{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/2.2-2359.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/2.2-2359.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/2.2-2359.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/2.2-2359.html"}],"law_id":56795,"edition_id":1,"section_id":56795,"structure_id":13711,"section_number":"2.2-2359","catch_line":"Division of Commercialization","history":"2020, cc. 1164, 1169.","full_text":"A\n\nWithin the Authority shall be created a Division of Commercialization (the Division). The Division shall (i) promote research and development excellence in the Commonwealth; (ii) provide guidance and coordination, as deemed necessary, to existing efforts to support research in the Commonwealth with commercial potential; (iii) review and advise on the Index; (iv) administer the Commonwealth Commercialization Fund (the Fund); and (v) perform any other duties or responsibilities assigned by the Board.B\n\nThe Division shall be advised by an Advisory Committee on Commercialization (the Advisory Committee), to be appointed by the Board. The Board shall consider including at least one representative from a major public research institution of higher education located outside of the Commonwealth and at least one representative from a public institution of higher education located within the Commonwealth.C\n\nThe Division, in consultation with the Advisory Committee and subject to approval of the Board, shall develop guidelines, procedures, and criteria for the (i) application for grants and loans from the Fund; (ii) review, certification of scientific merits, and scoring or prioritization of applications for grants and loans from the Fund; and (iii) evaluation and recommendation to the Authority regarding the award of grants and loans from the Fund. The guidelines, procedures, and criteria shall include requirements that applicants demonstrate and the Authority consider:1\n\nOther grants, awards, loans, or funds awarded to the proposed program or project by the Commonwealth;2\n\nOther applications from the applicant for state grants, awards, loans, or funds currently pending at the time of the application;3\n\nThe potential of the program or project for which a grant or loan is sought to (i) culminate in the commercialization of research; (ii) culminate in the formation or spin-off of technology-based companies; (iii) promote the build-out of scientific areas of expertise in science and technology; (iv) promote applied research and development in the areas of focus identified in the Index; (v) provide modern facilities or infrastructure for research and development; (vi) result in significant capital investment and job creation; or (vii) promote collaboration among the public institutions of higher education.D\n\nThe Division may forward any application for a grant or loan from the Fund to an entity with recognized science and technology expertise for a review and certification of the scientific merits of the proposal, including a scoring or prioritization of applicant programs and projects deemed viable by the reviewing entity.E\n\n1. There is hereby created a permanent fund to be known as the Commonwealth Commercialization Fund. Interest and other income earned on the Fund shall be credited to the Fund. Any moneys remaining in the Fund, including interest and other income thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Expenditures and disbursements from the Fund, which may consist of grants or loans, shall be made upon authorization of the president, chairman, or vice-chairman of the Authority.2\n\nAwards from the Fund shall be made pursuant to the guidelines developed by the Division and approved by the Board.3\n\nMoneys in the Fund shall be used for grants and loans to (i) foster innovative and collaborative research, development, and commercialization efforts in the Commonwealth in projects and programs with a high potential for economic development and job creation opportunities; (ii) position the Commonwealth as a national leader in science-based and technology-based research, development, and commercialization; (iii) attract and effectively recruit and retain eminent researchers to enhance research superiority at public institutions of higher education; and (iv) encourage cooperation and collaboration among public institutions of higher education, and with the private sector, in areas and with activities that foster economic development and job creation in the Commonwealth. Grants and loans from the Fund shall be made to applications that further the goals set forth in the Virginia Innovation Index.4\n\nAwards from the Fund shall require a match of funds at least equal to the amount awarded.F\n\nThe Division, by December 1, 2020, and annually by December 1 each year thereafter, in consultation with the State Council of Higher Education for Virginia and the Board, shall make recommendations regarding oversight of initiatives or Commonwealth centers of excellence related to technology-based or innovation-based economic development. Initiatives and Commonwealth centers of excellence subject to such recommendations include (i) those that engage in commercialization of university research, (ii) technology-driven industries such as unmanned systems, (iii) advanced innovation concepts such as smart community technologies, and (iv) technology-based entrepreneurial activity. Recommendations to evaluate and measure current and future initiatives shall be developed in alignment with the Index to assist the Governor and General Assembly in determining appropriate initiatives to pursue while preventing the establishment of redundant activities.G\n\nInstitutions of higher education may choose to coordinate with the Division and participate in projects using moneys granted or loaned from the Fund. The Division shall coordinate with participating institutions of higher education technology transfer officers and vice-presidents of research and innovation to advance founder-friendly policies throughout the Commonwealth. The results of such partnerships may include the establishment of a central Commonwealth-run technology transfer office and founder-friendly terms for optional use; the creation of an inventory library of statewide available technologies and intellectual property; the support and strengthening of existing technology transfer offices, with focus on the need for proof of concept funds; and the development of commercialization advancement plans.H\n\nThe Division may coordinate with public institutions of higher education, technology transfer offices, the State Council of Higher Education for Virginia, and the Office of the Attorney General to identify the allowable uses of buildings owned by public institutions of higher education for research-led spin-off companies and student commercial initiatives that originate at public institutions of higher education. The Division and its partners shall take official notice of the fact that no general prohibition exists in the acts of assembly or the Code that generally prohibits such use, but that limitations may exist on a case-by-case basis that may prohibit the use of a particular building, facility, or piece of equipment for the purposes set forth in this subsection.","order_by":null,"text":{"0":{"id":207817,"text":"Within the Authority shall be created a Division of Commercialization (the Division). The Division shall (i) promote research and development excellence in the Commonwealth; (ii) provide guidance and coordination, as deemed necessary, to existing efforts to support research in the Commonwealth with commercial potential; (iii) review and advise on the Index; (iv) administer the Commonwealth Commercialization Fund (the Fund); and (v) perform any other duties or responsibilities assigned by the Board.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":207818,"text":"The Division shall be advised by an Advisory Committee on Commercialization (the Advisory Committee), to be appointed by the Board. The Board shall consider including at least one representative from a major public research institution of higher education located outside of the Commonwealth and at least one representative from a public institution of higher education located within the Commonwealth.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":207819,"text":"The Division, in consultation with the Advisory Committee and subject to approval of the Board, shall develop guidelines, procedures, and criteria for the (i) application for grants and loans from the Fund; (ii) review, certification of scientific merits, and scoring or prioritization of applications for grants and loans from the Fund; and (iii) evaluation and recommendation to the Authority regarding the award of grants and loans from the Fund. The guidelines, procedures, and criteria shall include requirements that applicants demonstrate and the Authority consider:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":207820,"text":"Other grants, awards, loans, or funds awarded to the proposed program or project by the Commonwealth;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":207821,"text":"Other applications from the applicant for state grants, awards, loans, or funds currently pending at the time of the application;","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"5":{"id":207822,"text":"The potential of the program or project for which a grant or loan is sought to (i) culminate in the commercialization of research; (ii) culminate in the formation or spin-off of technology-based companies; (iii) promote the build-out of scientific areas of expertise in science and technology; (iv) promote applied research and development in the areas of focus identified in the Index; (v) provide modern facilities or infrastructure for research and development; (vi) result in significant capital investment and job creation; or (vii) promote collaboration among the public institutions of higher education.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"D"},"6":{"id":207823,"text":"The Division may forward any application for a grant or loan from the Fund to an entity with recognized science and technology expertise for a review and certification of the scientific merits of the proposal, including a scoring or prioritization of applicant programs and projects deemed viable by the reviewing entity.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C3","next_prefix":"E"},"7":{"id":207824,"text":"1. There is hereby created a permanent fund to be known as the Commonwealth Commercialization Fund. Interest and other income earned on the Fund shall be credited to the Fund. Any moneys remaining in the Fund, including interest and other income thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Expenditures and disbursements from the Fund, which may consist of grants or loans, shall be made upon authorization of the president, chairman, or vice-chairman of the Authority.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"E2"},"8":{"id":207825,"text":"Awards from the Fund shall be made pursuant to the guidelines developed by the Division and approved by the Board.","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E","next_prefix":"E3"},"9":{"id":207826,"text":"Moneys in the Fund shall be used for grants and loans to (i) foster innovative and collaborative research, development, and commercialization efforts in the Commonwealth in projects and programs with a high potential for economic development and job creation opportunities; (ii) position the Commonwealth as a national leader in science-based and technology-based research, development, and commercialization; (iii) attract and effectively recruit and retain eminent researchers to enhance research superiority at public institutions of higher education; and (iv) encourage cooperation and collaboration among public institutions of higher education, and with the private sector, in areas and with activities that foster economic development and job creation in the Commonwealth. Grants and loans from the Fund shall be made to applications that further the goals set forth in the Virginia Innovation Index.","type":"section","prefixes":["E","3"],"prefix":"3","entire_prefix":"E3","prefix_anchor":"E3","level":2,"prior_prefix":"E2","next_prefix":"E4"},"10":{"id":207827,"text":"Awards from the Fund shall require a match of funds at least equal to the amount awarded.","type":"section","prefixes":["E","4"],"prefix":"4","entire_prefix":"E4","prefix_anchor":"E4","level":2,"prior_prefix":"E3","next_prefix":"F"},"11":{"id":207828,"text":"The Division, by December 1, 2020, and annually by December 1 each year thereafter, in consultation with the State Council of Higher Education for Virginia and the Board, shall make recommendations regarding oversight of initiatives or Commonwealth centers of excellence related to technology-based or innovation-based economic development. Initiatives and Commonwealth centers of excellence subject to such recommendations include (i) those that engage in commercialization of university research, (ii) technology-driven industries such as unmanned systems, (iii) advanced innovation concepts such as smart community technologies, and (iv) technology-based entrepreneurial activity. Recommendations to evaluate and measure current and future initiatives shall be developed in alignment with the Index to assist the Governor and General Assembly in determining appropriate initiatives to pursue while preventing the establishment of redundant activities.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E4","next_prefix":"G"},"12":{"id":207829,"text":"Institutions of higher education may choose to coordinate with the Division and participate in projects using moneys granted or loaned from the Fund. The Division shall coordinate with participating institutions of higher education technology transfer officers and vice-presidents of research and innovation to advance founder-friendly policies throughout the Commonwealth. The results of such partnerships may include the establishment of a central Commonwealth-run technology transfer office and founder-friendly terms for optional use; the creation of an inventory library of statewide available technologies and intellectual property; the support and strengthening of existing technology transfer offices, with focus on the need for proof of concept funds; and the development of commercialization advancement plans.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"13":{"id":207830,"text":"The Division may coordinate with public institutions of higher education, technology transfer offices, the State Council of Higher Education for Virginia, and the Office of the Attorney General to identify the allowable uses of buildings owned by public institutions of higher education for research-led spin-off companies and student commercial initiatives that originate at public institutions of higher education. The Division and its partners shall take official notice of the fact that no general prohibition exists in the acts of assembly or the Code that generally prohibits such use, but that limitations may exist on a case-by-case basis that may prohibit the use of a particular building, facility, or piece of equipment for the purposes set forth in this subsection.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G"}},"ancestry":[{"id":13711,"edition_id":1,"name":"Commonwealth of Virginia Innovation Partnership Act","identifier":"11","label":"article","depth":5,"order_by":1,"parent_id":13344,"metadata":{},"date_created":"2026-06-26 03:45:37","date_modified":"2026-06-26 03:45:37","permalink":{"id":174035,"object_type":"structure","relational_id":13711,"identifier":"11","token":"2.2\/I\/D\/22\/11","url":"\/2.2\/I\/D\/22\/11\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13344,"edition_id":1,"name":"Authorities","identifier":"22","label":"chapter","depth":4,"order_by":1,"parent_id":12785,"metadata":{},"date_created":"2026-06-26 03:44:41","date_modified":"2026-06-26 03:44:41","permalink":{"id":173945,"object_type":"structure","relational_id":13344,"identifier":"22","token":"2.2\/I\/D\/22","url":"\/2.2\/I\/D\/22\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12785,"edition_id":1,"name":"State Authorities, Boards, Commissions, Councils, Foundations and Other Collegial Bodies","identifier":"D","label":"part","depth":3,"order_by":1,"parent_id":12784,"metadata":{},"date_created":"2026-06-26 03:43:53","date_modified":"2026-06-26 03:43:53","permalink":{"id":173913,"object_type":"structure","relational_id":12785,"identifier":"D","token":"2.2\/I\/D","url":"\/2.2\/I\/D\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12784,"edition_id":1,"name":"Organization of State Government","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12749,"metadata":{},"date_created":"2026-06-26 03:43:53","date_modified":"2026-06-26 03:43:53","permalink":{"id":171455,"object_type":"structure","relational_id":12784,"identifier":"I","token":"2.2\/I","url":"\/2.2\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12749,"edition_id":1,"name":"Administration of Government","identifier":"2.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":171453,"object_type":"structure","relational_id":12749,"identifier":"2.2","token":"2.2","url":"\/2.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":70429,"structure_id":13711,"section_number":"2.2-2351","catch_line":"Short title; declaration of public purpose","url":"\/2.2-2351\/","token":"2.2\/I\/D\/22\/11\/2.2-2351","metadata":false},{"id":66958,"structure_id":13711,"section_number":"2.2-2352","catch_line":"Definitions","url":"\/2.2-2352\/","token":"2.2\/I\/D\/22\/11\/2.2-2352","metadata":false},{"id":61786,"structure_id":13711,"section_number":"2.2-2353","catch_line":"Board of directors; members; president","url":"\/2.2-2353\/","token":"2.2\/I\/D\/22\/11\/2.2-2353","metadata":false},{"id":56487,"structure_id":13711,"section_number":"2.2-2354","catch_line":"Powers and duties of the president","url":"\/2.2-2354\/","token":"2.2\/I\/D\/22\/11\/2.2-2354","metadata":false},{"id":56808,"structure_id":13711,"section_number":"2.2-2355","catch_line":"Powers of the Authority","url":"\/2.2-2355\/","token":"2.2\/I\/D\/22\/11\/2.2-2355","metadata":false},{"id":70323,"structure_id":13711,"section_number":"2.2-2356","catch_line":"Designation of staff of not-for-profit entity","url":"\/2.2-2356\/","token":"2.2\/I\/D\/22\/11\/2.2-2356","metadata":false},{"id":60780,"structure_id":13711,"section_number":"2.2-2357","catch_line":"Division of Entrepreneurial Ecosystems","url":"\/2.2-2357\/","token":"2.2\/I\/D\/22\/11\/2.2-2357","metadata":false},{"id":68622,"structure_id":13711,"section_number":"2.2-2358","catch_line":"Division of Investment","url":"\/2.2-2358\/","token":"2.2\/I\/D\/22\/11\/2.2-2358","metadata":false},{"id":56795,"structure_id":13711,"section_number":"2.2-2359","catch_line":"Division of Commercialization","url":"\/2.2-2359\/","token":"2.2\/I\/D\/22\/11\/2.2-2359","metadata":false},{"id":72724,"structure_id":13711,"section_number":"2.2-2360","catch_line":"Virginia Innovation Index","url":"\/2.2-2360\/","token":"2.2\/I\/D\/22\/11\/2.2-2360","metadata":false},{"id":61362,"structure_id":13711,"section_number":"2.2-2361","catch_line":"Grants or loans of public or private funds","url":"\/2.2-2361\/","token":"2.2\/I\/D\/22\/11\/2.2-2361","metadata":false},{"id":54695,"structure_id":13711,"section_number":"2.2-2362","catch_line":"Moneys of Authority; examination of books by the Auditor of Public Accounts","url":"\/2.2-2362\/","token":"2.2\/I\/D\/22\/11\/2.2-2362","metadata":false},{"id":56002,"structure_id":13711,"section_number":"2.2-2363","catch_line":"Exemption from taxes or assessments","url":"\/2.2-2363\/","token":"2.2\/I\/D\/22\/11\/2.2-2363","metadata":false},{"id":69413,"structure_id":13711,"section_number":"2.2-2364","catch_line":"Exemption of Authority from personnel and procurement procedures; adoption of procurement policies","url":"\/2.2-2364\/","token":"2.2\/I\/D\/22\/11\/2.2-2364","metadata":false}],"previous_section":{"id":68622,"structure_id":13711,"section_number":"2.2-2358","catch_line":"Division of Investment","url":"\/2.2-2358\/","token":"2.2\/I\/D\/22\/11\/2.2-2358","metadata":false},"next_section":{"id":72724,"structure_id":13711,"section_number":"2.2-2360","catch_line":"Virginia Innovation Index","url":"\/2.2-2360\/","token":"2.2\/I\/D\/22\/11\/2.2-2360","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/2.2-2359\/","history_text":"

This law was first created in 2020. The record of its establishment is cataloged in chapters 1164<\/a> and 1169<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":false,"permalink":{"id":174069,"object_type":"law","relational_id":56795,"identifier":"2.2-2359","token":"2.2\/I\/D\/22\/11\/2.2-2359","url":"\/2.2-2359\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/2.2-2359\/","token":"2.2\/I\/D\/22\/11\/2.2-2359","dublin_core":{"Title":"Division of Commercialization","Type":"Text","Format":"text\/html","Identifier":"\u00a7 2.2-2359","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Within the Authority<\/span> shall be created a Division of Commercialization (the Division). The Division shall (i) promote research and development excellence in the Commonwealth<\/span>; (ii) provide guidance and coordination, as deemed necessary, to existing efforts to support research in the Commonwealth<\/span> with commercial potential; (iii) review and advise on the Index<\/span>; (iv) administer the Commonwealth<\/span> Commercialization Fund (the Fund); and (v) perform any other duties or responsibilities assigned by the Board<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Division shall be advised by an Advisory Committee on Commercialization (the Advisory Committee), to be appointed by the Board<\/span>. The Board<\/span> shall consider including at least one representative from a major public research institution of higher education located outside of the Commonwealth<\/span> and at least one representative from a public institution of higher education located within the Commonwealth<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The Division, in consultation with the Advisory Committee and subject to approval of the Board<\/span>, shall develop guidelines, procedures, and criteria for the (i) application for grants and loans from the Fund; (ii) review, certification of scientific merits, and scoring or prioritization of applications for grants and loans from the Fund; and (iii) evaluation and recommendation to the Authority<\/span> regarding the award of grants and loans from the Fund. The guidelines, procedures, and criteria shall include requirements that applicants demonstrate and the Authority<\/span> consider: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Other grants, awards, loans, or funds awarded to the proposed program or project by the Commonwealth<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Other applications from the applicant for state<\/span> grants, awards, loans, or funds currently pending at the time of the application; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The potential of the program or project for which a grant or loan is sought to (i) culminate in the commercialization of research; (ii) culminate in the formation or spin-off of technology-based companies; (iii) promote the build-out of scientific areas of expertise in science and technology; (iv) promote applied research and development in the areas of focus identified in the Index<\/span>; (v) provide modern facilities or infrastructure for research and development; (vi) result in significant capital investment and job creation; or (vii) promote collaboration among the public institutions of higher education. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The Division may forward any application for a grant or loan from the Fund to an entity with recognized science and technology expertise for a review and certification of the scientific merits of the proposal, including a scoring or prioritization of applicant programs and projects deemed viable by the reviewing entity. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> 1. There is hereby created a permanent fund to be known as the Commonwealth<\/span> Commercialization Fund. Interest and other income earned on the Fund shall be credited to the Fund. Any moneys remaining in the Fund, including interest and other income thereon, at the end of each fiscal year shall not revert to the general fund but shall remain in the Fund. Expenditures and disbursements from the Fund, which may consist of grants or loans, shall be made upon authorization of the president, chairman, or vice-chairman of the Authority<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Awards from the Fund shall be made pursuant to the guidelines developed by the Division and approved by the Board<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Moneys in the Fund shall be used for grants and loans to (i) foster innovative and collaborative research, development, and commercialization efforts in the Commonwealth<\/span> in projects and programs with a high potential for economic development and job creation opportunities; (ii) position the Commonwealth<\/span> as a national leader in science-based and technology-based research, development, and commercialization; (iii) attract and effectively recruit and retain eminent researchers to enhance research superiority at public institutions of higher education; and (iv) encourage cooperation and collaboration among public institutions of higher education, and with the private sector, in areas and with activities that foster economic development and job creation in the Commonwealth<\/span>. Grants and loans from the Fund shall be made to applications that further the goals set forth in the Virginia Innovation Index<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Awards from the Fund shall require a match of funds at least equal to the amount awarded. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The Division, by December 1, 2020, and annually by December 1 each year thereafter, in consultation with the State<\/span> Council of Higher Education for Virginia and the Board<\/span>, shall make recommendations regarding oversight of initiatives or Commonwealth<\/span> centers of excellence related to technology-based or innovation-based economic development. Initiatives and Commonwealth<\/span> centers of excellence subject to such recommendations include (i) those that engage in commercialization of university research, (ii) technology-driven industries such as unmanned systems, (iii) advanced innovation concepts such as smart community technologies, and (iv) technology-based entrepreneurial activity. Recommendations to evaluate and measure current and future initiatives shall be developed in alignment with the Index<\/span> to assist the Governor and General Assembly in determining appropriate initiatives to pursue while preventing the establishment of redundant activities. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Institutions of higher education may choose to coordinate with the Division and participate in projects using moneys granted or loaned from the Fund. The Division shall coordinate with participating institutions of higher education technology transfer officers and vice-presidents of research and innovation to advance founder<\/span>-friendly<\/span> policies throughout the Commonwealth<\/span>. The results of such partnerships may include the establishment of a central Commonwealth<\/span>-run technology transfer office and founder<\/span>-friendly<\/span> terms for optional use; the creation of an inventory library of statewide available technologies and intellectual property; the support and strengthening of existing technology transfer offices, with focus on the need for proof of concept funds; and the development of commercialization advancement plans. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> The Division may coordinate with public institutions of higher education, technology transfer offices, the State<\/span> Council of Higher Education for Virginia, and the Office of the Attorney General<\/span> to identify the allowable uses of buildings owned by public institutions of higher education for research-led spin-off companies and student commercial initiatives that originate at public institutions of higher education. The Division and its partners shall take official notice of the fact<\/span> that no general prohibition exists in the acts of assembly or the Code that generally prohibits such use, but that limitations may exist on a case-by-case basis that may prohibit the use of a particular building, facility, or piece of equipment for the purposes set forth in this subsection. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDIVISION OF COMMERCIALIZATION (\u00a7 2.2-2359)\n\nA. Within the Authority shall be created a Division of Commercialization (the\nDivision). The Division shall (i) promote research and development excellence in\nthe Commonwealth; (ii) provide guidance and coordination, as deemed necessary,\nto existing efforts to support research in the Commonwealth with commercial\npotential; (iii) review and advise on the Index; (iv) administer the\nCommonwealth Commercialization Fund (the Fund); and (v) perform any other duties\nor responsibilities assigned by the Board.\n\nB. The Division shall be advised by an Advisory Committee on Commercialization\n(the Advisory Committee), to be appointed by the Board. The Board shall consider\nincluding at least one representative from a major public research institution\nof higher education located outside of the Commonwealth and at least one\nrepresentative from a public institution of higher education located within the\nCommonwealth.\n\nC. The Division, in consultation with the Advisory Committee and subject to\napproval of the Board, shall develop guidelines, procedures, and criteria for\nthe (i) application for grants and loans from the Fund; (ii) review,\ncertification of scientific merits, and scoring or prioritization of\napplications for grants and loans from the Fund; and (iii) evaluation and\nrecommendation to the Authority regarding the award of grants and loans from the\nFund. The guidelines, procedures, and criteria shall include requirements that\napplicants demonstrate and the Authority consider:\n\n 1. Other grants, awards, loans, or funds awarded to the proposed program or\n project by the Commonwealth;\n\n 2. Other applications from the applicant for state grants, awards, loans, or\n funds currently pending at the time of the application;\n\n 3. The potential of the program or project for which a grant or loan is sought\n to (i) culminate in the commercialization of research; (ii) culminate in the\n formation or spin-off of technology-based companies; (iii) promote the\n build-out of scientific areas of expertise in science and technology; (iv)\n promote applied research and development in the areas of focus identified in\n the Index; (v) provide modern facilities or infrastructure for research and\n development; (vi) result in significant capital investment and job creation;\n or (vii) promote collaboration among the public institutions of higher\n education.\n\nD. The Division may forward any application for a grant or loan from the Fund to\nan entity with recognized science and technology expertise for a review and\ncertification of the scientific merits of the proposal, including a scoring or\nprioritization of applicant programs and projects deemed viable by the reviewing\nentity.\n\nE. 1. There is hereby created a permanent fund to be known as the Commonwealth\nCommercialization Fund. Interest and other income earned on the Fund shall be\ncredited to the Fund. Any moneys remaining in the Fund, including interest and\nother income thereon, at the end of each fiscal year shall not revert to the\ngeneral fund but shall remain in the Fund. Expenditures and disbursements from\nthe Fund, which may consist of grants or loans, shall be made upon authorization\nof the president, chairman, or vice-chairman of the Authority.\n\n 2. Awards from the Fund shall be made pursuant to the guidelines developed by\n the Division and approved by the Board.\n\n 3. Moneys in the Fund shall be used for grants and loans to (i) foster\n innovative and collaborative research, development, and commercialization\n efforts in the Commonwealth in projects and programs with a high potential for\n economic development and job creation opportunities; (ii) position the\n Commonwealth as a national leader in science-based and technology-based\n research, development, and commercialization; (iii) attract and effectively\n recruit and retain eminent researchers to enhance research superiority at\n public institutions of higher education; and (iv) encourage cooperation and\n collaboration among public institutions of higher education, and with the\n private sector, in areas and with activities that foster economic development\n and job creation in the Commonwealth. Grants and loans from the Fund shall be\n made to applications that further the goals set forth in the Virginia\n Innovation Index.\n\n 4. Awards from the Fund shall require a match of funds at least equal to the\n amount awarded.\n\nF. The Division, by December 1, 2020, and annually by December 1 each year\nthereafter, in consultation with the State Council of Higher Education for\nVirginia and the Board, shall make recommendations regarding oversight of\ninitiatives or Commonwealth centers of excellence related to technology-based or\ninnovation-based economic development. Initiatives and Commonwealth centers of\nexcellence subject to such recommendations include (i) those that engage in\ncommercialization of university research, (ii) technology-driven industries such\nas unmanned systems, (iii) advanced innovation concepts such as smart community\ntechnologies, and (iv) technology-based entrepreneurial activity.\nRecommendations to evaluate and measure current and future initiatives shall be\ndeveloped in alignment with the Index to assist the Governor and General\nAssembly in determining appropriate initiatives to pursue while preventing the\nestablishment of redundant activities.\n\nG. Institutions of higher education may choose to coordinate with the Division\nand participate in projects using moneys granted or loaned from the Fund. The\nDivision shall coordinate with participating institutions of higher education\ntechnology transfer officers and vice-presidents of research and innovation to\nadvance founder-friendly policies throughout the Commonwealth. The results of\nsuch partnerships may include the establishment of a central Commonwealth-run\ntechnology transfer office and founder-friendly terms for optional use; the\ncreation of an inventory library of statewide available technologies and\nintellectual property; the support and strengthening of existing technology\ntransfer offices, with focus on the need for proof of concept funds; and the\ndevelopment of commercialization advancement plans.\n\nH. The Division may coordinate with public institutions of higher education,\ntechnology transfer offices, the State Council of Higher Education for Virginia,\nand the Office of the Attorney General to identify the allowable uses of\nbuildings owned by public institutions of higher education for research-led\nspin-off companies and student commercial initiatives that originate at public\ninstitutions of higher education. The Division and its partners shall take\nofficial notice of the fact that no general prohibition exists in the acts of\nassembly or the Code that generally prohibits such use, but that limitations may\nexist on a case-by-case basis that may prohibit the use of a particular\nbuilding, facility, or piece of equipment for the purposes set forth in this\nsubsection.\n\nHISTORY: 2020, cc. 1164, 1169.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}