Traditional economic development efforts at the state level are undergoing increasing scrutiny as budgets are being constrained. Two new studies show a shift in focus away from traditional approaches of tax incentives and reliance on major employers, to broader strategies relying more on the private sector and human capital. A report released by the Delaware Economic Development Working Group recommends shifting many of the core responsibilities of the Delaware Economic Development Office (DEDO) to a new nonprofit. And a report focused on Indiana details the decline in footloose jobs in the state despite local government investments in business attraction, indicating a reevaluation of public policy is needed, the authors contend.

With 36 governors being sworn in following the November elections, 20 of those being new faces and 16 who were re-elected, this year’s inaugural and state of the state addresses promise new ideas along with proposed resolutions to existing challenges. As the governors present their plans to constituents, SSTI revisits our Tech Talkin’ Govs series.

Shifts in the American economy have resulted in a myriad of challenges including workers without the necessary skills for today’s jobs, lack of wage increases for low- and middle-income worker and a shrinking labor force participation rate.

The World Economic Forum (WEF) identified cybersecurity breaches along with environmental degradation caused by human-induced climate change, as the top two risks to the global economy over the next 10 years, according to the 2018 Global Risks Report, the Forum’s annual survey of nearly 1,000 experts from across the planet.  With evidence mounting of Russian hacking of the U.S.

Two states taking a fresh look at their economies convened task forces that recently released reports detailing efforts the states can make to improve their state’s economic futures. In Missouri, Gov. Eric Greitens asked an innovation task force to take stock of the state’s current standing and offer options to help businesses and innovators succeed.

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.

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.

Over the last several months, economic development organizations, universities, and their partners have announced new efforts to create the building blocks for entrepreneurial development in rural communities. Examples include i2e announcing new efforts to expand entrepreneurial support services to rural communities in Oklahoma and three Indiana universities partnering to support startup growth in rural regions across the state.

Financial incentives for company recruitment and retention still dominate state and local economic development expenditures, but recent research estimates that extension programs and customized job training can accomplish development goals in a more cost-effective manner. Despite this, customized services get, on average, five cents of public investment for every dollar that traditional financial incentive strategies receive.

For those interested in how innovation, investment, programs, and policies can help make manufacturing an economic boon to states and regions across the nation, a new special issue of the Economic Development Quarterly may offer some answers. Featuring original research and book reviews from experts around the country, Strengthening Manufacturing – How Research Can Inform Public Policy is an important read for scholars and practitioners of economic development.

This month, we begin a four-part series focused on navigating innovation priorities in a variety of settings. The series features perspectives from experts in the field, presented in a Q&A format. Each practitioner we interviewed will also be presenting at our annual conference, where these topics will be explored in greater depth. Click here for more information on the conference.

Recognizing that the global economic and science and engineering landscape is changing rapidly, the Association of Public and Land-grant Universities (APLU) yesterday issued a position paper in an effort to bring together universities and their federal partners and respond to the economic and community development needs of the nation.

Organizations that assist and finance innovation and high-growth entrepreneurship have largely been left out of one of America’s great drivers of local investment: Community Reinvestment Act (CRA) activities by banks. Now, with the U.S. Department of Treasury actively seeking to modernize CRA regulations, the tech-based economic development community has an opportunity to help CRA to become a tool for advancing local innovation economies. All parties are encouraged to read below for more information and to submit comments by Nov. 19.

The Massachusetts legislature ended its 2018 session with a slate of bills related to tech-based economic development. Legislation for general economic development, life sciences industry, and green communities created new authorizations and provided for more than $1 billion in bond funding authority, with a substantial portion allocation to innovation-related activities. From broadband access to SBIR support to workforce development, the bills created a host of new opportunities for TBED in the Bay State.

Twenty-four local economic development entities, Small Business Technology Development Centers, Women’s Business Centers, incubators, accelerators, colleges and universities were granted $125,000 by the U.S. Small Business Administration (SBA) under the Federal and State Technology (FAST) Partnership Program. The 24 grant recipients, including seven that are members of SSTI (boldfaced below), provide support to small businesses developing and commercializing high-risk technologies.

Despite an uneven economic recovery, fewer Americans are living in distressed communities and more are living in prosperous ones, according to a recent report from the Economic Innovation Group (EIG), a Washington, D.C.-based policy and advocacy organization.

The Appalachian Regional Commission (ARC) announced its latest round of grants for Partnerships for Opportunity and Workforce and Economic Revitalization (POWER).

Gov. Andrew Cuomo announced more than $755 million in economic and community development funding awarded through Round VII of the Regional Economic Development Council initiative. The Regional Councils were established in 2011 as a community-based and performance-driven approach to economic development. Each of the 10 regions of the state must develop strategic plans tailored to their region.

Following reforms to the Community Development Financial Institution (CDFI) application process, four of the five venture capital funds that applied for CDFI financial assistance funding in FY 2017 were awarded. In trying to increase the impact of CDFIs by supporting their growth, reach and performance, the Fund implemented reforms to the application, making it easier for CDFIs to demonstrate their impact with an award regardless of what type of financial institution they are — they can be banks, credit unions, loan funds, microloan funds or venture capital providers.

The executive council of ENDOW, an economic development initiative started by Wyoming governor Matt Mead, has announced its preliminary recommendations to diversify and grow the state’s economy, including statewide programs to support tech-based economic development that total more than $36 million.

A range of equity-based strategies to support scale-up programming for small-scale manufacturers are among the findings of a recent report from the Urban Manufacturing Alliance (UMA).

Economic development was the most prevalent policy issue across mayoral speeches in 2018, according to State of the Cities 2018 from the National League of Cities (NLC).

After 20 years of a program that had supported innovation in the state of Kentucky, the governor said he wanted to consolidate the funding to support entrepreneurs and become more strategic in the state’s efforts.

Working with public and private-sector partners across the U.S., the EDA invested approximately $289.1 million in 815 locally-driven economic development projects in FY 2017, according to its most recent annual report. The report provides examples of the projects it funds in each state, to help show the breadth and diversity of the programs and projects it funds.

Improved prospects for economic development, as opposed to concerns about government efficiency, can play an important role in building support for local government consolidation efforts. The importance of economic opportunities in government consolidation was a key conclusion within Ball State University’s recently published policy brief, Indiana’s Government Modernization Act & Local Government Consolidation Experiences: Process and Politics.