.1% Of The Pie: A Snapshot of WV Federal Award Funds
SBIR & STTR grants are “America’s seed fund.” Still, West Virginia is only receiving 0.1% of annual awards – in this article, the Warfighting Integration Network (WIN) discusses its goal of raising awareness about this issue and helping secure an equitable share for the Mountain State.
From 2010-2020, the government awarded ~30 billion in SBIR/STTR grants – West Virginia received ~40 million. Here’s how WV increases that figure.
What's The Issue For WV?
Before getting into why West Virginia has fallen behind and what WIN is doing to fix it, it’s necessary to explain how this issue is affecting the state as a whole. Let’s briefly talk about Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants.
When it comes to the world of research and development (R&D), the federal government’s SBIR & STTR grants are “America’s seed fund.” These competitive programs place an obvious emphasis on America’s small businesses and their capacity for commercializing emerging technologies.
Startups looking for funds to break into R&D should focus on these programs; with federal agencies ranging from the Department of War and the Department of Energy to NASA participating, there are ample funding opportunities for a wide range of projects. These programs allow anyone with a good idea and a sound business plan to secure competitive funding for their efforts – in states where scarce funding is available, the promise of federal awards is tantalizing.
Just how much was awarded over the past decade? Between 2010 and 2020, nearly $30 billion in SBIR/STTR grants were awarded to businesses, research institutions, and non-profits all around the country. California secured $6 billion alone, a sizable chunk that overshadows every other state. But how much were West Virginian businesses awarded? Just $40 million.
That’s a little over one-tenth of a percentage point of the pie. You don’t need to be a statistician to notice the massive disparity.
How Does WV Compare to its Neighbors?
West Virginia sits at the bottom by a wide margin compared to its neighboring states. Additionally, West Virginia’s $40 million is spread across just 19 companies with about 2,500 total employees: that’s about 0.3% of the average WV workforce over that decade.
The neighboring state of Kentucky was awarded a fraction of, for example, Ohio, but its companies are still receiving nearly five times as much as those in West Virginia. Kentucky is also home to a robust aerospace and aeronautics economy that regularly exports billions of dollars in materials, so its location doesn’t preclude it from making strides in R&D.
Why Isn’t WV Receiving Its Proportional Amount?
The problem in the Mountain State isn’t its location; what the state has lacked is investment, awareness, and the means to succeed. Many states in the Upper Midwest of the U.S. (like Wyoming and the Dakotas) have similarly low award numbers, indicating shrinking populations and overall lack of urban development play a role as well.
State Awarded (2010-2020) Avg. Award Amount Per Grant: Virginia: 1.7 billion 425.3K; Maryland: 1.5 billion 469.1K; Pennsylvania: 1.2 billion 460.5K; Ohio: 1.1 billion 432.8K; North Carolina: 825.5 million 518.8K; Tennessee: 204.5 million 451.5K; Kentucky: 192.5 million 475.4K; South Carolina: 132.3 million 472.5K; West Virginia: 40.8 million 491.4K
This is one of the reasons WIN was founded. The lack of federal funds flowing into the state is seen as an issue by WIN’s team of industry insiders, so they’ve committed to helping West Virginia businesses get a leg up on applying for federal funding. In the long term, this shift in perspective can give many West Virginians the knowledge and confidence they need to secure the financial backing they need.
What Is Being Done to Help WV?
The first step is to raise awareness of this issue. If you’re reading this article, you know the potential for R&D in West Virginia is significant. Key WIN members are speaking to state and national legislative members, business owners, and industry insiders to better position Appalachia for success.
The core tenet of the Warighting Integration Network is – you guessed it – networking. As word spreads and potential is recognized, WIN’s network of interested parties grows; with this vast resource of like-minded innovators pooled around a central entity, WIN can make good on its promise of helping uplift West Virginia’s economy.
This starts small. WIN’s team of insiders begins by getting to know clients, assessing their needs and goals, and pursuing a course of action that will best benefit them. Sometimes this means forming partnerships with other businesses or researchers; other times, this means applying for SBIR/STTR grants that can guarantee a generous seed fund. The end goal is mutual benefit and investment into the future of Appalachian commerce.
Are you interested in securing funding for your R&D efforts? Reach out to WIN today. It just takes a few minutes to submit information about your business that WIN team of experts analyzes to determine the best track for you!
