Op-Ed #39 Research Institutions and the State’s Economic Future

How research security, university partnerships, and state policy are shaping Texas’ next generation of innovation.

In my first article of this three-part series on education, I covered the 89th Texas Legislature’s historic investments into public education and empowerment of parents to keep the public education system accountable. In the second, I covered the steps Texas has taken to ensure freedom of speech and academic excellence for our institutions of higher education.

For the third entry in the series, let’s look at how our institutions of higher education serve as economic engines, national security assets, workforce pipelines, and hubs of innovation, and how the 89th Texas Legislature acted to safeguard those vital functions from intellectual property theft, including espionage from foreign adversaries. 

From stories of professors stealing research to sell for personal gain, to well-meaning but naive researchers partnering with their counterparts in adversarial foreign governments, to repeated accusations of how taxpayer money is wasted on niche research without obvious real-world application, universities across our nation have lost the trust of the public when it comes to research and innovation.

This last session, Texas took the lead in restoring that faith, taking steps to restructure our institutions to focus on good stewardship of taxpayer funds, both in what research they choose to fund and in how they protect that research.

This last session, Texas took the lead in restoring that faith, restructuring our institutions to focus on stewardship, security, and measurable outcomes. In doing so, Texas did not just respond to national concerns. We built the first comprehensive, statewide frameworks aligning research, economic development, and national security. Other states are now beginning to follow that model.

Research as Economic Strategy

Texas does not just compete with other states for jobs anymore. We are competing for entire industries built over time through research, workforce development, and strong partnerships between universities, industry, and government. The work happening inside our public universities is directly tied to the future of sectors like semiconductor manufacturing, artificial intelligence, biotechnology, energy systems, and aerospace. These are not abstract ideas. They shape our ability to remain competitive as a state.

Federal funding trends reflect this shift. Research dollars are being directed toward large, coordinated efforts that bring multiple institutions and industry partners together. These projects are designed to move ideas beyond the lab and into real-world application. That means the way states compete has changed. It is no longer about one university outperforming another. It is about whether a state can operate as a connected system that can deliver results at scale. If Texas wants to continue leading, we must recognize that reality and act accordingly.

The Challenge Texas Still Faces 

When I was first elected as your State Representative in 2016, Texas only had 3 major research universities, one of which was private. I knew that our state could, and must, do better. As Chairman of Article III of Appropriations, which oversees funding our public and higher education institutions, I worked with leaders in both chambers to help lay the groundwork for the Texas University Fund (TUF), which was passed the following session. 

The TUF set aside $1 Billion into an investment fund. The proceeds from those investments are used to fund research in universities across our state that previously did not have access to a reliable stream of research funding. With TUF funds, they are able to make long-term research investments, which can yield greater long-term benefits for the state.  

Texas is now leading the nation in the number of research universities classified as “Tier 1” by the Carnegie Institute, with 16 in total. However, that distinction only tells the world that those institutions spent $50 million per year on research, which doesn’t mean much on its own. What matters is not only how much we spend, but that those investment produce quality, relevant research that advances our position as a global economic leader. 

Texas institutions of higher education maintain strong relationships with the energy, aerospace, healthcare, and advanced manufacturing industries, ensuring that research investments drive job creation and economic growth, not pet projects. Our growing economy continues to attract talent and investment across the country, but coordination across institutions remains a challenge.

Universities naturally compete for talent and funding, but Texas policy is increasingly structured to ensure that institutions also operate collaboratively. The Coordinating Board’s research planning framework explicitly requires institutions to demonstrate cross-disciplinary collaboration, partnerships with other Texas institutions, and alignment with regional economic priorities. Competition can encourage excellence, but we succeed better when we work together rather than competing against each other as isolated campuses.

The more competitive the research initiative, the larger and more multidisciplinary the team required to accomplish the goal. Coordinated research networks allow companies and government partners to move in the same direction. 

Texas has the talent and institutional capacity to compete at that level. Achieving that goal requires viewing the state’s universities as components of a broader innovation system and keeping that system secure from foreign influence and the potential theft of the research they produce

Research Security and House Bill 127

Research security is ultimately about maintaining trust. Federal agencies require institutions to demonstrate strong security standards when awarding funding for classified research projects with the Departments of Defense, Energy, Commerce and Agriculture, which comprise the largest research and development budgets worldwide. Texas recognized early that research security is not just about preventing bad outcomes, it is about enabling growth. Rather than wait for mandates, Texas acted ahead of most of the country to build a structured, statewide approach to research security that allows institutions to collaborate, compete for federal funding, and engage with industry while protecting sensitive research. 

  • Our universities are required to maintain policies to handle secure academic research by keeping intellectual property secure from international espionage and foreign governments so that Texas remains a research destination for industry nationwide.  Industry research attracts proprietary industry partnerships like advanced manufacturing, supply-chain investment, and the jobs that follow.

  • The development of Silicon Valley provides a well-known example. Federal investment in university research during the early decades of the technology industry helped create collaborative networks that laid the foundation for one of the most productive innovation regions in the world.

  • The benefits from securing our research institutions lead to the passage of SB 1565 in 2023, creating a Research Security Officer (RSO) position at each Higher Education Institution in Texas with research capacity. SB 1565 made the SROs responsible for handling classified information, controlled unclassified information (i.e. trade secrets and proprietary designs), and foreign influence reporting.

  • SB 1565 made the RSOs responsible for handling classified information, controlled unclassified information (i.e. trade secrets and proprietary designs), and foreign influence reporting.

With those positions established, last year I authored and passed HB 127, which formed the Research Security Council, bringing all the RSOs across Texas together to develop best practices, create a common framework, and allow participating institutions to share information about potential security threats. 

HB 127 also increased research security by requiring RSOs to review and vet all gifts, grants, and donations to a university or university employee from an adversarial foreign government, an organization or individual acting on behalf of an adversarial foreign nation, or any group, individual, or organization identified as a potential security threat by the Governor. It also placed those same vetting requirements on all cultural exchange programs within institutions of higher education. 

HB 127 established enforceable accountability measures to ensure compliance. Institutions must certify adherence to research security requirements as a condition of receiving state appropriations, are subject to periodic audits by the State Auditor, and must cure any identified violations within a defined timeframe. Failure to do so can result in loss of eligibility for future funding. The bill also reinforces existing institutional consequences by integrating research security requirements into university policies and aligning violations with existing criminal statues related to theft of trade secrets.  

HB 127 created consistency across Texas institutions and prevents conflicting standards for universities collaborating on major research projects. This approach is supported by efforts such as the Academic Security and Counter Exploitation Program, which focuses on protecting research from espionage and intellectual property theft while allowing legitimate collaboration. Innovation depends on partnership, but those partnerships must be built on transparency and mutual benefit.

The goal is not to slow progress, but to ensure it can be secure and sustainable. Without a shared commitment to research integrity, Texas cannot fully scale its research ambitions. Building a state-of-the-art secure research ecosystem will require funding, but it is a proven investment direly needed to get our state not just to the top ranking, but to the top of our true potential.

Planning for the Long Term

Since 2009, the Texas Higher Education Coordinating Board has required every research university and emerging research university to develop long-term Strategic Plans for Research, creating a statewide framework that aligns institutional priorities with Texas’ economic and workforce needs.

These are not abstract exercises. They require institutions to clearly define their research priorities, demonstrate how those priorities will translate into economic impact, expand partnerships across institutions and industry, and align doctoral education with high-demand workforce needs. This framework reflects an important reality; research ecosystems are built over decades, not 2-year funding cycles. Long-term planning allows institutions to make sustained investments in talent, infrastructure, and partnerships that support continued growth and competitiveness. Today, Texas is building on to that foundation. For the first time, the state is pairing research security with a structured research strategy, ensuring that growth in research capacity is coordinated, accountable, and directly tied to economic development.

  • Workforce initiatives ensure that graduates are prepared for the evolving economy. Governance reforms strengthen institutional accountability. However, research drives the discoveries, technologies, and industries that power growth.

  • Research security policies protect intellectual property and integrity of the state’s research enterprise. Strategic planning encourages institutions to align their efforts with statewide priorities. Greater coordination allows universities to pursue larger research initiatives and attract greater investment.

  • Together, these efforts create the foundation for a modern research ecosystem.

  • Texas already possesses the talent, institutions, and economic strength necessary to lead the nation in research-driven innovation. The challenge ahead is ensuring that these assets operate as a coordinated system rather than in isolation.

  • The state will remain positioned to build one of the most secure and competitive research economies in the country as long as Texas protects its research enterprise and aligns its institutions toward shared goals.

The next chapter of Texas prosperity will be bound by the strength of the systems that are built together.

The next chapter of Texas prosperity will not be defined by any one university or policy. It will be defined by how well we integrate them; into a system stronger than the sum of its parts.and competitive research economies in the country as long as Texas protect its research enterprise and aligns its institutions toward shared goals.