A recent report highlights significant concerns regarding the United States” position in global innovation, warning that the country could lose its leadership in science and technology. Released on October 21, 2025, by the Committee for Economic Development (CED), the report reveals that federal research and development (R&D) funding now constitutes only 3% of the national budget, a stark decline from 30 years ago.
The report emphasizes that while the US has historically been at the forefront of scientific advancements, it now faces increasing competition, particularly from China. This decline in investment poses a risk to the country”s innovation capabilities, which have previously led to groundbreaking developments such as the internet, GPS, and advancements in cancer treatment and clean energy.
David K. Young, President of CED, stated, “If the US is to stay ahead in the era of AI, advanced computing, and heightened geopolitical tensions, we must recommit to the strategy that fostered US innovation in the first place.” He stressed the importance of making wise financial investments in research, talent development, and impactful partnerships.
Strengthening Oversight and Partnerships
The report calls for improved oversight and evaluation of public R&D spending to bolster public confidence in how these funds are managed. It also suggests enhancing public-private partnerships that can drive scientific research and commercial innovations, particularly in addressing national priorities.
Ensuring a Skilled Workforce
To achieve its R&D goals and maintain scientific leadership, the United States must ensure a steady supply of highly skilled workers and entrepreneurs. The report urges Congress to prioritize federal funding for research and development while emphasizing the need for better evaluation and oversight of these investments.
The Conference Board, the nonprofit organization that includes CED, has a long history of providing insights and solutions for pressing policy issues in the country. It aims to help businesses navigate the complexities of today”s economic landscape and address the challenges posed by declining investments in innovation.
