Research Spinoff Companies Support Nearly 100,000 Jobs, Add More Than $1.3B to U.S. Economy
WASHINGTON– The Science Coalition (TSC) today released its fourth installment of the Sparking Economic Growth report, which found 53 spinoff companies created from federally funded university research supported nearly 100,000 jobs and contributed more than $1.3 billion to U.S. Gross Domestic Product (GDP) across all 50 states between 2015 and 2019. The report highlights companies across the country that can trace their roots to the strong partnership between federal research agencies and research colleges and universities, underscoring the continued value of fundamental research investment to spark economic growth, create jobs, and foster innovation.
“Federal investment in fundamental research is reaping rewards for taxpayers, pushing the boundaries of innovation, and bolstering our economy. The 53 companies highlighted in this year’s report demonstrate the need to support America’s research enterprise as a critical economic driver,” said TSC President, John Latini. “From seed to startup, these researchers put federal research dollars to work, transforming ideas into tangible, life-changing innovations, generating value and further economic activity along the way, far beyond their university lab or classroom.
“As the country’s economy continues to find its footing, policymakers need to continue providing consistent, predictable funding for our federal research agencies. Without targeted action, pandemic-related delays and disruptions to ongoing work, which have hit early-career and women researchers especially hard, could zap economic potential we cannot afford to lose. The findings of this report show that economic growth and the strength of the American research enterprise go hand-in-hand. Robust funding increases in federal appropriations is essential to keeping the United States an international research leader.”
Key findings from the report include:
- Fundamental research conducted at TSC universities helped create companies which supported nearly 100,000 jobs and attracted billions of dollars in research grants, allowing them to contribute more than $1.3 billion toward the U.S. GDP between 2015 and 2019 across all 50 states, despite being based in only 12 states.
- With support from federal research agencies, TSC universities’ research supports more than 97,000 jobs and generates over $7.6 billion in economic impact.
- In 2018, the federal government’s $131 billion investment in research and development (R&D) resulted in 445,800 direct American jobs and compensation for the average direct job funded by federal R&D was $114,000, a salary 83 percent higher than average compensation in the overall economy.
The full Sparking Economic Growth report is available here.
About the Science Coalition
Established in 1994, the Science Coalition is a nonprofit, nonpartisan organization of more than 50 of the nation’s leading public and private research universities. It is dedicated to sustaining the federal government’s investment in basic scientific research as a means to stimulate the economy, spur innovation, and drive America’s global competitiveness.