Raleigh, North Carolina, February 6, 2026
North Carolina State University has announced plans to establish a new defense and security institute aimed at enhancing the state’s role in national defense. This initiative, along with a significant Missile Defense Agency contract worth $151 billion, positions NC State as a leader in military research and development funding. The university seeks formal recognition for the institute over the coming year, underlining its commitment to advancing defense capabilities and collaboration in this critical sector.
Raleigh, North Carolina – North Carolina State University is set to significantly enhance the state’s role in national defense and security with the proposal of a new institute dedicated to these critical areas. This initiative, unveiled on February 5, 2026, aims to secure increased military and national security research and development funding for the university. Concurrently, NC State recently secured a substantial Missile Defense Agency (MDA) contract, which has a ceiling of $151 billion, designed to facilitate the rapid delivery of innovative defense capabilities. These developments underscore North Carolina’s growing prominence in defense research and economic vitality.
Advancing Defense and Security Research
The proposed defense and security institute at NC State seeks formal recognition through the University of North Carolina System over the next year. The initial phase, establishing an “Institute in Planning,” received approval in December, according to a university statement. Chancellor Kevin Howell expressed enthusiasm for accelerating the important defense and security work already being undertaken by faculty, students, and staff, highlighting the university’s strength in collaboration and career training in this sector.
Dr. Stephen Lee, previously a senior scientist at the Army Research Office (ARO) in Research Triangle Park, will lead the new institute effort as its interim executive director. The ARO is recognized as a leading funder of basic military research. Dr. Lee will report to Dr. Jacob Jones, who has served as the interim associate vice chancellor for research since August and is the Kobe Steel Distinguished Professor of Materials Science and Engineering.
NC State currently leads the UNC System in defense research, with projects funded by the Department of Defense (DoD) totaling $49 million in annual expenditures, based on the most recent National Science Foundation Higher Education and Research Development Survey from 2024. This represents a 45% increase in defense research funding since 2019. The university already manages several DoD-related initiatives, including the Laboratory for Analytic Sciences (LAS), an on-campus partnership with the National Security Agency focused on improving data analysis for defense. Another key initiative is the Commercial Leap Ahead for Wideband Semiconductors (CLAWS), a DoD-funded regional innovation hub for microelectronics. Furthermore, NC State is the only university in the state to hold a Cybersecurity Maturity Model Certification (CMMC) Level 2 certificate, indicating robust technical infrastructure necessary for DoD-supported defense and security research.
State-Level Economic Overview
Beyond advancements in defense technology, North Carolina has seen recent reports on its broader economic landscape. The state’s December 2025 unemployment figures were released on February 4, 2026, showing varying rates across its counties and metropolitan areas. Unemployment rates, not seasonally adjusted, decreased in 99 counties during December 2025, while one county experienced an increase. Edgecombe County recorded the highest unemployment rate at 5.4 percent, contrasting with Stanly County, which had the lowest at 2.6 percent. All fifteen of North Carolina’s metro areas saw rate decreases, with Rocky Mount showing the highest at 4.8 percent and Raleigh the lowest at 3.0 percent. The not seasonally adjusted statewide rate stood at 3.4 percent.
In other economic development news, the 2026 Economic Development Forum, presented by Cameron Family CPAs, took place in Wake Forest on February 4, 2026. This forum, co-hosted by the Wake Forest Business Industry Partnership and the Wake Forest Area Chamber, brought together influential figures to discuss and shape the region’s economic future. Looking ahead, registration for the 2026 North Carolina Main Street Conference, scheduled for March 10-12, 2026, in New Bern, opened on February 3, 2026. This event, now in its 25th year, aims to provide community and economic development leaders with inspiration and strategies for local revitalization efforts.
Charlotte’s Automotive Industry Growth
Charlotte continues to be a hub for significant economic investment. While announced in November 2025, Scout Motors, an automotive manufacturer backed by Volkswagen, is progressing with plans to establish its corporate headquarters in Charlotte, with initial staffing and office development scheduled to commence in 2026. This project represents a substantial capital investment of nearly $207 million and is expected to create 1,200 jobs by 2030, with an average annual salary of $153,978. The headquarters will be located at the Commonwealth development in Plaza Midwood and will serve as the central hub for executive leadership, research and development, finance, IT, sales, and marketing. This development further solidifies Mecklenburg County’s emergence as a major center for the automotive industry.
Support for Small Businesses and Innovation
The One North Carolina Small Business Program continues to be a vital state-level initiative, providing matching funds to businesses that have secured federal awards through the Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs. The program’s goal is to strengthen North Carolina’s research and development capacity, fostering job creation and technological advancement across the state. The current solicitation period for the One NC SBIR/STTR Phase I Incentive Funds Program runs from July 1, 2025, to June 30, 2026. This ongoing support for innovative startups, including NC IDEA SEED grants for companies headquartered in North Carolina, plays a crucial role in the state’s economic growth and competitiveness.
Frequently Asked Questions
What new institute has NC State proposed?
NC State has proposed a new defense and security institute to help the university secure more military and national security research and development funding.
What significant contract did NC State recently receive?
NC State recently received a Missile Defense Agency Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) indefinite-delivery/indefinite-quantity (IDIQ) contract with a ceiling of $151 billion.
What are North Carolina’s latest unemployment figures?
North Carolina’s December 2025 unemployment figures, released on February 4, 2026, show the not seasonally adjusted statewide rate was 3.4 percent. Unemployment rates decreased in 99 counties and increased in one. Edgecombe County had the highest rate at 5.4 percent, while Stanly County had the lowest at 2.6 percent. All fifteen of the state’s metro areas experienced rate decreases, with Rocky Mount at 4.8 percent and Raleigh at 3.0 percent.
Where is Scout Motors establishing its headquarters in North Carolina?
Scout Motors, an automotive manufacturer, is establishing its corporate headquarters in Charlotte, specifically at the Commonwealth development in Plaza Midwood.
What is the One North Carolina Small Business Program?
The One North Carolina Small Business Program is a state-level initiative that provides matching funds to North Carolina businesses that have received federal awards through the Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs.
Key Features of North Carolina’s Recent Economic and Research Landscape
| Initiative/Event | Description | Geographic Scope | Key Details |
|---|---|---|---|
| NC State Defense and Security Institute Proposal | Proposal for a new institute to boost military and national security R&D funding. | State-level | Initial “Institute in Planning” approved in December; aims for formal UNC System recognition. Led by Dr. Stephen Lee. |
| Missile Defense Agency Contract (NC State) | Significant contract awarded to NC State for rapid delivery of innovative defense capabilities. | Nationwide (Contract from MDA, received by NC State) | Contract ceiling of $151 billion. |
| December 2025 Unemployment Figures Release | Report on unemployment rates across North Carolina counties and metro areas. | State-level | Statewide rate: 3.4% (not seasonally adjusted). Released February 4, 2026. |
| 2026 Economic Development Forum | Forum discussing economic transformation and future in the region. | State-level (Wake Forest) | Held February 4, 2026. |
| Scout Motors Charlotte Headquarters | Establishment of corporate headquarters for an automotive manufacturer. | State-level (Charlotte) | $207 million capital investment, 1,200 jobs by 2030, average annual salary of $153,978. Initial staffing in 2026. |
| One North Carolina Small Business Program | State program providing matching funds for federal SBIR/STTR awards. | State-level | Strengthens R&D capacity, supports job creation. Solicitation period: July 1, 2025 – June 30, 2026. |
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