The Science Coalition Releases 2025 Sparking American Economic Growth Report
New Study Highlights How Federal Funding for Basic Scientific Research at American Colleges and Universities Helps Incubate Startups, Found New Companies, and Create Jobs
WASHINGTON, D.C. — The Science Coalition unveiled its 2025 Sparking American Economic Growth report, which spotlights industry leading companies and technological breakthroughs that grew out of federal investments in basic scientific research.
The report features startups and businesses that developed lifesaving medical treatments, cutting-edge technologies, national security advancements, and more as a result of federally funded scientific research projects at American colleges and universities across the country.
Some highlights include:
- MetaMagnetics, launched at Northeastern University, develops advanced materials for defense and communications. The company builds upon basic scientific research funded by the Office of Naval Research and its growth was propelled by federal investments via Small Business Innovation Research (SBIR) grants and partnerships with the U.S. Department of Defense.
- BlackBox Biometrics spun out of federally funded research initiated at Rochester Institute of Technology. The company developed the Blast Gauge System®, a wearable sensor that detects concussive forces and improves brain injury assessments for warfighters and first responders. The company’s foundational research and early product development were supported by the Defense Advanced Research Projects Agency. The company grew its manufacturing capacity thanks to a contract with the U.S. Department of Defense and support from the Navy SBIR program.
- Google, a household name brand and global technology leader, grew out of federally funded research at Stanford University. Its founders, Larry Page and Sergey Brin, conducted research on web search algorithms with support from the National Science Foundation.
- Qunnect, a quantum technology startup, came out of federally backed research at Stony Brook University. The company, which builds the necessary infrastructure for a quantum internet, received a Phase II SBIR grant from the U.S. Department of Energy to develop long-distance quantum communications devices.
- City Therapeutics, a company co-founded by an Ohio State University professor, is developing next-generation medicines to improve treatments for a wide range of diseases. The research that led to the company’s foundational technology was conducted at The Ohio State University and supported by the National Institutes of Health.
These companies, along with others from more than 50 higher education research institutions, illustrate how robust and sustained federal outlays for basic scientific research foster economic growth and help maintain America’s competitive edge in a complex and rapidly evolving global landscape.
“Federally funded scientific research yields tremendous returns by increasing our standard of living via biomedical advancements, sparking economic growth by facilitating the creation of successful spinouts and startups with corresponding job opportunities, and producing defense technologies fundamental to keeping our nation safe every day,” said TSC President Abigail Robbins. “America’s colleges and universities are a cornerstone of our scientific research enterprise. The business ventures and breakthroughs that grow from federally funded scientific research at our institutions help the United States lead the world in science and technology.”
Federal funding for basic scientific research delivers demonstrable returns on investment. A recent economic impact study found that every dollar invested in federal biomedical research funding generated nearly $2.56 in economic impact, supporting more than 400,000 jobs and catalyzing nearly $95 billion in new economic activity nationwide in 2024. Economists have also found that government investments in scientific research and development have provided returns of 150% to 300% since World War II.
“Federal investments in scientific research don’t just help America lead the world in innovation, they also help build America’s workforce,” said TSC Chief Science Advocate Jill Pentimonti. “Government funding for basic science offers young researchers incredible opportunities to get hands-on experience in the lab and develop real-world skills. These well-equipped, highly trained, and technically adept researchers create a strong talent pipeline for American businesses and help our economy thrive.”
See here to read the full report.
About The Science Coalition (TSC)
The Science Coalition is a nonprofit, nonpartisan organization comprised 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 to stimulate the economy, spur innovation, and drive America’s global competitiveness. Learn more at www.sciencecoalition.org.
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