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Retreating from Science: The Long-Run Effects of the 1970s U.S. Military Disinvestment from University Research

Author

Listed:
  • Daniel P. Gross
  • Bhaven N. Sampat
  • Hansen Zhang

Abstract

Between 1945 and 1970, the U.S. Department of Defense was one of the country's largest funders of university research, and the most important in the physical sciences and engineering. Political pressures subsequently led to this funding declining nearly two-thirds by the mid-1970s and never fully recovering. We show that these cuts were felt across the U.S. research system, with ensuing declines in university scientists, PhD production, and research output. Early career scientists who were DoD-funded in 1970 were more likely than peers to leave universities, with many moving to industry. Though some became more likely to patent, in the aggregate, this appears to have reduced science-linked innovation in related technologies and compressed U.S. leadership in formerly DoD-driven fields. These effects extend to outcomes more closely related to military objectives: fewer PhDs entered the defense industrial base, and an initial increase in science-linked defense patenting in the most exposed technology areas gave way to a long-run decline.

Suggested Citation

  • Daniel P. Gross & Bhaven N. Sampat & Hansen Zhang, 2026. "Retreating from Science: The Long-Run Effects of the 1970s U.S. Military Disinvestment from University Research," NBER Working Papers 35491, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:35491
    Note: DAE LS PE POL PR
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    More about this item

    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • N42 - Economic History - - Government, War, Law, International Relations, and Regulation - - - U.S.; Canada: 1913-
    • N72 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - U.S.; Canada: 1913-
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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