Research NewsletterIssue: ORN-2023-17

Regional Innovation: Federal Programs and Issues for Consideration

CRS Report on Regional Hubs

The Congressional Research Service (CRS) has released Regional Innovation: Federal Programs and Issues for Consideration, which provides a summary of federal programs supporting regional innovation systems (RIS), including programs of the CHIPS and Science Act. The report addresses the scale, scope and duration of the federal investments, asking Congress to consider whether funding periods for the programs are adequate to achieve RIS goals and “how best to sustain regional innovation efforts after federal funding ceases.

            The rationale for increased federal involvement in developing connected, innovative regional economies is often associated with concerns that the United States is ceding its global technology and economic competitiveness position, in particular relative to China. Proponents of RIS policies also view the approach as a means of addressing regional barriers to innovation and entrepreneurship and strengthening the capacity of regional stakeholders. Some policymakers and analysts consider federal support for RIS as a way to help revitalize and restructure places and regional economies that have been impacted by globalization and international trade. Others emphasize the spread of innovation and bolstering innovation capacity in specific regions as a means of creating well-paying jobs and combating socioeconomic and regional disparities.

            While federal involvement in RIS began to expand in the mid-2000s, multiple Administrations and Congress have continued to take action to increase the size and scope of federal investments in the approach. In July 2021, the Economic Development Administration (EDA, in the Department of Commerce) allocated $1 billion of supplemental funding for economic recovery activities to the Build Back Better Regional Challenge, a new grant initiative to support new or existing regional industry clusters. With the enactment of the CHIPS and Science Act (P.L. 117167) in August 2022, Congress required the establishment of a number of new regional innovation programs, including the Regional Technology and Innovation Hubs program at EDA, the Regional Innovation Engines program at the National Science Foundation (NSF), and the Regional Clean Energy Innovation program at the Department of Energy (DOE). Through recent annual appropriations, Congress has also directed agencies to allocate funding to existing RIS programs such as EDA’s Build to Scale, DOE’s Energy Program for Innovation Clusters, and the Small Business Administration’s Regional Innovation Clusters programs, among others.

In light of this recent legislation, the 118th Congress may consider options to expand the federal role in the development of RIS or make adjustments to the scope and scale of RIS assistance. Congress may also consider enhanced oversight of how new and existing regional innovation programs are implemented and how they are coordinated between federal agencies and across multiple levels of government. Congress may be interested in reviewing options to integrate the assistance and services provided by other federal programs, such as capital access, infrastructure, and existing research institutions, with certain RIS grantees. Coordination issues that may warrant further review include aligning RIS programs with other federal efforts designed to prepare a STEM-capable (science, technology, engineering, and mathematics) workforce, building the capacity of support organizations in under-resourced and disadvantaged communities, and expanding access to capital for entrepreneurs. In addition, Congress may seek ways to better evaluate the outcomes of strategies used to address socioeconomic and regional disparities when considering their possible use in other place-based development policies.

NSF: Infrastructure Innovation for Biological Research (Innovation); Catalyzing Institutional Change to Support Greater Equity, Inclusion, and Access in STEM Academic Careers and Advanced Degree Attainment; Computer and Information Science and Engineering (CISE) Research Initiation Initiative (CRII); Centers for Chemical Innovation (CCI); Computer and Information Science and Engineering Graduate Fellowships (CSGrad4US); Centers for Research and Innovation in Science, the Environment and Society (CRISES)

NIH: Small Business Transition Grant For Early Career Scientists (R42); BRAIN Initiative: Integration and Analysis of BRAIN Initiative Data (R01); Enhancing Science, Technology, Engineering, and Math Educational Diversity (ESTEEMED) Research Education Experiences (R25)

Department of Defense/US Army/DARPA/ONR: DOD Peer Reviewed Orthopaedic, Applied Research Award; ONR Science, Technology, Engineering and Mathematic (STEM) Program; FY24 Young Investigator Program

NASA: ROSES 2023: F.22 Research Initiation Awards

Security a Top Priority in the Software Development Process, Report Finds: Security remains a priority for DevSecOps, which is increasingly turning to developers and technology as part of the process, according to a GitLab DevSecOps report released Thursday. For example, there was an increase in developer led-security. According to the report, 71% of respondents said that their vulnerabilities are being caught by developers. Despite the need for better digital experiences and improved security, the report found that 75% of public sector respondents reported deploying software at the same rate or slower than last year. In the 2022 report, this was 59% of respondents. More information is posted on the NextGov website.

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Government, Industry and Academia Stress Need for Semiconductor Workers: To keep up with the U.S.’s manufacturing goals set out in the CHIPs for America and CHIPS and Science Acts, the U.S. must invest in its workforce, according to panelists that spoke during a summit hosted by Purdue University on Tuesday. “The thing that worries us the most is workforce development,” Thomas Sonderman, president and CEO of SkyWater, said. Government, industry and academia officials on the panel noted the importance of the workforce to not only build the necessary manufacturing capabilities, but also to perform research and development. The different sectors agreed that all must work together to address this challenge. More information is posted on the NextGov website.

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NIST Seeks Small Business Input for Chips Manufacturing Data and Analysis: As the United States works to bolster its semiconductor manufacturing capacity, the National Institute of Standards and Technology is looking for information to help it evaluate applicants that are looking for CHIPS funding.

The CHIPS and Science Act—which became law in August 2022—will strengthen U.S. semiconductor manufacturing in an effort to reduce reliance on foreign manufacturing of these important technology components, which are in products ranging from smartphones to automobiles. NIST is tasked with allocating the $50 billion in funding for this endeavor. As a result, it must gather information to help it evaluate applicants.  That information isn’t always readily available and, as a result, the agency seeks sources to help it with this endeavor, according to a notice filed on Tuesday and updated on Wednesday.

The first $39 billion is allocated for semiconductor manufacturing. A semiconductor fabrication plant, called a fab, is characterized by the diameter of wafers it is able to produce. For example, a 300mm fab is capable of producing a 300mm wafer—a component used in microelectronic manufacturing. More information is posted on the NextGov website.

Question:       How do I enter a cost share? For my salary? For other personnel and expenses?

Answer:         Cost Share for personnel other than faculty is very similar to release time –

• add the person under Key personnel
• select the period (start and end dates) that the staff/admin will be devoted to the project
• select percentage.

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