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Venture capital (VC) financing is a highly competitive process that backs only 1 percent to 2 percent of all startups that apply for funding, leaving many searching for financing alternatives.  In this two-part feature, SSTI examines the typical VC model, its advantages and limitations, and next week will highlight alternatives such as revenue-based financing, venture debt, crowdfunding and a new financing model for cleantech proposed

Mosquito-resistant uniforms for U.S. military personnel and a bio-refinery that turned a city landfill into an “energy park” are two new developments resulting from investments in scientific research by the U.S. Department of Agriculture.  The USDA Annual Report on Technology Transfer for FY 2015 includes new agriculture-related discoveries, inventions and processes made by USDA researchers, universities and small businesses with the potential for commercial application.

The country’s competitive position in the global economy hinges on developing broad-based understanding and support for federal policies that will spur innovation and growth.  The policy discussions surrounding the high-tech economy should encompass all congressional districts, not just the iconic places like Silicon Valley, according to a report released this week by the Information Technology and Innovation Foundation (ITIF).

University research and development expenditures reached $68.8 billion in FY 2015, an increase of 2.2 percent from FY 2014, according to recently released data from the Higher Education Research and Development (HERD) Survey by the National Center for Science and Engineering Statistics within the National Science Foundation. While the bulk of the funding (55.2 percent of total R&D expenditures) comes from federal expenditures, in current dollars, federally funded R&D at universities dropped 0.2 percent from $37.96 billion to $37.88 billion in FY 2015. Meanwhile, nonfederal R&D expenditures accounted for 44.8 percent of the total in FY 2015 compared to 43.5 percent in FY 2014 growing from $29.24 billion in FY 2014 to $30.79 billion in FY 2015. The greatest increase came from the business community (which increased their funding by 7.5 percent to top $4 billion for the first time), followed by nonprofit organizations and institution funds. Universities’ own funding of R&D comprises the largest source of non-federal R&D funding, or $16.7 billion in FY 2015.

More than 48,500 are employed in West Virginia’s STEM-related fields, according to an October survey, A Survey: STEM Jobs in West Virginia in 2015, commissioned by TechConnect WV and the West Virginia Department of Commerce.

Cornell University has been selected to host a new Innovation Corps (I-Corps) node through a grant provided by the National Science Foundation (NSF). It, along with four other existing hubs, received new grants ranging between $3.4 million and $4.2 million to be awarded over a five-year period. The I-Corps nodes are designed to support research and innovation and teach entrepreneurship in higher education.

The U.S. Department of Commerce’s Economic Development Administration (EDA) announced a number of grants last week to aid regional innovation and entrepreneurship efforts through infrastructure improvements, the creation of new spaces, and business improvements in regions across the country. The grants fund projects in AR, AZ, CA, ME, MI, and OH.

Critical issues for the innovation economy seemed to play a prominent role early in this presidential campaign cycle. Bernie Sanders pushed to make college debt free, Republicans incorporated H-1B visas into their immigration stances and Hillary Clinton proposed a platform to support innovation. After one presidential and the vice-presidential debate, however, innovation, technology and education have received very limited attention. However, moderators for Sunday’s debate will be looking at the top 30 questions voted on by the public for possible inclusion in the next debate. The current top 30 suggestions indicate the public wants to hear answers to real policy questions, including a few on the economy and education. There is still time for you (and colleagues, friends, etc.) to help ensure that some of the more relevant items are selected.

Although much has been written on the value of immigrant entrepreneurship, relatively little research to date focuses on strategies for supporting these individuals. Welcoming America, a national nonprofit and non-partisan organization focused on immigrant inclusion, has addressed this gap by releasing a how-to-guide for those interested in supporting immigrant entrepreneurship in their cities. Produced with Global Detroit, an initiative focused on southeast Michigan’s international community, Seeds of Growth describes practical ways for regions across the nation to leverage opportunities associated with including immigrant entrepreneurs in local economic development strategies and programs.

Between 2010 and 2015, the vast majority of metro areas experienced growth in gross metropolitan product (GMP), led by energy-intensive regions such as Odessa, TX, and Bismarck, ND, according to an SSTI analysis of recently released data from the U.S. Bureau of Economic Analysis (BEA). The Elkhart, IN, and San Jose, CA, metropolitan areas experienced the largest increase in GMP per capita over the same period.

While the number of companies receiving venture capital (VC) backing continues to decline, the amount of money invested remains near record levels. As of Q3, the annual investment total for 2016 is approximately $56 billion invested across 6,000 companies.

While academics and policymakers have rushed to embrace venture capital (VC) investors, they have had a tendency to neglect other entrepreneurial financiers (specifically angel investors) who critically affect the success and growth of new ventures, according to a new study from Josh Lerner of the Harvard Business School and Antoinette Schoar of the MIT Sloan School of Management.

The Federal Trade Commission (FTC) issued a report calling for reforms aimed at patent “trolls” to help lower the number of frivolous lawsuits filed by shell companies, a move welcomed by the tech industry that has pushed for reform because of the cost of lawsuits that result from the activity and its negative effect on innovation, research and development.

The National Science Foundation (NSF) is seeking preliminary proposals for $18.5 million in funding to support the Smart & Connected Communities (S&CC) program. The NSF expects to make 18–29 awards in the following four categories:

Practitioners in the technology-based economic development field often face questions about what they do, or what the field entails. The answer can be a challenge. Is it attracting high-quality jobs and businesses to an area, finding capital to finance science and tech startups, STEM education support, educating a new workforce, bringing research ideas to the marketplace, partnering with other organizations to achieve all those goals? It can be a mouthful, and it can be difficult to convey all those ideas in simple terms.

The majority of Americans say new skills and training are critical to their future job success and to remain competitive in changing workplaces, according to a new report issued by the Pew Research Center in association with the Markle Foundation. This was particularly true for individuals working in STEM occupations, where roughly two-thirds of employed adults responded that ongoing training and skills development would be essential to their development.

The U.S. Department of Agriculture (USDA) announced the launch of the McLarty Capital Partners’ Rural Business Investment Company (RBIC) – a new private investment fund with the potential to inject $100 million into growth-oriented, small businesses across rural America. As the fifth RBIC to launch since 2014, McLarty Capital Partners’ RBIC is part of the Made in Rural America initiative, an ongoing effort by the Obama administration to attract private sector capital to investment opportunities in rural America and drive more economic growth in rural communities.

Despite Brexit and political uncertainty in the U.S., stability is returning to the global VC market as investors shift from new unicorn chasing and a renewed interest in global initial private offerings (IPOs) by late-stage startups, according to a new report from CB Insights – Venture Pulse Q3 2016.

With the visionary language of large federal initiatives like the “Cancer Moonshot” or provocative branding such as “NIH…Turning Discovery into Health®” and the National Institute of Health website further touting “revolutionary ideas often come from unexpected directions,” one might assume an equally ambitious approach is being taken to ensure federal life sciences research is going toward research with the most promise for positive impact and scientific a

While progress has been made, challenges remain in the goal to advance cancer research, according to the “Cancer Moonshot” report Vice President Joe Biden delivered to the White House on Monday. The “Cancer Moonshot” is the current administration’s effort to accelerate 10 years’ worth of progress in cancer prevention, diagnosis and treatment into just five. The Washington Post detailed remaining challenges, including a lack of coordination among researchers, outdated funding cultures and slow dissemination of information regarding new treatments. The White House has urged Congress to approve $1 billion in funding for the effort, along with money for other health initiatives and the National Institutes of Health.

The National Nanotechnology Initiative (NNI), established in 2001 as a collaboration of 20 federal agencies and cabinet-level departments with an interest in nanotechnology R&D and commercialization, has released a draft of its 2016 strategic plan. The National Nanotechnology Initiative Strategic Plan, which describes the initiative’s vision and goals as well as potential strategies to achieve these goals. The plan is an update to and a replacement of a plan originally released in December 2013. Prior to the new plan’s official publication, the public is encouraged to submit comments online by September 23, 2016.

The Communities That Work Partnership, a national project to support industry-led workforce development efforts, has released seven case studies highlighting what it considers to be best practices for regions seeking ways to strengthen talent pipelines for local employers and improve access to quality employment for jobseekers. Launched in April 2015 by the Aspen Institute Workforce Strategies Initiative and the Economic Development Administration, with additional support from the Charles Stewart Mott Foundation, the partnership has two goals: to accelerate regional economic development through peer learning, and to document stories of how regional teams can improve links between the demand side and supply side of regional systems.

On September 2, Texas Gov. Greg Abbott announced $7.2 million in funding for the newly established Texas Industry Cluster Innovative Academies. An element of Gov. Abbott’s Tri-Agency Workforce Initiative established in March 2016, the initiative will provide competitive grant funding to establish Innovative Academies within Texas high schools to provide students with learning opportunities in high-demand occupations while earning college course credit prior to high school graduation.

As the school year kicks off, several corporate foundations have announced new commitments to support hands-on K-12 science, technology, engineering and mathematics (STEM) experiences for children across the country. These new partnerships continue a trend of corporate funders bypassing funding for STEM curriculum development to focus on active learning experiences that are shown to have positive impact on STEM retention.

The National Science Foundation (NSF) has announced the recipients of 37 Design and Development Launch Pilots as part of its INCLUDES initiative. NSF INCLUDES invests in alliances and partnerships that seek to broaden STEM participation among underrepresented groups, including women, Hispanics, African Americans, Native Americans, persons with disabilities, people from rural areas and people of low socioeconomic status.