Federal Investments in Research and Innovation

By Jamie Schwartz

Federal government investments in university research are among the smartest and most rewarding investments we can make for America’s future—an investment that fuels our economy, solves real-world problems, and secures our position as a global leader in innovation. To think otherwise underestimates the essential role universities and the federal agencies supporting them play in making our country safer, healthier, and more prosperous.

Federal Agencies: The Engines of Discovery

Let’s take a look at four key federal agencies that have consistently driven breakthroughs by partnering with universities:

1.      The National Science Foundation (NSF) The NSF invests in basic research—the kind that doesn’t yield an instant payoff but ultimately transforms industries. Consider the internet. It’s something most of us now take for granted, but its roots trace back to NSF-funded research. Today, similar investments are being made in manufacturing technologies and cybersecurity, which will ensure we remain competitive in global markets.

2.      The National Institutes of Health (NIH) As a mother of daughters, I think often about healthcare innovations that give people longer, healthier lives. The NIH has funded critical research into diseases like heart disease—one of America’s leading killers. Thanks to advances in diagnostics and procedures supported by NIH grants, we’ve seen real improvements in survival rates and quality of life.

3.      The Department of Energy (DOE) The DOE focuses on energy independence and national security. Its partnerships with universities have led to breakthroughs in nuclear energy efficiency and materials that strengthen our defense capabilities. This isn’t just abstract science—it’s about ensuring that America can defend itself and stay resilient in the face of external threats.

4.      The Economic Development Administration (EDA) The EDA helps universities turn their innovations into practical, real-world applications. Programs like the Build to Scale initiative have created jobs, boosted local economies, and launched successful tech startups. These aren’t just temporary booms—they’re sustained, long-term growth engines for communities.

How This Impacts Our Daily Lives

1. Securing America’s Competitiveness and Safety

University-led research drives advances in technology that keep our military strong and our economy growing. Innovations in aerospace engineering and robotics, for example, are essential to both our defense systems and to creating new job opportunities.

2. Improving Healthcare While Lowering Costs

Healthcare breakthroughs don’t just save lives—they save money. Medical devices like pacemakers and diagnostic tools like MRIs, both products of federally funded research, help catch problems early and reduce long-term costs. This matters to every family balancing health expenses with other priorities.

3. Building Jobs, Community by Community

Federal research funding helps create local success stories. Take the Research Triangle Park in North Carolina—what was once farmland is now a thriving tech hub. University partnerships and federal support made that transformation possible, creating high-paying jobs and strengthening the local economy.

Why Private Companies Can’t Do It Alone

Private companies are great at scaling up proven innovations and making them profitable, but they’re not built to take on long-term, high-risk research. Their focus is on immediate returns for shareholders, and that’s perfectly fine—it’s their job. But what happens when research needs 10 or 20 years to pay off, or when the outcome is uncertain? That’s where government-supported universities step in.

For example, advanced materials for aerospace didn’t come from private industry overnight. They emerged after years of federally funded research. Private companies could commercialize them only after universities had laid the groundwork.

GPS: A Perfect Example

GPS is now commonplace but was developed by the federal government

Think of the GPS system. We all use it—whether to get directions or track a delivery—but it wasn’t developed by private companies. It was the result of military research funded by the federal government. Today, it underpins trillions of dollars in economic activity, from logistics to agriculture.

America’s Universities: Our Competitive Advantage

American universities are the envy of the world. They attract top talent and foster collaboration across disciplines to solve complex problems. International students and researchers come here because they know they’ll have access to the best minds, funding, and facilities. Many of them stay, contributing to our innovation pipeline and helping grow the economy.

If we cut support for universities, we risk losing that talent and giving up our leadership in critical areas like technology and defense.

Making Smart, Efficient Investments

I understand the concern about waste in government spending—I hear it from friends and colleagues all the time. But research funding isn’t wasteful. Investments in innovations like the internet and GPS have generated far more economic growth than they initially cost. It’s one of the few areas where government spending consistently pays dividends.

Investing in What Works

Federal investments in university research are not about government overreach—they’re about making sure America stays ahead. They enable life-changing innovations, strengthen our national security, and create jobs that support families and communities. If we abandon these investments, we risk falling behind globally and weakening our future.

I believe in smart, efficient government. And I believe that investing in research is one of the smartest things we can do for our country, our economy, and the next generation. Let’s make sure our daughters and sons inherit a country that continues to lead, innovate, and thrive.

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