Fueling Innovation in North Carolina: Why Federal and Private Investment Must Work Together

On July 1st, the North Carolina Board of Science, Technology & Innovation (BSTI) issued a letter to our state’s congressional delegation, warning of the profound and immediate harm caused by recent cuts to federal research and development (R&D) funding. Their message is clear: without sustained federal investment in science and technology, North Carolina’s hard-earned position as a global leader in innovation, and the United States’ broader competitiveness, hangs in the balance.

Since our founding in January 2025, Deep Tech @ Duke has been focused on the transformative power of advanced technologies including AI, quantum information and computing, semiconductors, renewable energy, and cybersecurity. These fields aren’t just reshaping industries; they are driving reindustrialization, shifting global supply chains, and redefining national and international strategies for growth, resilience, and security.

Established in the 1950s, Research Triangle Park (RTP) is the largest research park in North America and a cornerstone of North Carolina’s innovation economy. Home to more than 250 companies, from Fortune 100 R&D operations to cutting-edge startups, RTP has emerged as a leading hub for technology, life sciences, agritech, and clean tech. 

As the BSTI letter underscores, this transformation did not happen by chance. North Carolina’s evolution from a struggling economy to a center of high-tech job growth and academic excellence was driven by deliberate, sustained, and federally supported investments in research infrastructure and talent development.

But that progress is now at risk. In just the first half of 2025, North Carolina has seen the cancellation of at least 133 NIH and NSF research grants, totaling over $580 million. These cuts have halted critical work in areas central to Duke’s Deep Tech Mission, like AI safety, pediatric genomics, cybersecurity, and engineering education. The cuts also triggered job losses, undermined talent pipelines, and weakened the very ecosystems that fuel our innovation economy.

As federal support retracts, private investment in North Carolina remains strong. In June 2025, Amazon announced a $10 billion investment to launch a new high-tech cloud computing and artificial intelligence (AI) innovation campus in Richmond County, North Carolina, creating at least 500 new high-paying, high-tech jobs. Merck & Co. recently opened a $1 billion vaccine manufacturing facility in Durham, and Johnson & Johnson is building a major new plant in Wilson, North Carolina, that is expected to bring thousands of jobs to the state. 

These projects reflect continued confidence in North Carolina’s innovation ecosystem, but they are built on decades of federally funded research and talent development. As Doug Edgeton, President of the North Carolina Biotechnology Center, noted, universities are now likely to give birth to fewer startups amid funding cuts: “You may not feel the direct impact of it today, but you’re going to see less companies come out,” he warned.

Private capital is essential, but it cannot stand alone. Without federal funding to support early-stage research, long-term discovery, and infrastructure development, the deep tech pipeline will shrink, leaving fewer ideas for companies to commercialize and fewer opportunities for economic growth. 

Federal R&D funding is not just a line item in a budget; it is the engine that powers discovery, workforce development, and national competitiveness. Scaling back now, especially as global competitors accelerate their investments, threatens to erode U.S. leadership at a critical moment.

At Deep Tech @ Duke, we are building interdisciplinary bridges across academia, industry, and government to harness breakthrough technologies for the public good. We believe, in alignment with BSTI’s statement, that our future depends on bold and continued investment in science and technology.

Now is not the time to slow down. It is the time to lead.