useful stats

States often estimate their participation in the Small Business Innovation Research (SBIR) program by counting the number of awards made, total of award value, or (when available) the success rate of applications in their state. In this edition of SSTI Useful Stats, we attempt to go beyond these measures to estimate states’ untapped potential for capturing future SBIR awards. This creates a baseline proxy for tailoring and assessing a state’s outreach and support activities.

Metropolitan areas in the U.S. with fewer than 370,000 residents are more likely to be more economically reliant on R&D performed by colleges and universities than larger metros, according to new SSTI analysis. Three data points are used to consider how R&D at institutions of higher education is impacting a region’s economy: NSF’s Higher Education R&D (HERD) data on expenditures at individual institutions; metro area Gross Domestic Product (GDP) data from the Bureau of Economic Analysis; and population estimates from the Census Bureau. The resulting analysis shows that despite larger metro areas producing a greater total amount of HERD, they are typically less reliant on these expenditures directly powering their economies.

Given higher education’s role in generating the knowledge that catalyzes innovative new technologies developed by high-growth startups, R&D conducted at institutions of higher education is one of the most important metrics for evaluating an area’s innovation economy. This edition of Useful Stats examines NSF’s recently updated Higher Education R&D (HERD) survey, finding that most states, although not all, experienced growth in HERD expenditures from 2018 to 2019. This analysis also examines 2019 state HERD expenditures by R&D field, finding that life sciences accounted for the lion’s share of HERD spending in every state except Alaska, typically followed by either engineering; the physical sciences; or the geological, atmospheric, and ocean sciences.

A large majority (nearly 87 percent) of U.S. counties showed growth in their gross domestic product (GDP) from 2018 to 2019, according to an SSTI analysis of data from the U.S. Bureau of Economic Analysis (BEA). GDP is the measure for the total value of goods and services produced in an area, and is one of the primary economic indicators used by researchers and policymakers. This edition of Useful Stats examines the recently updated (BEA) data and provides an analysis of 2019 total county GDP, 2019 county GDP per capita, and the percent change in each measure from 2018 to 2019.

A thriving innovation economy requires a robust R&D enterprise — with participation by academia, government, and the private sector. As a substantial performer and funder of R&D in the United States, the strength of private industry’s R&D activity in a region can provide an indication of the region’s capacity for bringing innovative technologies to market. Using data from the recent release of the National Science Foundation’s 2018 Business Enterprise R&D Survey, this SSTI analysis shows that while total R&D performed domestically by private companies in 2018 increased over 2017, as did the share of the R&D that was paid for by companies, this was not the case for all states.

An important element of a region’s innovation community is its knowledge capital, and one way to try to determine a locality’s knowledge capital is to examine the number of individuals receiving research-based doctorate degrees in the science and engineering (S&E) fields. The National Science Foundation (NSF) recently updated their Survey of Earned Doctorates with data for the 2018-2019 academic year. For the period ranging from July 1, 2018 to June 30, 2019, the number of total PhDs awarded increased nationally by 1.1 percent over the previous academic year to 55,703. The update also shows that the number of degrees awarded to recipients in S&E fields was 42,980. SSTI’s analysis explores the total number of S&E PhDs awarded per state, as well as the number of S&E PhDs per 100,000 state population.

Consideration of a state’s trends in the distribution of SBIR awards by federal agency may help program leaders and policy makers optimize the design and performance for state and regional support of innovation-based startups. For instance, knowing which federal agencies provide the dominant share of awards in a state can inform a program’s marketing and outreach efforts, and, more importantly for the startups being assisted, it can guide recruiting the right mix of mentors and knowledge assets to a program’s technical assistance capabilities. The data also can inform efforts to attract investors and potential customers with similar alignment of interests with companies in a state’s SBIR portfolio. SSTI’s focus this week on the agency distribution of SBIR awards by state over the past decade reveals some interesting insights. Next week we will take a deeper dive into the data and examine awardee distribution trends at the regional level.

An exclusive SSTI analysis reveals that for the 10-year period from 2009 to 2018, two federal agencies were the top contributors to SBIR/STTR spending in every state and the District of Columbia. The Department of Defense (DoD) accounted for the greatest SBIR/STTR spending in 29 states while the Department of Health and Human Services (HHS) was the greatest funder in 22 states. This trend remains the same when including 2019 award data, although it is important to note that as of the writing of this article, DoD’s complete 2019 SBIR/STTR data was not available.