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Developing local assets and nurturing local talent in science and engineering (S&E) is paramount to productive innovation economies. Institutions of higher education (IHEs) are arguably the most important elements of these local knowledge-capital assets — housing physical R&D infrastructure, training new scientists and engineers, and creating and disseminating new knowledge across the academic, public, and private sectors.

When planning and evaluating programs and policies in local and regional innovation economies, a key measure is the amount of private business research and development (R&D) activity taking place, typically found in the Business Enterprise Research & Development Survey (BERD). The Census Bureau, in cooperation with the National Science Foundation’s National Center for Science and Engineering Statistics (NCSES), is seeking public comment on planned updates to the BERD survey.

The level of federal R&D funding within a state can have important implications for local innovation economies. As such, understanding the amount of federal R&D funding and which agencies provide that funding within a state can help regional innovation leaders in designing and implementing programs and policies. This edition of Useful Stats explores NSF’s recently updated data on federal R&D funding obligations in 2019 by state and agency.

While President Biden’s infrastructure proposal with heavy investments in science, technology and innovation garnered most of the press attention in the last week, a number of other developments occurred in or impacting federal policy, including:

Given higher education’s role in generating the knowledge that catalyzes innovative new technologies developed by high-growth startups, R&D conducted at institutions of higher education is one of the most important metrics for evaluating an area’s innovation economy. This edition of Useful Stats examines NSF’s recently updated Higher Education R&D (HERD) survey, finding that most states, although not all, experienced growth in HERD expenditures from 2018 to 2019. This analysis also examines 2019 state HERD expenditures by R&D field, finding that life sciences accounted for the lion’s share of HERD spending in every state except Alaska, typically followed by either engineering; the physical sciences; or the geological, atmospheric, and ocean sciences.

In the wake of the Great Recession, Congress enacted the Budget Control Act (BCA) of 2011 to curb federal discretionary spending as the nation approached the statutory debt limit. Originally intended to reduce spending by nearly $2 trillion over the period from FY 2012 through FY 2021, the BCA spending caps were periodically raised by Congress. While these negotiations reduced the overall impact of the BCA, new analysis from the American Association for the Advancement of Science (AAAS) estimates that more than $200 billion in federal R&D spending were nonetheless “lost” to these spending cuts, impacting several key elements of innovation economies — higher education R&D, private R&D investment, and STEM workforce development.

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. Specifically, the new Annual Business Survey incorporates previously experimental data on the R&D performance by microenterprises — businesses which employ between one and nine people. SSTI’s analysis of this new data shows the total R&D performed by microenterprises in each state, and the portion of that R&D which the companies paid for themselves.

With the general election less than one month away, SSTI has reviewed the 120 state ballot initiatives throughout the country for innovation-related issues. Education, gig workers, redistricting and issues surrounding elections and state budgets are scattered across the country and can affect the future of innovation through funding, talent and political will. Read below for coverage on the initiatives that could have an impact on different segments of the economy and the future of innovation.

Government investment in R&D within the health, defense, and energy sectors can provide both immediate and long-term benefits in the form of employment, income, and federal and state tax revenue. A new report released by Breakthrough Energy explores these benefits, while also studying the effects that an increase in public R&D spending could have throughout the nation.

As discussion of innovation ecosystems remains near the front of science, technology, and innovation policy discussions — and resources are spent providing environments for creative exchange between researchers, industry, government, and entrepreneurs — substantive and empirical research is still lagging. However, a recent study sheds new light on the mechanisms and types of interactions that may contribute to the desired outcomes of promoting innovation ecosystems.

A bipartisan, bicameral group of legislators have introduced bills that would make a five-year commitment to increase America’s investment in R&D by $100 billion, while also investing $10 bi