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The National Science Foundation’s new strategic plan argues that the U.S. must continue investing in world-class research, develop a globally competitive scientific and engineering workforce, and foster greater understanding of science and technology among the American public. However, the pressure of new priorities and level funding proposed for FY 2019 have yielded some surprising directions for the agency’s planned investments.

Research and innovation process goals

U.S. Secretary of Energy Rick Perry is calling on Americans’ competitive spirit to help solve critical water issues. Perry led a roundtable discussion last week on the use of federal prizes and challenges to drive innovation in dealing with water issues such as alternative water supplies, reducing water treatment costs, greater efficiency in usage, and advancing market-based solutions that incentivize innovation and cooperation.

Wyoming Gov. Matt Mead has approved legislation that will help promote economic diversification through innovation in a state that has relied heavily on a relatively small number of resource-based industries. Mead recently signed multiple pieces of legislation that comprise ENDOW (Economically Needed Diversity Options for Wyoming), a 20-year initiative focused on diversifying and growing the state’s economy. Notable bills include Senate File 118, which will establish a dedicated organization to support Wyoming’s entrepreneurs and provide funds to innovative startups, and Senate File 119, which will establish a dedicated fund for workforce training in economic sectors considered a priority for the state.

Across the country, companies reported nearly $300 billion in self-funded and self-performed domestic R&D in 2015, according to recent data from the National Science Foundation’s Business R&D and Innovation Survey (BRDIS), with nearly one-third of this total ($95.0 billion) coming from California. Businesses in Wyoming, Washington D.C., and Utah reported the greatest increase in self-funded and self-performed R&D from 2010 to 2015.

An earlier SSTI analysis detailed the Bureau of Labor Statistics labor force participation projections, revealing a continuing downward trend in the number of workers despite a growing population.

Maine voters approved a special referendum on June 13 that will issue $50 million in bonds to fund investment in research, development and commercialization in the state’s seven targeted technology sectors. The Maine Technology Institute will distribute $45 million of the funds for infrastructure, equipment and technology upgrades. The remaining $5 million will be used to recapitalize the Small Enterprise Growth Fund to create jobs and economic growth by lending to or investing in qualifying small businesses.

Valuations of venture backed companies and the number of unicorns are rising based on the leading nationwide surveys, but closer examination of the data reveals not all startups are seeing the effect. The median valuation for female-founded companies, for example, was lower in 2017 (approximately $11 million) than it was in 2007 (approximately $15 million), according to research from PitchBook’s Dana Olson.

The last of the governors’ state of the state addresses for this year have been delivered, and New Jersey’s governor presented his first budget address. SSTI has continued to review the addresses for news on TBED initiatives and presents excerpts of their addresses concerning such initiatives below. Louisiana’s governor is focused on addressing a fiscal cliff while preserving education gains in the state. New Jersey’s governor laid out a vision embracing green energy in the state and growing high school STEM-focused programs.

Citing national security concerns, the Trump administration made headlines this week when they ordered that chipmaker Broadcom stop pursuing its $117 billion bid for its largest competitor, Qualcomm.

Between 2010 and 2015, job and establishment growth was substantially lower in U.S. counties where broadband is less available and technologies are less likely to be adopted, according to new research from the Purdue Center for Regional Development. To measure county-level digital divide, authors from the center developed the Digital Divide Index (DDI), which factors in demographics, jobs, and other establishment trends in the U.S.

The Government Accountability Office identified eight trends having strong effects on both the federal government and society as a whole, and those included in the science and tech section of the report are suggested to be critical to the country’s competitiveness.

In a shift from its past economic development efforts, the U.S. Department of Commerce FY2018-2023 strategic plan would move the department to focus almost exclusively on being a commercial services entity. The plan’s points of emphasis are on streamlined permitting and regulations, with direct government activity primarily reserved for common good services — e.g., economic data, cybersecurity and IP protection.

As explored in last week’s Digest, the presence of Eds and Meds institutions can positively influence the levels of human capital in a region, but the need to keep costs low can hinder their overall growth. SSTI’s analysis subsequently found that employment in Eds and Meds industries increased in every state from 2005 to 2015. This article looks at Eds and Meds employment for the largest metropolitan areas in the United States. Mid-sized regions in the Northeast like Rochester, New York (4.4 percentage points), New Haven, Connecticut (2.9 percentage points), and Harrisburg, Pennsylvania (2.3 percentage points) experienced the largest growth in per-capita employment in Eds and Meds industries between 2010 and 2015.

As the U.S. Senate works toward a vote on a bipartisan bill targeted at lifting regulations for some banks, several studies published within the last year have looked at the impact community banks have had on serving small- to mid-sized businesses (SMBs) across the country. Historically, community banks have been the loan originator for nearly 60 percent of business loans made to SMBs and have served as drivers of economic growth and opportunity in rural and underserved communities. The reports highlight the impact of these community banks on small business lending pre and post Great Recession; the resiliency of SMB lending activities by these banks during the Great Recession; and policy recommendations to support community banking.

In an effort to support research collaboration among the state’s largest universities, Illinois Gov. Bruce Rauner’s proposed FY 2019 capital budget would provide $500 million for the University of Illinois Discovery Partners Institute in Chicago’s South Loop. The funds would serve as a state match for private donations from individuals, corporations, and other entities.

A new map of broadband access based on Federal Communications Commission (FCC) data offers a granular look at the internet options available to Americans. Based on data submitted by internet service providers through FCC’s Form 477, the map provides insight on the types and speeds of internet access available on a block-by-block basis across the country. Notably, the maps do not include information on the cost of internet service. 

Investments in STEM education, apprenticeship programs, and tech-focused tuition assistance are among a handful of proposals included in the “Marshall Plan for Talent” last Thursday. The plan includes $100 million in talent investments and utilizes a three-pronged approach to training by addressing K-12 education, higher education and the state’s existing workforce. The funds would come from savings due to a state bond refinancing, according to the governor.

For decades, state and local economies have leaned heavily on their anchor institutions during times of economic uncertainty and transition. An analysis finds that total employment in “Eds and Meds” industries increased in every state from 2005 to 2015. This article breaks down the growth and geography of Eds and Meds employment at the state level, while next week’s issue of the Digest will explore this data by metropolitan area.

For hundreds of years, libraries have helped drive American innovation by serving as a trusted resource and providing information to a wide range of individuals. As libraries continue to implement their own initiatives in this space, policymakers across the country have recently turned to them as a way to level the playing field around workforce development and entrepreneurial support.

The World Economic Forum’s (WEF) latest survey of more than 1,000 experts and decision makers on the likelihood and impact of 30 global risks over a 10-year period found four areas of concern: environmental degradation; cybersecurity breaches; economic strains; and geopolitical tensions. Despite experiencing a year-long global economic recovery, the survey revealed that respondents are pessimistic about the year ahead (59 percent say they expect an increase in risk for the year, compared to 7 percent who expect declining risks).

The tax law signed at the end of last year introduced a provision that will significantly affect many economic development offices and related nonprofits across the country: “contributions to capital” will now typically be included in a corporate taxpayer’s gross income. Previously, grants, free land and certain types of tax credits from governmental units or civic groups to support capital expenses were tax-free awards for the beneficiary. Since the signing of the bill, many of these awards are now taxable.

Three recent news items shed important light on educational attainment and economic well-being and one promising approach to increasing educational attainment among lower income people. While the Pew Research Center finds the share of college-educated young adults in the U.S. workforce is higher than ever before, the Economist reports that the “return on investment” in getting a college degree is leveling off.

The U.S. Small Business Administration has announced its 2018 road tour connecting entrepreneurs with next generation R&D ideas to early stage funding led by the SBA’s Small Business Innovation Research and Small Business Technology Transfer programs. Each stop in the 18-state road tour will be hosted by a local organization, and program managers from the 11 participating federal agencies will conduct one-on-one meetings with attendees, take part in targeted panels, and share insights into how their agencies make funding decisions.

The White House released a budget this week that would substantially reduce federal spending for innovation and entrepreneurship. Regional Innovation Strategies and the entire Economic Development Administration, Manufacturing Extension Partnership, Advanced Research Projects Agency – Energy, Innovative Technology and Advanced Vehicles loan programs, Growth Accelerator Program and Regional Innovation Clusters would all be eliminated.