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COVID-19 could affect 3.1 percent of private sector jobs due to business failure among small and medium-size enterprises (SMEs) in 17 different countries (not the U.S.), according to a new working paper from the Federal Reserve Bank of Atlanta. Findings also revealed that the fiscal cost of an intervention that narrowly targets at-risk firms can be modest (0.54 percent of GDP), while non-targeted subsidies can be substantially more expensive (1.82 percent of GDP) to achieve the same level of effectiveness.

Combining the adages “necessity is the mother of invention” and “two heads are better than one,” the best innovations often arise by broadening the community of minds focused toward addressing a particular problem or need. The Obama Administration took the concept of funding open innovation competitions toward specific issues to heart, encouraging federal agencies to use prizes and challenges as much as practical.

The federal Community Development Financial Institutions (CDFI) Fund released a new report profiling certified CDFIs in FY 2019. Notably, 14 active CDFIs are certified as venture funds, an increase from just four in FY 2017. Between the periods covered by these reports, the CDFI Fund updated their certification process and received encouragement from SSTI and members to be more open to equity financial structures. The results suggest that this change has taken place.

Stemming from a collaboration between the Census Bureau and the National Center for Science and Engineering Statistics (NCSES) within the National Science Foundation (NSF), a new data set aims to untangle the dynamics of research and development (R&D) performed by private companies.

For many innovators, entrepreneurs, investors, and corporations, American capitalism has been a boon. But there is another side to the story. A recent report published by McKinsey & Company questions whether the American model of capitalism is on the brink of change.

Disruptive technology, or innovations that radically alter the way consumers, industry, or businesses operate, have long been thought to be the primary way emerging small firms can leapfrog competition and compete against large industry titans. Through innovations such as internal IT systems or logistical improvements, small firms can acquire a decisive competitive advantage over their rivals. Or so the traditional theory holds. In a new paper out of Boston University School of Law, Bessen et al.

Investing in a college education comes with expectations of good returns on the investment. A recent analysis by Georgetown University’s Center on Education and the Workforce (CEW) found that first-year earnings for the same degree and major can vary by as much as $80,000 at different colleges. And while graduates from more famous, selective colleges have higher earnings in many instances, such is not always the case.

Key findings from two independent research projects reveal the pandemic’s corrosive effect on the nation’s innovation commercialization capacity. The projects separately explored how two related innovation financing components — angel investment and venture capital — were reacting to the coronavirus-caused slowdown. Individually, the results might appear simply as yet more interesting curiosities about the pandemic. Considered together, however, and one begins to see the potential unraveling of the broader U.S. innovation tapestry required to support long-term economic prosperity.

While economic development tends to be nonpartisan at the state level, many states are limited in their ability to fund innovative programs. In order to fund efforts that may serve as part of a national development strategy, Congress should use the bipartisan support of state efforts to establish and expand federal-state development partnerships and a strategy focused on countering China’s rise in advanced industries.

In addition to decreasing enrollment numbers at both two- and four-year institutions of higher education, detailed in an earlier SSTI Digest story, higher ed is facing other threats from looming state budget cuts.

After two years of research on technology and jobs, MIT’s Task Force on the Work of the Future has issued its final report, and the news is hopeful: with better policies in place, more people could enjoy good careers even as new technology transforms workplaces.

Personal income levels throughout the country received a boost in the second quarter of 2020 through assistance programs from the federal government designed to combat the economic difficulties brought on by the COVID-19 pandemic.

Contradictory to the prevailing theory that fintech companies — utilizing cutting-edge algorithms and incorporating data beyond the standard credit reports — have better insights into borrower risk profiles than traditional lenders, new research indicates that fintech borrowers are more likely to default on their loans than their counterparts who utilize traditional banks.

The Securities and Exchange Commission (SEC) recently published a final rule clarifying acceptable communications during “demo days” and expanding the accessibility of crowdfunding, among other changes. The new rule establishes guidelines to make “demo day” activities exempt from general solicitation requirements.

Criticism of the federal Opportunity Zone program has been directed at individual examples of questionable tracts for inclusion, the process for selecting tracts in each state, and the merits of some of the development projects underway. For example, some question inclusion of lowlands subject to flooding as sea levels rise with climate change and subsidence, while others raise eyebrows at inclusion of greenfield freeway interchanges or tracts already undergoing gentrification in fast growing cities. Complaints have been raised about projects where the end use (e.g.

The Angel Capital Association has recently released its Angel Funders Report 2020, examining the angel investor landscape through a survey of 76 angel groups and investments made during 2019. While the survey results represent only a portion of the larger angel investment community, the ACA report does provide useful insights into the current trends within the angel funder sphere.

The Senate released its draft appropriations bills for FY 2021 this week. Priorities for SSTI’s Innovation Advocacy Council did well, with increases for Build to Scale ($38.5 million, + $5.5 million from FY 2020) and FAST ($5 million, + $2 million) and level funding for Regional Innovation Clusters ($5 million).

Science and innovation highlights within the FY 2021 budget proposal include the following:

The United States is currently ranked tenth in research and development intensity (a measure of R&D investment as a percent of a nation’s Gross Domestic Product) but has continued to lead the pack in total research and development spending, according to the American Association for the Advancement of Science (AAAS) recently published A Snapshot of U.S.

Amid dwindling hope for a second stimulus package from Congress, the Federal Reserve has widened the terms of its Main Street lending program to better target support for small businesses. According to the new guidelines, the minimum loan size for three Main Street vehicles available to for-profit and non-profit borrowers has been reduced from $250,000 to $100,000. Corresponding fees have also been adjusted to encourage loan dispersal.

I suspect the whole country woke up Wednesday morning and looked at the half that voted for the other candidate and said, “What were you thinking?!?” Rather than attempting to address the question of what people were thinking, let me attempt to address where we are and what we need to do.

While official results are still being certified, unofficial counts reveal a mixed bag on a slew of state ballot initiatives that could have an impact on innovation, education, state budgets and elections. Some gained favor with voters, like a battle over gig workers and how they are classified, which landed on the side of Uber and Lyft.

After a historic election night, the winners of the gubernatorial elections in 11 states appear to have been chosen. Barring a dramatic swing in votes, all of the nine incumbent governors have been reelected to a second or third term. In Montana, Rep. Greg Gianforte (R) has flipped control of the governor’s seat, and in Utah, Spencer Cox (R) has defeated Chris Peterson (D). Many of the incumbent governors held strong approval ratings going into election night and won their voters’ approval for another term as the country tries to inch out of the pandemic and recover economically.

As of this writing, control of Congress remains officially undecided, although the end result will likely be status quo: Republican control of the Senate and Democratic control of the House. While the discourse and activity around major legislation may not change, there will be changes to the committees that most strongly impact science and small business legislation. The new members will not be determined until the next session, but multiple departures from these committees are already known.

Senate

Nearly half of voters within battleground states have a deep level of trust in scientists, according to a recent study conducted by Third Way.

More special purpose acquisition companies (SPACs) have been formed in 2020 than in the last several years combined. These entities have helped some high-profile unicorns go public recently, including DraftKings and Nikola Corp.