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Over the past quarter-century, I’ve witnessed America’s startup ecosystem flourish, fueled by a unique blend of brainpower, risk-taking and public investment in research. Our dominance wasn’t accidental — it was the result of deliberate policy choices that prioritized education, innovation and openness. However, this engine of innovation is now under threat.

President Donald Trump’s assault on higher education – through funding cuts, immigration clampdowns and ideological battles – threatens to dismantle the very infrastructure that made America the world’s innovation leader. Here’s how:

1. Slashing R&D investment is a strategic gift to China

Federal investment in university-based research has historically been a cornerstone of U.S. technological leadership. From the internet to mRNA vaccines, these breakthroughs originated in federally funded labs. Yet, the Trump administration has proposed a 40% reduction in funding for the National Institutes of Health (NIH), terminated nearly 800 research projects, and frozen new grants at the National Science Foundation (NSF), not to mention holding many of our finest schools hostage to the tune of hundreds of millions, and some cases, billions of dollars.

Meanwhile, China continues to increase its R&D spending, positioning itself to surpass the U.S. in key areas like artificial intelligence and biotechnology. By defunding our universities, we risk ceding our competitive edge to global rivals.

2. Brain drain: Top researchers are leaving

The best faculty don’t just teach — they build labs, spin out startups and shape entire industries. Amid growing hostility toward academia and declining research support, they’re being lured abroad. Countries such as Canada, Germany, Singapore and several others are offering top researchers funding, visas, and institutional respect.

The result? American universities are losing talent that once would have seeded the next DeepMind, Moderna, or Nvidia. When our researchers leave, they take their students, grants and innovations with them.

3. Immigration crackdowns drive away the next Elon Musk

America’s startup scene is filled with names like Pichai, Nadella and Brin — immigrants who came here to study, and stayed to build. International students account for over 70% of graduate students in key STEM fields. These are the future founders, CTOs and patent holders.

The Trump administration’s hardline immigration policies – tightened student visas, work restrictions and hostile rhetoric – have sent a chilling signal. Applications from international students have fallen sharply. Many are leaving, likely to continue their studies, research and building startups in Toronto, Berlin, Dubai or Bangalore instead. Losing this talent isn’t just about diversity—it’s about economic suicide.

4. The talent pipeline is drying up—starting at the high school level

The erosion of America’s innovation pipeline now begins even earlier than college. For decades, elite U.S. private high schools have attracted the best and brightest global students — students whose families often pay full tuition. These students not only enrich academic communities but help subsidize financial aid for domestic peers and support feeder relationships with top-tier universities.

But the administration’s rhetoric surrounding freedom of speech, revocation of student visas and deportations is scaring away brilliant students who now have other attractive options in Canada, Europe, Asia and other welcoming ecosystems.

As a result, private high schools are seeing a drop in international enrollment, impacting their finances and weakening the undergrad pipeline. Fewer international students in U.S. high schools means fewer enrolling in our top STEM programs, fewer starting companies here, and fewer fueling the next generation of American innovation.

America’s innovation economy has always run on trust—trust that this country welcomes ideas, backs science, and invests in brains. Trump’s war on higher education, effectively muzzling university presidents out of fear of retribution, breaks that trust.

If we continue down this path – and continue dismantling our nation’s greatest and most respected competitive advantage – the world’s next big idea will still get built. It just won’t be built here.

James Barrood is founder/CEO, Innovation+ and INNOVATE100; and advisor, Tech Council Ventures | JumpStart Angels