The Trump Administration’s move to cut overhead funding for National Institutes of Health (NIH) grants will have a devastating effect on research universities and hospitals around the country. It’s a misguided attack on a key part of the innovation system that helps propel U.S. growth.
But it’s important to be wary of government actions that affect other parts of the innovation system as well. One key area is whether the Trump Administration continues to pursue antitrust actions against tech companies, which are essential pillars of innovation investment. Alphabet spent $95 billion on R&D in 2023 and 2024 alone, Meta spent $82 billion, and Apple spent $61 billion.
In a 2022 report done for PPI’s Innovation Frontier Project, Sharon Belenzon and Ashish Arora of Duke University observed: “Antitrust regulations that reduce the size and limit the scope of tech firms weaken their incentives to make the large-scale, long-run investments in science and technology, vital for national security and economic prosperity.” That’s a lesson that policymakers of all political persuasions should take to heart.
