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Blog Category: Economic Development Administration

EDA: By Attracting Investment in America, We Create New Jobs

Today, Acting Assistant Secretary for Economic Development Matt Erskine joined Illinois Governor Pat Quinn, Rochelle Mayor Chet Olsen, and Members of Congress at a ribbon-cutting ceremony for this new Nippon Sharyo railcar production facility in Rochelle, Illinois

Guest blog post by Matt Erskine. Acting Assistant Secretary of Commerce for Economic Development

Attracting foreign direct investment (FDI) to the United States, and the jobs that come with it, has been a priority of the Obama administration since it came into office. Business programs from every federal agency have been thoroughly ramped up, and a new initiative targeting foreign companies thinking about locating in the United States, SelectUSA, was launched in 2011.

The United States is already the largest recipient of FDI in the world. In 2010, such investment totaled $228 billion, up from $153 billion in 2009, supporting more than five million jobs throughout the country. Those workers made up 4.7 percent of total private-sector employment in the United State, with an annual payroll of $410 billion.

Success in attracting FDI doesn’t happen without a lot of hard, collaborative work on the part of states, municipalities, development agencies, and the federal government. I saw an excellent example of this today in the city of Rochelle, Illinois, where I participated in a ribbon-cutting ceremony to mark the opening of a new manufacturing facility for Nippon Sharyo U.S.A., the U.S. subsidiary of a Japanese manufacturer of railcars.

22 Ways the Department Of Commerce Is Supporting and Fostering American Innovation

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In an increasingly competitive world, the United States must invest in its best scientists, researchers and entrepreneurs so that they innovate here, make things here, and create good paying, high quality jobs for middle class families. The Department of Commerce and its bureaus are supporting and fostering innovation at all stages of product development, from original research through to final manufactured goods.

Commerce’s Economic Development Agency has launched two grant challenges, the i6 Challenge and the Advanced Manufacturing Jobs and Innovation Accelerator, to move ideas from the lab and shop floor to the marketplace at an accelerated rate. Supporting this work is the Regional Innovation Acceleration Network, a web-based tool to help economic development professionals promote entrepreneurship, business development, and technology commercialization in their region.

In April 2010, the Commerce Department launched the Internet Policy Task Force to ensure that the Internet remains open for innovation. In doing so, it has produced the Consumer Privacy Bill of Rights, made important steps forward for a National Strategy for Trusted Identities in Cyberspace, started a conversation about privacy concerns within mobile apps, and worked to combat Botnets that threaten internet security. To ensure continued Internet security, Commerce has opened a Cybersecurity Center of Excellence.

Innovation in the Marketplace: Dr. Desh Deshpande on Successful Proof of Concept Centers

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Guest blog post by Nish Acharya, Director of the Office of Innovation and Entrepreneurship in the U.S. Department of Commerce’s Economic Development Administration.

The National Advisory Council on Innovation and Entrepreneurship (NACIE) supports President Obama’s innovation strategy by helping to develop policies that foster entrepreneurship and identifying new ways to take great ideas from the lab to the marketplace to drive economic growth and create jobs.

One of the guiding forces of NACIE is its co-chair, Dr. Desh Deshpande, who is also Chairman and President of the Sparta Group and has been involved with many other companies, such as A123 Systems, Sycamore Networks, Tejas Networks, Sandstone Capital, and HiveFire. He is also the founder of the Deshpande Foundation, and creator and supporter of the Deshpande Center for Technological Innovation at the Massachusetts Institute of Technology (MIT), which is a leading proof of concept center.

In the last of a series of conference calls with members of NACIE, on June 27, participants spoke with Dr. Deshpande, with whom I have worked closely to identify and implement strategies to spur entrepreneurship and innovation.

During the call, Dr. Deshpande defined innovation as coming up with new ideas, while entrepreneurship is putting those ideas into practice. He pointed out that all innovation is contextual, in that no group of individuals can just sit down and solve all the world’s problems. It is important, he noted, that innovators live in the areas where the problems exist. His point echoed one that has been made by several other NACIE members, namely that innovators have a greater chance of success if they begin by solving the problems that exist in their own communities.

The Road to Revitalizing Anderson, Indiana’s Auto Sector

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Guest blog post by Thomas Guevara, Deputy Assistant Secretary of Commerce for Economic Development and a native of Indiana

As auto communities across the country work to strengthen and redefine their economies, the Obama administration is making good on the President’s commitment to invest in American innovation and advanced manufacturing to spur growth.

In my home state of Indiana, the city of Anderson, located about 25 miles northeast of Indianapolis, was once home to one of the greatest concentrations (after Flint, Michigan) of General Motors facilities in the United States. Today, not a single one of those plants is in operation.

While this is a significant challenge, there is also opportunity. That was the focus of the Auto Community Revitalization Roundtable at the Flagship Enterprise Center that I recently attended in Anderson: to hear from communities affected by the loss of manufacturing jobs, offer practical tools, share available resources, and explore solutions for auto communities in Indiana that are on the road to revitalization. The forum was organized by the Manufacturing Alliance of Communities, the Obama administration’s Office of Recovery for Auto Communities and Workers, and the RACER Trust, which was established to clean up and redevelop closed General Motors sites.

The road to revitalization requires a change of mindset. Rather than think of the abandoned facilities and their accompanying infrastructure as a disadvantage, cities such as Anderson are finding ways to repurpose these assets for future economic growth. The built industrial environment—including manufacturing plants, warehouses, road and rail links, etc.—can be refashioned and reused to suit the needs of newer, growing industries to replace the industries that departed. These industries are not the traditional manufacturers that employed our parents, but rather are modern advanced manufacturing sites that are leading the way in global competitiveness and attracting foreign direct investment.

Disaster Recovery Funding Available Now for Counties with FY 11 Disaster Declarations

Map of eligible and ineligible U.S. counties for disaster assistance

Guest blog by Matt Erskine, Acting Assistant Secretary of Commerce for Economic Development

Applications are now being accepted for investments in regions experiencing severe economic distress as a result of natural disasters that were declared as major federal disasters between October 1, 2010, and September 30, 2011. The U.S. Department of Commerce’s Economic Development Administration (EDA) received an appropriation of $200 million from Congress to address economic recovery challenges in regions impacted by a major disaster.

More than 1,400 counties in 44 states, Puerto Rico, the Virgin Islands, and the District of Columbia are eligible for the federal funding. Successful projects will support long-term economic recovery; demonstrate a clear connection between the project scope of work and the applicable disaster; demonstrate that the project will foster job creation and promote private investment; align with a relevant strategic, economic development, or disaster recovery plan; and demonstrate the incorporation of disaster resiliency. Applications are accepted on a continuing basis and processed as received.

EDA: Economic Recovery in Fremont, California's Auto Community

Ed. note: Cross-posted from U.S. Department of Labor's "Auto Communities" blog by Matt Erskine, Acting Assistant Secretary of Commerce for Economic Development (EDA)

We all know the situation a few years ago when President Obama took office: the American auto industry was shedding jobs by the hundreds of thousands and General Motors and Chrysler were in financial crisis. In the year before GM and Chrysler filed for bankruptcy, the auto industry lost more than 400,000 jobs. Had President Obama failed to act, conservative estimates suggest that it would have cost at least an additional million jobs and devastated vast parts of our nation's industrial heartland. But that did not happen because the president quickly intervened to save the U.S. auto industry from collapse. Today, GM, Ford and Chrysler have all returned to profitability.

President Obama's decision to respond so boldly was about more than the auto companies. It was about standing behind the countless workers, communities and businesses—large and small—that depend on the automotive industry. It was also about revitalizing American manufacturing.

Across the administration, federal agencies have outlined an agenda to support growth, job creation, and competitiveness in U.S. manufacturing. The U.S. Commerce Department's Economic Development Administration (EDA) has a strong track record of working with automotive communities to develop plans for economic recovery. The agency's efforts to help revitalize the nation's auto industry have been significant in Fremont, California, where a large auto assembly facility operated by the New United Motor Manufacturing, Inc. (NUMMI) was shut down in early 2010. The plant had employed nearly 5,000 workers, with thousands more dependent on it. The blow to the local economy was severe.

New $6 Million Strong Cities, Strong Communities Challenge to Spur Economic Growth in Six Cities

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Guest blog post by Acting Assistant Secretary of Commerce for Economic Development Matt Erskine

Today, at the annual meeting of the U.S. Conference of Mayors in Orlando, Florida, I joined Erika Poethig, the Assistant Secretary for Policy Development and Research at the U.S. Department of Housing and Urban Development (HUD), to launch the latest key components of the Obama administration’s Strong Cities, Strong Communities (SC2) initiative, which was announced in July 2011 to help strengthen local capacity and spark economic growth in local communities while ensuring taxpayer dollars are used wisely and efficiently.

The Commerce Department’s Economic Development Administration (EDA)—an SC2 Federal partner—announced the $6 million Strong Cities, Strong Communities Visioning Challenge to help economically distressed cities leverage innovative strategies to spur local economic and job growth.

The challenge will start with the competitive selection of six cities, one in each of EDA’s regions. Each of the winners will receive up to $1 million to conduct their own two-phase competitions. In the first phase, winning cities will encourage teams of experts in such fields as transportation planning, economic and community development, business incubation, and engineering to submit economic development proposals for their city or region. The highest-rated proposals, as evaluated by a city-appointed review panel, will receive cash awards. In the second phase, the finalists from the first round will compete for a cash prize by developing comprehensive economic development plans.

Acting Secretary Blank Highlights Competitions As a Tool For Improving American Competitiveness

This morning, Acting Secretary Rebecca Blank spoke before the Department of Energy’s National Clean Energy Business Plan Competition. The competition is part of the Obama administration's Startup America Initiative, the White House campaign to inspire and promote entrepreneurship. Launched in December 2011, the National Clean Energy Business Plan Competition included six regional competitions that served as platforms for college students to present business plans that transform great clean energy ideas into great businesses. The goal of building regional networks of student-focused businesses, as well as its inclusion of corporate leaders in the clean energy and venture capital sectors, builds squarely on existing partnerships with the Department of Commerce to spur domestic innovation and entrepreneurship.

Blank told the audience, which included the six regional winning teams, that the key to America’s success is innovation. . . new products, new processes, new ways of thinking.  Since the 1940s, over two-thirds of America’s economic growth has been directly related to increased productivity due to innovationthat’s both new products and new production processes.

$6 Million i6 Challenge to Spur High Growth Entrepreneurship and Expand Proof of Concept Centers

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Guest blog post by Acting Assistant Secretary of Commerce for Economic Development Matt Erskine

The Obama administration has unveiled several actions that are designed to speed up the growth of new, job-creating companies. Today, a new $6 million i6 Challenge, the third round of the national innovation competition, was announced. Six winning teams from around the country will get awards of up to $1 million this fall for innovative proposals to create and expand Proof of Concept Centers, such as the Deshpande Center for Technological Innovation at the Massachusetts Institute for Technology in Cambridge, Massachusetts, and the Stevens Institute for Innovation at the University of Southern California.

Centers like these incorporate a range of services—such as technology and market evaluation, business planning and mentorship, and early-stage access to capital—that are critical to regional economic growth and job creation.

The i6 competition series has generated great momentum since it was first introduced as part of the roll-out of the White House’s Startup America initiative last year. Projects funded in 2010 and 2011 are already starting to show results.

A Collaborative Effort to Support Ogden, Utah’s Growing Software Applications Sector

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Guest blog post by Acting Assistant Secretary of Commerce for Economic Development Matt Erskine

Today, I joined Mayor Mike Caldwell in Ogden, Utah, to announce a $1 million investment by the Department of Commerce’s Economic Development Administration (EDA) with the Ogden City Corporation to help create a lab that will train workers and provide space for business startups in the growing field of software applications for mobile computing devices.

This new facility will be strategically located in Ogden’s downtown and will be operated by a consortium of experienced, capable partners, including the city of Ogden, Weber State University, the Weber State University Research Foundation, and private-sector industry leaders. It is exactly the type of collaborative partnership that EDA is excited to invest in.

Over a 10-year period, the new facility is expected to create 750 jobs and generate up to $4.6 million in private investment, according to grantee estimates. Its focus on software applications is very timely: You can’t walk down any street today, or sit in any coffee shop for long, without seeing smart phones and tablet computers all around you. And while it’s only been a few years since these devices first came on the market, they’ve been a runaway hit ever since: Demand for them has skyrocketed, and with it the demand for applications, or “apps,” that run on them.