“GOED is actively building an electric, innovative and connected Nevada future,” said Tom Burns, executive director at the Nevada Governor’s Office of Economic Development (GOED). “We certainly recognize the contributions mining and hospitality have made to the state. But we take advantage of building and expanding other sectors by bringing companies into Nevada. As new industries emerge this will provide career opportunities for our kids as well as diversifying our tax base.”
GOED is the state economic development agency responsible for promoting, coordinating, supporting and overseeing all economic development programs and activities in the Silver State. GOED contracts with eight regional development authorities (RDA) in Nevada, which work as boots on the ground and experts in their regions, and with Nevada’s two economic development districts, northeastern Nevada and western Nevada.
By diversifying the Silver State’s economy and bringing in new players, GOED helps Nevada build a greater, more stable economic foundation, tax base and resilient economy. To further those goals, GOED leadership creates and optimizes programs to work with a diversity of businesses, from startups to established enterprises.
“Our era is characterized by exciting new technological developments not experienced in decades. Some say we are at the cusp of a complete technological revolution,” said Karsten Heise, senior director of strategic programs and innovation at GOED and Innovation Based Economic Development lead for the agency.
Examples of new technological developments include artificial intelligence, advanced space exploration, advanced manufacturing of products that often contain advanced new materials, innovative healthcare through progress made in fields such as biotech, personalized medicine, new forms of therapeutics, and drug development powered by AI.
GOED partners with Nevada’s universities in pursuing substantial federal grant opportunities which will rebuild national competitiveness in key technologies and foster growth in regions that have not benefited from the technology boom in the past.
“I believe these national priorities will ultimately prove to have a decisive impact on Nevada’s economy, leading to high paying jobs for our citizens,” said Burns.
Innovation Based Economic Development
To ensure that GOED is effective in operating in this new era of technological advances, the agency has created its own Innovation Based Economic Development (IBED) Framework grounded in proven scientific theory and methodology.
“We are very strategic and intentional, and that’s why we developed IBED and a framework-based approach,” said Heise. “All innovation systems are de facto regional. In Nevada we are predominantly looking at a northern regional innovation system comprised of Reno-Sparks, Carson City and rural Nevada, and a southern Nevada system comprising the Las Vegas Valley.”
To better describe how regional innovation systems operate, MIT developed a model which identifies five groups that are constantly interacting, but independently. These five groups include:
Entrepreneurs
- Risk capital (venture capital funds, seed funds, accelerators)
- Corporate (established but innovative businesses)
- Government
- Higher education (research institutions)
In Nevada, GOED’s Innovation Based Economic Development approach rests on five core elements, with each element relating to the five respective interacting groups:
Increasing research capacity
- Commercializing research
- Fostering entrepreneurship
- Increasing access to capital
- Building a technically skilled workforce
“Not only are we dealing with innovation, but we ourselves at GOED take innovation-driven approaches that are reflected in the systematic strategies we have been developing to create programs and initiatives,” said Heise.
In Nevada, GOED’s IBED utilizes innovation theory, network theory and complex systems theory to create a framework-driven strategy for a vibrant, thriving and sustainable innovation driven economy. To get there, IBED focuses on knowledge creation, innovation and commercialization of technologies for final product development and industry growth through startups, entrepreneurship and high-growth enterprises.
“The first approach we followed was developing innovation capacity and emerging commercialization channels. The second was to increase collaboration between industry and research universities,” said Heise.
The third step, still in development, is to build a more robust entrepreneurial support structure with more formal elements of university research laboratory to market product commercialization.
Fostering an innovative economy means creating a foundation for the future so the system continues, even as industries change. Building a regional innovation system that is supported and driven by entrepreneurship requires startups and established companies, as well as interactions between the startups and the later-stage, high-growth companies.
GOED’s Innovation Based Economic Development approach strengthens each of the five core elements with dedicated initiatives and programs.
The Knowledge Fund
The Knowledge Fund was enacted during the 2011 Nevada Legislative Session and first funded in fiscal year 2014. Facilitated by GOED, it was created to further research and development, and ultimately commercialization of products by Nevada’s research universities and institutions.
“It is the most critical, and only, state program to foster Nevada’s innovation economy by turning scientific research into market opportunities at Nevada’s three research institutions in areas GOED has targeted for economic growth,” said Heise.
“An innovation economy transforms scientific research into new jobs and businesses, stimulates entrepreneurship, increases access to critical resources and ensures economic prosperity and opportunity for all Nevadans,” said Heise. “There lies both substantial economic and societal value in this use-inspired research to market transformation.”
Since the inception of the Knowledge Fund, and over six funding cycles to date, GOED has worked with Nevada research universities on projects aligned with economic development plans of both GOED and the state. The University of Nevada Reno (UNR), the Desert Research Institute (DRI) and the University of Nevada Las Vegas (UNLV) develop intellectual property as well as specific technology solutions. Businesses can engage through licenses of these technologies or other avenues such as dedicated sponsored research projects.
The Knowledge Fund created university-based applied research centers such as University of Nevada, Reno’s Nevada Center for Applied Research (NCAR). NCAR offers a way for both established and startup businesses to engage with the university and access university resources. Through NCAR, startups can also locate on campus, for example at the university’s Applied Research Facility (ARF) or the InNEVation Center. The Knowledge Fund was also instrumental in the creation of UNLV’s Black Fire Innovation Center, which is associated with projects such as entrepreneur-in-residence programs. These programs lead to UNLV spinout companies as well as accelerator programs which won federal grant awards, such as EDA’s Build to Scale in 2023.
NSF Engines
The federal National Science Foundation Engines (NSF) and Nevada’s Knowledge Fund are aligned in their goals.
The NSF Engines program envisions supporting multiple flourishing regional innovation ecosystems across the U.S., spurring economic growth in regions that have not fully participated in the technology boom of the past few decades. It seeks to catalyze and foster innovation ecosystems across the United States to advance critical technologies; address pressing national and societal challenges; cultivate partnerships across industry, academia, government, nonprofits, civil society and communities of practice; promote and stimulate economic growth and job creation; and spur regional innovation and talent.
“The NSF Engine Type 2 award at UNLV is part of the Southwest Sustainability Innovation engine,” said Zach Miles, senior associate vice president for economic development. “It leverages institutions, industry and the greater southwest community to take great sustainability ideas — water, energy, carbon capture — and turn them into commercially viable products and services thus solving those sustainability needs.”
Results of that engine include products, startup companies, workforce development and industry attraction.
At UNR, the Research and Innovation department believes in supporting programs of advanced economic development through universities.
“We have said for the past 10 years that every institution has to do what it can to support the communities where we are and help create job opportunities for everybody else,” said Mridul Gautam, vice president of research and innovation at UNR. “Our philosophy aligns with that of GOED.”
With support from GOED’s Knowledge Fund, UNR has created the InNEVation Center, a collaborative space for innovation and entrepreneurship in northern Nevada.
“NCAR manages the Applied Research Facility on campus and receives Knowledge Fund monies. American Battery Technology Company is located there and is the exact kind of partnership GOED wants to foster,” said Gautam.
The partnership between UNR and GOED allowed the university to apply for two major grants and an NSF development award. The grant application process was supported through GOED’s Knowledge Fund. UNR won the $1 million grant, and launched into competing for Phase 2, a $160 million grant opportunity over a period of ten years.
“The amount is essentially seed funding for companies exploring Nevada’s growing lithium economy. It won’t be enough for everything. But it’s what we create with that money that matters,” said Gautam. “We will have a system, we will have people talking to each other, companies will come in and talk to established and startup companies here. Large businesses will come over here and we will have the workforce to help them out. We work with community colleges very closely and develop and start new programs de novo to address industry needs. That’s what an ecosystem does.”
EDA Tech Hubs
University Center for Economic Development (UCED) works with a number of different entities across the state, including GOED, the RDAs and the two regional development districts formed in Nevada. They also work with local governments, assisting development and updating comprehensive economic development strategies (CEDS).
For the federal government to provide federal funding through economic development agencies, there needs to be CEDS in place guiding how projects are prioritized. That formed the longstanding relationship between GOED, the RDA’s and UCED.
In July 2023, the Economic Development Administration (EDA) contacted UCED regarding a potential proposal for a Tech Hub application. The Tech Hub consortium was formed and led by UCED and chose to go after advanced renewable energy technologies and lithium batteries in particular.
“Tech Hubs focus on key technologies the United States needs to ramp up to remain globally competitive,” said Dick Bartholet, director of the Sontag Entrepreneurship Competition at UCED and regional innovation officer of the Tech Hub. “These include things from artificial intelligence to biotechnology. There were at least a dozen key technology focus areas.”
A coalition was formed between GOED, Nevada Mining Association, Western Nevada Development District, the RDA’s and Nevada Battery Coalition. The Lithium Batteries and other EV Materials Loop is focused on building a self-sustaining, globally competitive full lithium cycle. UNR had already received a designation from NSF Engines 1 program involving different key technologies and had chosen to focus on advancing the circular economy for lithium batteries. In October 2023, Nevada’s Tech Hub consortium was selected as one of only 31 Tech Hub Designees. It submitted its Phase 2 proposal in February and is now awaiting a funding decision for potentially receiving up to $75 million for a period of five years from the EDA.
Without the Knowledge Fund Nevada would be unable to effectively compete and win NSF Engines or EDA Tech Hub grants. This also means that the success of the Nevada Engines and Tech Hub hinges on continued funding support for the Knowledge Fund and at certain minimum levels.
State Small Business Credit Initiative
State Small Business Credit Initiative (SSBCI) was first authorized by the Small Business Jobs Act of 2010 to assist small business following the Great Recession. The program’s structure was developed by GOED’s IBED, who acts as the program manager.
“SSBCI is a funding model that primarily helps small and micro businesses in spaces where standard credit markets won’t work,” said Burns. “It may be the amount the borrower is looking for is higher than some standard financial institutions want to lend, but it could be critical to the expansion of that small business. SSBCI can fund loans up to $250,000 and that could make all the difference,” he added.
Core requirements of the program include a minimum 1:1 match from private sector capital sources, such as bank lending or private investment venture capital, as a result of the federal capital SSBCI contribution. States must demonstrate a reasonable expectation of generating 10 private dollars for every SSBCI dollar over the life of the program. Businesses with less than 500 employees are eligible.
GOED’s SSBCI program is structured around four major investment themes:
- Technology-based and highly scalable small and medium enterprises
- Rural and urban special situations
- Tactical Nevada-specific issues
- Industry 4.0 transition (maintaining and supporting Nevada manufacturer’s competitiveness in the new era of automation)
- Other Funding
- Battle Born Venture is the state’s venture capital program, funded through SSBCI.
NSF Engines and Tech Hub federal awards are programs for entire regions. NSF Sustainability Engine is a coalition between UNLV, University of Utah and Arizona State. It put forward a proposal to study resource scarcity, water management and sustainability in our ecosystem.
The NSF Engines Development Award is advancing the circular economy for lithium batteries (NV) and is led by UNR. The Tech Hub Engine, which is based out of UNR, envisions a region with innovation supported across the lithium batteries and EV materials supply chain. That includes heightened efficiency, cooperation, competition and mitigated economic distress of previously underserved geographies and communities.
Office of Entrepreneurship
The 2023 Nevada Assembly Bill (AB) 77 established a dedicated Office of Entrepreneurship under the IBED umbrella. The bill’s purpose is to foster entrepreneurship and economic growth, marking a significant milestone in the state’s commitment to empowering individuals and spurring young company growth. The mission of the new division is to foster innovation and entrepreneurship.
“The office really exists to support the needs of small business owners,” said Kyeema Peart, director of the Office of Entrepreneurship at GOED. “We draw on the Right to Start legislation that created our office.”
AB77 is aimed at fostering entrepreneurship and removing barriers for businesses. The Nevada legislature was the first in the union to pass such a Right to Start-inspired bill.
Peart went on to indicate a need to create a better understanding of the policy restrictions limiting small businesses and startups, particularly given that entrepreneurship nationally has been on the decline for decades. Right to Start identified areas where economic development agencies need to focus and act. There’s been an effort to create a template for awareness within economic development to look at entrepreneurial interests which are the basis for job growth of the economy.
“All net new jobs are from businesses five years old and less,” said Peart.
While business attraction and retention are equally important, GOED also cultivates homegrown entrepreneurial strength.
“With that in mind, [we] took an intensely rigorous community-driven approach to assessing economic development needs that the Office of Entrepreneurship will address,” said Peart.
Innovation Drives Workforce Development
An innovation-driven economy heavily relies on a highly trained, technically skilled workforce to support it.
GOED’s IBED innovation driven workforce development is focused on both sides of the employment equation, creating a methodology tailored to the needs of both employers and job seekers. This includes reaching out to previously underserved population groups in Nevada’s rural communities, and to veterans, women, immigrants, disabled, re-entry and homeless populations.
Nevada’s Lithium Loop economy with its demand for STEM skills (science, technology, engineering and math), serves as an illustration of industry needs for upskilling and transitioning workers into new growth fields.
“Our priority sectors include healthcare, technology, logistics, skilled trades and advanced manufacturing. The lithium circular economy parallels advanced manufacturing,” said Tammy Westergard, workforce librarian in residence at GOED.
“That includes understanding what a ‘high demand’ job is and what the key skills and abilities are to compete for these jobs. One of the innovations we are advancing includes access to virtual reality field trips, where Nevadans can “see into” the world of work and become immersed into various STEM skills at work in different occupations. This experience fosters understanding of technical requirements and can help individuals to better understand career pathways and training requirements,” said Westergard.
“As a job seeker there is no way that you will be able to see, for example, a manufacturing facility from the inside and form an understanding what a job in a 21st century advanced manufacturing entails. Our virtual reality-based field trips will do exactly that,” added Westergard.
GOED’s IBED Innovation based Workforce Development has developed a groundbreaking approach called Individual Career Mapping (ICM), which has caught national attention. It is about informed career decision making and human agency.
The program is accessible through public and community college academic libraries. It features 35 virtual reality field trips from 3D publisher Lifeliqe to enhance career exploration and uses NCLab’s Career Readiness Assessment to evaluate and develop individual potential in STEM skills. The ICM provides access to precise information focused on Nevada’s unique labor market. The Software as a Service (SaaS) career information database deployed within the ICM is called the Nevada Career Explorer. These tools combine to match job seekers with career options and ultimately the in-demand talent with employers.
“Change in the world of work has profoundly accelerated, and technology continues to influence human work in the age of smart machines and AI,” said Westergard. “And as we know, there’s dignity in work.”
Innovating the Future
“Everything in our daily lives relates to innovation in some form or another,” said Heise. “Be it how we travel, how we shop, how we communicate or the healthcare we receive. So the relevant question becomes: What is GOED’s strategy for Nevada and Nevada businesses to participate in this new era? What does it mean for Nevada businesses? It means new opportunities, driven by GOED’s IBED.”
