Federal Research Funding Fuels Utah’s Innovation Ecosystem to Record Levels

One Big Thing

Utah received a historic $4.4 billion in federal research funding in 2023, powering innovation across 41 cities and creating ripple effects throughout the state’s economy.

Why it matters

This investment positions Utah as a critical hub in the national research landscape, supporting high-paying jobs and technological advancement in defense, healthcare, energy, and agriculture sectors.

By the numbers

  • $4.4 billion: Total federal R&D funding to Utah in FY 2023, an all-time high
  • 81%: Portion going to private businesses
  • 10%: Share directed to higher education institutions
  • 85.6%: Funding coming from the Department of Defense
  • 41: Cities across Utah receiving research dollars
  • 100+: Different entities benefiting from federal research investment

The big picture

The distribution pattern reveals Utah’s strategic importance in national defense research while highlighting a diverse ecosystem that spans from urban research universities to rural laboratories.

The Department of Defense dominates as the primary funding source, underscoring Utah’s critical role in national security innovation.

Between the lines

This research investment creates a multiplier effect beyond immediate economic impact:

  • Attracts talent to Utah’s universities and private sector
  • Seeds the next generation of startup companies
  • Builds infrastructure that benefits communities statewide
  • Strengthens Utah’s position as a western technology corridor

What to watch

How these investments translate to commercialized technologies, workforce development initiatives, and long-term economic resilience—particularly in rural areas receiving research dollars.

The full Gardner Institute report offers deeper insights into funding patterns and future projections for Utah’s research ecosystem.

The bottom line

Federal research funding has become a cornerstone of Utah’s innovation economy, with benefits extending far beyond the immediate recipients to strengthen communities and competitiveness statewide.

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