NASA said its University Student Research Challenge helped a former Michigan State University engineering student turn campus research into a drone business focused on military training.

The agency said the program gives college teams grants and guidance to advance aeronautics while learning budgeting, fundraising, and communications. NASA University Student Research Challenge (USRC) manager Steven Holz said the effort enables a future workforce and contributes to the aviation industry.

Gavin Gardner, a Michigan State alumnus, said USRC’s mix of technical and business tasks prepared him to start AG3 Labs in 2024 with his brother and other alumni. The company specializes in drones for military training exercises. An initial award from the U.S. Army led to more contracts, allowing the company to expand and ramp up operations, and NASA said its production capability enables thousands of drones to be built each month.

Gardner’s first USRC project in 2021, called Aerial Intra-city Delivery Electric Drones, explored cargo drones that could dock on top of public buses, charge while riding, and then depart for final delivery. The team built and flew a full-scale drone to prove the concept but did not pursue a commercial venture, citing the number of regulations tied to flying over people in dense cities.

A second USRC award in 2023, the Laser Energized Aerial Drone System, focused on transferring power by laser directly to a drone in flight. NASA said the work led to flying a prototype and expanded Gardner’s network to include staff at NASA’s Glenn Research Center in Cleveland. He applied for and was accepted to an internship there while in graduate school in 2024.

Gardner said the program sharpened his ability to explain complex ideas and handle budgets and crowdfunding. “We are proud to see the success of USRC alumni,” Holz said, adding that teams can grow technically and entrepreneurially through the program.

NASA said Gardner credits USRC with helping create the opportunities that led to AG3 Labs and its growth. The agency did not say how many USRC teams have started companies or how many students participate each year.