The Engine of Innovation: Why Cutting Science Funding Weakens America
In his latest essay, Steve Blank—the Stanford professor and startup pioneer who helped define the modern innovation ecosystem—sounds an alarm that every American should hear: we are switching off the engine that powers our nation’s progress.
The Foundation of Innovation
Blank’s central idea is simple but profound: science is the seed from which every startup grows. Without scientists—those curious, tireless minds asking “why” and “how”—there would be no engineers, no entrepreneurs, and no venture capitalists with anything to fund.
He walks readers through how this innovation chain actually works. Scientists form hypotheses and run experiments. Their work, often years or decades ahead of its time, creates the foundation for applied research. Engineers then take these discoveries and build on them—designing chips, spacecraft, and life-saving devices. Entrepreneurs turn these engineered solutions into products and companies. And venture capitalists fuel that process with funding, betting on the next great leap forward.
Each role is distinct, but all are interdependent. Remove one, and the system collapses.
The U.S. Advantage—and Its Erosion
America’s post–World War II dominance was built on a unique insight: government-funded research doesn’t just produce knowledge—it produces industries. By directing research dollars to universities, the U.S. created a self-renewing ecosystem of discovery and invention. Graduate students became scientists, scientists collaborated with engineers, and engineers became founders.
That’s how we got Silicon Valley, the biotech revolution, AI, and the internet itself.
But Blank warns that this system—once the envy of the world—is now under threat. Funding cuts and politicization of science are draining the lifeblood of innovation. When we shrink the pipeline of scientific discovery, we don’t just lose knowledge—we lose future industries, jobs, and national strength.
Countries like China and the EU are moving in the opposite direction, investing heavily in their research ecosystems. As Blank bluntly puts it, “Cut U.S. funding, and science will happen in other countries that understand its relationship to making a nation great.”
Why It Matters to Everyone
Blank’s essay makes a critical point often lost in political debates: science isn’t abstract—it shapes daily life. Every medical breakthrough, clean energy solution, and digital tool traces its lineage to a scientist’s curiosity decades ago.
When science funding dries up, so does the stream of new ideas that sustain startups, solve climate challenges, and keep America competitive. The erosion of basic and applied research isn’t just a university problem—it’s an economic and national security problem.
A Call to Action
If you’ve ever marveled at a smartphone, relied on GPS, or received a life-saving vaccine, you’ve benefited from publicly funded science. The warning Steve Blank issues isn’t theoretical—it’s immediate.
We stand at a crossroads: invest in science, or watch the future happen elsewhere.
Read his full article, “No Science, No Startups,” for a clear-eyed look at how America built its innovation engine—and how we might just be dismantling it.
And join us on October 28, 2025 for the Genomics Rooftop Mixer to see the latest innovation coming from UC Santa Cruz.
