How Research and Development Powers Our Economy

Published: 07/07/2025

by Chris Camacho, President & CEO, Greater Phoenix Economic Council

Research and development is one of the most powerful forces shaping Greater Phoenix’s economy. Though often behind the scenes, R&D drives the innovation, job creation and talent development that keep our region globally competitive—and it’s only accelerating.

Behind every major economic milestone is a network of research laying the groundwork for what’s possible. In Greater Phoenix, R&D goes far beyond labs and lecture halls – it’s a force multiplier for the economy and is felt across our communities. Arizona State University, the University of Arizona and Northern Arizona University are leveraging federal grants and private-sector investment to unlock new discoveries and catalyze startup formation. In fact, every dollar spent on university research generates up to threefold in economic impact. With roughly $450 million flowing into Arizona’s public universities annually for research, the return is over $1 billion in local economic activity per year.

The effect of R&D is just as visible in the workforce. University research simultaneously generates cutting-edge ideas while building talent. Graduate students, postdoctoral fellows and technical staff trained through research programs become the engineers, developers and scientists who next-gen companies moving to Greater Phoenix depend on.

This talent pipeline is a crucial facet of our competitive edge. Hundreds of companies invest in Greater Phoenix each year because of our pool of highly skilled workers – proof that our R&D ecosystem is equally academic as it is essential. It directly powers our ability to attract and retain high-wage employers in semiconductors, bioscience, aerospace and other industries shaping the future.

One standout example is ASU’s MacroTechnology Works (MTW), a state-of-the-art cleanroom and one of the largest university-based microelectronics R&D facilities in the country. MTW helped land more than $1 billion in federal funding for ASU’s Research Park, including the Advanced Packaging Piloting Facility under the National Semiconductor Technology Center and the National Advanced Packaging Manufacturing Program. The new facility, which is designed to strengthen the U.S. semiconductor supply chain under the CHIPS Act, will meet a unique need for advanced packaging R&D within our domestic ecosystem while creating hundreds of new jobs.

MTW has also drawn substantial investments outside of the CHIPS Act, including $200 million from Applied Materials to build the Materials to Fab Center supported by an additional $37 million in combined state and university funding. R&D hubs like MTW bring in the big names and make room for burgeoning players by delivering real capital investment, supply chain resilience and long-term job creation – a layered, collaborative ecosystem that’s positioning Greater Phoenix as an industry leader.

At the end of the day, R&D is about real-world impact. Faculty and students are working side-by-side to solve the most complex challenges of our time – from cancer detection to clean energy – while developing critical leadership skills and workforce readiness that will define the next generation of talent. The decisions we make today to advance R&D will directly shape our future. These aren’t theoretical pursuits – they’re the foundation of prosperity.

In the field of economic development, smart growth is grounded in intentional investments in infrastructure, talent and innovation, and R&D is central to all three. As global markets shift and technology advances at breakneck speed, our region’s ability to stay ahead depends on our continued commitment to advancing discovery.

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This article is the latest installment of GPEC’s smart growth series that explores the strategic decisions and key components that continue to shape Greater Phoenix into a leading economy. From recovery to reinvention, we’re highlighting how economic development fuels opportunity, strengthens resilience and positions our region for long-term global success.