We’ve all heard the phrase, “What you put in, you get out.” In business terms, it translates to the “return on investment (ROI)” performance metric. A successful ROI is essentially high value gained for money spent. When thinking about small businesses and the resources provided to them by their state administrations, this concept rings especially true. When small businesses thrive, so too does the state in which they reside.
This is because startups and small to mid-size businesses are epicenters for innovation. When their big ideas come to fruition in the form of new processes, groundbreaking research, or commercialized products, they’re contributing to their state’s economy, workforce, and overall competitiveness.
But dreams can die quick deaths if there’s a lack of funding and collaboration with the right partners. Fortunately for Illinois businesses that are just getting off the ground, the Illinois Innovation Voucher Program helps newcomers move forward by bridging the gap between industry and higher ed.
“The voucher program wouldn’t be possible without the universities,” says Jacob Barry, who manages the voucher program as part of his role at the Illinois Science & Technology Coalition (ISTC). “The whole intention [of the program] is to utilize our incredible institutions here in Illinois, and to showcase their resources to the companies.”
The voucher program awards funding to startups and small to mid-size businesses so they can build partnerships with Illinois’ top higher education institutions. This collaboration gains businesses access to researchers at the top of their fields as well as state-of-the-art facilities.
This important relationship between industry and research institutions such as national laboratories and universities is one that resonates with iFAB. The hub’s leading consortium member, after all, is the Integrated Bioprocessing Research Lab (IBRL), a state-of-the-art pilot scale lab at the University of Illinois Urbana-Champaign. IBRL’s clientele includes industry partners ranging from early-stage startups to major multi-nationals.
Several recipients of the Innovation Voucher Program have used their funding to work at IBRL, where they’ve made use of the pilot plant’s impressive range of equipment and talented technical teams.
“The majority of money the companies are awarded goes towards their work with universities,” Barry explains when asked how the voucher program works. “External funding can certainly cover materials, software, or equipment. But the real value is using it to unlock university assets that businesses do not typically have access to. That means advanced core facilities, specialized equipment, and hands-on expertise from researchers who have spent years working in these spaces.”
This expertise includes professors as well as graduate and undergraduate students. Barry points out that these opportunities benefit the students, contributing to their own research and providing invaluable work experience they can carry with them into the job market. Indeed, the teams at IBRL, for example, include both full time staff and university interns.
The voucher program began as legislation in 2021, passed by the General Assembly and signed by Governor Pritzker. It’s now in its third year after having officially launched in 2024 under the Illinois Department of Commerce and Economic Opportunity (DCEO) and the ISTC.
The program has been given $3 million in grants per year, with up to $75,000 being allocated per winning applicant to go towards their company’s research and development (R&D). The companies themselves also have skin in the game, contributing at least 25% of the total cost of the project themselves.
The collaboration that takes place within the voucher program creates a mutually beneficial relationship between the companies, higher ed, and the state of Illinois.“ The universities may be able to put out new patents and new IPs,” Barry explains. “They receive funding to help run their programs and get an amazing amount of press.”
As for the state: “The true underlying mission of the voucher program is to support the Illinois economy, to help grow the amount of money the state can bring in,” Barry says. “The state of Illinois ranks ninth in business R&D, and fifth for patents being put out. We are trying to find ways to equalize those numbers, to show how competitive Illinois is.”
Another goal of the program that Barry mentions is one that iFAB is working towards as well: keeping our startups right here in Illinois as they continue to grow. “The hope is that these companies will commit to staying in Illinois,” Barry concludes. “They’ll grow their workforce, grow their opportunities, and utilize the resources that are here in the state.”
The voucher program holds monthly, virtual info sessions for anyone looking to learn more about the program. Learn more.
The 2026 application window for the Illinois Innovation Voucher Program opens February 2nd. Learn more and apply here
