Overview

Created by the Indiana General Assembly in 1999 and brought under the leadership of the Indiana Economic Development Corporation (IEDC) in 2005, Indiana’s 21st Century Research and Technology Fund (21 Fund) focuses on entrepreneurial ventures that have demonstrated a market potential for commercialization of innovative technologies.

The 21 Fund provides financial support to highly innovative Indiana-based companies, thereby helping these firms make the transitional leap from general research and development to product development while also creating high-wage, high-skill, high-tech Indiana jobs and diversifying the state’s economy.

When the IEDC took over management of the 21 Fund, it made three major changes to the 21 Fund’s operations and emphasis.

• Shifted the focus of the Fund's investments from university-industry cooperative research projects to product development and testing initiatives led by high-tech start-up companies
• Increased the emphasis on job creation as a criterion for making awards
• Supplemented the highly-respected technical review process with an enhanced business review

The 21 Fund seeks technology-based companies conducting business in Indiana and provides financial support to make the transitional leap from research to product development. By supporting high-tech companies during this crucial stage, the 21 Fund encourages entrepreneurial success and keeps Indiana’s most promising technologies in Indiana, leading to the creation of the high tech, high-paying jobs of tomorrow. The 21 Fund does not focus on a particular technology or application area in selecting awards. This allows Indiana’s strengths to identify themselves through successful completion of the 21 Fund’s rigorous review process. Avoiding pre-selection of technology focus areas ensures that the 21 Fund plays an unbiased central role in diversifying the State’s economy, a goal outlined in the 21 Fund’s legislation.

The 21 Fund encourages an environment of innovation and cooperation among Indiana universities and businesses to promote research activity through collaborative partnerships. These partnerships build on the innovation process which converts research ideas into products, a process that in turn creates jobs for Indiana communities.

The 21 Fund has also set aside a portion of its budget for an SBIR Program Office, created to support companies that are applying for or have received federal Small Business Innovation Research (SBIR) and/or Small Business Technology Transfer (STTR) awards. The 21 Fund’s SBIR/STTR Phase I Matching Program has been expanded to support later stage commercialization activities of Phase II SBIR/STTR awardees. Directly supported by the IEDC, both of these programs make awards through a set-aside of 20% of the 21 Fund’s appropriation.

The changes implemented by the IEDC not only affected the 21 Fund’s goals and processes, but also influenced the 21 Fund’s impact on the State of Indiana in terms of its awards and their outcomes. In fiscal year 2007-08, the 21 Fund awarded 21 grants toaling $32,935,705; in fiscal year 2006-07, the 21 Fund awarded 17 grants totaling $16,303,695; during the 2005-07 biennium, the 21 Fund awarded 38 awards totaling $42,754,599. Through these awards, the 21 Fund has demonstrated a dramatic shift toward primarily supporting small, entrepreneurial companies. In fact, 90 percent of the $42.3 million awarded was granted directly to small companies, in contrast to the 23 percent of total funds directed to small firms in the years prior to the IEDC’s management (1999-2005).

These recent 38 awards have considerable commercial potential. The most recent projections forecast that the recipient companies have the potential to create 5,000 new, highly compensated jobs in the next three to five years. In a May 2007 survey of all 21 Fund awards to date, awardees reported that jobs already created through these recent awards have an average annual wage that is 80 percent higher than those jobs created through awards made before the 21 Fund was placed under the control of the IEDC. The varied commercialization areas of the awards included Aerospace/Defense/Security, Advanced Manufacturing/Engineering,Communications/Electronics,Energy/Environment/Agriculture, Information Technology/Software Development and Life Sciences/Health Care. Clearly, the 21 Fund will continue to play a significant role in diversifying Indiana’s economy.

This web site contains in-depth information about the Fund, including: annual reports to the Indiana General Assembly; a list of awardees; minutes of 21st Century Fund IEDC Board Meetings; useful links to federal and local resources; and other materials related to the 21st Century Fund’s process and activities.