vermont and Washington are also detailed below.

More can be done at the state level to encourage growth in U.S. manufacturing, according to a recent presentation by Robert Atkinson, president of the Information Technology and Innovation Foundation (ITIF). In the presentation, held earlier this month at the National Conference of State Legislatures’ (NCSL) summer meeting, Atkinson suggested that there is a role for state policymakers to address each of the four T’s related to sound manufacturing policy: trade, tax, technology, and talent.

SSTI’s analysis of approved FY2018 state budgets continues with a review of action by the Georgia and Utah legislatures. Stability is the word for both states with level funding for the Georgia Research Alliance, Georgia Tech’s Enterprise Innovation Institute, and Utah’s USTAR program. The Georgia legislature did approve the governor’s proposal to increase funding for scholarship programs by $50 million.

Georgia

A House bill that would allow manufacturers to sell up to 100,000 self-driving cars each and bar states from restricting their operation passed both its subcommittee and the Energy and Commerce Committee unanimously last month. Concerned about potential job loss, unions representing truck drivers successfully lobbied the House to exempt commercial trucks from the “highly automated vehicle” definition the law affects for the time being.

The Federal Reserve Bank of New York reported that startup firms (small businesses that were five-years-old or younger and had full- or part-time employees in 2016) were twice as likely to be adding jobs and growing revenues but more likely to be higher credit risk than mature firms. The 2016 Small Business Credit Survey: Report on Startup Firms provides an in-depth look at the financing and credit experiences of the startups.

After arduous processes in both Kansas and Rhode Island, the states have newly-enacted budgets in place that have retained some funding for TBED initiatives. Kansas was able to fund programs that will focus on a skilled workforce and research and development, while Rhode Island will see the creation of a pilot program for free tuition at community colleges through a scaled-back version of the governor’s proposed RI Promise.

Kansas 

As more state legislatures are coming to the close of their sessions, more state budgets are being finalized.

Over the last several months, economic development organizations, universities, and their partners have announced new efforts to create the building blocks for entrepreneurial development in rural communities. Examples include i2e announcing new efforts to expand entrepreneurial support services to rural communities in Oklahoma and three Indiana universities partnering to support startup growth in rural regions across the state.

In partnership with the National Science Foundation (NSF), the Department of Agriculture (USDA) announced the Innovations in Food and Agricultural Science and Technology (I-FAST) prize competition.

There are numerous opportunities for leaders at community colleges to collaborate with the private sector around combatting the skills gap and making workforce development programs more effective for students, according to a new report by Elizabeth Mann of Brookings’ Brown Center for Education Policy.

SSTI encourages organizations dedicated to serving entrepreneurs to participate in the creation of a new primary data set on the impacts resulting from your efforts. The deadline for participation is August 16.

In an effort designed to stimulate economic growth and workforce development in Ohio and New York communities, KeyBank Foundation announced a $24 million grant awarded to JumpStart, Inc. The grant represents the foundation’s single largest philanthropic commitment to date.

Foreign investors expended $373.4 billion in 2016 to acquire, establish, or expand U.S. businesses — a 15 percent decrease (approximately $66.2 billion) from $439.6 billion in 2015 — according to an infobrief from the Bureau of Economic Analysis (BEA). Of that $373.4 billion, approximately $5.6 billion was deployed to support the creation of new businesses.

Some states are better positioned for success in the data economy than others, but all have opportunities for growth, according to a recent report from the Center for Data Innovation. To determine The Best States for Data Innovation authors Daniel Castro, Josh New, and John Wu use 25 indicators across three dimensions: data availability, digital infrastructure, and human and business resources. The authors suggest that all states are capable of improving their capacity for data-driven innovation. To do so, they recommend that state policymakers: make their data accessible and transparent; develop infrastructure items such as broadband Internet and smart connectivity; and, support the use of data to make existing industries more competitive.

Using the latest data update of the National Science Foundation’s National Patterns of R&D Resources series, this article, the third and final of SSTI’s series on basic research, describes how the performers of R&D and basic research in the U.S. have changed over time.

Over the past week, the U.S. Senate Committee on Appropriations has passed bills to fund commerce and science, transportation, energy and water and agriculture. Regional Innovation Strategies would be funded at $21 million, an increase of $4 million over FY 2017. Other innovation proposals received mixed support, as the Senate cut $3.2 billion from commerce, justice and science funding and another $400 million from agriculture.

As we enter the second half of 2017, the U.S. venture capital (VC) market is driven by several noticeable trends. After peaking in 2015, the current VC market continues its slow decline in the number of deals, but Q2 of 2017 saw a spike in mega-rounds – rounds of $100 million or more. These mega-rounds are accompanied by strong fundraising efforts including a record-setting mega fund launch.

The number of minority-owned employer firms in the United States inched closer to the million-mark in 2015 after growing by 4.9 percent from the previous year, according to recently published data from the U.S. Census Bureau’s Annual Survey of Entrepreneurs. The 996,248 minority-owned employer firms in the U.S. employed roughly 8.0 million people in 2015 (6.2 percent increase from 2014) and had payrolls of $254.0 billion (8.0 percent increase from 2014).

From Main Street businesses to technology startups, research has shown the rate of new business formation in the United States has plummeted since the 1970s. In the past year, the Digest has frequently cited research from the Economic Innovation Group (EIG), the Kauffman Foundation, and the Federal Reserve on the impacts of declining dynamism on America’s economic outlook. A recent letter by economists at the Federal Reserve Bank of San Francisco suggests that an often-overlooked aspect of business formation is the availability of labor, and that policies that seek to improve and deepen the labor pool may help increase new business growth.

The second in SSTI’s series on basic research, this article focuses on the ways that the funding sources of R&D and basic research have changed over time. Ultimately, the nature of basic research – long horizons, unknown rewards, and high costs – indicates why some sectors, namely the private sector, may seek shorter term options. A better understanding of the changing nature of funding sources for basic research may be useful in understanding the current state of research and development in the U.S.

Innovation in the United States, once a hallmark of economic success, finds itself resting on an increasingly weak foundation, according to an article in The New York Times. The author, Eduardo Porter, suggests that two trends – increased international competition and a stagnant R&D-to-GDP ratio – pose key challenges for the U.S. First, government funding for basic research continues to fall and is politically vulnerable. Second, evidence suggests that American corporations are walking away from basic science as well. Each of these challenges, Porter notes, bodes poorly for American progress. Using a variety of data sources, this Digest series provides a long-term analysis to assess how basic research has changed over time within the larger context of research and development in the United States.

Restoring America’s competitive edge requires a new approach to managing suppliers, one where all the players are connected, collaborative, and focused on maximizing shared value – a “smart supply chain” – says a new report from MForesight.

An SSTI analysis of exits occurring during the second quarter by a number of venture development organizations reveals equity investment in innovation companies undertaken as strategic public-private partnerships for regional growth can yield more for their communities than just hitting the return on investment expectations of seed and traditional venture capital. The recent exits highlighted below reveal a variety of economic development impacts resulting from effective innovation investment strategies, including:

Presently, the IRS provides private foundations a tax break if they show a trend of exceeding qualifying distribution requirements (grants).