Economic Impact of R&D Across the Country
Every state receives the economic benefits of federal investment in R&D, including job opportunities for local residents, tax revenue to support local schools and infrastructure, and contracts to vendors for goods and services locally and across the country. These economic benefits hold true even in communities without a major research university, large defense, energy, or medical facilities or businesses, or other conventional research recipients. Tens of billions of the funds also support vendors – small businesses, entrepreneurs, and employees – in every congressional district in the country, as well as providing for local tax revenue and economic development initiatives.
Studies completed internally by federal agencies, recipients of federal research grants, and advocacy groups repeatedly conclude that federal investment in R&D produces economic gains far and above the initial investment and that the benefits are not limited to the geographic boundary of the grant recipient. These findings include:
The Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) grants – which are administered through a partnership with 11 federal agencies – create over 60,000 jobs every year. 46% of awards go to first time winners – helping start-ups develop technology and long-term commercialization strategies.
A 2025 report by United for Medical Research found that over 400,000 jobs are created each year through NIH funding, supporting more than $94.5 billion in economic activity annually.
Federal research funding to the University of Michigan system supported vendor contracts in all 13 of Michigan’s congressional districts – over 700 counties across the country – and Michigan-based companies received $66.7 million in funds. In 2024, federally sponsored research projects supported over 16,000 jobs in the state. In Ohio, funding at 27 universities across the country supported $301 million in vendor contracts at 4,689 local businesses across the Buckeye state from 2020-2024.