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How Reducing Federal R&D Reduces GDP Growth

Federal investments in research and development are a cornerstone of U.S. innovation and economic growth. This report shows that cutting R&D by 20 percent would save $620 billion in the short term but shrink the economy by nearly $1 trillion over a decade. Such reductions would weaken competitiveness against China, erode the nation’s scientific workforce, and slow the pace of patents, start-ups, and exports. Instead of boosting fiscal health, the cuts risk undermining long-term prosperity and security.

  • Author(s):
  • Meghan Ostertag
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How Reducing Federal R&D Reduces GDP Growth
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  • White Paper
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Website:Visit Publisher Website
Publisher:Information Technology & Innovation Foundation
Published:September 1, 2025
License:Creative Commons

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