U.S. leadership in scientific research is at a transformative moment. Not only is artificial intelligence playing a disruptive, even revolutionary, role, China has emerged as a viable competitor. As a source of U.S. competitive advantage, innovation, transformation, and diffusion is vital. Scientific knowledge must spread beyond its original research context and be applied to diverse problems. In these times of industrial revolution, universities play a central role, but funding should prioritize institutions that demonstrate effective diffusion and talent retention at national and regional levels. Given the priorities set by federal leadership, decentralized decision-making freedom allows institutions to experiment with solutions. While technical advantages are temporary, sustained leadership requires stable talent pathways that support continuous and rapid innovation that delivers value to end users faster than national competitors can innovate. U.S. scientific competitiveness depends not only on discovery but also on the diffusion and retention of tacit knowledge, particularly through graduate students who embody and transfer expertise. Talent attraction is a U.S. strength, but retention is equally critical since departing researchers can weaken the nation's competitive position by transferring tacit knowledge abroad. To succeed, the U.S. must compete globally to provide