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NIST Invests in Manufacturing, Cybersecurity, and Small Businesses

Articles Jake Lamb Apr 01, 2026

The U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) is pushing to strengthen U.S. leadership in emerging technologies with new investments aimed at accelerating artificial intelligence (AI) adoption and early-stage innovation.

In December, NIST announced a $20 million partnership with the nonprofit MITRE Corp. to establish two research centers focused on applying AI to manufacturing and cybersecurity. The initiative aims to accelerate the transition of these tools from development to real-world use, particularly in areas critical to economic competitiveness and national security.

“This investment will help accelerate the application of AI in American manufacturing and help drive the American manufacturing renaissance,” Paul Dabbar, Deputy Secretary of Commerce, said in a press release. “We can harness AI to increase the competitiveness of our manufacturers and attract investment in America.”

According to NIST, one center will focus on boosting U.S. manufacturing productivity through AI-driven systems, while the other targets cybersecurity for critical infrastructure.

“Our goal is to remove barriers to American AI innovation and accelerate the application of our AI technologies around the world,” Acting Under Secretary of Commerce for Standards and Technology and Acting NIST Director Craig Burkhardt said. “This new agreement with MITRE will focus on enhancing the ability of U.S. companies to make high-value products more efficiently, meet market demands domestically and internationally, and catalyze the discovery and commercialization of new technologies and devices.”

The partnership with MITRE builds on NIST’s public-private model and aligns with the White House’s 2025 AI Action Plan.

In February, NIST also invested in smaller, high-potential innovations through its Small Business Innovation Research (SBIR) program. The agency awarded $3.19 million in Phase II funding to eight small businesses developing AI, biotechnology, quantum computing, semiconductors, and medical diagnostics.

These awards will support the prototyping and refinement of promising technologies for 24 months. Projects range from advanced imaging systems and quantum hardware to AI-powered cybersecurity tools and energy optimization platforms.

Several of the funded projects highlight AI’s growing role across sectors. One organization is developing a tool to evaluate the cybersecurity practices of technology manufacturers, generating a “cyber-hygiene” score to help organizations make safer purchasing decisions. Another is building an imaging system that uses machine learning to monitor biopharmaceutical production in real time, improving efficiency and product quality.

Organizations that complete Phase II may advance to Phase III to secure additional non-SBIR funding and bring their technologies to market.

Jake Lamb

Jake Lamb is the managing editor of  Internal Auditor.