The Nevada Innovation Economy and Federal Funding

This policy brief examines the nascent Nevada innovation economy and the funding capacity of the federal government. The analysis highlights how federal innovation programs have stimulated research, commercialization, and long-term economic development in Nevada. Using a multi-level framework encompassing technological, industrial, and spatial innovation, this policy brief documents how federal research funding, augmented by state programs and university infrastructure, has contributed to the formation of new research capabilities, seeded industry clusters and startups, and expanded workforce capacity. The findings suggest that federal resources have been productively deployed to date, generating significant scientific, economic, and social returns, but that more must be done to support the future of Nevada’s innovation economy. The authors note that continued federal support, augmented by targeted state support, is essential to Nevada’s innovation capacity, particularly as global competition intensifies and federal funding cuts that began in 2025 threaten the state’s research and commercialization capacity.