The Niswonger Foundation and the East Tennessee State University Research Corporation have signed a memorandum of understanding that establishes a long-term strategic alliance to start and grow companies, bring university research to market and create the jobs that keep the region’s graduates at home.

Under the agreement, the Foundation will establish a new division called Niswonger Innovates, focused on innovation, entrepreneurship, and regional development. The Research Corporation will serve as the division’s innovation partner. The Niswonger Foundation will, in turn, lend its expertise and provide administrative support to the Research Corporation. The two organizations also plan to work with strategic partners on commercialization.

The alliance connects two efforts that depend on each other. Since 2001, the Niswonger Foundation has expanded educational opportunities for students in Northeast Tennessee and across the state. The ETSU Research Corporation turns research and new ideas into businesses. The memorandum cites the risk of “brain drain”: without high-quality jobs in the region, many graduates must look for opportunity somewhere else.

“We have spent 25 years helping students in this region prepare for college and careers,” said Scott M. Niswonger, founder and chairman of the Niswonger Foundation. “That investment pays off for Northeast Tennessee only if there are good jobs here for them to come home to. I have seen what a university research foundation can do for a region through my service on the Purdue Research Foundation board, and I believe the same thing can happen here.”

A focus on entrepreneurship and commercialization

For ETSU, the alliance advances the university’s focus on regional entrepreneurship, economic development and commercialization: the work of moving discoveries out of the lab and into products, companies, and jobs.

“ETSU was founded to improve the quality of life for the people of this region, and today that means building an economy where our graduates can stay and do well,” said ETSU President Dr. Brian Noland, who chairs the Research Corporation’s board of directors. “Scott Niswonger has built companies here and invested in this region’s students for a generation. Pairing that experience with the Research Corporation’s mission and talents will help us move more ideas from the university into businesses that hire here.”

What each organization brings

The Research Corporation brings expertise and infrastructure to support the work of the Niswonger Foundation and will advise on innovation strategy and entrepreneurship support for the region’s network of founders, investors, and partners. It will develop and commercialize intellectual property and, put its laboratory, research and entrepreneurial facilities to work on joint initiatives, including the ETSU/Eastman Valleybrook Applied Innovation Complex in Kingsport. It will also manage projects, design programs, lead workforce and talent initiatives and build on its record of recruiting high-tech employers to the region.

Outside partners on commercialization

Commercialization work under the alliance will reach beyond the two organizations. The partnerships will include other universities, industry and government. Niswonger Innovates and the Research Corporation plan to work with outside entities to move technologies to market.  

This work will produce technologies and new ventures that are ready for outside investment. In those cases, the Foundation may consider participating through investment or philanthropic support, with a separate agreement for each venture.

“A discovery does not create a single job until someone turns it into a product and builds a company around it,” said David A. Golden, CEO of the ETSU Research Corporation. “That takes facilities, capital and people who have done it before. Scott has done this multiple times and having him and his foundation working alongside our team changes what we can take on.”

ABOUT THE NISWONGER FOUNDATION

Established in 2001, the Niswonger Foundation has a mission “to create opportunities for individual and community growth through education and other sustainable projects” that embody the Foundation’s motto: “Learn. Earn. Return.” The Foundation’s programs primarily focus on K-12 educational excellence and are supported by charitable donations, grant funding, and personal contributions from Scott M. Niswonger. Learn more at niswongerfoundation.org.

ABOUT THE ETSU RESEARCH CORPORATION

The ETSU Research Corporation is a nonprofit organization aligned with East Tennessee State University. It turns university research into real-world growth for the region and beyond, connecting industry, government, investors, and community partners to innovation platforms that include the Valleybrook Applied Innovation Complex in Kingsport, the ETSU Innovation Lab in Johnson City, the 2681 CORE Accelerator, StoryCollab, and the Appalachian Music Collective. Learn more at etsuresearchcorporation.org.