State Matching Grants for Federal Funds

States that lack support for companies entering the commercialization stage can create a matching fund for businesses that are awarded funding by the federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. This support could be coupled with increased commercialization planning assistance. The fund could be targeted at federal award grantees that align with advanced energy technologies. Kentucky has an exemplar matching grant program: awards are given to companies either already located in Kentucky or willing to move at least 51 percent of the company to Kentucky within ninety days of the match. Other states match fifty cents per dollar. The administrative burden to the state is low because there is no additional screening process; the federal awardee process has already vetted companies.