dept of commerce

Earlier this week, the House science committee advanced a series of technology-focused bills, including a $7 billion authorization of regional technology hubs. This legislation completes the committee’s work to produce a companion to the Senate’s U.S. Innovation and Competition Act. The House and Senate legislation are not identical, however, and so the chambers will need to bring their versions into alignment. Among the key differences are that the House authorizes less funding for the program but also creates a new regional clean energy innovation program.

President Joe Biden nominated Laurie Locascio, Ph.D., to lead the National Institute of Standards and Technology (NIST) within the U.S. Department of Commerce and serve as Undersecretary for Standards and Technology. Locascio is currently the vice president for research at the University of Maryland, College Park and the University of Maryland, Baltimore, where she oversees the research and innovation enterprise of the two campuses. Prior to her work there, Locascio had a long career as a researcher, innovator and scientific leader at NIST, where she most recently served as the acting principal deputy director and associate director for laboratory programs. She received a B.Sc. in chemistry from James Madison University, a M.Sc. in bioengineering from the University of Utah, and a Ph.D. in toxicology from the University of Maryland, Baltimore. As a biomedical researcher, she has published more than 100 scientific papers and 11 patents over the course of her career.

The May jobs report that was released last Friday contained better news than the disappointing numbers from April, with May figures showing 559,000 jobs added and unemployment declining by 0.3 percentage point to 5.8 percent. But the jobs picture remains complicated. This week, the Bureau of Labor Statistics (BLS) reported that there were 9.3 million vacant job openings across the country in April, a series high from its start in 2000. With employers reporting that they are facing unprecedented challenges trying to find workers to fill jobs, efforts on several fronts are aimed at returning workers to jobs, and helping them find the skills they need to fill in-demand openings.

The Department of Defense is seeking comments and information on President Biden’s Executive Order, “America’s Supply Chains,” which directs several federal agency actions to secure and strengthen the country’s supply chains. The U.S. Department of Commerce is also seeking public input on a licensing or other pre-clearance process for entities engaging in certain information and communications technology and services transactions (ICTS Transactions).

The U.S. Census Bureau seeks comments on all aspects of the Business Research and Development Survey for the 2018-2022 releases. Collected in partnership with the National Science Foundation (NSF), the survey provides comprehensive data on Research and Development (R&D) costs and detailed expenses by type and industry. The U.S. Census Bureau also announced that it would start collecting data about R&D on artificial intelligence and geographic detail of companies' R&D workforce in 2018.  For those interested in providing feedback, comments are due by October 23.

In a shift from its past economic development efforts, the U.S. Department of Commerce FY2018-2023 strategic plan would move the department to focus almost exclusively on being a commercial services entity. The plan’s points of emphasis are on streamlined permitting and regulations, with direct government activity primarily reserved for common good services — e.g., economic data, cybersecurity and IP protection. References to activities providing direct support for businesses and regional economies are ranked as lower priorities or nonexistent. EDA is left out of not only the descriptions of how the department’s bureaus will contribute to strategic objectives, but also out of the list of offices comprising the department.

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.

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. As SSTI noted for both the administration’s proposed FY 2017 and FY 2018 budgets, congressional statements rejecting the president’s total budget package did not necessarily make innovation safe.

Unless otherwise noted, all FY 2018 figures are from the department’s budget justification, and all FY 2017 figures are from committee reports for the Consolidated Appropriations Act of 2017.

Congress has passed a budget for FY 2017 that largely continues support for federal innovation programs and R&D investments. Among the highlights are $17 million for Regional Innovation Strategies (a $2 million increase over FY 2016), level funding of $130 million for the Hollings Manufacturing Extension Partnership and $5 million for SBA’s clusters program. In reviewing dozens of line items, offices that had received significant cuts in the White House’s skinny budget appear to receive some of the largest funding increases (such as the Appalachian Regional Commission, Community Development Block Grant and ARPA-E). However, with the exception of multi-billion dollar increases for Department of Defense R&D, many increases are rather small in terms of overall dollars. This is, at least in part, a reflection of non-defense spending caps rising by only $40 million for FY 2017, limiting the availability of new funds. In this context, science and innovation gains are particularly impressive, with a five percent overall increase for federal R&D that particularly benefits NASA and NIH.