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The president’s FY 2018 request for discretionary budget authority to fund programs and operating expenses is $21.0 billion, approximately $4.8 billion below the 2017 estimate in discretionary program funding for the Department of Agriculture (USDA). This includes funding for Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Rural Development, Forest Service, food safety, research, and conservation activities. However, the budget does not include the USDA reorganization plan that was announced by Secretary Sonny Perdue on May 11, which proposes a change in status for Rural Development.

The Employment and Training Administration (ETA) within the Department of Labor would receive $6.9 billion under the president’s proposed FY 2018 budget, a $3.1 billion (31.1 percent) decrease from the FY 2017 approved budget.

The president’s budget for FY 2018 would eliminate funding for numerous innovation programs, slash spending on R&D and technology transfer and limit education and training opportunities. The full budget proposal may well be “dead on arrival” in Congress, but this is not the same as Congress rejecting each budget proposal.

On July 11, without Gov. Tom Wolf’s signature, Pennsylvania’s budget (HB 218) for FY 2018 became law. State lawmakers, however, are still in the midst of a stalemate over how to pay for a nearly $32 billion budget.

In Blockchain and Economic Development: Hype vs. Reality, experts from the Center for Global Development address the economic development potential of blockchain technology including its potential and existing hurdles to its growth.

In its latest survey of U.S. public perception of manufacturing, Deloitte and The Manufacturing Institute found that the majority of Americans surveyed (roughly 8 in 10) view manufacturing as vital to maintaining economic prosperity in the country, but less than 5 in 10 find those jobs interesting or secure, and less than 3 in 10 would encourage their children to pursue a manufacturing career. However, respondents also said they believe future manufacturing jobs will require high-tech skills, be clean, safe and more innovative.

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.

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.

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.

The U.S. Department of Treasury released its final annual report for the State Small Business Credit Initiative (SSBCI), which provided funding to states for lending and investment programs. “Venture capital” programs, often structured for pre-seed (13 percent of funds), seed (27 percent) or early stage (45 percent) investments, attracted $4.2 billion in immediate private financing against $327 million in federal dollars.

With a focus on improving health, driving economic growth, and expanding the country’s research capacity, the National Institutes of Health (NIH) within the U.S. Department of Health and Human Services is the largest public funder of biomedical research in the world. Because of NIH’s central role in supporting science, technology, and innovation, a better understanding of the agency’s footprint may be helpful to the technology-based economic development practitioner community.

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.

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.

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.

Over the past four years, 1,668 deals involving university spinout companies from across the globe attracted approximately $35.6 billion from 2013 to 2016, according to a new report from Global University Venturing. The report, however, highlights that global deals peaked in 2014 with 529 deals and total investments dollars peaked in 2015 with nearly $14 billion invested. As the authors highlighted, these global numbers were unsustainable and 2016 saw significant declines in both deals and dollars. In 2016, the total deals reported were 407 (21.6 percent decrease from 2015) and dollars invested was $6.4 billion (a 54.3 percent decrease from 2015).

The angel investor market in 2016 experienced a decrease in investment dollars and deal size, according to a new report from the Center for Venture Research (CVR) at the University of New Hampshire. CVR researchers found that total investments were $21.3 billion in 2016, a decrease of 13.5 percent from 2015.

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

Building Bridges for a Better Future serves as the theme of this year’s conference, taking place Sept. 13-15 in Washington, D.C. “We chose the theme after hearing from our members and others in the field about the importance of reaching outside of our traditional networks and imagining what the future may hold for those in the innovation economy,” said Dan Berglund, SSTI president and CEO. “We’re excited to hold the conference in the nation’s capital, and share the stories of successes, along with the challenges, that stakeholders in science, technology, innovation and entrepreneurship are facing.”

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.

On the heels of delaying the International Entrepreneur Rule (IER), the White House has endorsed a bill that would grade candidates for immigration. A total of 60 organizations, including SSTI and many of our member organizations, stated their opposition to the move in a new letter. It is not clear why the IER’s standard of investible businesses would not fit into the legislation’s merit-based system.