Research is the basis for technology transfer. Commerce and industry rely upon the percolation of new ideas up through the research laboratory and into product development cycles. New ideas translate into intellectual property, patents and practical applications that are driving the world's advanced economies. Both undergraduate and graduate students learn about technology transfer in their laboratory experiences. IIT even has classes on creativity and product development.
Research contributes to good teaching.
If the goal of higher education is to teach students to think independently and to innovate, then research is a powerful educational tool. It teaches students to defend their hypotheses and their data. At the undergraduate level, research exposes students early to the inner dynamics of a discipline, as well as to new, evolving ideas that will shape society in the future. Peter Johnson, chemistry professor, sends undergraduate students to professional meetings to present research papers under an NSF grant. And it shows them a different side of learning, leading many of them to pursue teaching as a career.