During the period February 2003 through February 2004, a total of 30 Federal agencies and their subdivisions—74 individual respondents—submitted data in response to the National Science Foundation's (NSF's) annual Survey of Federal Funds for Research and Development (Federal Funds survey), which was distributed in February 2003. The agencies reported their data as obligations and outlays incurred or expected to be incurred, regardless of when the funds were appropriated or whether they were identified in the respondents' budgets specifically for R&D activities.
Only those agencies that had obligations in the variables represented by a particular table appear in that table. Appendix A provides a complete list of the Federal agencies that have been included in the Federal Funds survey. Additional notes associated with these agencies are in appendix B.
Definitions are essentially unchanged from those used in past Federal Funds surveys.
Obligations represent the amounts for orders placed, contracts awarded, services received, and similar transactions during a given period, regardless of when the funds were appropriated and when future payment of money is required.
Outlays represent the amounts for checks issued and cash payments made during a given period, regardless of when the funds were appropriated. Obligations and outlays cover all transactions that occurred in FY 2002 and those estimated for FY 2003 and 2004.
The data include all Federal funds available to an agency that the agency received or expects to receive from direct appropriations, trust funds, special account receipts, corporate income, or other sources, including funds appropriated to the President.
The amounts shown for each year reflect obligations or outlays for that year regardless of when the funds were originally authorized or received and regard- less of whether they were appropriated, received, or identified in the agency’s budget specifically for research, development, or R&D plant.
In reporting its obligations or outlays, each agency includes the amounts transferred to other agencies for support of research and development. The receiving agencies do not report funds transferred to them. Similarly, a subdivision of an agency that transfers funds to another subdivision within that agency reports such obligations or outlays as its own.
Obligations and outlays for R&D performed for an agency in foreign countries include all funds available to the agency for this purpose, including funds separately appropriated for special foreign currency programs.
Funds reported for research and development reflect full-cost coverage, which is the costs of specific R&D and the applicable overhead costs. The amounts reported include the costs of planning and administering R&D programs, laboratory overhead, pay of military personnel, and departmental administration.
Basic research is defined as systematic study directed toward fuller knowledge or understanding of the fundamental aspects of phenomena and of observable facts without specific applications towards processes or products in mind.
Applied research is defined as systematic study to gain knowledge or understanding necessary to determine the means by which a recognized and specific need may be met.
To better differentiate between the part of the Federal R&D budget that supports "science and key enabling technologies" (including for military and nondefense applications) and the part that primarily concerns "testing and evaluation" (of mostly defense-related systems), NSF now collects from the Department of Defense (DoD) development dollars in two categories, advanced technology development and major systems development.
DoD uses service codes 6.1 through 6.7 to classify data into the survey categories. Within DoD's research categories, basic research is classified as 6.1, and applied research is classified as 6.2. Within DoD's development categories, advanced technology development is classified as 6.3A. Major systems development is classified as 6.3B through 6.7 and includes demonstration and validation, engineering and manufacturing development, management and support, and operational system development.
The illustrative disciplines are intended to be guidelines, not sharp definitions; they represent examples of disciplines generally classified under each detailed field. A discipline under one detailed field may be classified under another detailed field when the major emphasis is elsewhere. Research in biochemistry, for example, might be reported as biological, agricultural, or medical, depending on the focus of the project. Human biochemistry would be classified under biological, but animal biochemistry or plant biochemistry would fall under agricultural. In no case is the research reported under more than one field. No double counting is intended or allowed.
Biological sciences (excluding environmental biology): anatomy, biochemistry, biology, biometry and biostatistics, biophysics, botany, cell biology, entomology and parasitology, genetics, microbiology, neuroscience (biological), nutrition, physiology, zoology, other biological sciences, nec.
Environmental biology: ecosystem sciences, evolutionary biology, limnology, physiological ecology, population and biotic community ecology, population biology, systematics, other environmental biology, nec.
Agricultural sciences: agronomy, animal sciences, food science and technology, fish and wildlife, forestry, horticulture, phytopathology, phytoproduction, plant sciences, soils and soil science, general agriculture, other agriculture, nec.
Medical sciences: dentistry, internal medicine, neurology, obstetrics and gynecology, ophthal- mology, otolaryngology, pathology, pediatrics, pharmacology, pharmacy, preventive medicine, psychiatry, radiology, surgery, veterinary medi- cine, other medical sciences, nec.
Life sciences, nec.
Biological aspects: animal behavior, clinical psychology, comparative psychology, ethology, and experimental psychology
Social aspects: development and personality; educational, personnel, and vocational psychology and testing; industrial and engineering psychology; social psychology
Psychological sciences, nec.
Astronomy: laboratory astrophysics; optical astronomy; radio astronomy; theoretical astrophysics; x-ray, gamma-ray, and neutrino astronomy
Chemistry: inorganic, organic, organometallic, and physical chemistry
Physics: acoustics, atomic and molecular physics, condensed-matter physics, elementary particle physics, nuclear structure, optics, plasma physics
Physical sciences, nec.
Atmospheric sciences: aeronomy, extraterrestrial atmospheres, meteorology, solar science, weather modification
Geological sciences: engineering geophysics, general geology, geodesy and gravity, geomagnetism, hydrology, inorganic geochemistry, isotopic geochemistry, laboratory geophysics, organic geochemistry, paleomagnetism, paleontology, physical geography and cartography, seismology
Oceanography: biological oceanography, chemical oceanography, marine geophysics, physical oceanography
Environmental sciences, nec.
Mathematics: algebra, analysis, applied mathematics, foundations and logic, geometry, numerical analysis, statistics, topology
Computer sciences: computer and information sciences (general); design, development, and application of computer capabilities to data storage and manipulation; information sciences and systems; programming languages; systems analysis
Mathematics and computer sciences, nec.
Aeronautical engineering: aerodynamics
Astronautical engineering: aerospace, space technology
Chemical engineering: petroleum, petroleum refining process
Civil engineering: architectural, environmental, hydraulic, hydrologic, marine, sanitary, and structural engineering; transportation
Electrical engineering: communication, electronic engineering, power
Mechanical engineering: engineering mechanics
Metallurgy and materials engineering: ceramic engineering, mining, textile engineering, welding
Engineering, nec.: agricultural engineering, bioengineering, biomedical engineering, industrial and management engineering, nuclear engineering, ocean engineering, systems engineering
Anthropology: applied anthropology, archaeology, cultural anthropology and personality, social anthropology and ethnology
Economics: econometrics and economic statistics; economic systems and development; economic theory; history of economic thought; industrial, labor, and agricultural economics; international economics; macroeconomics; microeconomics; public finance and fiscal policy
Political science: area or regional studies, comparative government, history of political ideas, international relations and law, national political and legal systems, political theory, public administration
Sociology: comparative and historical sociology, complex organizations, culture and social structure, demography, group interactions, social problems and social welfare, sociological theory
Social sciences, nec.: linguistics, research in education, research in history, research in law (e.g., attempts to assess impact on society of legal systems and practices), socioeconomic geography
NOTE: Intramural activities cover not only the actual intramural R&D performance but also the costs associated with the planning and administration of both intramural and extramural programs by Federal personnel. Intramural activities also include the costs of supplies and off-the-shelf equipment, which has gone beyond the development or prototype stage, procured for use in intramural R&D. For example, the National Aeronautics and Space Administration's (NASA's) purchase from an extramural source of an operational launch vehicle used for intramural performance of R&D is reported as a part of the cost of intramural R&D.
In general, all of the following criteria are met by an organization that is included in the FFRDC category:
Geographic distribution of Department of Defense development funding to industry reflects only the location of prime contractors, not the location of numerous subcontractors who perform most of the research and development.
Specifically omitted from the geographic portion of the survey were R&D obligations to foreign performers and support of foreign performers. Foreign performer data, by country, are reported in a separate section of the Federal Funds survey.
While completing the survey each year, agency respondents make revisions to their estimates for the latest two years of the previous report, in this case FY 2002 and 2003. Such revision is part of the budgetary cycle. From time to time, survey submissions also reflect reappraisals and revisions in classification of various aspects of agencies' R&D programs. When such revisions occur, NSF requests that the agencies provide revised prior-year data to maintain consistency and comparability with the most recent R&D concepts.
The scope of the Federal Funds survey has changed over time, and the survey instrument has been revised accordingly. The most recent changes are described in the following paragraphs.
Since the volume 40 (FY 1990–92) survey cycle, DoD has reported research obligations and development obligations separately. Tables reporting obligations for research, by state and performer, and obligations for development, by state and performer, were specifically created for DoD. The additional detail provided by DoD highlights the following circumstances that are specific to DoD:
During the volume 44 (FY 1994–96) survey cycle, the Director for Defense Research and Engineering (DDR&E) at DoD requested that NSF further clarify the true character of DoD's R&D program, particularly as it compares with other Federal agencies, by adding more detail to development obligations reported by DoD respondents. Specifically, DoD requested that NSF allow DoD agencies to report development obligations in two separate categories, advanced technology development and major systems development.
The reasoning behind DDR&E's request for the additional development categories is best explained by the following excerpt from a letter written by Robert V. Tuohy, Chief, Program Analysis and Integration at DDR&E, to John E. Jankowski, Program Director, Research and Development Statistics Program, SRS:
The DoD's R&D program is divided into two major pieces, Science and Technology (S&T) and Major Systems Development. The other Federal agencies' entire R&D programs are equivalent in nature to DoD's S&T program, with the exception of the Department of Energy and possibly NASA. Comparing those other agency programs to DoD's program, including the development of weapons systems such as F-22 Fighter and the New Attack Submarine, is misleading.
At several annual issues workshops held during FY 1992–96, NSF learned from survey respondents that there were certain survey items for which reliable data were difficult to obtain and report. As a result, NSF began to consider removing certain items from the Federal Funds survey instrument. The volume 42 detailed statistical tables publication was distributed with a flier notifying data users that NSF was considering eliminating several items from future volumes of the document. Data users were asked to review the list of affected tables shown on the flier, and to comment on the proposed eliminations to NSF.
Before publication of volume 43 (FY 1993–95) of the detailed statistical tables, NSF decided to remove from the document 54 tables that depicted data on two of the items slated for elimination: data for the special foreign currency program, and detailed field-of-S&E data for estimated outyears. NSF continued to collect data from Federal agencies for these items through volume 45 but eliminated the special foreign currency program and outyear detailed field-of-S&E lines on the survey instrument beginning with the volume 46 (FY 1996–98) survey cycle. A special flier was included in the volume 46 mailout packet that listed the data items that were no longer required.
NSF also decided to remove two tables depicting data on foreign performers by region, country, and agency before publication of volume 43 of the detailed statistical tables. These tables have been reinstated since volume 46.
Before the volume 48 survey cycle, the National Science Foundation's Division of Science Resources Statistics updated the list of foreign performers in the Federal Funds survey to match the list of countries and territories in the 1996 UNESCO Statistical Yearbook.
On November 25, 2002, President Bush signed the Homeland Security Act of 2002, establishing the Department of Homeland Security. The new department's preliminary funding for R&D for FY 2003 and 2004 are included in this report.
Funds for research and development were reported on a 3-year basis comparable with the 2002 budget, upon which the data were based. The amounts reported for each year, as already stated, are the obligations or outlays incurred in that year, regardless of when funds were authorized or received by an agency and regardless of whether the funds were identified in the agency's budget specifically for research, development, R&D plant, or some combination of the three.
The respondents reconciled the data reported to the Federal Funds survey with the amounts for R&D they reported under Max Schedule C to the Office of Management and Budget for the 2004 President's budget.
Some agencies are not able to report the full costs of research and development. For example, the headquarters costs of planning and administering R&D programs of the DoD (estimated at a fraction of 1 percent of the agency's R&D total) are excluded, because this agency has stated that identification of the amounts is impracticable.
R&D plant data are also underreported to some extent because of the difficulty encountered by some agencies, particularly DoD and NASA, in identifying and reporting these data. DoD's respondents report obligations for the R&D plant funded under the agency's construction appropriation, but they are able to identify only a small portion of the R&D plant support that is within R&D contracts funded from DoD's appropriation for research, development, testing, and evaluation. Similarly, NASA respondents cannot separately identify the portions of industrial R&D contracts that apply to R&D plant; R&D plant data are subsumed in the R&D data covering industrial performance. NASA R&D plant data for other performing sectors are reported separately.
Beginning in FY 2000, NASA reclassified space station as a physical asset and space station research as equipment, and it transferred funding for the program from R&D to R&D plant. Also, the National Institutes of Health (NIH) classified all of its development activities as research beginning in FY 2000. For more information on the classification changes at NASA and NIH, refer to the InfoBrief "Classification Revisions Reduced Reported Federal Development Obligations," NSF 02-309, February 2002, available on the Web at http://www.nsf.gov/statistics/.
A Web-based data collection system (FedWeb) is used to collect the Federal Funds survey data. The FedWeb system is part of NSF's effort to enhance survey reporting and reduce data collection and processing costs by offering respondents direct online reporting and editing. Because the Federal Funds data are collected in electronic format, there is no paper instrument. Respondents provide data for their agency using similar data entry screens. The categories of funding are slightly different for Defense and non-Defense agencies. Mock survey instruments have been created to illustrate what information the respondent is asked to provide in FedWeb. See the Federal Fund's survey methodology report for further details on the FedWeb system.