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While job openings surpassed 7.1 million in August, companies across the country still are struggling to attract staff with relevant skills. To address this issue, states are developing new workforce development efforts to address the increased demand. These efforts have taken many different approaches including grants to communities, free online resources, mentorship programs, or stronger partnerships with industry. While these efforts may be diverse in their processes, they share commonalities, such as bringing together all stakeholders (e.g., industry, academia, government, nonprofits, and local workforce development boards) and providing those services locally across the state, or by leveraging online platforms.  Such efforts are reflected in new programs described below in Indiana, North Carolina and South Carolina.

The National Science Foundation (NSF) announced approximately $20 million in new funding through its Partnerships for Innovation (PFI) program. The PFI program offers NSF-funded researchers at institutions of higher education opportunities to connect new knowledge to societal benefit through translational research efforts and/or partnerships that encourage, enhance, and accelerate innovation and entrepreneurship.

This week we wrap up our four-part series focused on navigating innovation priorities in a variety of settings.  Following the November elections, many new faces will be a part of your state legislature. Communicating effectively with these lawmakers can help ensure the success of your programs. This week we hear from Leslee Gilbert, vice president, and Tom Quinn, associate vice president, both from Van Scoyoc Associates (jointly responding as VSA below), as well as Angela Andrews, director of the legislative staff service program at the National Conference of State Legislatures on the do’s and don’ts of working with your legislature.

As the nation faces a tight labor market and industries scramble to find employees with the right skills to fill open positions, community colleges that are closely connected to a region’s economy play a key role in helping to fill that pipeline. However, the challenges facing students at community colleges often result in many not completing a degree or certificate. A report released this month by The Brookings Institution noted that less than 40 percent of community college students earn a certificate or degree within six years of enrollment. The report’s author, Elizabeth Mann Levesque, explored ways to address both structural and motivational barriers in completing community college. The barriers are real, said two community college administrators SSTI spoke with about the problem, yet the successes they see and innovative efforts some community colleges are taking to help their students are beginning to pay off.

The U.S. Treasury released a new set of proposed guidelines around Opportunity Zones. The new regulations would provide many clarifications about eligibility and timing, but do little to address critical concerns for potential zone-based seed and venture capital investment funds. Additional guidance is forthcoming, but there is no timetable for this release. Meanwhile, the latest regulations are subject to comment once published in the Federal Register.

For those interested in how innovation, investment, programs, and policies can help make manufacturing an economic boon to states and regions across the nation, a new special issue of the Economic Development Quarterly may offer some answers. Featuring original research and book reviews from experts around the country, Strengthening Manufacturing – How Research Can Inform Public Policy is an important read for scholars and practitioners of economic development. The introduction to the special issue, written by Ken Poole and Brendan Buff of the Center for Regional Economic Competitiveness (CREC), is available online at no cost. A future Digest story will highlight some of the articles featured in the issue and discuss what their findings mean for technology-based economic development more broadly.

The IRS and CDFI Fund released their first guidance for the federal Opportunity Zones incentive. This wave of guidance addresses zone selection issues only — the most important clarification is that the certification window will expire on March 21, with the option to request one 30-day extension. The guidance includes a list of all eligible census tracts, which were covered by SSTI last week, as well as a list of tracts that are not low-to-moderate income but may be included in contiguous Qualified Opportunity Zones.

The recent tax law created a new vehicle, “Opportunity Zones” (Section 13823), to spur investment in companies and projects in distressed communities. As covered in detail during a recent SSTI members-only webinar, the tax incentive provides investors who reinvest capital gains into these zones with the ability to defer taxes on those gains and, if the Opportunity Zone investment is held at least 10 years, to waive taxes on any new capital gains. Zones must be declared this spring by each state’s governor, and only 25 percent of a state’s high poverty or low income census tracts may be included.

Still treated as a novelty by most mainstream U.S. media, there is growing global use of nature-inspired innovations to deal with a number of challenges and undesired properties of business-as-usual, whether it be infrastructure, agriculture or product design, production, use or disposal. Collectively comprising a number of approaches —such as biomimicry, green chemistry, or regenerative manufacturing — nature-inspired innovation incorporates design and use principles borrowed from and complementary to nature.  The most promising aspects of all of these efforts are their economic value and efficiency compared to life cycle analyses of similar products and processes development through conventional means.

Across the country, there are nearly 6.9 million scientists and engineers, representing 4.8 percent of the nation’s workforce. There are 20 states having at least 100,000 workers in these occupations. Scientists and engineers are concentrated around the nation’s capital, making up the largest share of the workforce in Washington D.C., Maryland, and Virginia. From 2003 to 2017, the number of scientists and engineers grew the fastest in Arkansas, North Dakota, and Utah. With an interactive map and downloadable spreadsheet, this article breaks down the changes in the science and engineering workforce across the United States over the last 15 years.

Despite an uneven economic recovery, fewer Americans are living in distressed communities and more are living in prosperous ones, according to a recent report from the Economic Innovation Group (EIG), a Washington, D.C.-based policy and advocacy organization. Comprised of seven factors measuring socioeconomic health, the Distressed Community Index (DCI) divides the country’s zip codes (communities) into five quintiles — prosperous, comfortable, mid-tier, at-risk, and distressed — and tells the story of the country’s economic health across two time periods, the recession years of 2007 to 2011 and the recovery years of 2012 to 2016. EIG finds that the employment and business establishment growth during the economic recovery has been mostly limited to prosperous communities, where the population tends to be more educated and the housing vacancy rate may be lower.

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. This leverage of $12.76 of private investment for every public dollar was further improved by more than $2 billion in subsequent private financing to date. Perhaps more significant than the program’s ability to attract private investors has been its success in generating investments outside of the nation’s most concentrated markets.