Many states took another hit to their budgets in April, with income tax revenue falling 4 percent compared to last year according to a new report from the Rockefeller Institute of Government. By the Numbers takes a look at the declining revenue, which it says was worse for April and May this year than had been forecast, but not as large as some states have experienced in recent years.

An SSTI analysis of exits occurring during the second quarter by a number of venture development organizations reveals equity investment in innovation companies undertaken as strategic public-private partnerships for regional growth can yield more for their communities than just hitting the return on investment expectations of seed and traditional venture capital. The recent exits highlighted below reveal a variety of economic development impacts resulting from effective innovation investment strategies, including:

Restoring America’s competitive edge requires a new approach to managing suppliers, one where all the players are connected, collaborative, and focused on maximizing shared value – a “smart supply chain” – says a new report from MForesight.

Presently, the IRS provides private foundations a tax break if they show a trend of exceeding qualifying distribution requirements (grants).

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

The U.S. House and Senate Armed Services Committees recently passed their versions of the FY 2018 National Defense Authorization Act (NDAA). The legislation includes provisions for federal labs, SBIR and SBA technical assistance programs. These portions of the bills are currently very different between the chambers, and, if passed in their current forms, the final bill could address a wide range of policies affecting small business and innovation.

One week before implementation, the Department of Homeland Security (DHS) announced that the International Entrepreneur Rule would be delayed until March 2018 and that a new proposal to rescind the rule will be made. The rule would have provided immigrants who have founded a high-potential startup with equity investment to remain in the country up to five years to scale the company.

Startup innovators from around the country have the opportunity to exhibit their ideas and win $10,000 during the Catalysts of the Climate Economy national innovation summit in Burlington, Vermont, Sept. 6-8. Innovators in the climate economy are encouraged to enter a contest that will result in five competitors pitching their ideas to a panel of judges, with the winning idea garnering the top prize.

In a recent post, the Brookings Institution’s Mark Muro raises concerns about the U.S. manufacturing sector’s health due to the leading indicators of slowed growth in both auto sector output and auto manufacturing employment. Muro contends that these slowdowns are driven by plateaued consumer demand and automakers investing billions in developing technologies necessary for electric and self-driving cars.

Breaking a two-year impasse, legislators in Illinois were able to pass a state budget that reinstitutes an R&D tax credit and implements workforce development programs. In California, the Governor’s Office of Business and Economic Development (Go-Biz) will see a 28 percent increase in funding, while other innovation initiative are receiving level funding. In other states whose budgets SSTI analyzed this week for TBED-related funding, we found that Innovate Mississippi was able to maintain state funding and new funding was appropriated for workforce development at the state’s community and junior colleges; a variety of programs were cut in North Carolina; and, Ohio will not get funding for a state office focused on commercializing research across key industries that the governor had proposed. More findings from California, Illinois, Mississippi, North Carolina and Ohio are detailed below.

SSTI’s annual conference will focus on building bridges for a better future by establishing new connections and wading through an uncertain political climate during a three-day conference filled with tips and insights. The agenda is now online at ssticonference.org and early bird rates are available. The conference, held in Washington, D.C., Sept. 13-15, will feature speakers on innovation, capital, policy, workforce, R&D, manufacturing and more.

A new survey released by the Pew Research Center reveals a much more negative view of the  impact of colleges and universities on America on the right, with a majority (58 percent) of the Republicans and Republican-leaning independents surveyed saying that colleges and universities have a negative effect on the country compared to 45 percent last August. Democrats and Democratic leaning independents (72 percent) say the colleges and universities have a positive effect.

The Economic Development Administration (EDA) announced approximately $30 million in funding for the Assistance to Coal Communities (ACC). As part of the FY 2017 appropriation for the Public Works and Economic Adjustment Assistance (EAA) programs, the ACC will assist communities 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 June 14, the Appalachian Regional Commission (ARC) announced $15.7 million in funding to support 18 projects (including those of two SSTI members – LaunchTN and Ohio University) that will help grow the economies in coal-impacted communities in seven states. With this latest announcement, ARC has invested over $92 million (leveraging an additional $206 million in investments) to diversify the economies in 250 coal-impacted counties across 11 Appalachian states through its POWER (Partnerships for Opportunity and Workforce and Economic Revitalization) Initiative. The new round of investments are intended to create and retain hundreds of jobs in advanced manufacturing and tech industries; support entrepreneurial development efforts, and, build workforce pipelines through institutions of higher education.

Massachusetts Gov. Charlie Baker announced a legislative proposal that would provide $500 million over five years for the life sciences sector, extending the state’s commitment to the biotech and medical technology industry. The money would be used for strategic investments in public infrastructure, research and development, workforce training and education.

Earlier this month, the White House released an executive order to expand apprenticeship programs and to study other federal workforce initiatives. The administration will attempt to reduce regulations for “effective” efforts while reducing funding for other programs.

The House Appropriations Committee began releasing FY 2018 “markup” budget bills this week, and the proposals would cut billions in non-defense spending. EDA would lose $100 million* in funding, SBA’s entrepreneurial development programs would lose $34 million, NIST’s Manufacturing Extension Partnership would lose $30 million, and Energy’s ARPA-E would be eliminated, among other cuts.

The state budget process is winding down across the country and SSTI continues to review the final budgets for funding for innovation-based programs. This week, we found level funding for South Carolina programs including MEP and regional-based economic development efforts, while university programs in Texas are taking a hit, and in West Virginia Gov. Jim Justice refused to sign the state budget although he will allow the legislatively approved measure to become law. Unless otherwise noted, the figures below represent level funding from the previous budgets.

Since President Trump has taken office, the U.S. has seen several dramatic shifts in science and technology (S&T) policy from the previous administration—changes that several foreign leaders believe will create economic growth opportunities for their countries. As the Trump administration continues to roll out its S&T policy directives, these nations seem committed to growing their economies while chipping away at U.S. dominance in S&T.

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.