Unlike the industry and Federal sectors, overall R&D performance by the academic sector increased rapidly throughout the mid 1980s and continued to grow, though less rapidly, into the early 1990s (chart 10). From 1980 to 1985 real growth averaged somewhat under 4 percent annually. Whereas real increases in the R&D performance of other sectors slowed considerably after 1985, that of universities and colleges increased to more than an estimated 5 percent average annual rate over the 1985-94 period.
The Federal Government provides the major albeit declining share of the R&D funds used by universities and colleges. In the early 1980s Federal funds accounted for two thirds of the academic total. By 1991, however, this share had dropped to a low of 58 percent and has risen slightly to an estimated 60 percent in 1994. Consequently, much of the recent growth in academic R&D performance is attributable to increased funding from non Federal sources, the industrial sector in particular (chart 12).
Between 1985 and 1994 total R&D performance by universities and colleges exclusive of FFRDCs-increased an estimated 59 percent in real terms. Federally financed academic R&D ($12.2 billion in 1994) was up 51 percent, and university and college R&D performance using non Federal funds ($8.3 billion) grew by 72 percent. The links between academic institutions and industry expanded considerably. Industry's academic R&D funding increased by 95 percent in real terms from 1985 to 1994, although it accounts for just 7 percent ($1.5 billion) of academia's 1994 R&D total. Universities' own institutional funds the largest non Federal source are 70 percent higher in real terms and accounted for 18 percent ($3.7 billion) of their separately budgeted 1994 R&D expenditure total. Real R&D funds from State and local governments increased by 65 percent over this 9 year period and constitute 8 percent ($1.7 billion) of universities' 1994 R&D total.