Basis for sector classification
NSF 95-304

Basis for sector classification

Federal Government
Universities and Colleges
Other Nonprofit Institutions

The National Science Foundation (NSF) follows a four sector division in reporting research and development (R&D) funds and personnel and maintaining time series data on expenditures and employment. The sectors are (1) industry, (2) the Federal Government, (3) universities and colleges, and (4) other nonprofit organizations. They are described in more detail below. Data also are collected for Federally Funded Research and Development Centers (FFRDCs), which are organizations exclusively or substantially financed by the Federal Government to meet a particular requirement or to provide major facilities for research and associated training purposes. Each center is administered either by an industrial firm, an individual university, a university consortium, or a nonprofit institution.

Federal Government . This sector consists of the agencies of the Federal Government.

Industry . This sector consists of both manufacturing and nonmanufacturing companies. Manufacturing companies are reported by major industry groupings. Nonmanufacturing companies include those in mining, construction, transportation, communications, and selected service industries, such as R&D laboratories and computer and data processing services. Performance of FFRDCs administered by industrial firms is included in industry totals, although FFRDC breakouts are available. Industry's funding of industry R&D includes all funds received from non Federal sources (e.g., from State and local governments).

Universities and Colleges . This sector consists of all institutions of higher education, both public and private. Expenditures of FFRDCs administered by universities and colleges are reported separately from totals for this sector. University funding of university R&D includes (1) State and local government funds separately budgeted for R&D and (2) restricted or general funds that the institutions themselves have been free to allocate for research. Funds from the Federal Government, industry, or other nonprofit institutions, which are supplied in the form of grants or contracts for R&D at a university, are credited to the appropriate source. For example, research contracts from industry are treated as university performance funded by industry. Funds given to the institution by industry for general educational purposes and used by the school-at its discretion-for research are treated as university performance financed with the university's own funds.

Other Nonprofit Institutions . This sector consists of institutions that fall into two general groups: (1) organizations that are primarily granting in nature-i.e., private philanthropic foundations and voluntary health agencies; and (2) public and private organizations involved in performing R&D, including FFRDCs administered by nonprofit organizations.

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