The Commonwealth Cyber Initiative (CCI) was established under the enabling authority of the Appropriation Act - Item 252.B7, Special Session I, 2018. Its objective is “to serve as an engine for research, innovation, and commercialization of cybersecurity technologies, and address the Commonwealth’s need for growth of advanced and professional degrees within the cyber workforce" (Virginia State Budget, 2018).

Our ambitious vision is to establish Virginia as a global leader in cybersecurity, and by doing so, help diversify the economy of the commonwealth, attracting private investment and jobs.

Fiscal Year 2023 (FY23) saw a massive increase in new research contracts from sources outside the commonwealth, as well as additional emphasis on our workforce development and innovation programs. Virginia is unique in the country in establishing this large-scale collaboration of institutions of higher education (now with 42), and the investment continues to pay off in jobs (and, crucially, a skilled workforce that can fill those jobs!), spin-outs and startups, and the reputation of our academic institutions. This report highlights some of the major accomplishments in the past fiscal year.

Record-breaking Research Funding. In the first three fiscal years that CCI was active, our researchers brought in an average of $35M per year in new research contracts from federal government and private sector sources. These results already resulted in a significant jump in research expenditures in Virginia universities in the area of computer and information science and engineering. In FY23, this total jumped to $75M in new cybersecurity research contracts, an incredible 115% yearto-year increase. Our investments in research infrastructure and collaboration among researchers across CCI universities and disciplines will continue to pay off, especially in areas of opportunity such as Open Radio Access Network (O-RAN), a topic with strong national security implications, for which the recent CHIPS and Science Act has authorized federal funding of $1.5 billion, and in supply chain security, which we have identified as a topic for investment in the coming year.

Focus on Large Grants. CCI creates the critical mass of research expertise for Virginia to be competitive for large research grants. In FY23, our researchers brought in 12 grants of $1M or more; our largest grant, led by George Mason University, was for $29M. Our strategy from the outset has been to enable these large-scale grants, through the CCI Fellows program. This year, we have funded six new Fellows, depicted on the right, at the University of Virginia (UVA), Mason, Virginia Military Institute (VMI), and Virginia Tech (VT). Each received financial support from CCI to lead a research proposal with a budget of $2M or more involving more than one CCI university. A CCI Fellow, funded in Fiscal Year 2020 (FY20) and Fiscal Year 2021 (FY21) under this program, was instrumental in the success in the $29M grant awarded this year.

From Lab to Startup. In 2023, CCI continued support for its Cyber Acceleration, Translation, and Advanced Prototyping for University Linked Technology (CATAPULT) Fund to advance collaborative translational research projects amongst CCI partners, with the goal of speeding the transition of academic research outcomes to the marketplace. We have funded nine new ideas, ranging from a multi-functional coating to prevent electromagnetic sabotage (VCU professor Radhika Barua and her team, pictured) to software solutions that protect our systems from social engineering attacks, to mention just a few. The CATAPULT Fund is an important tool in CCI’s innovation toolbox, providing funding critical to advance the maturity of cyber discoveries during the critical "Valley of Death" phase of commercialization. After the initial funding from this program, innovators are better equipped to progress to SBIR/STTR grants, funding from VIPC, and seed and angel investor funding.

Meet Up to Startup. Speaking of venture capital, this year we began a series of meetups across the commonwealth to bring together innovation-minded students and local members of the entrepreneurial ecosystem. These informal gatherings are an opportunity for students who are interested in becoming entrepreneurs or commercializing their research to meet with those in the local community who can guide them on their journey. Virginia-based VCs represented, include: Dreamit Ventures, Data Tribe, Blu Ventures, Squadra, Midland Capital, and Activation Capital. This program is being expanded in FY24, with events already scheduled in Lexington, Fairfax, Harrisonburg, Williamsburg, and Charlotteville.

State of the Art Facilities. CCI’s three mission lines of research, innovation, and workforce development all rely on state-of-the-art lab facilities. In FY23, ODU started planning and building their new facilities that will house their School of Data Science, School of Cybersecurity, VMASC, as well as the CCI CoVA Node in the Virginia Beach Town Center. The CCI Central Virginia Node, in partnership with Micron, further developed the OpenCyberCity testbed at VCU, as well as a haptic feedback device prototype. The CCI Northern Virginia Node maintains open source testbeds at Mason and three commercial-grade NextG systems in its Living Innovation Lab in Arlington, Virginia. The 5G for the Power Grid testbed, depicted, which started as a digital twin of the Virginia Tech Electric Service system, is used for cyber training and for companies to evaluate new technologies before they are deployed in the power system.

A Statewide Experiential Learning Portfolio. Over the past four years, CCI has created a unique and varied portfolio of experiential learning programs for Virginia students. Research shows that such experiences correlate with higher rates of credentialing, success in employment after graduation, higher compensation, and job satisfaction. Our programs range from internships and traineeships to capture-the-flag competitions, intensive training, and project-based learning in partnership with industry leaders in cybersecurity like CACI International. This year, CCI supported 262 interns, the highest number since its inception. Diversifying the cyber workforce has been an explicit goal for us, and all of our programs have participation from women, latinos, and African-Americans at levels greater than in the cybersecurity workforce. As depicted in the plot, 90% of participants in our apprenticeship program come from underrepresented groups.

CCI funding is distributed to researchers through open calls for proposals issued both by the Hub and the Nodes. Proposals are peer-reviewed and final recommendations made by CCI’s Leadership Council. This ensures that the best ideas, aligned with CCI’s mission, are selected for funding in an open and transparent manner.

We continue to be advised by a highly distinguished Technical Advisory Board (TAB), with representatives from industry, state and federal government, academia, and the innovation ecosystem. Some major goals for the coming fiscal year include:

• The development of CCI 2030, our strategic plan for the next seven years.

• Continued focus on center-scale, multi-million dollar grants involving more than one CCI institution.

• Engagement with industry through a new industry-university center.

• Capacity building in Virginia on the topic of supply chain security.

• Leadership in innovation, training, and research in open radio access networks.

• Expansion of international engagements across our three mission lines.

• Continuing to scale up our experiential learning programs.

• New and continuing innovation programs, such as our incubator and accelerator, Meet Up to Startup, and new programs, to strengthen the funding and investment pipeline from ideation to market.

The CCI economic impact study, conducted every two years by RTI International, revealed that in the past two fiscal years, CCI was responsible for the creation of 1,508 jobs in Virginia, corresponding to $119.7 million in labor income, and $214.3 million in value-add to the Virginia Gross Domestic Product (GDP). The return on investment, to date, significantly exceeds the initial expectations set out in the CCI Blueprint five years ago, and continues to grow.