Financing the I-25 Innovation Corridor: Generating Returns While Solving Society’s Biggest Challenges

Session Overview

Public and private funding to fuel talent, technology, and infrastructure is fueling the Mountain West’s rapid economic growth, but a sustainable funding model is needed to maintain and expand the innovation capacity and capability. In this session, financial leaders from the region answered the question of how to keep an innovation hub financially sustainable while it works to solve society’s most pressing challenges.

Key Session Insights

According to the Hon. Deborah L. Wince-Smith, President and CEO, Council on Competitiveness, long-term sustainable investment from diverse sources—public, private, and philanthropic—is crucial for commercializing technologies and maintaining and growing the innovation ecosystem along the I-25 corridor. The federal government has invested over $200 million to launch the Elevate Quantum Tech Hub and the NSF Colorado-Wyoming Climate Resilience Engine, but sustaining these efforts in a challenging budget environment poses critical questions.

While serving as Assistant Secretary of Commerce in the 1980s, Ms. Wince-Smith witnessed the flat-panel display industry, initially developed in the United States, relocate to Asia due to insufficient capital for scaling domestic manufacturing. Unfortunately, ceding U.S. manufacturing capabilities to others diminished future U.S. innovation in this technology.

Innovation Corridor Founder and CEO Mr. Eric Drummond jumped in, noting that with the NSF Engine and EDA hub operational, the Mountain West can leverage established relationships with private funders. Public investments can de-risk opportunities, attracting more private capital. Although the current federal funding landscape is uncertain, Mr. Drummond remains optimistic, recalling his work during the Great Recession to secure a $32 billion investment package for technology firms, including Tesla.

Tiger 21 Denver Chair Mr. Doug Johnson pointed to the importance of bridging the "valley of death" and highlighted the need to enhance the I-25 corridor's brand identity through effective communication and storytelling. He believes that a clearer understanding of the region and its opportunities will help attract investors, giving them a better sense of how their contributions can drive impact. Reiterating the importance of storytelling, Mr. Drummond recounted how he secured venture backing for his startup by presenting a compelling vision to leaders at five Fortune 100 companies. He said his close collaborations with U.S. DOE National Laboratories, including NREL, helped him gain credibility to secure funding.

Renaissance Philanthropy President Mr. Kumar Garg highlighted how many startup founders lack awareness of available funding opportunities, including non-dilutive research funding that allows early-stage support without surrendering equity. Many investors are open to funding early "1.0" versions of products, he said. Boulder and Colorado ecosystems are good examples of how local donors can shape innovation through active engagement, but he thought creating streamlined funding vehicles could further enhance sustained involvement from high-net-worth individuals.

Mr. Johnson brought up a unique approach to community financing taking shape in Fort Collins. The FortZED partnership is aimed to reduce power consumption through collaboration among the city government, Colorado State University, local businesses, and individuals. By disparate groups working together, the city successfully attracted a Department of Energy grant that required matching local funds.

Mr. Garg noted that during the development of the National Innovation Strategy in the Obama White House, he observed many researchers treat commercialization as an afterthought. While there is broad agreement on the necessity of capital markets and R&D investment, less emphasis is placed on transitioning innovation from labs to the private sector. However, commercialization can succeed under the right conditions. For instance, Mr. Drummond reflected on his work with the Princeton Plasma Physics Laboratory and the launch of his start-up, and how in his experience the United States is uniquely able to unite critical scientists and businesses—an situation the Mountain West innovation accelerators are distinctively positioned to capitalize on.

Reflecting on successful innovation ecosystems abroad, Ms. Wince-Smith pointed to Israel, which has thrived through collaboration among universities, laboratories, and its population despite limited resources. Mr. Johnson noted that Israel's progress is rooted in its historical need for survival, fostering strong partnerships that ultimately led to its modern innovation economy. Mr. Drummond commented a similar collaboration is essential for startups and their supporting institutions in the Mountain West to enhance their ecosystems.

Looking ahead, Ms. Wince-Smith stressed while federal funding for the tech hubs may not be permanent, their success is vital for U.S. economic and national security in areas like quantum and climate resilience. She asked how these accelerators can develop sustainable financial models. Some companies, like Palantir, are framing their investments as a "patriotic obligation." How can this mindset be further encouraged?

Mr. Johnson drew a parallel to WWII wartime production, where the entire economy shifted to support military needs without individuals claiming credit. Today, the tendency to seek control and recognition can hinder partnerships. He advocated for unity over competition in pursuit of shared goals. Mr. Garg agreed, saying we need an "all hands on deck" approach focused on results, even amid a complicated political landscape. The EDA Tech Hub and NSF Engine were designed to be bipartisan, and the coming year will demonstrate their effectiveness. Rather than accepting defeat, these hubs should actively advocate for their importance.

In conclusion, Ms. Wince-Smith called on Mountain West innovation leaders to form a working group to explore new financing models to maintain its leadership in quantum and climate technology. She challenged the region to prove it is capable of creative solutions, such as tax-free enterprise zones.