Title : U.S. Research & Development Expenditures Continued Slow Growth in 1994 Type : 1995 Data Briefs NSF Org: SBE / SRS Date : February 16, 1995 File : sdb95303 Note: The companion binary file to this text file is an Adobe Acrobat .PDF (Portable Document Format) file. This version will print correctly only to a non-PostScript printer. In order to view and print this file, you must use the Adobe Acrobat Reader. The Acrobat reader is available from Adobe via Ftp. Ftp to ftp.adobe.com anonymous <------User email name <------Password Change the directory to: pub/adobe/applications/acrobat/Windows <----Windows reader or pub/adobe/applications/acrobat/mcintosh <----MacIntosh reader or pub/adobe/applications/acrobat/unix <----Unix reader Download the relevant Acrobat Reader file, entitled ACROREAD.EXE. You may freely distribute the reader program. By John R. Gawalt ___________________ Among the Nation's R&D-performing sectors, only universities and colleges increased their 1994 R&D expenditures by more than the rate of inflation. ___________________ Total expenditures for research and development (R&D) performed in the United States reached an estimated $177 billion in 1994, about 1 percent more than the estimated $174 billion spent in 1993 (table 1). In inflation-adjusted terms, however, 1994 expenditures declined by approximately 1 percent. Of the Nation's 1994 R&D total, 18 percent was expended for basic research activities, 23 percent for applied research, and 59 percent for development. Overall, R&D was 2.6 percent of gross domestic product (GDP). Estimates of R&D spending for 1993 and 1994 are projected from 1992 levels using more recent information from R&D performers and funders and time series modeling techniques. Trends in these and other R&D statistics are analyzed in the forthcoming report, National Patterns of R&D Resources: 1994. Table 1. National expenditures for research and development, by performing sector and source of funds: 1993-94 _______________________________________________________________ Percent Percent Sector 1993 1994 change 1993 1994 change 1993-94 1993-94 _______________________________________________ Millions of dollars Millions of 1987 dollars _______________________________________________ Total R&D..... 174,350 176,500 1 140,485 138,755 -1 By performing sector Industry.......125,900 26,800 1 101,287 99,529 -2 Universities and colleges. 19,700 20,800 6 15,951 16,430 3 University- administered FFRDCs...... 5,150 4,950 -4 4,170 3,910 -6 Federal Government.. 17,200 17,500 2 13,927 13,823 -1 Nonprofit institutions. 6,400 6,450 1 5,149 5,063 -2 By funding sector Industry..... 101,700 103,700 2 81,825 81,405 -1 Universities and colleges... 5,350 5,800 8 4,332 4,581 6 Federal Government. 64,450 63,950 -1 52,027 50,367 -3 Nonprofit institutions 2,850 3,050 7 2,300 2,402 4 __________________________________________________________________ In 1994, industry provided 59 percent ($104 billion) and the Federal Government, 36 percent ($64 billion) of the Nation's total expenditures for R&D. State governments, universities and colleges, and other nonprofit organizations account for the remaining 5 percent ($9 billion). Industry support increased an estimated 2 percent in 1994, and Federal support declined by 1 percent. In constant-dollar terms, both industrial and Federal support declined by 1 percent and 3 percent, respectively. Consistent with providing most of the financial support for R&D in the United States, the industrial sector also performs the majority of the Nation's R&D. In 1994, industry--including associated Federally Funded Research and Development Centers (FFRDCs)--increased its performance of R&D by 1 percent, to a level of $127 billion (a decrease of 2 percent after adjusting for inflation). Industry received about $26 billion from the Federal Government in support of this work but financed most ($101 billion) of the R&D with its own funds and with funds received under contract to other private organizations. Universities and colleges are the Nation's second-largest R&D-performing sector, accounting for approximately 12 percent of the R&D performed in this country. According to the most recent estimates, universities and colleges increased their level of performance by 6 percent (to $21 billion) in 1994. This sector is the only one to have increased R&D performance by more than the expected rate of inflation, showing an inflation-adjusted growth rate of 3 percent between 1993 and 1994. The majority of support for R&D performed by the academic sector comes from the Federal Government, which in 1994 provided $12 billion. R&D performed by university-administered FFRDCs declined by 4 percent, down 6 percent in inflation-adjusted terms. These FFRDCs spent an estimated $5 billion in 1994 on R&D performance. Both the Federal and nonprofit sectors show small increases in R&D performance over their 1993 levels. The Federal Government performed $18 billion, up 2 percent over 1993 levels, and the nonprofit institutions, $7 billion, up 1 percent. Both rates of increase are less than expected inflation. Spending 2.76 percent of its GDP on R&D activities, the United States ranked second among leading industrial countries in total expenditures for R&D as a share of GDP. Japan expended the largest share, 2.80 percent, and unified Germany was third at 2.53 percent (chart 1). These figures are for 1992, the most recent year for which such international data are available. Rankings based on 1992 expenditures for nondefense R&D place the U.S. R&D/GDP ratio (2.10 percent) in a more distant third place, below that of Japan (2.77 percent) and unified Germany (2.42 percent). [Chart 1 appears here in .PDF and printed versions] U.S. national R&D expenditures data were assembled from a number of NSF surveys. Estimates for 1993 and 1994 are projections of these survey data and are based on more recent information provided by Federal R&D funding agencies, an independent survey of industrial R&D performers, and time series modeling techniques. Foreign R&D expenditure data are derived from national and international sources. For more information contact John R. Gawalt, Science and Engineering Activities Program, Division of Science Resources Studies, National Science Foundation, 4201 Wilson Boulevard, Suite 965, Arlington, VA 22230. For a free copy, write to the above address, call 703-306-1773, or send e-mail to srspubs@nsf.gov. --end--