From 2005 to 2008, the clean technology industry experienced a venture capital boom where the share of total VC investments in clean energy technologies tripled before falling dramatically. Many studies have concluded that the boom and bust in cleantech as an equity investment focus was because clean energy does not fit the venture capital “model.” A recent study from the National Bureau of Economic Research explores other possible reasons for the failure of venture capital to remain interested in clean energy.

A study titled Incubators, accelerators and urban economic development,[1] published in the Urban Studies Journal last year, found positive impacts on employment and access to capital for participants.

Traditionally, a scientific discovery's commercial potential is gauged after significant R&D. However, a recent paper by Duke University researchers Roger Masclans-Armengol, Sharique Hasan, and Wesley M. Cohen (2024) proposes a new method for assessing the commercial potential of scientific research before it's fully developed.

Differences in per capita innovation capacity between urban and rural regions are not as large as previously believed according to a recent working paper from the National Center for Science and Engineering Statistics (NCSES). The study’s conclusions reduce the difference by a factor of three.

Recent research revealed that exposure to innovation (e.g., mentorship program and immersive K-12 STEM education experience) during childhood and young adulthood has a greater effect on the decision to pursue careers in innovation than financial incentives. Researchers Alexander M. Bell, Raj Chetty, and their co-authors developed a model to analyze the impact of several factors on inventor career choices.

While competition between states over business incentives and headquarters attraction is often derided, new research published in the Journal of Technology in Society suggests that competition in technology-based economic development is hardly a zero-sum game.

Several recent articles covered in the National Bureau of Economic Researchers (NBER) Digest suggest that current understanding of policies surrounding wages, clusters and labor concentration may warrant revisiting. In one piece of academic research, a historical argument of shared productivity gains with employees is challenged, while another article shows a loss of bargaining power for employees in concentrated labor markets.

Industry consolidation slowing wage growth, productivity

Congress so far has ignored administration budget requests that call for reducing U.S. investment in research and development.  Science and innovation advocates interpret the legislative branch’s decision as good for many reasons. Authors Nicholas Bloom, Charles I. Jones, John Van Reenen, and Michael Webb add another reason in their NBER working paper Are Ideas Getting Harder to Find? They find U.S.

Jennifer Roche prepared the following summary of a recent Enrico Moretti working paper for the November 2019 issue of the NBER Digest. The summary has been edited here for length and clarity; SSTI comments are in brackets.

In a new working paper, Sabrina T. Howell of New York University and Filippo Mezzanotti of Northwestern University provide a systematic review of state angel tax credits. One of the most notable aspects of their research is a seemingly-comprehensive index of all of the relevant programs authorized by states over the past 30 years. The results indicate that angel tax credits have some impact on investment activity but not on economic outcomes.

Uncommon innovation is more likely to be found in high density areas, according to recent research.

A review of recent reports finds the rise of financial technology (fintech) has the potential to improve the financial health and literacy of the traditionally underbanked and decrease discriminatory practices as more people gain access to services and are included in financial markets. However, regulators face new challenges as a result of fintech.

If you are feeling that your money is not buying as much as it used to, that delinquent crime may be increasing as teenagers sit idle, that there is not enough focus on climate change or that corporate responsibility may be lacking, you may validate those feelings through the findings of several recently released research papers. SSTI received notice of the conclusions of five working papers that we thought we’d share.

The Trade War is increasing U.S prices, declines in real income.

As the technology behind renewable energy continues to advance, recent research finds that the public sector plays an important role in catalyzing innovation. This can be seen in three main ways: by funding basic research on renewable energy in all 50 states; by partnering with cleantech startups; and by supporting cleantech clusters through networks, commercialization assistance, and access to capital. Taken together, this recent research suggests that public-sector partnerships can complement industry’s role in growing the green economy at the federal, state and local levels.

The state of Alaska is in the midst of a funding crisis that could devastate the viability of the University of Alaska, and recent research from a National Bureau of Economic Research (NBER) working paper shows that the loss of funding could have long-term impacts for the system.

A recent paper published by SSRN provides a detailed look at the relationship between financial incentives and state fiscal health. The authors control for many potentially-related factors and still find significant, negative impacts of incentives. While the study helps fuel calls for critical analysis and careful implementation of tax incentives, the results may not be as clear cut as some coverage may suggest.

What holds people back from starting a business? How does lifting financial constraints help promote entrepreneurship?

The conclusion from the working paper, The Effects of Scientists and Engineers on Productivity and Earnings at the Establishment Where They Work, by Erling Barth, James C. Davis, Richard B. Freeman, and Andrew J. Wang, is pretty clear for manufacturers and policy advocates for improving U.S.

Approximately 30.2 percent of NIH-funded research studies produce false positive results that make those studies not replicable by other researchers, according to a recent study from researchers at Queensland University of Technology (AU). The authors of the study contend that the reproducibility crisis is driven by “publish or perish” incentives to increase the quantity of their papers at the cost of quality.

Over the last decade, accelerators have spread from a Silicon Valley phenomenon to communities across the country. Questions, however, remain on their impact on startups and whether they aid in creating a strong startup ecosystem. In How Do Accelerators Impact High-Technology Ventures?, Sandy Yu from UC-Berkeley found that the accelerator process helps resolve uncertainty around company quality sooner than what is experienced by non-accelerator companies.

While diversity plays a critical role in both improving the quality and increasing the rate of innovation, women and several minority groups remain underrepresented in STEM fields. Several studies find that improving the retention rate of women and other underrepresented groups in STEM at the college level can have significant impacts on improving the diversity and representativeness of the STEM workforce.

Several academic papers have been released recently focused on topics of importance for influencing the design and delivery of national and regional innovation policies. In this week’s issue of the SSTI Weekly Digest, we’ve included brief summaries of the findings of four of them related to timely news topics – the relationship of trade and manufacturing employments, the likely longer term economic impact of the 2017 corporate tax cuts, ties between R&D and trade,  and  the relationship of patents to employee wages.

Last week, SSTI highlighted the recently released issue of the Economic Development Quarterly where three pieces stand out for their relevance to practitioners and policymakers. This article takes a look at how academic research can inform three common strategies for strengthening the manufacturing sector and encouraging regional economic development: targeting industry clusters, leveraging manufacturing extension services, and promoting workforce development.

While the increasing gaps between the coasts and the heartland continues to capture the media’s attention, a collection of recent research suggests that inequality within regions may be the greatest factor hampering economic growth. Five recent articles tell a nuanced story of how economic and racial inequities may impede regional economic development efforts. The research presented here from a variety of outlets examines the role of inequality in the overall economy of regions.

One of this year’s most important books on economic development tells a story that those involved in the field need to know and might not necessarily want to hear. In Coping with Adversity: Regional Economic Resilience and Public Policy, authors Harold Wolman, Howard Wial, Travis St. Clair, and Ned Hill seek to understand why some metropolitan areas are resilient in the face of economic hardship, while others are not. This commentary will summarize the authors’ findings and provide insight into what their findings might mean for the broader economic development community.