The National Science Foundation (NSF), the fifth largest distributor of SBIR awards among federal agencies, received more than 20,000 proposals over the decade long period from 2008 to 2017, approving more than 3,600 (16.8 percent), according to an SSTI analysis of NSF data. NSF SBIR awards are the least concentrated of all federal agencies, as measured by share of awards going to firms with more than 10+ awards.
How likely would you be to leave your current job to form a startup if you had $3,600 in the bank? Would your interest increase if you had $147,000? While neither amount is enough to scale a business, the latter case obviously affords more cushion to learn the ropes or absorb the impacts of a few missed paychecks. These amounts are the median wealth for black and white households, respectively, according to a new report by the Institute for Policy Studies.
How likely would you be to leave your current job to form a startup if you had $3,600 in the bank? Would your interest increase if you had $147,000? While neither amount is enough to scale a business, the latter case obviously affords more cushion to learn the ropes or absorb the impacts of a few missed paychecks. These amounts are the median wealth for black and white households, respectively, according to a new report by the Institute for Policy Studies. While the report does not directly look to entrepreneurship as a factor — nor, notably, as a solution — the implications for regional innovation economies are clear.
Governors are reaching into their toolkits to build tech-based economies, utilizing Opportunity Zones, tax credits, broadband infrastructure and workforce development initiatives among other things. This week, as we continue to review their state of the state addresses for TBED news, we see some governors still trying to reshape their states’ struggling economies while others are building on past successes and proposing new initiatives.
While competition between states over business incentives and headquarters attraction is often derided, new research published in the Journal of Technology in Society suggests that competition in technology-based economic development is hardly a zero-sum game.
Startups and small businesses raised $30 million during the first year of equity crowdfunding (also known as regulation crowdfunding or Reg CF) with an average of $289,000 raised in a successful campaign, according to a recent report published by the Small Business Administration’s (SBA) Office of Advocacy.
Startups and small businesses raised $30 million during the first year of equity crowdfunding (also known as regulation crowdfunding or Reg CF) with an average of $289,000 raised in a successful campaign, according to a recent report published by the Small Business Administration’s (SBA) Office of Advocacy. While equity crowdfunding hasn’t been the game changer that it was touted to be by many of its advocates, several studies indicate that the first year plus shows promising findings for this new source of startup capital authorized by the Jumpstart Our Business Startups Act (JOBS Act).
Over the past few weeks, Delaware, New Jersey, and Tennessee have proposed, announced or expanded investment tax credit programs to spur job creation and innovation. In Delaware, Gov.
Over the past few weeks, Delaware, New Jersey, and Tennessee have proposed, announced or expanded investment tax credit programs to spur job creation and innovation. In Delaware, Gov. John Carney signed the Angel Investor Job Creation and Innovation Act, while Tennessee is expanding its Angel Tax Credit criteria, and New Jersey is proposing establishing innovation zones and tax credits for high-tech businesses within those zones.
This fall, the IRS released proposed Opportunity Zone rules, which did not address several key questions for business investment. SSTI submitted comments for official consideration last week, requesting that rules clarify initial investment periods, interim returns and qualifying business activity locations. Several organizations echoed similar concerns, including the U.S. Conference of Mayors and U.S. Chamber of Commerce.
This fall, the IRS released proposed Opportunity Zone rules, which did not address several key questions for business investment. SSTI submitted comments for official consideration last week, requesting that rules clarify initial investment periods, interim returns and qualifying business activity locations. Several organizations echoed similar concerns, including the U.S. Conference of Mayors and U.S. Chamber of Commerce. Other comments posted to the site include calls for requirements that would facilitate greater impact, including screening potential bad actors, encouraging investments in ESOPs, and measuring economic impacts for current zone residents. Read SSTI’s full letter
This week, we see broadband investment in Indiana; education initiatives that begin with pre-K and extend beyond high school in a number of states; lifelong learning approaches; apprenticeships; climate change and green energy initiatives in Nevada and Washington; and more on governors’ agendas. As governors across the country continue to deliver their state of the state addresses to their legislatures and constituents, SSTI monitors the speeches for news of innovation related initiatives.
When it comes to paying off student loan debt, rural individuals who move to metro areas fare better than those who stay, according to new research from PJ Tabit and Josh Winters of the Federal Reserve Board’s Division of Consumer and Community Affairs. Using panel data from Equifax and the New York Fed, the authors explore the relationship between the student loan balances of rural millennials and where they choose to live when they begin repayment. Their analysis offers a deeper understanding of the rural brain drain phenomenon and approaches to addressing the challenge.
As the partial government shutdown enters its second month, the impacts across America are increasingly disruptive. The agencies that do not have a current budget were appropriated more than $38.9 billion for R&D, technology transfer, entrepreneurship, broadband, science, economic development and other activities related to regional innovation economies in FY 2018.
Maryland Governor Larry Hogan’s FY 2020 budget proposal includes $56.5 million in new funding to attract businesses to Opportunity Zones. Other new innovation funding would support manufacturer hiring credits and a seed fund for minority entrepreneurs. Under the governor’s proposal, TEDCO, the state’s primary innovation agency, would see its spending increase from $27 million to $45 million.
From FY 2018 to FY 2019, state fiscal support for higher education grew by 1.6 percent nationwide and increased in 45 states, according to new data from the Grapevine Survey, a project of Illinois State University’s Center for the Study of Education Policy in cooperation with the State Higher Education Executive Officers (SHEEO).
Based upon the finding of two reports – the 4Q Pitchbook-NVCA Venture Monitor and the MoneyTree Report – SSTI identified three significant trends that impact the startup capital community: geographic concentration, mega-rounds/funds, and strong VC-backed exit activity.
A note from the publisher (aka, Dan Berglund): Two of the most frequent questions SSTI staff is asked are: “What program, initiative, movement has piqued your interest?” and, “Who should we be watching and learning from?” While the answers are somewhat implied in what we cover in The Digest, host webinars on, and feature in conference content, look for occasional pieces in 2019 labeled “SSTI Feature” that offer a sampling of our answers to those questions.
The state of America’s foreign policy and the livelihoods of its middle-class are inextricably linked, according to a new report from Ohio State’s John Glenn College of Public Affairs and Carnegie Endowment for International Peace. The report’s authors, using Ohio as a lens for their examination, conduct a thorough quantitative and qualitative analysis on this relationship.
The 20 new governors elected last November are filling out their appointments, and SSTI’s analysis of those named as state economic development directors reveals an array of backgrounds leading into their new roles. New Republican governors have shown a greater propensity to choose a leader with an industry background, while new Democratic governors have been more likely to appoint directors with economic development experience. From a former U.S.
Reviewing another slate of governors’ state of the state and inaugural addresses reveals some recurring themes. With a focus on maintaining gains made since the Great Recession and increasing budgets, many governors are holding off on major new initiatives, but are proposing means to increase broadband access, diversify their economies, build renewable energy efforts, and increase their rainy day funds in case of an economic downturn.
Last week, U.S. trade representatives traveled to Beijing for a round of trade talks with the hope of coming to an agreement that would end the U.S.-Chinese trade dispute. Alongside large corporations, many U.S. tech startups are watching the results of these talks with a close eye because they face significant concerns over the impact that increased tariffs will have on their business. But while tariffs have garnered most of the press attention, U.S.
Last week, U.S. trade representatives traveled to Beijing for a round of trade talks with the hope of coming to an agreement that would end the U.S.-Chinese trade dispute. Alongside large corporations, many U.S. tech startups are watching the results of these talks with a close eye because they face significant concerns over the impact that increased tariffs will have on their business. But while tariffs have garnered most of the press attention, U.S. startups also face reduced access to foreign capital, increased regulatory scrutiny, and potential talent issues. Conversely, China is developing new strategies to ensure that more investment dollars will remain in their domestic startup capital community.
With 36 governors being sworn in following the November elections, 20 of those being new faces and 16 who were re-elected, this year’s inaugural and state of the state addresses promise new ideas along with proposed resolutions to existing challenges. As the governors present their plans to constituents, SSTI revisits our Tech Talkin’ Govs series.
Every state government invested at least $1.0 million in research and development in FY 2017, according to recent data from the National Science Foundation’s National Center for Science and Education Statistics. During the three-year period from FY 2015 to FY 2017, California ($551.8 million per year), New York ($403.2 million per year), and Texas ($244.9 million per year) state governments averaged the most R&D expenditures. In FY 2017, these three states accounted for 49.8 percent of the national total, up from 45.6 percent of the total invested by state governments in 2012.
An independent economic analysis of the Ben Franklin Technology Partners reveals its impact on Pennsylvania’s economy — boosting the overall economy by $4.1 billion between 2012 and 2016, helping to create 11,407 high-paying jobs and generating $385 million in tax receipts for the state. Because the jobs were created in industries that pay 52 percent higher than the average nonfarm salary in Pennsylvania, the impact on the state’s GSP was greater, according to the report.
States invested $1.1 billion into health-related R&D expenditures in FY 2017 according to the newest results from the annual survey of state government R&D, conducted by the National Science Foundation. Increasing by 13 percent from the previous year, health-related R&D helped push overall state government spending on R&D up by 7 percent over the 2016 figures. State investments in energy-related R&D, on the other hand, dropped by 16.6 percent ($61 million) to a total of $307 million in FY 2017.
NIST released a draft paper in December making recommendations for improvements to federal technology transfer and commercialization policy. The agency’s ideas ranged from clarifying march-in rights to compelling agency participation in technology entrepreneurship development. Although NIST is one of the agencies affected by the shutdown, comments on the draft paper were due Jan. 9.
Action toward improving the availability and speed of broadband in rural areas is emerging as an early theme in 2019, continuing activity from 2018. Oregon, Washington and the USDA all announced new initiatives last month. In mid-December, the USDA announced the availability of $600 million in grants and loans to support improvement of broadband accessibility across rural America. Funding is split into three equal pools.
Action toward improving the availability and speed of broadband in rural areas is emerging as an early theme in 2019, continuing activity from 2018. Oregon, Washington and the USDA all announced new initiatives last month. In mid-December, the USDA announced the availability of $600 million in grants and loans to support improvement of broadband accessibility across rural America. Funding is split into three equal pools. Up to $200 million may be awarded as grants (deadline for proposals is April 29); $200 million may be awarded as low-interest loans (applications due June 28); and $200 million may be distributed in a mix of grants and loans (proposals are due May 29). Projects funded through this initiative must serve communities with fewer than 20,000 people with no broadband service or where service is slower than 10 megabits per second (mbps) download and 1 mbps upload.
One of the best ways to measure the effectiveness of state programs intended to encourage the success of SBIR applications is the approval-rate of their submissions. Although this data has been historically unavailable across every federal agency, it is now accessible for the National Institutes of Health (NIH), the second largest provider of SBIR/STTR awards, according to a 2018 Digest report. The NIH distributed $446.2 million in SBIR/STTR awards in 2017, with every state except North and South Dakota receiving an award. Although California and Massachusetts had the most successful SBIR/STTR applications in 2017, accounting for roughly one-third of the total when combined, neither state ranked among the top 10 in success rate. NIH SBIR/STTR applications in Oregon (29 percent success rate), Vermont (25 percent success rate), and Wisconsin (23 percent success rate) were the most likely to be approved over the ten-year period from 2008 to 2017. Each of these states, as well as many others with high success rates, offer assistance with proposals such as technical support programs and Phase 0 grants.