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Startup innovators from around the country have the opportunity to exhibit their ideas and win $10,000 during the Catalysts of the Climate Economy national innovation summit in Burlington, Vermont, Sept. 6-8. Innovators in the climate economy are encouraged to enter a contest that will result in five competitors pitching their ideas to a panel of judges, with the winning idea garnering the top prize.

In a recent post, the Brookings Institution’s Mark Muro raises concerns about the U.S. manufacturing sector’s health due to the leading indicators of slowed growth in both auto sector output and auto manufacturing employment. Muro contends that these slowdowns are driven by plateaued consumer demand and automakers investing billions in developing technologies necessary for electric and self-driving cars.

Breaking a two-year impasse, legislators in Illinois were able to pass a state budget that reinstitutes an R&D tax credit and implements workforce development programs. In California, the Governor’s Office of Business and Economic Development (Go-Biz) will see a 28 percent increase in funding, while other innovation initiative are receiving level funding. In other states whose budgets SSTI analyzed this week for TBED-related funding, we found that Innovate Mississippi was able to maintain state funding and new funding was appropriated for workforce development at the state’s community and junior colleges; a variety of programs were cut in North Carolina; and, Ohio will not get funding for a state office focused on commercializing research across key industries that the governor had proposed. More findings from California, Illinois, Mississippi, North Carolina and Ohio are detailed below.

SSTI’s annual conference will focus on building bridges for a better future by establishing new connections and wading through an uncertain political climate during a three-day conference filled with tips and insights. The agenda is now online at ssticonference.org and early bird rates are available. The conference, held in Washington, D.C., Sept. 13-15, will feature speakers on innovation, capital, policy, workforce, R&D, manufacturing and more.

A new survey released by the Pew Research Center reveals a much more negative view of the  impact of colleges and universities on America on the right, with a majority (58 percent) of the Republicans and Republican-leaning independents surveyed saying that colleges and universities have a negative effect on the country compared to 45 percent last August. Democrats and Democratic leaning independents (72 percent) say the colleges and universities have a positive effect.

Unfair treatment is the largest driver of employee turnover in the tech industry, according to a new report by authors at the Kapor Center for Social Impact with support from the Ford Foundation. In the 2017 Tech Leavers Study, the authors surveyed a national sample of 2,000 adults who in the past three years have voluntarily left a job in a technology-related industry. They find that unfairness or mistreatment in the work environment was the most frequently cited reason for leaving (37 percent), especially for professionals from underrepresented populations (e.g., women, black, Latinx, and Native American).

In collaboration with the Angel Capital Association and Pitchbook, the Angel Resource Institute (ARI) released its 2016 Annual Halo Report, which highlights several trends including a decrease in median pre-money valuation from 2015; an increase in the number of syndicated deals; and, data revealing the lack of angel investments in both female- and minority-led startups.

As the state budgeting process comes to a close, SSTI will report over the coming weeks on actions taken by state legislatures to invest in economic growth through science, technology, innovation and entrepreneurship. This week, we look at the budgets passed and signed by governors in Indiana, which includes new funding for an institute focused on health and life-sciences research and commercialization, and Maryland, which includes funding for the Maryland Technology Development Corporation.

In a recent Digest article, SSTI covered research highlighting the oversized role that offshoring multinationals had in manufacturing employment decline from 1983 to 2011. During this time, deindustrialization and manufacturing unemployment had a profound impact on community approaches to economic development.

The Economic Development Administration is seeking applications through June 23 for the 2017 Regional Innovation Strategies program. Through SSTI’s work with Congress, a record $17 million is available this year. Along with increased funding, the notice of funding availability includes a few changes from previous years. More information will also be available in a webinar SSTI is hosting with EDA on May 22 at 3 p.m. EDT.

On April 27, Federal Communications Commission (FCC) Chairman Ajit Pai released a Notice of Proposed Rulemaking (NPRM) that would impact net neutrality in the U.S.. The Restoring Internet Freedom act, which will be voted on at the May 18 FCC meeting, would end the utility-style regulatory approach intended to preserve net neutrality. Pai’s office contends that the FCC 2015 decision to subject internet service providers (ISPs) to Title II utility style regulations reduces the incentive for innovation in the industry and threatens the open Internet it is purported to preserve.

Could Jill Watson be the typical graduate assistant of the future? Watson was Georgia Tech’s first AI teaching assistant that fooled some in the computer science class into thinking the assistant they were dealing with in an online forum was human. New methods of teaching and training are being explored to handle the growing needs of filling middle-skilled jobs, according to several recently released reports. A new report from the Pew Research Center focuses on whether workers will be able to compete with artificial intelligence tools and whether capitalism itself will survive. Two other reports released last month by the National Skills Coalition stress workforce training through work-based learning policy and surveys all the states for the effectiveness of such programs, and provides policy recommendations by revisiting a November report. The new Pew report, The Future of Jobs and Jobs Training, begins by asserting that “massive numbers of jobs are at risk” as smart, autonomous systems continue to infiltrate the workplace. Solutions evolving from conversations surrounding the topic include changes in educational learning environments to help people stay employable in the future, the report says.

Every state and the District of Columbia experienced real GDP growth in the fourth quarter of 2016, according to the latest estimates released by the U.S. Bureau of Economic Analysis. The positive news means only energy-dependent Alaska, North Dakota and Wyoming saw real GDP fall over the year compared to the end of 2015. Experiencing growth of more than 5 percent between 2015 and 2016 were the District of Columbia, Nevada, Utah and Washington.

The Kauffman Foundation released a new report analyzing entrepreneur development in St. Louis and Kansas City. Entrepreneurial Ecosystem Momentum and Maturity, The Important Role of Entrepreneur Development Organizations and Their Activities, by Ken Harrington, proposes a framework that names a four-step entrepreneur development process from problems and ideas to customer-funded venture that feeds into higher-stage venture development and, ultimately, economic development. Under this framework, Harrington explores how entrepreneurship is supported in each community by organizations such as KCSourceLink and BioSTL.

SSTI continues its reporting on actions taken by state legislatures to invest in economic growth through science, technology, innovation and entrepreneurship. This week, we look at the budgets passed and signed by governors in Iowa, New York and North Dakota, finding mostly level and some increased funding for innovation programs in Iowa and New York – including free tuition at in-state colleges for qualifying residents – while North Dakota is looking at decreased funding for programs.

In a market economy, what people are willing to pay determines something’s value. Airline tickets are a good example. For most of the major airlines, the price to purchase a seat the day of a flight seems to be some multiple of how much the airline thinks they can get away charging versus any drive to actually see the seat used. This supply-demand principle falls apart though with valuations set for startup companies funded by equity investors, such as angels or venture capitalists. In the risk capital business, a number of possible factors influences a startup company’s value – most tied to future markets, comparables, or dreams of big exits. Recent research from the University of British Columbia and Stanford University suggests just how surprisingly risky – and overly optimistic – this approach is.

In an unexpected twist, the FY 2017 budget passed earlier this month by Congress has more dislikes than likes for evidence-based program and policy design, despite being embraced strongly by both Presidents Donald Trump and Barack Obama. Masked under a variety of different nomenclatures – performance contracting, social impact bonds, pay for success, for example – evidence-based programming incorporates rigorous metrics to assess the effectiveness of public policy toward meeting its goals and basing expenditures accordingly.

Adults in Tennessee seeking to return to the classroom will have a new option for free tuition at community colleges, part of an expansion of the Tennessee Promise scholarship program. The newly passed and expanded Tennessee Reconnect legislation extends eligibility for free tuition to persons who have been out of school for longer periods of time or who may have never attended college. It is part of Gov. Bill Haslam’s “Drive to 55” focus, where he hopes to increase the percentage of the state’s adults equipped with a college degree or certificate to 55 percent; it is currently closer to 30 percent in Tennessee.

On May 16 of last year, the Securities and Exchange Commission (SEC) finally allowed both accredited and non-accredited investors to engage in regulation crowdfunding. Under the new SEC rules, startups and other private companies could offer equity in return for capital to help support business growth. As of May 2017, total contributions under the regulation crowdfunding into startups and small businesses are over the $40 million mark with an average investment of $833 per investor.

In part one of two, SSTI will examine NIH’s proposed changes that will place limits on individual researcher funding.

On May 2, the National Institutes of Health (NIH) announced that it intends to implement a new approach to grant funding with the purpose of increasing the number of researchers receiving grants. These proposed changes are due to a highly skewed distribution of NIH funding with 10 percent of NIH-funded investigators receiving over 40 percent of funding. NIH intends to roll out specific policies and procedures as part of the new approach – titled the Grant Support Index (GSI) – that will assess effectiveness of NIH research investments. During this time, NIH also will seek feedback from on how best to implement the individual grant funding limits.

The 2017 SSTI Creating a Better Future Award provides the perfect opportunity to show other practitioners, as well as policymakers, the success you have achieved at creating a better future for your region through science, technology, innovation and entrepreneurship. To be eligible, submit a brief application that highlights one of your organization’s most successful initiatives. Award categories encompass research; entrepreneurship and capital; competitive industries and economic opportunity; and, recognition for the most promising initiative. Check out the categories and more information at sstiawards.org.

Visit our SSTI awards resources page for the call for applications, writing samples, and to listen to the information call.

Don’t delay – deadline for applications is May 26.

SSTI continues its reporting on actions taken by state legislatures to invest in economic growth through science, technology, innovation and entrepreneurship. This week, we look at the budgets passed and signed by governors in Arizona, where R&D infrastructure will get a boost at the state’s public universities, Montana, which will see an increase in funding for some higher education research facilities, and Nebraska, where the state maintained the amount authorized for funding to small businesses for commercialization activities.

Arizona

Michigan’s University Research Corridor, an alliance of Michigan State University, the University of Michigan and Wayne State University, conducted $1.2 billion in academic R&D in the life, medical and health sciences, and served as a stabilizing force to the state’s economy as one of the only sectors that grew during the 2000s. Those are among the findings of the 2017 URC sector report, which was prepared by Public Sector Consultants. The report, Leading Discovery: URC Contributions to the Life, Medical and Health Sciences, notes that employment in the life, medical and health sciences sector, which accounts for one in eight jobs in Michigan, is up 18.9 percent since 2000, compared to overall Michigan employment, which is down 9.3 percent.

Although it has been slated for elimination under the president’s proposed budget, the Advanced Research Projects Agency-Energy (ARPA-E) program is making progress toward achieving its statutory mission and goals, and it “cannot reasonably be expected to have completely fulfilled those goals given so few years of operation and the size of its budget.” That is among the findings released this week by the National Academies of Sciences, Engineering and Medicine (NASEM) in its assessment of ARPA-E. The project was overseen by the Board on Science, Technology, and Economic Policy (STEP) and was tasked with assessing ARPA-E’s progress toward achieving its statutory mission and goals, and determining whether it is on a trajectory to achieve them. In short, the answer is that it is.

After much criticism, the National Institutes of Health (NIH) announced that it will abandon the Grant Support Index (GSI) plan – a strategy to bolster NIH funding support for the next generation of researchers by placing limits on individual research funding which SSTI previously covered.. Instead, NIH will launch the Next Generation Researchers Initiative (NGRI) that will allocate $1.1 billion over the next five years to support nearly 2,400 new grants for early and mid-career researchers whose grant proposals receive high scores, but fall short of receiving funds. At this time, however, there was no immediate promise of where that money would be found, according to an article in the The Chronicle of Higher Education.