Universities, industry and advisors press for larger, continuous funding for Economic Diversification Research Fund

University research leaders and outside advisers told the North Dakota Senate Appropriations Education and Environment Division that the Economic Diversification Research Fund has produced tangible research activity across the state and should be expanded and made more predictable.

“If you invest in the University of North Dakota, you will see a strong return on your investment,” said Scott Snyder, vice president for research and economic development at the University of North Dakota, during a committee hearing that included testimony from UND, NDSU, primarily undergraduate institutions and industry partners.

The EDRF was funded in the 2023 biennium and was described in testimony as a pilot that has supported infrastructure, early-career faculty, technology acceleration and undergraduate experiential learning. Several speakers asked the Legislature to increase funding in the next biennium and to consider making the appropriation continuing so institutions can plan multi-year projects.

Why it matters: Supporters said EDRF money attracts federal and industry research dollars, trains students in hands-on research, helps move university inventions toward commercialization, and addresses state-specific problems such as transportation in severe weather, agricultural processing and medical technologies.

What witnesses told the committee

- Snyder (UND) said recent investments have helped UND increase external awards and industry partnerships and highlighted UND investments in an NVIDIA cluster and a nano foundry that enabled more competitive applications for external funding.

- Colleen Fitzgerald, vice president for research and creative activity at North Dakota State University, told the committee NDSU reached a fiscal 2023 research expenditures high and that EDRF funding “sparks collaborative investments and allows industry–university collaborations.” She said EDRF funds fill translation gaps in the innovation lifecycle — for example, seed funding, prototype validation and workforce experiences for students.

- Steve Shirley, president of Minot State University, described projects at primarily undergraduate institutions that used EDRF money for DNA analysis, remote sensing with unmanned aerial vehicles and other student-led research activities that give undergraduates research experience.

- Principal investigators and program leads described projects enabled or accelerated by EDRF funds, including a nutritional study pairing honey and pomegranate extracts with a Fargo-based startup (Ryan McGrath, NDSU); medical-device and bio-innovation incubation and student-formed startups (Kuyar Tabakoulian, UND); plant ecology and pollinator work that used AI for pollen identification (Joe Pettit, Minot State); and a work-zone safety sensor system developed by transportation researchers (Armstrong Aboa, NDSU).

- External advisory committee chair Katherine Yurek, an inventor and research leader, urged the Legislature to consider a larger long-term funding target but recommended an immediate biennial increase to $25 million with continuing allocations in future years to sustain momentum. “The strategic investment in people will impact the state for decades to come,” she said.

Funding history and requests

Witnesses described an initial EDRF allocation in the 2023 biennium and said the system used the money for a mix of infrastructure, faculty development, technology readiness acceleration and experiential learning. Testimony to the committee included a formal request from the North Dakota University System for an allocation of $25,000,000 in the 2025–27 biennium. Advisory board members and some external commenters said larger, multi‑year sums would move the state farther in patents, Small Business Innovation Research awards and commercialization outcomes.

Limits and next steps

No formal appropriation or vote occurred during the hearing. Multiple speakers emphasized that additional funding should be targeted to translation and workforce activities and should avoid duplicative programs between institutions by intentionally coordinating collaborations. Speakers also said EDRF grants are most effective when paired with university technology‑transfer capacity and industry partners who can absorb and commercialize the work.

The committee took testimony from university leaders, principal investigators and industry partners; it did not take a final action during the hearing.

Ending

The committee closed the EDRF testimony portion of the hearing after a full day of witness statements and moved on to other items on its agenda. Supporters asked the Legislature to consider the $25 million proposal and to weigh a continuing appropriation to allow multi‑year planning and commercialization efforts.