Illinois commits $7 million to modernize tech incubators and boost innovation

Last week, Illinois Governor Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) announced an investment of $7 million through the Tech Incubator Enhancement Grant (TIEG) Program, aimed at bolstering entrepreneurship and innovation across the state. The funding was awarded to four key grantees, with the objective to modernize and revitalize technology incubators statewide, nurturing startups and positioning Illinois as a leader in emergent industries.

The initiative is aligned with Illinois’ broader Economic Growth Plan, emphasizing critical sectors such as life sciences, quantum computing, artificial intelligence, microelectronics, advanced manufacturing, next-generation agriculture, food processing, and clean energy production. 

The grants are designed to enhance the resilience and capacity of existing incubators while enabling new ones to emerge.

Among the recipients, the 518 Collective at Carl Sandburg College in Galesburg was awarded nearly $1.8 million to establish a new ag tech-focused incubator. This facility will provide physical workspace, business development services, workforce training, mentorship, and networking opportunities to support early-stage companies. Meanwhile, Chicago’s DeepTech Innovation Lab at mHUB received $590,200 to improve capital infrastructure and equipment, laying the groundwork for a deep tech incubator dedicated to sectors like advanced manufacturing and quantum technologies.

The University of Illinois Urbana-Champaign’s EnterpriseWorks 2.0 project secured $3 million to construct a new building at the Research Park. This facility will focus on startups requiring laboratory and manufacturing commercial spaces, reinforcing the life sciences, agriculture tech, and advanced manufacturing sectors. Southern Illinois University Carbondale also received $1.6 million to create the SouthernTECH High-Tech Food Incubator, equipped with advanced, energy-efficient kitchen technology to support food entrepreneurs and startups in food processing and agriculture tech.

Governor Pritzker highlighted Illinois’ “unmatched spirit of innovation and entrepreneurship” and stressed the importance of these grants in channeling local talent and ideas into significant economic growth and world-changing advancements. Kristin Richards, Director of DCEO, underscored how these strategic investments in technology incubators will strengthen Illinois' growing technology network.

The program’s competitive selection process, established through a Notice of Funding Opportunity, aims to ensure that the grants empower incubators to adapt to a rapidly changing business environment. By fostering collaboration and innovation, TIEG seeks to create a robust ecosystem that supports startups' growth.

Local leaders have also expressed strong support. Dr. Seamus Reilly and Eric Johnson from Carl Sandburg College acknowledged the transformative potential of the 518 Collective grant for the region’s economic vitality. 

With this targeted infusion of funding, Illinois demonstrates commitment to advancing technology-driven industries and supporting the infrastructure necessary for innovation hubs to thrive across the state. The TIEG Program represents a strategy to help sustain and grow Illinois' position as a hub for technology and innovation.