Chapter 8: State Indicators

Financial Research and Development Inputs

Select Indicator:

Quartiles | Findings | Description

R&D as share of gross state product: 2002

R&D as share of gross state product: 2002

R&D as Share of Gross State Product: 2002.


R&D as share of gross state product: 2002*

1st Quartile
2nd Quartile
3rd Quartile
4th Quartile
California Arizona Alabama Alaska
Connecticut Colorado Georgia Arkansas
Delaware Illinois Iowa Florida
District of Columbia Indiana Maine Hawaii
Idaho Kansas Missouri Kentucky
Maryland Minnesota Nebraska Louisiana
Massachusetts Ohio New York Mississippi
Michigan Oregon North Carolina Montana
New Hampshire Pennsylvania North Dakota Nevada
New Jersey Utah South Carolina Oklahoma
New Mexico Vermont Tennessee South Dakota
Rhode Island Virginia Texas Wyoming
Washington Wisconsin West Virginia
*States in alphabetical order, not data order.

SOURCES: National Science Foundation, Division of Science Resources Statistics, National Patterns of R&D Resources; and U.S. Department of Commerce, Bureau of Economic Analysis, Gross State Product data. See table 8-26.

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  • The national value of this indicator has not changed significantly over the past decade, varying from 2.48% in 1993 to 2.46% in 2002.

  • In 2002, state values for this indicator ranged from 0.39% to 8.76%, indicating large differences in the geographic concentration of R&D.

  • New Mexico is an outlier on this indicator because of the presence of large federal R&D activities and a relatively small GSP.

  • States with high rankings on this indicator also tended to rank high on S&E doctorate holders as a share of the workforce.

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This indicator shows the extent to which research and development play a role in a state’s economy. A high value indicates that the state has a high intensity of R&D activity, which may support future growth in knowledge-based industries. Industries that have a high percentage of R&D activity include pharmaceuticals, chemicals, computer equipment and services, electronic components, aerospace, and motor vehicles. R&D refers to R&D activities performed by federal agencies, industry, universities, and other nonprofit organizations. At the national level in 2002, industry performed roughly 71% of total R&D, followed by colleges and universities at 14% and government facilities, including federally funded R&D centers, at 13%. Data for the value of gross state product (GSP) and for R&D expenditures are shown in current dollars.

The methodology for assigning R&D activity at the state level was modified in 2001, and data back to 1998 were recalculated using the new methodology. State-level R&D data from years before 1998 are not comparable.

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National Science Board.