News Summary
Tennessee has launched the Innovation & Research for Industry Success (IRIS) Grant Program, supported by a historic $63 million investment. The program aims to foster collaboration between local companies and research institutions to drive innovation and economic growth. Applications opened on July 1, marking an important step towards enhancing the state’s innovation ecosystem. Amidst current economic trends, this initiative seeks to maintain Tennessee’s business vitality and adapt to emerging industries, all while focusing on creating new opportunities for businesses and communities.
Tennessee has officially launched the Innovation & Research for Industry Success (IRIS) Grant Program, a significant initiative designed to elevate industry research and innovation across the state. Announced by the Tennessee Department of Economic and Community Development (TNECD), the program aligns with a historic $63 million investment included in Governor Bill Lee’s recommended budget for Fiscal Year 2026. This funding was subsequently approved by the Tennessee General Assembly in the spring of 2025, marking the largest investment in innovation in the state’s history.
The IRIS Grant Program aims to enhance collaboration between Tennessee-based companies and prominent research institutions within the state. By facilitating partnerships, the program encourages businesses to pilot innovative technologies and pursue new discoveries. Through collaboration focused on developing new products, processes, or technologies, the IRIS initiative strives to foster a robust innovation ecosystem that can bolster Tennesseeโs economic landscape.
Applications for the inaugural round of IRIS funding opened on July 1, 2025, and will be evaluated on a rolling basis, allowing companies to participate actively in shaping innovation strategies. This proactive approach aims to capitalize on Tennessee’s adaptability and openness to emerging industries, which Governor Bill Lee highlights as pivotal for the state’s ongoing economic growth.
Current Economic Trends in Tennessee
The launch of the IRIS Grant Program comes at a time when Tennesseeโs labor market is showing signs of cooling. According to the University of Tennessee Knoxville’s Boyd Center for Business and Economic Research, economic growth in the state is projected to slow. Nevertheless, Tennessee reported the formation of over 73,000 new businesses in Fiscal Year 2024, representing a nearly 60% increase compared to 2019. Business filings remain high, surpassing pre-pandemic levels, which indicates the state’s continual economic vitality.
Moreover, renewal rates for business licenses in the fourth quarter of 2024 were 31.8% higher than the previous year, signaling a trend of economic stability. However, the unemployment rate has seen a slight increase from a historic low of 3% to 3.6% by December 2024. Notably, Tennessee’s inflation-adjusted personal income has been growing at an annual rate of 1.9%, which exceeds the national average of 1.6%.
Impact of Tariffs and International Trade
Concerns related to aggressive tariffs imposed by former President Donald Trump on whiskey and the auto industries are being addressed by state leaders, thereby minimizing potential economic impacts. Tennessee maintains diverse international trade relationships, with Canada and Mexico identified as its top trading partners.
Innovation Ecosystem Expansion and Recent Initiatives
The IRIS Grant Program is not the first initiative of its kind, following the launch of the Transportation Network Growth Opportunity (TNGO) initiative in 2023. TNGO focuses on advancements in the mobility sector, reflecting Tennesseeโs commitment to nurturing innovation across various industries.
Regions such as Murfreesboro are witnessing rapid growth, with a community population surpassing 165,000. Middle Tennessee State University (MTSU) plays a crucial role in this development, bolstering workforce readiness through over 300 academic programs designed to align with industry needs.
Tourism Sector Growth
Furthermore, 2024 marked a historic high for tourism in Tennessee, with over $31 billion spent by visitors, significantly benefiting local economies and job creation. In Chattanooga, known for attractions like Rock City and Ruby Falls, this tourism wave has resulted in substantial increases in visitor spending and job growth. Specifically, Hamilton County, which encompasses Chattanooga, generated nearly $2 billion in tourism-related revenue in 2023, supporting over 30,000 local jobs. This growth translates into a reduced tax burden for residents, with each household in Hamilton County saving approximately $1,200 annually due to the revenue generated by tourism.
With the implementation of the IRIS Grant Program, Tennessee aims to solidify its position as a leader in innovation and economic growth, creating opportunities for its businesses and communities while enhancing collaboration between industry and academia.
Deeper Dive: News & Info About This Topic
- TNECD – IRIS Grant Program Announcement
- Tennessean – Tennessee Economy Report
- Travel and Tour World – Chattanooga Tourism Growth
- TNECD – Murfreesboro Community Spotlight
- Encyclopedia Britannica: Tennessee
Author: STAFF HERE MEMPHIS WRITER
The MEMPHIS STAFF WRITER represents the experienced team at HEREMemphis.com, your go-to source for actionable local news and information in Memphis, Shelby County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the areaโwith deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Beale Street Music Festival, Elvis Week, and Memphis in May International Festival. Our coverage extends to key organizations like the Greater Memphis Chamber and the Memphis Convention & Visitors Bureau, plus leading businesses in logistics, healthcare, and music that power the local economy such as FedEx, St. Jude Children's Research Hospital, and AutoZone. As part of the broader HERE network, including HEREBristol.com, HEREChattanooga.com, HEREKnoxville.com, and HERENashville.com, we provide comprehensive, credible insights into Tennessee's dynamic landscape.
