Florida’s Innovation at Risk with New Commerce Proposal
A recent proposal from the U.S. Department of Commerce threatens to undermine Florida’s significant contributions to innovation and economic growth. The proposal suggests that the federal government should claim half of the licensing revenue generated by universities from patents developed through federally funded research. This move could severely limit the ability of universities to commercialize their discoveries, potentially stunting advancements in health, technology, and beyond.
Florida’s universities have played a crucial role in developing important medical and technological innovations. For example, the first FDA-approved blood test for detecting brain injuries is transforming patient care across various sectors including hospitals and sports. In addition, a device known as the “Skim Reaper” is aiding law enforcement in combating ATM and gas pump scams, which cost consumers over a billion dollars annually. Furthermore, the cancer drug Taxol has dramatically improved treatment outcomes for countless women battling ovarian and breast cancer.
The foundation for these advancements has been laid by the Bayh-Dole Act, enacted in 1980. This legislation allows universities to patent inventions resulting from federally funded research, empowering them to license these patents to startups or established firms capable of bringing innovations to market. Before the Bayh-Dole Act, government control over patent licensing meant that only about 5% of 28,000 patents related to federally funded research were utilized, leaving valuable discoveries dormant.
John Fraser, who served as the executive director of commercialization at Florida State University, highlighted the importance of this law. He noted that universities need to manage their own patents, taking on significant financial risks without federal funding. When successful, these partnerships generate licensing revenues that universities reinvest into research and education.
The impact of university licensing on the economy is substantial. Over the past three decades, academic patent licensing has contributed approximately $1 trillion to the U.S. GDP and has supported around 6.5 million jobs, while helping to launch more than 19,000 startup companies. Florida stands out in this landscape, with institutions such as the University of Florida, Florida International University, and the University of Central Florida consistently ranked among the world’s top universities for creating patented technologies.
In 2025, the University of Florida is on track to break records with over 130 licenses and nearly 860 material transfer agreements. Such activity is expected to drive job creation and economic growth in the state.
Despite these achievements, the Commerce Department’s recent claims that the federal government receives “zero” returns on its investment in research have raised alarms. The proposed policy of taking half of the licensing revenue generated by universities is viewed as detrimental. This would likely force universities to scale back their licensing efforts, ultimately restricting the flow of innovations to the market.
A recent study indicated that university licensing generates approximately $33 billion in tax revenue, significantly more than the potential gains from reclaiming royalties. Critics argue this proposal could lead to a net loss for the federal government while also jeopardizing American jobs and consumer access to new technologies.
Florida’s innovation ecosystem, supported by its universities, is a model for other states. The ability to convert research breakthroughs into tangible products is essential for maintaining competitiveness in the global economy. Unless the Commerce Department reconsiders its proposal, the state—and indeed, the nation—could face reduced access to life-saving technologies and services that emerge from academic research.
As the landscape for innovation shifts, it is crucial for policymakers to recognize the value of university-driven discoveries and the need for supportive frameworks that foster technological advancement. Florida’s researchers are making strides that could enhance public health and stimulate economic growth, but this progress is at risk without a commitment to preserving the benefits of the Bayh-Dole Act.
