Number of minority-owned firms, their employees, and their payrolls all rise in 2015
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).
San Francisco Fed: Workforce development may help boost business formation
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.
Senate Appropriations advances FY 2018 spending bills, would fund Regional Innovation at $21 million
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.
31 Mega-rounds, strong fundraising drive VC industry in Q2 of 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.
Commission led by Bloomberg, New America imagines the future of work
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.
Maine voters approve $50 million in tech: Why it matters to all of us
Maine voters approved a special referendum on June 13 that will issue $50 million in bonds to fund investment in research, development and commercialization in the state’s seven targeted technology sectors. The Maine Technology Institute will distribute $45 million of the funds for infrastructure, equipment and technology upgrades. The remaining $5 million will be used to recapitalize the Small Enterprise Growth Fund to create jobs and economic growth by lending to or investing in qualifying small businesses.
Bioscience important for state growth
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.
US manufacturing sector poised for revitalization but without the jobs, McKinsey says
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.
States scramble to negotiate final budgets; DE, LA, ME, MO, NH, VT and WA reviewed for innovation funding
With a July 1 start to the fiscal year in most states, several states that were at an impasse over their budget faced at least partial shutdowns. Last minute negotiations restarted services in both Maine and New Jersey, while Illinois, which has been operating without a budget since 2015, faces threats of a downgrade in their credit rating if a deal cannot be reached. This week we present our findings of innovation funding from seven states, including $2 million in funding for a new public-private economic development organization in Delaware, an increase in funding in Louisiana for the state’s scholarship program for higher ed, and cuts to higher ed funding in Missouri, which also saw a severe drop in its funding to the Missouri Technology Corporation. Efforts in Maine, New Hampshire, Vermont and Washington are also detailed below.
Tech Talkin’ Govs: Part IV
The fourth installment of SSTI’s Tech Talkin’ Govs series includes excerpts from speeches delivered in Illinois, Massachusetts and Utah.
President Urges Expansion of National Manufacturing Network in State of the Union Address
In his fifth State of the Union address, President Barack Obama touted the administration’s Institutes of Manufacturing Innovation program as central to its plan to reinvigorate the American economy. The president called on Congress to expand the manufacturing network beyond the two existing institutes in Ohio and North Carolina and the six additional institutes to be rolled out in 2014. He also requested legislative action to undo last year’s sequester-related cuts to basic research, to pass patent reform and to improve U.S. STEM education.
Manufacturing Groups, Private Sector Tapped to Advance Delaware Workforce
Delaware Gov. Jack Markell outlined a FY15 budget proposal with further detail and funding levels for TBED priorities announced in his recent State of the State address. The budget would provide $1 million to create a faster path to degree or certificate completion in advanced manufacturing and establishes a $3 million cyber workforce initiative. Higher education institutions would be tapped as partners for the new initiatives, and also would receive an additional $2 million for federal R&D matching grants as part of the budget recommendations
Tech Talkin’ Govs: Part V
The fifth installment of SSTI’s Tech Talkin’ Govs series includes excerpts from speeches delivered in Connecticut, Maine, Oklahoma, and Tennessee.
Useful Stats: U.S. Seed and Early Stage Venture Capital Investment by State, 2008-13
Last year, U.S. venture capitalists invested about $10.7 billion in seed and early stage companies, 17.1 percent higher than 2012, according to data from the National Venture Capital Association (NVCA) and PricewaterhouseCoopers (PwC) Moneytree survey. Though the overall venture capital (VC) market has returned to about the same level of activity as before the economic crisis, investment in seed and early stage companies has grown by more than a third.
New and Public Investors Join Seed and Early Stage Capital Boom
Angel and venture capital firms invested more in seed and early stage companies last year than any time in the past decade (for details see the related Useful Stats article). Seed and early stage companies appear to be generating a great deal of attention from the venture capital industry, even as overall U.S. investment activity remains steady.
$25M Fund Would Help Modernize Connecticut Manufacturing, Gov Says
Companies that locate in the 42 communities known as historic manufacturing hubs would be given priority to receive funds for modernizing production, purchasing equipment, developing new technologies, and training workers under a proposal introduced by Connecticut Gov. Dan Malloy.
People on the Move & TBED Organization Updates
Robbie Melton has been named the executive director and CEO of the High Technology Development Corporation.
Gov. Bobby Jindal has appointed Louisiana Tech University president Les Guice to chair the Louisiana Innovation Council.
Economic Development Leader Rich Lunak Joins SSTI Board
Rich Luank, President & CEO of Innovation Works, recently was elected to the State Science and Technology (SSTI) Board of Trustees. Lunak will assist in providing strategic guidance and oversight of SSTI’s operations as the group works to encourage economic growth through science, technology and innovation.
Governors Prioritize Funding Toward High-Tech Facilities
Having world-class facilities to train workers or support research in fields most likely to benefit the state is a draw for many reasons. Attracting outside investment, retaining talent and generating buzz are just a few of the benefits. Last year, Connecticut lawmakers dedicated more than $2 billion to expand science and technology education on the campuses of the University of Connecticut, including construction of new STEM facilities and for building research and teaching labs. Michigan Gov. Rick Snyder is the latest state leader to announce funding proposals aimed at either constructing new facilities or making capital improvements for training students in high-wage, high-demand fields. Similar announcements were made earlier this year in Florida, Georgia, Rhode Island and Wyoming.
SBA Offers Clarifying Changes to Final Policy Directive for SBIR/STTR
In response to public comments on SBIR/STTR rule changes resulting from the National Defense Authorization Act for FY12, the Small Business Administration (SBA) amended its policy directives for the programs, including changes to eligibility and the award process. The amendments also involve minor clarifying changes to ensure participants better understand certain program requirements.
Around the World in TBED
The United Kingdom (UK) recently announced that it will petition the European Commission, the European Union’s executive body, for permission to increase the size of tax relief for social investments that address significant social issues. In the U.S., Georgetown University and Portland State University recently announced new initiatives to promote innovation that will address social issues. These universities join a growing number of institutions of higher education that are working to grow domestic social innovation, train a generation of social entrepreneurship and spur social impact investing.
Tech Talkin’ Govs: Part VI
The sixth installment of SSTI’s Tech Talkin’ Govs series includes excerpts from speeches delivered in New Hampshire and Wyoming.
States and Cities Push Forward with Immigration Reform to Promote Entrepreneurship
In the U.S. there is strong bi-partisan consensus that immigration is a key driver for entrepreneurship and regional competitiveness. With federal immigration reform essentially shelved for 2014, cities and states are searching for their own solutions to attract and retain high-skilled immigrants. Proposals by Michigan Gov. Rick Snyder and other policymakers represent new approaches to immigration reform that can support local entrepreneurship and regional economic development.
Useful Stats: Gross R&D Expenditures and Intensity for Select Countries, 2006-11
The U.S. remains the global leader in research and development (R&D) spending, but its share of global research is on the decline, according to the National Science Board’s (NSB) Science and Engineering Indicators 2014 report. U.S. R&D expenditures, including government, private and academic spending, reached about $428 billion in 2011 (see our previous Digest article on U.S. R&D spending), representing a 21.4 percent increase over 2006.
People on the Move & TBED Organization Updates
Patrick Gallagher has been named the 18th chancellor and chief executive officer of the University of Pittsburgh. Gallagher currently serves as acting deputy secretary of the U.S. Department of Commerce and director of the National Institute of Standards and Technology.