Investing in Innovation
For more than 80 years, partnership between the federal government and research universities such as Caltech has propelled U.S. leadership in science and technology, ensured economic competitiveness, contributed to national defense, launched industries, enhanced the wellbeing of the American people, and prepared the next generation of science and engineering leaders.
Federal investments in Caltech research pay back society through discovery and innovation that improve health, harness new energy sources, create jobs, and pioneer the technologies we rely on in our everyday lives—now and into the future.
Explore some of the ways federally funded research at Caltech expands frontiers of knowledge and both fuels a legacy and creates a future of U.S. leadership in innovation and curiosity-driven science.
Improving and saving lives by pioneering a deeper understanding of the body and how it works
Leading the world in seismic measurement and monitoring for over a century
Exploring efficient, affordable, and accessible sources of energy
Driving observation and exploration of the universe and beyond to broaden understanding of our origins and future
Integrating deep theoretical expertise and interdisciplinary excellence to advance computing capabilities and then leverage those tools to advance scientific discovery and address societal problems
Designing self-driving cars, self-assembling space robots, prosthetic devices, and more to navigate real-world, unpredictable environments and situations
Economic Impact
Research and Funding FAQs
Many. In the past year alone, federally funded research conducted at Caltech on behalf of the American people has resulted in:
- A technique that enables the mass production of long-lasting wearable sweat sensors that would help patients and physicians monitor vitamins, hormones, metabolites, and medications in real time.
- An algorithm that helps autonomous robots determine the best movements to make as they navigate the real world.
- An artificial intelligence strategy that would help aircraft respond safely to sudden turbulence.
- A headset-based device that can be used to noninvasively assess a patient's stroke risk.
- A method that uses seismic technology to measure soil moisture in real time, crucial for managing water use and conservation.
- A first-of-its-kind tool for genetically modifying plants in ways that could address challenges such as food insecurity and protect ecosystems from invasive species.
- Virtual sensors that help keep aerial vehicles aloft when rotors fail.
Federal funding makes possible the fundamental research that is a critical precursor to applications and breakthrough discoveries—in energy, national security, health, and other areas—that ultimately benefit society and spur business growth. The federal government has the unique ability to steer research toward public needs and priorities, and, unlike private industry, to make long-term investments when innovation is at its earliest stages.
Federal research funding supports the direct and indirect costs associated with research. Both are essential to research activities.
Direct costs are expenses that can be directly attributed to a federally funded research project, such as the salaries and benefits of scientists and other personnel working on the project, as well as the lab supplies and equipment they use.
Indirect costs, sometimes referred to as facilities and administrative (F&A) costs, include the infrastructure and operations that make it possible to conduct research: expenses like the maintenance of research buildings and instruments, as well as the salaries of the individuals whose work and expertise support research activities. Such personnel include technical research staff who manage and facilitate access to state-of-the-art instrumentation, custodial service and tradespeople who support operations, as well as professionals in environmental health and safety, human resources, legal counsel, security, accounting, or communications. The federal government does not pay these costs directly, but rather reimburses them based on a pre-negotiated rate.
Caltech's endowment already supports research and education, but there are important reasons endowment funds cannot replace federal dollars. For one, Caltech's endowment is an investment fund designed to support the Institute over its lifetime. To ensure that research and education needs are met for decades to come, Caltech, like most universities, spends the payout (investment income) and not the principal of our endowment each year. Moreover, as at most universities, the funds that make up Caltech's endowment are largely restricted. That means the payout from those funds can only be spent in ways that meet the legally binding terms specified by their donors.
Caltech puts its endowment to use every day in support of our mission of world-leading research and education. For example, over the past five years, Caltech's endowment has made possible $200 million in financial aid, helping to ensure that more than 75 percent of students graduate from Caltech debt-free. Endowment revenue also supports curiosity-driven science that improves lives and fuels discovery and innovation.