Initial public offerings (IPOs) can alleviate financing constraints and help support important activities such as operations, R&D, and expansion. Despite these perceived benefits, new research finds that the transition to public equity – and the financial windfalls that follow – prompt many of a company’s early innovators to depart the firm, which has impacts on both innovation internally and at other firms.
Last week, Google announced the launch of several efforts as part of its Grow with Google initiative – a five-year $1-billion plus plan to invest in nonprofits that specialize in training workers and helping new businesses get off the ground. Through this new plan, Google indicated it will work to close the world’s education and opportunity gaps.
Through its 2017 Assistance to Coal Communities (ACC 2017) initiative, the Economic Development Administration (EDA) announced $30 million in funding to assist locally-driven efforts to communities and regions severely impacted by the declining use of coal through activities and programs that support economic diversification, job creation, capital investment, workforce development, and re-employment opportunities.
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.
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. While Wolf and other Democratic leaders prefer increasing revenue through tax reform, Republican leaders are focusing on other alternatives including a bond effort and expansions of gambling to address the over $2 billion shortfall.
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 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. After explaining blockchain technology’s nuts and bolts, the authors highlight technology areas that would benefit from blockchain technology and the benefits it could offer with wider adoption, including facilitating faster and cheaper payments; providing a secure digital infrastructure for verifying identity; securing property rights; and, making transactions more secure and transparent.
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.
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. That opportunity to build on the positive perceptions already present and dispelling the myths surrounding manufacturing jobs are explored in A look ahead; How modern manufacturers can create positive perceptions with the US public. The authors note that with such findings, “manufacturers could benefit from uplifting current perceptions and tapping into the future vision in order to help attract talent, both young and old, to the industry.”
Funding for TBED programs took a hit under Massachusetts Gov. Charles Baker, who vetoed millions of dollars in programs that the legislature had approved in the FY 2018 state budget. Michigan programs fared better with funding maintained to diversify the state’s economy and funding for entrepreneurship ecosystems getting a boost. And in Virginia, after a messy budget process addressing an addendum to its biennial budget, many innovation programs saw increases.
Massachusetts
Funding for TBED programs took a hit under Massachusetts Gov. Charles Baker, who vetoed millions of dollars in programs that the legislature had approved in the FY 2018 state budget. Michigan programs fared better with funding maintained to diversify the state’s economy and funding for entrepreneurship ecosystems getting a boost. And in Virginia, after a messy budget process addressing an addendum to its biennial budget, many innovation programs saw increases.
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.
One of the hottest topics at SSTI’s 2017 Annual Conference centered on helping communities build the investment system necessary for local entrepreneurs and startups to thrive. Led by several panels of experts, the conversations around this topic led to many great ideas, thoughtful solutions, and tough realities. This week we begin a series of stories on how tech-based economic development organizations can help communities ensure a vibrant investment system.
Two recent reports provide good news and bad news regarding innovation in America’s rural areas. Only one in six individuals living in rural areas was self-employed in 2016 — down from one in four in 1988, according to a new issue brief from the Small Business Administration (SBA). This represents a decline of nearly 20 percent over that span of time.
The Federal Reserve System has announced a new initiative intended to invest in America’s workforce and improve outcomes for both employers and workers.
The Federal Reserve System has announced a new initiative intended to invest in America’s workforce and improve outcomes for both employers and workers. To introduce the Investing in America’s Workforce initiative, the System released a new report analyzing information from nearly 1,000 leaders in the field to identify the current state of the field, important challenges, and strategies for improving items such as human capital, access to jobs, and innovative funding for workforce development programs.
The U.S. House this week passed H.R. 2763, which would amend the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs in several significant ways. Most notably, the bill would extend by five years the “assistance for administrative… costs,” which is used for outreach initiatives and some business and market assistance initiatives across agencies.
Federal obligations for science and engineering research and development to universities, colleges, and nonprofit institutions increased by 5.7 percent from FY 2013 to FY 2014, according to recently released data from the National Science Foundation’s (NSF) Survey of Federal Funds for Research and Development.
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.
The president’s FY 2018 budget proposal includes requests for four regional commissions with the funds appropriated only for the purposes of closure of these commissions, including: $31 million for the Appalachian Regional Commission (ARC); $7.3 million for the Denali Commission; $2.5 million for the Delta Regional Authority (DRA); and, $850,000 for the Northern Border Regional Commission.
This week we begin a series on state legislation pertaining to the innovation economy that has been enacted this year around the country. This first installment of the States of Innovation 2017 series deals with clean and renewable energy.
States have passed more than 230 bills related to clean and renewable energy to date in 2017, according to the National Conference of State Legislatures (NCSL). Broadly, the legislation can be divided between policies directly supporting energy innovation — through R&D expenditures or targeted economic development initiatives — and policies implementing structural changes —through the regulatory environment, incentives for production facilities, renewable portfolio standards and other requirements. This breadth of activity clearly demonstrates that clean and renewable energy is of high interest throughout the country, but will be challenging to innovators and entrepreneurs planning development over time or across states.
Seventeen venture development organizations (VDOs) from across the country shared in the success from a baker’s dozen exits posted in Pitchbook during the third quarter of 2017. Information tech companies lead the pack, but seven come from other sectors of the economy including life sciences, vehicle manufacturing, materials, polymers, robotics, and chemicals – demonstrating the important role VDOs may play in broadening innovation’s contributions to regional economies.
Seventeen venture development organizations (VDOs) from across the country shared in the success from a baker’s dozen exits posted in Pitchbook during the third quarter of 2017. Information tech companies lead the pack, but seven come from other sectors of the economy including life sciences, vehicle manufacturing, materials, polymers, robotics, and chemicals – demonstrating the important role VDOs may play in broadening innovation’s contributions to regional economies.
Snapshots of all 13, along with two more late Q2 deals, follow in SSTI’s third article looking at the economic development impacts of nonprofit and publicly-backed VDOs. The first two stories are available here (Q1:17) and here (Q2:17).
Creative, digital, design and engineering occupations all have bright outlooks, along with architectural and green occupations, according to a recent report from Nesta, a global innovation foundation. Nesta took into account five major trends in mapping out how employment is likely to change in the future, and the implications for skills.
First observed in 2011, Manufacturing (MFG) Day started as a grassroots movement intended to draw the public’s attention to manufacturing and its career opportunities and has become an annual celebration meant to inspire the next generation of manufacturers. Since 2012, both public and industry participation in MFG Day activities have grown, as has its overall scope and goals.
First observed in 2011, Manufacturing (MFG) Day started as a grassroots movement intended to draw the public’s attention to manufacturing and its career opportunities and has become an annual celebration meant to inspire the next generation of manufacturers. Since 2012, both public and industry participation in MFG Day activities have grown, as has its overall scope and goals. This year, an effort is being made to reach out to millennials, many of whom have an outdated image of manufacturing, to connect with a younger workforce vital to filling the openings in an increasingly digital manufacturing industry.
Two states taking a fresh look at their economies convened task forces that recently released reports detailing efforts the states can make to improve their state’s economic futures. In Missouri, Gov. Eric Greitens asked an innovation task force to take stock of the state’s current standing and offer options to help businesses and innovators succeed.
In 2015, businesses spent 4.4 percent more on R&D performed in the U.S. than they did in 2014, reaching $356 billion total, the NSF reports. Of the total R&D expenditures in 2015, companies spent $22 billion (6 percent) on basic research, $56 billion (16 percent) on applied research, and $278 billion (78 percent) on development.
Do state policies focused on growing opportunity through science, technology, innovation and entrepreneurship work? Which approach has more success: encouraging technology commercialization and entrepreneurship or building and filling incubators and research parks? To try to answer these questions, new empirical research looks at the effectiveness of sustained state investments in technology-based economic development activities on high-technology job growth.
Columbus-based State Auto Labs, the innovation arm of the State Automobile Mutual Insurance Company, is collaborating with venture development organization Rev1 Ventures on a $25 million corporate venture fund to support innovation and entrepreneurship in the insurance industry. Through the partnership, Rev1 Ventures and State Auto Labs will help connect InsurTech and FinTech startups with resources such as capital, technologists, and industry experts.
While more Americans live in communities that are “prosperous” compared to “distressed,” large gaps persist across geographies, demographics, and educational attainment, according to a new report from the Economic Innovation Group (EIG).
Recognizing that the former steel city was at tipping point in its development, Pittsburgh’s city leaders decided to tip the scale toward continued growth. Whether the city is able to rise to the level of a serious global competitor may hinge on the implementation of initiatives that will guide the city in capitalizing on their innovation, research and business assets, according to a new report from the Brookings Institution. Pittsburgh leaders received a call to action as a result of a collaborative effort initiated by two city foundations and the Brookings Institution.