Since the 1980 Bayh-Dole Act, recipients of federal research funding – including businesses, universities, non-profit organizations, and others – retain the legal ownership right to any intellectual property developed through the supported research. In other words, funding recipients retain patent rights, and the federal government does NOT have an ownership stake in any companies that receive research funding. In the years since, the federal government and the business community have formed a partnership on behalf of research that has helped US inventors maintain a global edge.

Federal research funding is increasingly critical to this global leadership role. In fact, according to a 2019 peer reviewed article in Science, almost a third of new patents in the U.S. are fostered by federal research funding, which is more likely to fund basic research than other funding sources, including business, higher education, state governments, non-profits, and other entities.³ Unlike applied research, basic research is usually more difficult for private sector entities to undertake as it takes longer to conduct and identify practical commercial applications for the marketplace. In short, federal research funding provides an opportunity for the government to spark innovation that businesses can build upon and implement to improve everyday Americans’ lives and strengthen the economy.