A continued trend toward improved fiscal conditions gave rise to targeted and riskier investments in research for several states this legislative session. In particular, lawmakers dedicated funds for life sciences research and for initiatives aimed at commercialization through partnerships with higher education and the private sector. Other states dedicated additional funds to expand promising research and technology-focused initiatives already underway.

As the outlook for general revenue funds improves in many states, governors are looking to boost investment in higher education and STEM as a means for growing the economy and enhancing the workforce. Universities' economic return to states can be quite impactful.

The European Union is investing € 15 billion ($20.5 billion) over the next two years toward the Horizon2020 project, an initiative designed to boost Europe's knowledge-driven economy, increase global competitiveness, and address key societal challenges. The European Commission has declared funding priorities for the project and opened submissions for the 2014 budget.

Gov. Andrew Cuomo announced more than $715 million in funding for 824 projects across the state as part of the third round of funding for the Regional Economic Development Councils initiative. Established in 2011 to improve the business climate statewide, the 10 regional councils support projects tailored to maximize resources and competitive advantages.

Battelle Memorial Institute and R&D Magazine have released their annual Global Funding Forecast, an assessment of global political and economic impacts on worldwide industrial research. The report notes that although global R&D spending by leading countries has remained virtually unchanged since the Great Recession, the flows of innovation research have changed substantially.

A record number of U.S. students received doctorates in 2012, according to new data from the National Science Foundation. For the first time, the number of doctoral recipients broke 50,000, with a final tally of 51,008. Total doctorates awarded grew by 4.3 percent over the previous year, the largest increase since 2007 and a significant improvement from the previous four years in which the numbers remains fairly steady.

In a report letter to the president this week, the U.S. President's Council of Advisors on Science and Technology (PCAST) advocated the expansion of massive open online courses (MOOCs) to boost U.S. competitiveness, STEM learning and economic mobility. PCAST recommends that the federal government avoid setting technology standards for these programs at this point, as online education is still in its infancy. Instead, they call for accrediting bodies to become more flexible in response to educational innovation and institutions to improve their sharing of effective practices.

As many state legislative sessions wind down, a clearer picture of the current direction of state innovation policies is emerging. This week’s SSTI Weekly Digest presents a few of the major trends in technology-based economic development initiatives approved by state legislatures during their most recent sessions. While this review is not meant to be comprehensive, it should illuminate the shifts states are making to refine their investments in the high-tech economy by providing smarter, more targeted support.

The National Science Foundation (NSF) has conducted a Survey of Federal Funds for Research and Development for fiscal years 2010-12. In total, federal R&D obligations were $144.7 billion in FY10. The top state recipients, in absolute terms, are California ($28.3 billion, representing 19.6% of the national total), Maryland ($17.0 billion, 11.8%), Virginia ($9.3 billion, 6.4%), Massachusetts ($8.9 billion, 6.1%), and Texas ($7.3 billion, 5.0%).

Small businesses often are surrounded by a myriad resources and potential partners that could help leverage their products and services to innovate and grow, but they are not always aware of how to access them.

Green jobs have been at the center of a number of controversies in economic development circles over the past decade. Key among these debates is whether or not sufficient job opportunities exist to justify large public investments in green job-training programs. A recent report from the Government Accountability Office (GAO) reveals that, at least at the federal level, a great deal of uncertainty remains about the green job labor market.

A recent report by Cleveland State University's Levin College of Urban Affairs details the economic impact of companies supported by JumpStart Inc. and the North Coast Angel Fund in the 2012 calendar year. The 127 companies included in the study created 2,140 jobs in Ohio (1,652 in Northeast Ohio), generated $269.7 million in economic benefits for the state, and produced $35.5 million in federal, state, and local taxes.

The city of Los Angeles is working with a consortium of public and private partners to redevelop unused docklands into space that will support new industry cluster development. The project highlights a trend of high-profile projects across the country, with cities like Brooklyn and Philadelphia repurposing dockside warehouse space to seed tech startups and advanced manufacturing.

The co-locating of researchers, donated equipment, and capital are recent examples of key elements provided by private-sector partners to help accelerate technology commercialization. In the past month, leaders from universities and nonprofit organizations across the country have announced new efforts to expand research capacity and bring more products to market by launching innovative centers in collaboration with corporate partners.

Department of Energy (DOE) Secretary Ernest Moniz is leading a restructuring of the department's management, reorganizing programs and undersecretary positions to better align with the operational goals of supporting President Obama's Climate Action Plan, an "all of the above" energy strategy, and strengthening nuclear security. The move will create an Under Secretary for Management and Performance, merge the energy and science programs, and consolidate the department's defense waste cleanup efforts.

New business creation in the U.S. increased in 2011 for the first time since the 2007-09 economic crisis, according to data released by the U.S. Census Bureau. Census data indicates that 8.2 percent of all businesses were less than one year old in 2011, the first increase since 2006 and the largest increase in a decade. A pair of briefs from the Census Bureau and the Kauffman Foundation link the decline and rebound of American startups to fluctuations in housing prices during the economic downturn.

As federal immigration reform remains in gridlock, cities are leading a charge to make America more welcoming to immigrants. Driven by the potential economic growth, mayors and regional economic development organizations are moving ahead with the creation of new initiatives and entities to attract and retain high-skilled immigrants.

As the U.S. manufacturing sector continues to grow, so does the challenge for regions to find “middle-skill” workers who can fill job vacancies in advanced manufacturing. The Council on Foreign Relations has released a new report, Building the American Workforce, that suggests policymakers can fill this need by narrowing the skills gap for underserved, low-skilled workers.

Yesterday, the White House honored 11 “Champions of Change” who are working to promote an inclusive technology-based economy. The honorees ranged from nonprofit leaders to a mathematics professor to the author of a children’s book. Eight of the 11 “champions” focused on introducing young students to programming and technology, reflecting the significant emphasis on the long-term investment in future workers, especially those who are underrepresented and underserved.

In the second quarter (Q2) of 2013, venture investment totaled $6.7 billion over 913 deals, according to the quarterly survey by PricewaterhouseCoopers (PWC) and the National Venture Capital Association (NVCA). Compared to the first quarter of 2013, the amount of venture capital investment increased 12 percent and the number of deals increased 2 percent. Although still well below venture capital investment highs in 2007, Q2 2013 had the largest total amount of investment in a year.

Lawmakers continued to provide support for life sciences at a reduced level in the recently enacted budget; however, other technology areas did not fare as well. In some cases, funding was eliminated for tech-based initiatives, and lawmakers allowed a tax credit for early stage investors to expire. Meanwhile, the North Carolina Biotechnology Center plans to consolidate activities and redouble efforts to keep things moving in the wake of a 27 percent reduction to their budget.

The Economic Development Administration (EDA) annual report for FY12 includes a summary of some of the major regional programs and grants that have been awarded over the year, summaries of EDA activities in each state, and a breakdown of EDA investments in each state as well as their specific recipient. SSTI has prepared a table from the data reported. (Note: SSTI received EDA funding in FY12).

U.S. research universities have launched several new initiatives to impact international development across Africa by leveraging their institutional knowledge to support tech-based economic growth on the continent. The African Development Bank, a regional multilateral development bank, also announced that it will commit $45 million for the creation of a Pan African University consisting of five thematic institutes focused primarily on science, technology and innovation.

Although universities are not always at the forefront of the discussion on job creation and economic activity, they saw a sizable increase in licensing and startup activity during FY12, according to a survey by the Association of University Technology Managers (AUTM). Respondents reported $36.8 billion in net product sales from licensed technologies and startup companies from 70 of the surveyed institutions employed over 15,000 full-time employees. Highlights from the survey are available now, and the full report is set to release at the end of the year.

A new chair of the National Governors Association (NGA) also means a new challenge and opportunity to improve state economies. This week, Oklahoma Gov. Mary Fallin, newly elected NGA chair, announced a year-long initiative designed to improve the capacity and effectiveness of states’ education and workforce training systems and to align those needs with the needs of employers. The initiative kicks off with an intensive effort among six to eight states that will develop and implement a policy agenda to build and strengthen education and workforce training.