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In FY 2013, the federal government obligated $25.9 billion for science and engineering research and development (S&E R&D) at colleges and universities, a decrease of $1.6 billion from FY 2012 (5.7 percent). Eight states (California, New York, Maryland, Pennsylvania, Massachusetts, Texas, North Carolina, and Illinois) each received more than $1 billion in funding during FY 2013, though each state also experienced a decrease from their FY 2012 total.

After much criticism, the National Institutes of Health (NIH) announced that it will abandon the Grant Support Index (GSI) plan – a strategy to bolster NIH funding support for the next generation of researchers by placing limits on individual research funding which SSTI previously covered.. Instead, NIH will launch the Next Generation Researchers Initiative (NGRI) that will allocate $1.1 billion over the next five years to support nearly 2,400 new grants for early and mid-career researchers whose grant proposals receive high scores, but fall short of receiving funds. At this time, however, there was no immediate promise of where that money would be found, according to an article in the The Chronicle of Higher Education.

Over the past four years, 1,668 deals involving university spinout companies from across the globe attracted approximately $35.6 billion from 2013 to 2016, according to a new report from Global University Venturing. The report, however, highlights that global deals peaked in 2014 with 529 deals and total investments dollars peaked in 2015 with nearly $14 billion invested. As the authors highlighted, these global numbers were unsustainable and 2016 saw significant declines in both deals and dollars. In 2016, the total deals reported were 407 (21.6 percent decrease from 2015) and dollars invested was $6.4 billion (a 54.3 percent decrease from 2015).

The angel investor market in 2016 experienced a decrease in investment dollars and deal size, according to a new report from the Center for Venture Research (CVR) at the University of New Hampshire. CVR researchers found that total investments were $21.3 billion in 2016, a decrease of 13.5 percent from 2015.

Building Bridges for a Better Future serves as the theme of this year’s conference, taking place Sept. 13-15 in Washington, D.C. “We chose the theme after hearing from our members and others in the field about the importance of reaching outside of our traditional networks and imagining what the future may hold for those in the innovation economy,” said Dan Berglund, SSTI president and CEO. “We’re excited to hold the conference in the nation’s capital, and share the stories of successes, along with the challenges, that stakeholders in science, technology, innovation and entrepreneurship are facing.”

Michigan’s University Research Corridor, an alliance of Michigan State University, the University of Michigan and Wayne State University, conducted $1.2 billion in academic R&D in the life, medical and health sciences, and served as a stabilizing force to the state’s economy as one of the only sectors that grew during the 2000s. Those are among the findings of the 2017 URC sector report, which was prepared by Public Sector Consultants. The report, Leading Discovery: URC Contributions to the Life, Medical and Health Sciences, notes that employment in the life, medical and health sciences sector, which accounts for one in eight jobs in Michigan, is up 18.9 percent since 2000, compared to overall Michigan employment, which is down 9.3 percent.

Although it has been slated for elimination under the president’s proposed budget, the Advanced Research Projects Agency-Energy (ARPA-E) program is making progress toward achieving its statutory mission and goals, and it “cannot reasonably be expected to have completely fulfilled those goals given so few years of operation and the size of its budget.” That is among the findings released this week by the National Academies of Sciences, Engineering and Medicine (NASEM) in its assessment of ARPA-E. The project was overseen by the Board on Science, Technology, and Economic Policy (STEP) and was tasked with assessing ARPA-E’s progress toward achieving its statutory mission and goals, and determining whether it is on a trajectory to achieve them. In short, the answer is that it is.

SSTI continues its reporting on actions taken by state legislatures to invest in economic growth through science, technology, innovation and entrepreneurship. This week, we look at the budgets passed and signed by governors in Iowa, New York and North Dakota, finding mostly level and some increased funding for innovation programs in Iowa and New York – including free tuition at in-state colleges for qualifying residents – while North Dakota is looking at decreased funding for programs.

One complication for the FY 2018 budget process is that discretionary spending is scheduled to decrease by billions from FY 2017 levels. The reason for this decrease is Congress’ solution to previous spending impasses: the Budget Control Act of 2011 (BCA). This act set limits on how much can be spent on defense and non-defense discretionary spending for future years. While Congress frequently authorizes additional spending beyond the caps the act sets, if they fail to alter the FY 2018 spending level, it would reduce the discretionary budget by $110 billion.

Among the $410 million in items Gov. Rick Scott struck from Florida’s 2018 budget were more than 100 appropriations totaling more than $20 million that would support STEM education, higher ed, R&D and innovation. Instead, the governor wants the state to spend more money promoting tourism. Scott vetoed more than $20 million for innovation-oriented economic development items.

The SBIR program has been a legislated requirement of the Department of Defense, an agency responsible for roughly 40 percent of all federal extramural R&D spending, for more than three decades. One might expect that over that amount of time, the Department of Defense would have developed a system to become compliant with SBIR’s fundamental provision that a minimum threshold of innovation research spending be directed toward small businesses. Yet, a new report from the Government Accountability Office concludes DOD couldn’t say if it was meeting the threshold because, DoD did not submit the required obligations data. The report states “DOD officials told [the GAO] that obtaining obligations data would require requesting information from more than 10 individual program offices that, in turn, would have to request the information from various DOD comptrollers, which would be a major effort.”

As governors and state legislatures continue their negotiations over state budgets, SSTI has reviewed the latest to be signed. The process has proved difficult in more than a few states, with New Mexico having to overcome several stalemates and still facing shortages while in Oklahoma three-fourths of the state agencies are seeing decreased funding due to the state’s $900 million shortfall.

Two recent U.S. Supreme Court decisions will greatly shape patent holder rights by limiting where patent lawsuits can be filed and restricting patent rights after a product is sold. These rulings are considered by many analysts to be beneficial for startups, small businesses, and consumers. The biggest losers will be patent trolls – patent owners who collect IP rights only to seek infringement damages – who likely will face more pushback against their patent lawsuits and may see fewer settlements.

By its very nature, economic dynamism can unsettle local economies. As businesses dissolve, jobs are lost. Technological shifts can drastically alter – or even replace – companies, occupations and entire industries. As these ripple effects move throughout communities, it is easy to focus on the negative impacts, but this loses sight of the importance dynamism has on national economic health.

While much recent attention has been given to the Cancer Moonshot research effort, the National Cancer Institute established a network of publicly funded cancer cooperative research groups more than 50 years ago to evaluate new treatments for efficacy and safety. JAMA Oncology details an investigation that examined the extent to which positive NCI-sponsored cancer treatment trials have benefitted patients with cancer. The study estimated that 3.34 million life-years were gained in the population of U.S. patients with cancer through 2015, at a cost of $125 per life-year gained.

The Blackstone Charitable Foundation has announced its first cohort of eight organizations in the Chicago-area entrepreneurship challenge. Named the BX Challenge, up to $3 million in grant funding will be provided over three years to innovative organizations that effectively recruit and support diverse entrepreneurs and scale startups in the Chicago area. The selected programs will serve underserved populations, including communities of color, women, veterans, and immigrants.

More than 46 million Americans, nearly 15 percent of the population, lived in poverty in 2015, according to the U.S. Census Bureau’s Small Area Income and Poverty Estimates. Compared against census data for 1999, more than 2,500 of the country’s 3,100-plus counties saw their rate increase. In 2015, 753 counties had a poverty rate of at least 20 percent — and 415 of these counties have been above this threshold in census data dating back to at least 1989.

In an effort to incentivize large-scale industry partnerships, Innovation, Science and Economic Development (ISED) Canada will invest up to C$950 million (US$708.5 million) between 2017 and 2022 in superclusters as part of the nation’s Innovation and Skills Plan.

If it takes a village to raise a child, it may take an entire educational support system as well as public policy reform and funding to get that child into a skilled technical job. A two-year study coordinated by the National Academies of Sciences, Engineering, and Medicine found that the disjointed method of workforce development approaches in the U.S. may be hampering the economic competitiveness of the country.

While U.S. Secretary of Agriculture Sonny Perdue has announced that the Rural Development agency would be elevated under a reorganization plan because it would be placed under the direct oversight of the Secretary, not everyone is viewing the consolidation as an elevation.

In Part 1 of this two-part series, SSTI examined NIH’s proposed changes that will place limits on individual researcher funding. In Part 2, impacts of the limits are explored.

In the May 18th Digest, proposed changes to the National Institutes of Health (NIH) grants funding process were highlighted. The changes – tilted the Grant Support Index (GSI) – would impose a general limit of three major grants per researcher. Since the article was published, the NIH’s director, Francis Collins, announced during a U.S. House appropriations subcommittee that NIH intends to proceed with the GSI proposal. In this second part of the series,SSTI reveals areas within the field of tech-based economic development that could see the benefits and/or the negative unintended consequences of these changes.

The Kauffman Foundation’s recently updated Index of Startup Activity finds that startup activity has increased for the third consecutive year and has now reached pre-recession levels. Nationally, the index, which measures business startup activity from 1997 to 2016, increased moderately after two years of sharp growth.

The Department of Commerce houses a variety of science- and innovation-relevant agencies, most of which receive substantial cuts in the administration’s FY 2018 budget. Collectively, Commerce would lose many of its initiatives targeted to entrepreneurs, most notably the Regional Innovation Strategies (RIS) program and the Manufacturing Extension Partnership (MEP).

The president’s FY 2018 request for discretionary budget authority to fund programs and operating expenses is $21.0 billion, approximately $4.8 billion below the 2017 estimate in discretionary program funding for the Department of Agriculture (USDA). This includes funding for Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Rural Development, Forest Service, food safety, research, and conservation activities. However, the budget does not include the USDA reorganization plan that was announced by Secretary Sonny Perdue on May 11, which proposes a change in status for Rural Development.

Research and development activities in the Department of Transportation’s (DOT) would face a considerable decrease under the president’s proposed FY 2018 budget.