NCInnovation at App State: Research Becomes Business
A $500 million bet on turning research into jobs
North Carolina handed a nonprofit $500 million and told it to turn university research into real businesses. That nonprofit is NCInnovation, and one of its newest hubs sits at Appalachian State University in Boone.
The idea is straightforward: North Carolina universities produce world-class research, but too little of it reaches the market. Discoveries sit in labs. Intellectual property migrates to other states. NCInnovation exists to bridge that gap — funding the messy, expensive phase between a proof of concept and a product someone can actually buy.
For Appalachian entrepreneurs, this is worth paying attention to. When university research gets commercialized locally, it creates companies, jobs, and supply chain opportunities — right here in the mountains.
What happened
App State becomes a hub
In October 2024, NCInnovation selected Appalachian State University as one of three new UNC System hub locations for applied research support. App State joined Fayetteville State and UNC Wilmington, expanding a network that already included East Carolina, UNC Charlotte, N.C. A&T, and Western Carolina.
Regional directors at each hub work directly with campus researchers, connecting grant recipients with industry partners and business services to push their work toward commercialization. NCInnovation has since expanded its presence to App State’s Hickory campus, with Senior Director Meagan Coneybeer based there to support research in the Catawba Valley corridor.
Key facts
- $500 million endowment from the North Carolina General Assembly, transferred in two tranches across 2024
- $29 million committed across 25 university research projects at 11 UNC System campuses
- 100% of program funding goes directly to researchers — administrative costs are covered by private philanthropic contributions
- Any company emerging from NCInnovation-funded research must keep its headquarters in North Carolina for at least five years
“The university-to-industry pipeline is central to innovation, here in North Carolina and the United States.” — Bennet Waters, NCInnovation CEO
Why this matters for Appalachian businesses
Two projects show what is possible
At App State, NCInnovation is funding two projects that illustrate what applied research looks like when it has a path to market.
The Beemon Hive Monitoring System received a $641,951 grant supporting Dr. Rahman Tashakkori’s team in commercializing a tool that reduces honeybee colony collapse and boosts hive productivity. For an agricultural region where beekeeping supports pollination for crops and orchards, this is not abstract science — it is a product that could end up in the hands of Appalachian farmers.
An AI-driven robotic microscope received $2.3 million to automate parasite detection in livestock. Dr. Zach Russell’s system uses robotics and machine learning to count fecal eggs — work that humans do poorly over long sessions because accuracy drops as fatigue sets in. The initial market is veterinary labs and Cooperative Extension offices across the state, with plans to reach private veterinarians. North Carolina cattle, poultry, and goat farmers could see cheaper, faster, and more accurate parasite testing within two years.
Both projects started in a lab. NCInnovation provides the funding and guidance to get them into a catalog.
The ripple effect
When a university spins off a company, it does not just create one business. It creates demand for local suppliers, contractors, marketing firms, and service providers. A medical device company in Hickory needs office space, accounting help, IT infrastructure, and employees who buy lunch downtown.
This is the same economic multiplier that federal programs like the ARC ARISE Initiative and NIST SBIR grants aim to trigger — but NCInnovation’s endowment model means the funding is not subject to annual congressional appropriations. At least, that was the plan.
Our take
The endowment model is elegant — and under threat
NCInnovation’s structure is genuinely smart. A $500 million endowment, conservatively invested, generates roughly $1.8 million per month. That revenue funds grants indefinitely without requiring the legislature to re-appropriate money each year. It is the kind of self-sustaining infrastructure that rural regions rarely get.
But the model is under political pressure. In 2025, both chambers of the North Carolina General Assembly proposed clawing back the endowment — the House to redirect funds toward Hurricane Helene recovery, the Senate to replace the endowment with $25 million in annual appropriations. CEO Bennet Waters announced he would step down in 2026. A state auditor review confirmed NCInnovation complied with state laws, but legislative scrutiny continues.
The bottom line: The research pipeline at App State and across the UNC System is producing real, fundable work. Whether NCInnovation keeps the resources to back it is now a political question, not a performance one.
What is missing from the conversation
The debate over NCInnovation’s endowment tends to focus on Raleigh politics. What gets lost is the regional impact. App State and Western Carolina are not Research Triangle institutions. When their research gets commercialized, the economic benefits flow to communities that need them most — places like Boone, Hickory, and Cullowhee, not Durham and Charlotte.
What you should do
If you are a researcher or inventor
NCInnovation’s grant program is open to all UNC System applied researchers. The next funding cycle will accept proposals from any campus. If you have a proof of concept with commercial potential, this is one of the most accessible paths to non-dilutive funding in the Southeast.
If you are a small business owner
Watch what comes out of these university labs. The companies that spin off will need local partners — manufacturers, distributors, tech providers, marketing agencies. If you are in western North Carolina, the App State and WCU hubs are producing opportunities that did not exist two years ago.
Similar programs in other states
NCInnovation is modeled on successful programs in other states. If you are outside North Carolina, look into:
- Appalachian Regional Commission (ARC) grants available across 13 Appalachian states
- NIST Small Business Innovation Research (SBIR) federal grants for R&D commercialization
- Your state’s economic development office — most operate small business innovation programs, often with university partnerships
The research-to-market pipeline is not limited to North Carolina. But NCInnovation’s scale and structure make it worth watching as a model for the region.
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