In Tennessee, industry-led partnerships are the key to innovation and workforce training, and the state is investing serious dollars to back this effort.
Case in point is the unique public-private partnership between Bridgestone and Motlow State Community College (MSCC). Bridgestone Americas partnered with MSCC to build a customized mechatronics and advanced manufacturing training program. The collaboration aligns workforce training with industry hiring needs.
It began with the partners collaborating to create a mechatronics lab at the MSCC campus to train students in how to operate the specialized automated systems used in contemporary tire and rubber manufacturing. Workforce training is based on the Siemens Mechatronics Systems approach, which creates a three-step educational pathway that leads directly to students earning industry-certified credentials.
This pathway has been used successfully to train and equip students who graduate from the program and then move directly into high-paying manufacturing jobs at Bridgestone plants in La Vergne and Morrison, Tennessee. This is the only program in the nation that offers a three-step pathway for advanced manufacturing education.
Bridgestone is not the only Tennessee firm benefiting from a higher education partnership. In Nashville, Nissha Medical Technologies is working with Vanderbilt University to foster innovation in the life sciences. Nissha Medical relocated its global Engineering & Innovation Center of Excellence to Vanderbilt’s Nashville campus. The facility operates as an industry-university collaboration hub that brings together researchers, clinicians and medical device developers to accelerate innovation in medical technology.
The centerpiece of the partnership is the new Innovation Center of Excellence, located on West End Avenue in the former Stadium Club space overlooking FirstBank Stadium. The center offers flexible research labs, prototyping space and coworking areas. The partnership builds on Nissha Medical’s previous investments in EndoTheia, a Nashville-based startup that was founded by Vanderbilt faculty. EndoTheia develops precision medical devices for endoscopy.
The new on-campus Innovation Center allows Nissha Medical to work alongside the Vanderbilt Institute for Surgery and Engineering and Vanderbilt University Medical Center, giving researchers direct market insights while offering hands-on learning to students. The original investment by Nissha Medical was $4.5 million, which in turn created 38 high-tech medical device and engineering jobs in Nashville.
Seeing an Impetus for IRIS
The success of these and other joint ventures around Tennessee prompted the Tennessee Department of Economic and Community Development (TNECD) to create the Innovation & Research for Industry Success (IRIS) Grant program. Launched in 2025, the program cultivates new, industry-led R&D partnerships between Tennessee companies and the state’s top research institutes. IRIS is designed to lower barriers to innovation, assist in piloting emerging technologies and accelerate discoveries within Tennessee.
The goal is to cultivate industry-led R&D partnerships that encourage long-term investment in the state from targeted industries. IRIS is managed by Nathan Buttrey, who was appointed senior advisor to TNECD Commissioner Stuart C. McWhorter to lead the state’s newly formed Office of Innovation in 2025.
“IRIS dollars lower the cost of an R&D project at a university or research institute for an industry partner. They could look for funding in a lot of places, but IRIS takes the guesswork out of the equation.”
— Nathan Buttrey, Senior Advisor and Director of the Office of Innovation, TNECD
Backed by Governor Lee’s historic $63 million investment in innovation, Buttrey helps position Tennessee as a place where companies research, test and build for the future. The first initiative of the Office of Innovation is the IRIS Grant, designed to strengthen partnerships between industry and Tennessee’s top research institutes.
Before joining TNECD, Buttrey led corporate development at Altitude Ventures, a Nashville-based investment firm focused on real estate, healthcare venture capital and growth equity opportunities. He previously served on the staff of former Gov. Bill Haslam and holds a bachelor’s degree from Lipscomb University and a master’s degree from Vanderbilt.
“We recognize the innovation economy and the challenges around it,” Buttrey said. “We see that needs are moving fast. The new IRIS Grant program is a way for the state to support this. IRIS is a commitment of state dollars. It came about after Launch Tennessee (LaunchTN) did a study showing that Tennessee ranked last among its peer states in private-sector R&D spend in the state. We are naturally competitive in Tennessee. We knew we needed to connect organizations so we can all grow together.”
Buttrey explained that IRIS focuses on helping enterprise-stage firms take the next leap in innovation: “IRIS dollars lower the cost of an R&D project at a university or research institute for an industry partner. They could look for funding in a lot of places, but IRIS takes the guesswork out of the equation.”
Grant awards start at a minimum of $250,000, and there is a total of $25 million in the IRIS Grant fund. The program officially launched on July 1, 2025.
The program accepts applications on a rolling basis. IRIS applications are reviewed and scored by the TNECD Office of Innovation and the R&D Advisory Group, which consists of R&D experts from universities and research institutions across Tennessee. Also, a company must have a physical presence in Tennessee in order to be eligible.
IRIS sets aside $25 million to fund industry-led research at university partners and research institutions around Tennessee.
Source: TNECD
Targeted industries include:
- Advanced Manufacturing
- Aerospace & Defense
- Automotive
- Distribution & Logistics
- Food & Beverage
- Healthcare & Life Sciences
- Nuclear Energy
- Technology
Notable project examples include the University of Tennessee at Chattanooga’s partnering with DENSO to develop technology that predicts the risk of accidents before they happen and detects collisions immediately when they occur, as well as the University of Memphis’ partnering with FedEx to develop a unified fleet maintenance tool to promote longevity and cost-efficiency in fleet operations.
How IRIS Promotes Innovation
Buttrey is confident on the potential of IRIS. “Our universities and research institutions can be flywheels for innovation,” he said. “They could turn into engines of intellectual property and investments. We want to help fund and build that. Grants can pay salaries, buy software and equipment and purchase supplies. IRIS helps lower the costs and builds up the capabilities of these institutions.”
Buttrey notes that IRIS currently is in the reservation and contracting period. “So far, we have had three reservations that have moved into contracting grants,” he said. “We expect the projects to be from one to three years. There is a total five-year lifespan on the funds. We have reserved $7.4 million so far. The money is a reimbursement grant and is only for expenses that occur at the university.”
He added that “the intent of the grants is a reduced rate for the industry partner. They require significant financial contributions from the industry partners. This is a reimbursement grant for industry-led R&D at growth-stage or enterprise-stage companies. That is the flywheel impact caused by this investment. The benefit to the company is on the operational front. In the long run, this will make Tennessee sticky for these companies. The goal is that the company will grow and stay in Tennessee for the long term.”
When I asked Buttrey how TNECD would measure success of IRIS, he said that it would be “through allocation of dollars to projects at our universities supporting our industries. Also, we will involve not just our domestic companies, but also our FDI companies. They may not be as familiar with how our universities work, and IRIS gives us the opportunity to help connect them to our great research capabilities in Tennessee.”
He added that “when you look at advanced manufacturing, nuclear energy, life science, healthcare, distribution and logistics, etc., these are industries that require university-level specific skillsets in R&D. IRIS will make this possible.”
