Capitol Research

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Child care is a major expense for most families across the country. Federal, state and local governments recognize the financial burden that child care places on parents, offering subsidies to those hardest hit— low-income families. This research brief is the second in a five-part series about the state of child care and its implications. In the first brief, we introduced child care as a state policy area, the demographics of families with young children, and the federal legislative landscape for improving the quality of child care and subsidizing costs.

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What is the backbone of the American economy today? The answer policymakers and the private sector increasingly give to that question has affected the way we think about economic development, how we fund education, how we identify what’s important in infrastructure and more—the innovation economy. But defining this term is difficult, because, by its nature, it can consist of different things in different communities and regions. More than just STEM fields, the innovation economy depends on active entrepreneurship, creativity and fresh approaches to leverage the knowledge and skills in existing markets through new technologies. An innovation economy isn’t limited to digital assets—oftentimes advanced manufacturing is included, for example. One of the biggest features of an innovation economy is a highly skilled, energetic workforce and the appropriate economic climate. With many experts suggesting that the current and future economic success of states and communities may rely on the innovation economy, state and local policymakers must understand where their community stands as they create strategic plans and choose how best to spend limited resources.