How a $7M Federal Grant Sparked a Lasting Innovation Economy in Dayton

The 2015 OEA Grant Laid the Foundation for Startups, Research, and Regional Resilience

In 2015, Wright Brothers Institute (WBI) and Wright State University (WSU) co-led a visionary effort to transform the Dayton region’s economic landscape. With a $7 million grant from the U.S. Department of Defense Office of Economic Adjustment (OEA), the partners launched the Dayton Metro Plan for Economic Diversity—a bold initiative designed to reduce regional dependence on defense spending and foster a thriving, innovation-driven economy.\

Today, nearly a decade later, the results are clear: the grant seeded a robust commercialization infrastructure, catalyzed startup formation, and helped secure tens of millions in follow-on investment.

The OEA grant brought together a coalition of institutions united by a common goal: strengthen Dayton’s economic future. Alongside WBI and WSU, key regional partners included:

• University of Dayton Research Institute (UDRI)

• Sinclair Community College

• City of Dayton

• Montgomery County

• Dayton Development Coalition (DDC)

• The Entrepreneurs’ Center

• The Miami Valley Research Foundation

• FastLane MEP at the University of Dayton

The grant funded nine targeted projects aimed at technology commercialization, workforce development, and entrepreneurial support. WBI played a central role in facilitating these efforts, applying a distinctive innovation model that emphasized alignment with Department of Defense (DoD) needs.

WBI’s Market-Pull Approach: Innovation with Intent

One of WBI’s major contributions to the grant's success was its recommendation to shift from traditional “technology push” strategies to a “market-pull” innovation model—a fundamental pivot in how the region approached commercialization.

WBI’s market-pull strategy focused on:

• Starting with end-user needs (e.g., AFRL and DoD mission areas)

• Identifying dual-use applications that bridge defense and commercial markets

• Guiding small businesses and researchers to pursue validated problems backed by market demand

• Using customer discovery methods to shape product development early and reduce risk

This approach helped ensure that startups and small businesses weren’t just innovating for innovation’s sake—they were building solutions that met real-world requirements and had a clear path to procurement or adoption.

The grant helped bring multiple ventures to life across the Dayton innovation ecosystem:

• sNoise Research Laboratory—commercializing advanced DSP technologies for sensors and healthcare.

• Cognovi Labs—a WSU-affiliated AI company using emotion-based analytics, which has secured more than $1M in investment.

• Dozens of faculty- and student-led ventures launched through pitch events like Early Risers, originally supported by OEA funding.

These companies reflect a broader trend: targeted federal investment, paired with strategic university collaboration, drives real startup formation.

WBI’s Market-Pull Commercialization Process

Thanks to the foundational support of the grant, the region launched enduring programs that continue to create value:

• Dayton Startup Week, now a flagship entrepreneurship event, was first seeded during the OEA project and drew 600+ attendees in its early years.

• Innovation Collider events facilitated by WBI gave small businesses and researchers the opportunity to test, pitch, and refine solutions aligned with Air Force needs.

The original infrastructure laid the groundwork for additional funding and economic wins:

• In 2019, WSU’s Applied Research Corporation secured a $750,000 EDA grant to launch the Dayton MedTech Nexus Initiative, supporting 50 startups and attracting $10 million in projected follow-on investment.

• The Entrepreneurs’ Center, a key OEA partner, later won a $14.9 million Ohio Third Frontier grant—resulting in nearly 100 supported startups, over 800 jobs created, and more than $100 million in capital attracted.

Today, Wright State University contributes over $2.3 billion annually to the regional economy. From its enhanced renewable energy master's program to its inter-institutional curriculum sharing initiatives with UD and Sinclair, the ripple effects of the OEA grant continue to grow.

These long-term outcomes—spanning education, entrepreneurship, and defense innovation—were made possible by the bold collaboration initiated in 2015.

The 2015 OEA grant did more than fund short-term activity—it catalyzed a sustained transformation in how Dayton approaches innovation. WBI’s push for market-pull strategies, combined with WSU’s leadership in research and education, helped create an ecosystem where ideas can scale, startups can thrive, and the defense mission can benefit from civilian ingenuity.

As Dayton looks to the future, the legacy of this grant offers a playbook for regional transformation: one rooted in public-private partnership, intentional innovation, and long-term vision.