Okla. Stat. tit. 74, § 74-5003.10g

A. The Oklahoma Center for the Advancement of Science and

Technology (OCAST) shall create a Research and Development

Attraction Program (Program), to be administered in accordance with

this section for the purpose of fostering research and development

in key industry clusters, leading to the creation of new products

and services that are brought to market by Oklahoma-based companies,

or brought to market by relocating companies financially sponsored

by an Oklahoma-based capital provider and which conduct a

substantial portion of total business activity in the State of

Oklahoma.

B. OCAST may award matching funds to eligible businesses to

offset a portion of expenses incurred through a collaborative

research and development project engagement with an Oklahoma

institution of higher education or nonprofit research institution.

C. OCAST may award matching funds up to fifty percent (50%) of

the cost of the project, not to exceed One Hundred Thousand Dollars

($100,000.00). A business may receive only one matching award under

this section per year.

D. In order to be eligible for matching funds under this

section, a business must satisfy all of the following conditions:

1. The business must be an Oklahoma-based small business. For

the purposes of this section, "Oklahoma-based" means a business that

has its principal place of business in this state or a business that

has, in the preceding twelve (12) months, raised an equity round not

less than Five Hundred Thousand Dollars ($500,000.00) with an

Oklahoma Statutes - Title 74. State Government Page 1031

Oklahoma-based capital provider investing not less than ten percent

(10%) of such equity round, that commits to spend all eligible

Program funds in the State of Oklahoma, and that has filed a

certificate of qualification with the Oklahoma Secretary of State.

For the purposes of this section, "small business" means a business

entity that employs not more than one hundred (100) persons;

2. In accordance with the Oklahoma Office of Science and

Innovation's 2021-2026 strategic plan, the business must operate in

one of the state's three strategic industry clusters, including

aerospace and autonomous systems, life sciences, and energy

diversification;

3. The research and development service provider which partners

with the business must be an Oklahoma-based research entity. For

the purposes of this section, "Oklahoma-based research entity" means

an institution of higher education or another nonprofit organization

that primarily provides research services, and which has its main

physical campus in this state. For the purposes of this section,

"research services" means research and development, technology

exploration, technical development, product development, and

commercialization intended to foster innovation in eligible small

businesses;

4. The research and development project for which matching

funds are provided must be conducted physically within the State of

Oklahoma for the duration of the engagement with the Oklahoma-based

research entity; and

5. To be awarded matching funds under the Program, an Oklahoma-

based small business must file an application with OCAST attesting

to the total cost of the project and demonstrating available and

unrestricted private capital to meet at least fifty percent (50%) of

the total project cost. Matching funds may be used only to purchase

research services, as defined in this section, from an Oklahoma-

based research entity.

E. When administering the Program under this section, OCAST

shall select eligible projects to qualify for matching funds within

the Oklahoma Research and Development Attraction Act based on

factors including, but not limited to:

1. The amount of private capital the matching funds will induce

to be spent in Oklahoma;

2. The total market size of the Oklahoma-based small

businesses' product or service offering;

3. Third-party validation of the Oklahoma-based small
eligible projects to qualify for matching funds within

the Oklahoma Research and Development Attraction Act based on

factors including, but not limited to:

1. The amount of private capital the matching funds will induce

to be spent in Oklahoma;

2. The total market size of the Oklahoma-based small

businesses' product or service offering;

3. Third-party validation of the Oklahoma-based small

businesses' intellectual assets, including but not limited to equity

raised from venture capital or private equity firms, federal

commercialization grants through the Small Business Innovation

Research or Small Business Technology Transfer Programs, or

competitive federal research awards through National Institutes of

Oklahoma Statutes - Title 74. State Government Page 1032

Health, National Science Foundation, Department of Defense,

Department of Energy, and others;

4. The projected future job creation impact of the Oklahoma-

based small business for the state;

5. Other economic benefits to the state, including through

increased state and local revenues and growth in private investment;

6. The need of the Oklahoma-based small business to acquire

specialized services and resources in Oklahoma;

7. The alignment of the project within Oklahoma's identified

cluster strategies; and

8. The impact on Oklahoma-based research entities, including

through increased revenue, exposure to new technologies, and

increased attraction opportunities for students, researchers, and

professional staff.