Tucson, Ariz. (March 21, 2025) - The University of Arizona Center for Innovation had an economic output of $664.8 million between 2021 and 2023, according to an analysis completed by Rounds Consulting Group, an independent public policy and economics advising firm.
Part of Tech Parks Arizona in the Office of Research, Innovation & Impact, the University of Arizona Center for Innovation, or UACI, is Arizona's leading business incubator network, helping science and technology startups in Southern Arizona and beyond bring their ideas to market and scale operations globally.
"Supporting the growth of new businesses is a cornerstone of Southern Arizona's economic development strategy," said Carol Stewart, vice president of Tech Parks Arizona. "By empowering startups, we create a ripple effect of economic growth that extends across the region. UACI's strategic, results-driven approach is already delivering measurable success, strengthening our economy for the future."
The $664.8 million in economic output includes direct and indirect impacts of the operations of multiple incubator outposts, including the Town of Oro Valley, Biosphere 2, Town of Sahuarita, and the City of Sierra Vista, as well as the contributions of entrepreneurs participating in the UACI program. The direct impacts of startup activities create additional indirect impacts as the businesses purchase services and products from local suppliers, hire talent, and spend money in the community.
"UACI is a powerful driver of economic growth in Southern Arizona, providing startups with resources, mentorship and infrastructure they need to thrive," said Casey Carrillo, executive director of UACI. "By fostering innovation and supporting entrepreneurs, we are not only launching successful companies but also creating high-quality jobs and attracting investment that strengthens our regional economy."
Startups that have gone through the UACI program have made a significant economic impact. According to the report, UACI startup clients contributed $19.1 million in state and local taxes from 2021 to 2023. Additionally, startups that participated in UACI programming contributed 886 jobs. The economic analysis provides an outline of the UACI startup industries from 2021 to 2023, with 39% in healthcare and biology & life sciences, 24% in climate tech, 17% in hardware/engineering, 16% in software/artificial intelligence/app development, and 4% in imaging.
During this period, 41% of UACI startups involved U of A alumni, graduate students, or technology originating from university research.
“The University of Arizona has built a dynamic innovation ecosystem where pioneering research, entrepreneurship and economic growth converge,” said Tomás Díaz de la Rubia, senior vice president for research and innovation. “Through Tech Launch Arizona, we translate U of A-born discoveries into technologies that drive new ventures, and with the University of Arizona Center for Innovation, we provide founders the mentorship and infrastructure to launch and scale their businesses. By fostering a seamless pathway from idea to impact, we are strengthening Arizona’s economy, generating jobs, and ensuring that university-driven innovations make a difference in the world.”
The economic report also examined UACI's lifetime impact. UACI has supported more than 1,500 entrepreneurs through workshops, educational training, and assistance with business pitch preparation. With support from UACI programs and resources, more than 300 startups have accumulated $180.6 million in capital investment funding.
Dimensional Energy, a UACI startup client since 2022, is an exemplary example of innovation in action. Dimensional Energy gives CO2 new life as a cost-effective building block for industrial fuels and consumer products traditionally made from fossil carbon. Headquarters in Ithaca, NY, Dimensional Energy opened its Tucson Technology Center and pilot plant in the same year they joined the incubator program and became tenants at the UA Tech Park. As part of its growth, the company is advancing its innovative carbon utilization technology with a pilot project at the Solar Zone within UA Tech Park. By leveraging cutting-edge research, this project demonstrates sustainable fuel production that supports the transition to a low-carbon future. Dimensional Energy secured $20 million in Series A funding in 2023 to develop its catalyst technology for producing sustainable aviation fuel and advanced chemical ingredients that de-fossilize thousands of products.
"At Dimensional Energy, we’re proud to be part of the UACI incubator program, which has been an invaluable asset to our company. The support we've received, along with UACI’s extensive network of resources, has been key in enabling our growth and expansion,” said Angelina Farrar, Tucson Operations Manager for Dimensional Energy. “Opening our Technology Center at the UA Tech Park has proven to be a strategic decision, providing us with access to a thriving innovation ecosystem. Currently, 12 employees work at the center, contributing to our mission to build a more sustainable future."
PHOTO: With 41% of UACI startups involving University of Arizona alumni, graduate students, or technology, many leverage the incubator’s Good Laboratory Practice (GLP)-certified lab space and flexible 'rent-a-bench' environment to launch and scale businesses in healthcare, biology, and life sciences.