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Senate Appropriations advances FY 2018 spending bills, would fund Regional Innovation at $21 million

Thursday, July 27, 2017

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.

  • Read more about Senate Appropriations advances FY 2018 spending bills, would fund Regional Innovation at $21 million

31 Mega-rounds, strong fundraising drive VC industry in Q2 of 2017

Thursday, July 27, 2017

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.

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. 

  • Read more about 31 Mega-rounds, strong fundraising drive VC industry in Q2 of 2017

Number of minority-owned firms, their employees, and their payrolls all rise in 2015

Thursday, July 27, 2017

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).

  • Read more about Number of minority-owned firms, their employees, and their payrolls all rise in 2015

San Francisco Fed: Workforce development may help boost business formation

Thursday, July 27, 2017

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.

  • Read more about San Francisco Fed: Workforce development may help boost business formation

The Changing Nature of U.S. Basic Research: Trends in Funding Sources

Thursday, May 28, 2015

The second in SSTI’s series on basic research, this article focuses on the ways that the funding sources of R&D and basic research have changed over time. Ultimately, the nature of basic research – long horizons, unknown rewards, and high costs – indicates why some sectors, namely the private sector, may seek shorter term options. A better understanding of the changing nature of funding sources for basic research may be useful in understanding the current state of research and development in the U.S.

  • Read more about The Changing Nature of U.S. Basic Research: Trends in Funding Sources

The Changing Nature of U.S. Basic Research: Trends in Federal Spending

Thursday, May 21, 2015

Innovation in the United States, once a hallmark of economic success, finds itself resting on an increasingly weak foundation, according to an article in The New York Times. The author, Eduardo Porter, suggests that two trends – increased international competition and a stagnant R&D-to-GDP ratio – pose key challenges for the U.S. First, government funding for basic research continues to fall and is politically vulnerable. Second, evidence suggests that American corporations are walking away from basic science as well. Each of these challenges, Porter notes, bodes poorly for American progress. Using a variety of data sources, this Digest series provides a long-term analysis to assess how basic research has changed over time within the larger context of research and development in the United States.

  • Read more about The Changing Nature of U.S. Basic Research: Trends in Federal Spending

Manufacturing resurgence needs smart supply chain

Thursday, July 20, 2017

Restoring America’s competitive edge requires a new approach to managing suppliers, one where all the players are connected, collaborative, and focused on maximizing shared value – a “smart supply chain” – says a new report from MForesight.

Restoring America’s competitive edge requires a new approach to managing suppliers, one where all the players are connected, collaborative, and focused on maximizing shared value – a “smart supply chain” – says a new report from MForesight. SSTI spoke with Tom Mahoney, one of the report’s authors and associate director at MForesight, who said that if steps are not taken to move the supply chain in the right direction, or if funding for the Manufacturing Extension Partnership is eliminated as has been proposed in the White House’s budget, the outlook for manufacturing will be poor. Ensuring American Manufacturing Leadership Through Next-Generation Supply Chains, by Mahoney and Susan Helper, provides insight into the current challenges and opportunities facing supply chain management in U.S. manufacturing and provides recommendations for regaining a competitive edge. 

  • Read more about Manufacturing resurgence needs smart supply chain

Foundations look for 50% tax cut

Thursday, July 20, 2017

Presently, the IRS provides private foundations a tax break if they show a trend of exceeding qualifying distribution requirements (grants).

Presently, the IRS provides private foundations a tax break if they show a trend of exceeding qualifying distribution requirements (grants). The legislative intent is for the tax reduction to serve as an incentive or reward for those foundations that are more generous with their grants over a five-year period than the 5 percent minimum distribution required by law.  The Council of Foundations wants all philanthropists to get the tax break regardless of the trends in their generosity and disbursements.  Four senators apparently agree with the council as they have included the provision in S. 1343, the recently introduced bill addressing several tax provisions dealing with charitable giving. The bill was introduced by Sens. John Thune (R-S.D.) and Bob Casey (D-Pa.), both members of the tax-writing Senate Finance Committee, with Sens. Pat Roberts (R-Kan.) and Ron Wyden (D-Ore) as co-sponsors.

  • Read more about Foundations look for 50% tax cut

Regionally focused investors yielding more than ROI

Thursday, July 20, 2017

An SSTI analysis of exits occurring during the second quarter by a number of venture development organizations reveals equity investment in innovation companies undertaken as strategic public-private partnerships for regional growth can yield more for their communities than just hitting the return on investment expectations of seed and traditional venture capital. The recent exits highlighted below reveal a variety of economic development impacts resulting from effective innovation investment strategies, including:

An SSTI analysis of exits occurring during the second quarter by a number of venture development organizations reveals equity investment in innovation companies undertaken as strategic public-private partnerships for regional growth can yield more for their communities than just hitting the return on investment expectations of seed and traditional venture capital. The recent exits highlighted below reveal a variety of economic development impacts resulting from effective innovation investment strategies, including:

  • Increased competitiveness and growth of local firms through mergers and acquisition;
  • New market entry and new product lines for existing manufacturers;
  • Opportunities to broaden wealth generation among wider population;
  • Foreign direct investment and company relocation; and of course,
  • Wealth generation, tax revenues and job growth within the local community.

Note: this is SSTI’s second look at recent VDO exits; selected first quarter 2017 exits for VDOs are available here.  Second quarter highlights include:

  • Read more about Regionally focused investors yielding more than ROI

Record number of doctoral degrees conferred in US in 2015, NSF

Thursday, July 20, 2017

U.S. institutions of higher education awarded 55,006 research doctorate degrees in 2015 according to the National Science Foundation’s Survey of Earned Doctorates (SED). This figure represents the highest number ever reported. The report also highlights several other multi-year trends.

U.S. institutions of higher education awarded 55,006 research doctorate degrees in 2015 according to the National Science Foundation’s Survey of Earned Doctorates (SED). This figure represents the highest number ever reported. The report also highlights several other multi-year trends.

  • Read more about Record number of doctoral degrees conferred in US in 2015, NSF

USPTO ‘lottery’ creates huge economic advantage for winners

Thursday, July 20, 2017

In a recent paper from the National Bureau of Economic Research (NBER), the authors contend the U.S. Patent Office (USPTO) has created a lottery-type system that creates great economic benefit for startups and other patent-seekers that drew lenient patent examiners. In What Is A Patent Worth? Evidence from The U.S.

In a recent paper from the National Bureau of Economic Research (NBER), the authors contend the U.S. Patent Office (USPTO) has created a lottery-type system that creates great economic benefit for startups and other patent-seekers that drew lenient patent examiners. In What Is A Patent Worth? Evidence from The U.S. Patent “Lottery,” the authors found that patent applications by startups that were reviewed by lenient USPTO examiners had, on average, 55 percent higher employment growth and 80 percent higher sales growth five years later. Those startups also pursue more and higher quality, follow-on innovation. These results are, in large part, due to increased access of funding from VCs, banks, and public investors.

  • Read more about USPTO ‘lottery’ creates huge economic advantage for winners

Finding causes for states’ tax return shortfalls

Thursday, July 20, 2017

Many states took another hit to their budgets in April, with income tax revenue falling 4 percent compared to last year according to a new report from the Rockefeller Institute of Government. By the Numbers takes a look at the declining revenue, which it says was worse for April and May this year than had been forecast, but not as large as some states have experienced in recent years.

Many states took another hit to their budgets in April, with income tax revenue falling 4 percent compared to last year according to a new report from the Rockefeller Institute of Government. By the Numbers takes a look at the declining revenue, which it says was worse for April and May this year than had been forecast, but not as large as some states have experienced in recent years. Several explanations are explored.

  • Read more about Finding causes for states’ tax return shortfalls

Thanks to SSTI member outreach, House committee votes to fund Regional Innovation Strategies in FY 2018

Thursday, July 20, 2017

When SSTI learned that the House commerce appropriations subcommittee’s draft FY 2018 bill did not specifically fund the Regional Innovation Strategies (RIS) program, we called on members to contact the full committee and ask that the bill designate funding for RIS. Thanks to the quick action of SSTI members, the House Appropriations Committee passed the bill last week with level RIS funding of $17 million for FY 2018.

  • Read more about Thanks to SSTI member outreach, House committee votes to fund Regional Innovation Strategies in FY 2018

White House indicates FY 2019 budget will again propose deep science, innovation cuts

Thursday, July 13, 2017

The White House Office of Management and Budget sent a letter directing all agency heads to prepare FY 2019 budget requests with the figures provided in the administration’s FY 2018 request.

The White House Office of Management and Budget sent a letter directing all agency heads to prepare FY 2019 budget requests with the figures provided in the administration’s FY 2018 request. Because the long-term budget provided few year-over-year changes for science or innovation, the administration will therefore again propose to eliminate Regional Innovation Strategies, the Manufacturing Extension Partnership, much of the SBA’s entrepreneurial development funding and other innovation programs, while also making deep cuts to many R&D initiatives. Read SSTI’s full coverage of the administration’s FY 2018 budget request for more information.

  • Read more about White House indicates FY 2019 budget will again propose deep science, innovation cuts

Pew finds Republicans increasingly negative on higher ed

Thursday, July 13, 2017

A new survey released by the Pew Research Center reveals a much more negative view of the  impact of colleges and universities on America on the right, with a majority (58 percent) of the Republicans and Republican-leaning independents surveyed saying that colleges and universities have a negative effect on the country compared to 45 percent last August. Democrats and Democratic leaning independents (72 percent) say the colleges and universities have a positive effect.

A new survey released by the Pew Research Center reveals a much more negative view of the  impact of colleges and universities on America on the right, with a majority (58 percent) of the Republicans and Republican-leaning independents surveyed saying that colleges and universities have a negative effect on the country compared to 45 percent last August. Democrats and Democratic leaning independents (72 percent) say the colleges and universities have a positive effect. The differences between the parties extend to other areas covered in the survey, including the national news media and religious organizations, but overall opinion has remained about the same.

  • Read more about Pew finds Republicans increasingly negative on higher ed

US House appropriations bills would make major cuts to innovation

Thursday, June 29, 2017

The House Appropriations Committee began releasing FY 2018 “markup” budget bills this week, and the proposals would cut billions in non-defense spending. EDA would lose $100 million* in funding, SBA’s entrepreneurial development programs would lose $34 million, NIST’s Manufacturing Extension Partnership would lose $30 million, and Energy’s ARPA-E would be eliminated, among other cuts.

  • Read more about US House appropriations bills would make major cuts to innovation

Administration delays International Entrepreneur Rule, plans to rescind

Thursday, July 13, 2017

One week before implementation, the Department of Homeland Security (DHS) announced that the International Entrepreneur Rule would be delayed until March 2018 and that a new proposal to rescind the rule will be made. The rule would have provided immigrants who have founded a high-potential startup with equity investment to remain in the country up to five years to scale the company.

  • Read more about Administration delays International Entrepreneur Rule, plans to rescind

Research highlights declining auto industry, manufacturing next?

Thursday, July 13, 2017

In a recent post, the Brookings Institution’s Mark Muro raises concerns about the U.S. manufacturing sector’s health due to the leading indicators of slowed growth in both auto sector output and auto manufacturing employment. Muro contends that these slowdowns are driven by plateaued consumer demand and automakers investing billions in developing technologies necessary for electric and self-driving cars.

  • Read more about Research highlights declining auto industry, manufacturing next?

R&D and innovation funding sees some increases, more decreases in state budgets: CA, IL, MS, NC, OH

Thursday, July 13, 2017

Breaking a two-year impasse, legislators in Illinois were able to pass a state budget that reinstitutes an R&D tax credit and implements workforce development programs. In California, the Governor’s Office of Business and Economic Development (Go-Biz) will see a 28 percent increase in funding, while other innovation initiative are receiving level funding. In other states whose budgets SSTI analyzed this week for TBED-related funding, we found that Innovate Mississippi was able to maintain state funding and new funding was appropriated for workforce development at the state’s community and junior colleges; a variety of programs were cut in North Carolina; and, Ohio will not get funding for a state office focused on commercializing research across key industries that the governor had proposed. More findings from California, Illinois, Mississippi, North Carolina and Ohio are detailed below.

  • Read more about R&D and innovation funding sees some increases, more decreases in state budgets: CA, IL, MS, NC, OH

Building bridges focus of SSTI 2017 Annual Conference

Thursday, July 13, 2017

SSTI’s annual conference will focus on building bridges for a better future by establishing new connections and wading through an uncertain political climate during a three-day conference filled with tips and insights. The agenda is now online at ssticonference.org and early bird rates are available. The conference, held in Washington, D.C., Sept. 13-15, will feature speakers on innovation, capital, policy, workforce, R&D, manufacturing and more.

  • Read more about Building bridges focus of SSTI 2017 Annual Conference

Entrepreneurs invited to pitch clean energy ideas

Thursday, July 13, 2017

Startup innovators from around the country have the opportunity to exhibit their ideas and win $10,000 during the Catalysts of the Climate Economy national innovation summit in Burlington, Vermont, Sept. 6-8. Innovators in the climate economy are encouraged to enter a contest that will result in five competitors pitching their ideas to a panel of judges, with the winning idea garnering the top prize.

  • Read more about Entrepreneurs invited to pitch clean energy ideas

Committees pass defense authorization bills affecting small business policy

Thursday, July 13, 2017

The U.S. House and Senate Armed Services Committees recently passed their versions of the FY 2018 National Defense Authorization Act (NDAA). The legislation includes provisions for federal labs, SBIR and SBA technical assistance programs. These portions of the bills are currently very different between the chambers, and, if passed in their current forms, the final bill could address a wide range of policies affecting small business and innovation.

  • Read more about Committees pass defense authorization bills affecting small business policy

US manufacturing sector poised for revitalization but without the jobs, McKinsey says

Thursday, July 6, 2017

In Making it in America, McKinsey Global Institute researchers contend that for the U.S. to see a revitalization of its manufacturing sector (as measured by global market share), the public and private sectors should treat it as a national priority. However, they warn that the revitalization will not produce a return to 1960s-style manufacturing employment. In the 1960s, the manufacturing sector employed approximately 30 percent of all American workers – it is down to approximately 9 percent today (a 70 percent reduction). The authors contend that due to the changing shape of manufacturing, technology, global competition, and other market demands that manufacturing job growth would only be modest. Most of the job growth potential will be found in other sectors that would benefit from increased economic activity.

  • Read more about US manufacturing sector poised for revitalization but without the jobs, McKinsey says

Bioscience important for state growth

Thursday, July 6, 2017

The bioscience industry has had a positive impact on states’ economies and continues to be a driver of economic growth according to a new report from Biotechnology Innovation Organization (BIO). State lawmakers have recognized the importance of the industry, the authors state, and have responded to challenges facing the bioscience companies with legislative efforts focused on a supportive business climate, including increasing available funding, particularly for emerging companies in their state, and leveraging academic and medical research facilities to create strategically planned campus extensions such as Smart Zones or Innovation Zones that contain incubator space and incentives for start-up companies.

  • Read more about Bioscience important for state growth

Commission led by Bloomberg, New America imagines the future of work

Thursday, July 6, 2017

Whether or not the drastic changes coming to the future of work go well or poorly for America depends largely on how the country responds, according to a new report from Shift: The Commission on Work, Workers, and Technology. The commission, which is led by Bloomberg and New America and comprised of members from across industry, philanthropy, government, and academia, structures scenarios regarding the future of work around two guiding questions: Will the future have more or less work? Will that work be divided into jobs or into tasks? Based on these questions, the authors developed four scenarios to use as a framework, each with hypothetical driving factors, early signs, challenges, and signature technologies. They also propose examples of machine- and human-occupation within each scenario, as well as some potential educational, social, and geographic implications.

  • Read more about Commission led by Bloomberg, New America imagines the future of work

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Thursday, January 15, 2026

With 2025 behind us, and some time for the data to stabilize, we can look back at VC activity and try to understand what it means for TBED efforts going forward. The VC storyline of 2025 should be familiar to anyone who has been following investment news. Record funding rounds, huge amounts of capital deployed, questions of an AI bubble. Where amongst the big flashy lights of AI mega-deals do we find the subtlety and nuance that informs TBED investor activity and policy?

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FSGG appropriations language favors innovation programs

Thursday, January 15, 2026

The Financial Services and General Government appropriations bill for FY 2026 passed the House of Representatives yesterday and now moves to the Senate where passage is also expected. The bill sets spending levels for several agencies supporting regional innovation, economic development, and investment. Foremost are the Treasury and Small Business Administration; selected highlights are provided below.

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New benchmarking tool illuminates how AI is accelerating job market changes

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