Guest Editorial: Keep Nebraska’s Innovation Momentum Alive – Silicon Prairie News

Report on the Suspension of the Nebraska Business Innovation Act and its Implications for Sustainable Development Goals

Introduction

This report analyzes the recent suspension of the Nebraska Business Innovation Act (BIA) by the Department of Economic Development. The BIA has served as a cornerstone of the state’s innovation ecosystem for over a decade. Its suspension poses a significant threat to Nebraska’s progress toward key United Nations Sustainable Development Goals (SDGs), particularly those related to economic growth, innovation, and inequality reduction. This analysis examines the BIA’s contributions to these goals and outlines recommendations for a path forward.

The BIA’s Contribution to Sustainable Development

The BIA program has demonstrated a direct and measurable impact on several SDGs, functioning as a critical driver for inclusive and sustainable growth within Nebraska.

SDG 8: Decent Work and Economic Growth

The BIA has been instrumental in promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. Key outcomes include:

• Job Creation: The program has facilitated the creation of 2,386 high-skill jobs with an average wage of $76,498, significantly contributing to high-value employment.
• Economic Return: For every dollar of state funding, the BIA has generated $15.90 in revenue, showcasing an exceptionally efficient model for public investment and economic stimulation.
• Capital Infusion: It has successfully attracted $654 million in post-award private capital, fostering a vibrant economic environment.

SDG 9: Industry, Innovation, and Infrastructure

The program directly supports the goal of building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation. It achieves this by:

• Fostering Innovation: Providing essential support for startups in areas such as prototype development and applied research.
• Strengthening Partnerships: Encouraging collaboration with universities and matching federal Small Business Innovation Research (SBIR/STTR) grants, thereby building a robust innovation infrastructure.
• Enhancing Competitiveness: Enabling Nebraska-based companies to develop and scale, strengthening the state’s position in the national technology landscape.

SDG 10 & 11: Reduced Inequalities and Sustainable Communities

The BIA addresses the goals of reducing inequality within and among countries and making cities and human settlements inclusive, safe, resilient, and sustainable. Its structure promotes:

• Geographic Equity: Ensuring that both rural and urban entrepreneurs can access critical resources, which helps to reduce regional economic disparities (SDG 10).
• Talent Retention: By creating high-value local employment opportunities, the program helps retain talent within the state, contributing to the long-term sustainability and resilience of Nebraska’s communities (SDG 11).

Analysis of the Program Suspension

The unexplained halt in awarding new BIA grants creates significant uncertainty and sends a negative signal to entrepreneurs, investors, and the broader technology community. This action directly undermines Nebraska’s progress on the aforementioned SDGs. It risks ceding competitive ground to other states that are actively increasing their investment in innovation, potentially leading to a loss of talent, capital, and economic opportunities. The lack of transparency surrounding the decision is inconsistent with the principles of accountable institutions, a key enabler for achieving all SDGs.

Recommendations for Aligning with State and Global Development Goals

To ensure Nebraska’s continued progress toward its economic goals and its contribution to the global SDGs, the following actions are recommended:

1. Restore and Expand BIA Funding: The state legislature should reinstate and increase funding for the BIA to reaffirm its commitment to long-term economic growth and innovation, in line with SDG 8 and SDG 9.
2. Increase Transparency and Accountability: The process for awarding BIA funds should be made clear and public to build trust and ensure the program operates effectively and accountably, a principle central to SDG 16 (Peace, Justice, and Strong Institutions).
3. Strengthen Statewide Access: Enhance efforts to ensure innovators in every region of Nebraska can benefit from the BIA, directly advancing the objective of SDG 10 to reduce intra-state inequalities.

Conclusion

The Nebraska Business Innovation Act is a proven and effective instrument for driving economic growth and fostering innovation in alignment with global Sustainable Development Goals. Its suspension jeopardizes years of progress and weakens the state’s competitive position. Reinstating and strengthening the BIA is a necessary step to maintain Nebraska’s innovation momentum and secure a prosperous, inclusive, and sustainable future for all its citizens.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth
  
  The article directly addresses this goal by highlighting the Nebraska Business Innovation Act’s (BIA) role in creating “real jobs” and fostering “economic growth.” It specifies the creation of “over 2,386 high-skill jobs with an average wage of $76,498,” which points to productive employment and decent work. The program’s success, measured by a return of “$16 in revenue” for every dollar invested, is a clear indicator of its contribution to economic growth.
• SDG 9: Industry, Innovation, and Infrastructure
  
  This is a central theme of the article. The BIA is described as an “innovation program” that supports “startups” and Nebraska’s “innovation economy.” By funding activities like “building prototypes,” “teaming up with universities,” and “matching federal research grants,” the BIA directly promotes scientific research, technological development, and innovation, which are core components of SDG 9.
• SDG 10: Reduced Inequalities
  
  The article connects to this goal by emphasizing the BIA’s inclusive approach. It states that the program aims to “foster innovation throughout the entire state, not just in major urban centers” and “helps rural and urban entrepreneurs access resources.” The recommendation to “Strengthen statewide access, ensuring innovators in every region can benefit” further underscores the goal of reducing geographical and economic inequalities within Nebraska.
• SDG 17: Partnerships for the Goals
  
  The BIA operates as a multi-stakeholder partnership. The article describes how the program facilitates collaboration between the state government (public funding), private enterprises (“startups”), academic institutions (“teaming up with universities”), and the federal government (“matching federal research grants”). This model of public-private and cross-sector collaboration is the essence of SDG 17.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation.
  
  The BIA is a clear example of a state-level, development-oriented policy designed to support entrepreneurship and innovation, leading directly to the creation of high-skill jobs.
• Target 9.3: Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets.
  
  While Nebraska is not a developing country, the principle applies. The BIA provides crucial funding and grants to “startups,” increasing their access to financial services and helping them grow.
• Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors… encouraging innovation and… increasing… public and private research and development spending.
  
  The BIA’s function of supporting prototype development and matching federal research grants (SBIR/STTR) directly contributes to enhancing scientific research and increasing R&D investment within the state.
• Target 17.17: Encourage and promote effective public, public-private and civil society partnerships.
  
  The operational model of the BIA, which involves state funding to leverage federal grants and private investment while encouraging collaboration with universities, is a direct implementation of a public-private partnership strategy.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Return on Investment: The article explicitly states, “for every dollar Nebraska invests, these companies bring back about $16 in revenue.” This serves as a direct indicator of economic productivity and the effectiveness of innovation funding (related to SDG 8 and 9).
• Job Creation and Quality: The article provides the specific metric of “over 2,386 high-skill jobs with an average wage of $76,498.” This is a quantitative indicator for progress on decent work and employment (related to SDG 8).
• Leveraged Capital: The figure of “$654 million in post-award capital raised” is a clear indicator of the program’s success in attracting private follow-on investment, measuring access to financial services for startups (related to SDG 9).
• Geographic Distribution of Support: While no specific number is given, the emphasis on helping “rural and urban entrepreneurs” and the call to “Strengthen statewide access” implies that the geographic distribution of grants and supported companies is a key indicator for measuring progress on reducing inequalities (related to SDG 10).

4. Table of SDGs, Targets, and Indicators

Source: siliconprairienews.com