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Chapter 8. State Indicators

Financial Research and Development Inputs


R&D as Share of Gross Domestic Product


Quartiles

R&D as share of gross domestic product: 2007 (Percent)
 
1st quartile
(7.53% – 2.74%)
2nd quartile
(2.61% – 2.04%)
3rd quartile
(2.00% – 1.12%)
4th quartile
(1.01% – 0.41%)
 
California Arizona Alabama‡ Alaska‡
Colorado Delaware‡ Georgia Arkansas‡
Connecticut Idaho‡ Iowa Florida
District of Columbia Illinois Kansas‡ Hawaii‡
Maryland Indiana Missouri Kentucky‡
Massachusetts Montana‡ Nebraska‡ Louisiana‡
Michigan North Carolina New York Maine‡
Minnesota Ohio North Dakota‡ Mississippi‡
New Hampshire‡ Pennsylvania South Carolina‡ Nevada‡
New Jersey Rhode Island‡ Tennessee Oklahoma‡
New Mexico‡ Utah Texas South Dakota‡
Oregon Vermont‡ West Virginia‡ Wyoming‡
Washington Virginia Wisconsin
 
‡ EPSCoR state

SOURCES: National Science Foundation, Division of Science Resources Statistics, National Patterns of R&D Resources; and Bureau of Economic Analysis, Gross Domestic Product data. See Data Table.



Findings

  • The national value of R&D expenditures as a share of GDP rose slightly between 1998 and 2007, from 2.47% to 2.62%.
  • In 2007, state values for this indicator ranged from 0.41% to 7.53%, indicating large differences in the geographic concentration of R&D activity.
  • New Mexico, which has large federal R&D activities and a relatively small GDP, is an outlier on this indicator.
  • States with high rankings on this indicator also tended to rank high on S&E doctorate holders as a share of the workforce.
  • The total R&D performed in states in the EPSCoR group was approximately one-tenth of that performed in states in the non-EPSCoR group. EPSCoR state values on this indicator were more concentrated toward the low end of the distribution than comparable values for the ratio of academic R&D to state GDP.


Description

This indicator shows the extent to which R&D plays a role in a state's economy. A high value indicates that a 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 and state agencies, businesses, universities, and nonprofit organizations. In 2007, business performed 72.0% of total R&D at the national level followed by colleges and universities at 13.3%; government facilities, including federally funded R&D centers, at 10.5%; and nonprofit institutions at 4.2%. Data for the value of gross domestic product (GDP) and for R&D expenditures are shown in current dollars.

The methodology for assigning industry R&D activity at the state level was modified in 2001, and 1998–2000 data were recalculated using the new methodology. State-level R&D data from years before 1998 are not comparable.

Data Table

Table 8-33
R&D as share of gross domestic product, by state: 1998, 2002, and 2007
 
  R&D performed ($millions)   State GDP ($millions)   R&D performed/GDP (%)
State 1998 2002 2007   1998 2002 2007   1998 2002 2007
 
EPSCoR states 18,832 24,247 29,581   1,231,448 1,451,648 1,981,871   1.53 1.67 1.49
Non-EPSCoR states 193,314 228,752 326,296   7,396,530 8,879,038 11,641,354   2.61 2.58 2.80
Average EPSCoR state value na na na   na na na   1.79 1.83 1.64
Average non-EPSCoR state value na na na   na na na   2.49 2.53 2.84
United States 214,752 255,705 359,739   8,679,660 10,398,403 13,715,741   2.47 2.46 2.62
Alabama 1,926 2,323 3,289   106,656 123,805 164,524   1.81 1.88 2.00
Alaska NA 308 311   23,165 29,186 44,887   NA 1.06 0.69
Arizona 2,318 4,096 5,006   137,581 171,942 245,952   1.68 2.38 2.04
Arkansas 283 427 632   61,861 72,203 95,116   0.46 0.59 0.66
California 43,919 51,388 77,608   1,085,884 1,340,446 1,801,762   4.04 3.83 4.31
Colorado 4,565 4,218 6,828   143,160 182,154 235,848   3.19 2.32 2.90
Connecticut 3,559 6,774 10,228   145,373 166,073 212,252   2.45 4.08 4.82
Delaware 2,556 1,319 1,607   36,831 45,324 61,545   6.94 2.91 2.61
District of Columbia 2,606 2,706 3,862   51,682 67,717 92,516   5.04 4.00 4.17
Florida 4,773 5,498 7,158   417,169 522,719 741,861   1.14 1.05 0.96
Georgia 2,492 3,935 4,425   255,612 306,680 391,241   0.97 1.28 1.13
Hawaii 242 456 592   37,549 43,476 62,019   0.64 1.05 0.95
Idaho 1,127 1,370 1,115   29,800 36,651 52,110   3.78 3.74 2.14
Illinois 8,830 10,190 14,287   423,855 487,129 617,409   2.08 2.09 2.31
Indiana 3,089 4,326 5,980   178,909 205,015 249,229   1.73 2.11 2.40
Iowa 1,054 1,346 1,882   83,665 97,356 129,911   1.26 1.38 1.45
Kansas 1,518 1,865 1,697   76,005 89,573 116,986   2.00 2.08 1.45
Kentucky 645 1,128 1,406   108,813 120,726 152,099   0.59 0.93 0.92
Louisiana 542 858 1,073   118,085 134,308 207,407   0.46 0.64 0.52
Maine 159 429 485   31,731 38,625 48,021   0.50 1.11 1.01
Maryland 8,019 9,030 14,130   161,954 204,120 264,426   4.95 4.42 5.34
Massachusetts 13,382 14,316 24,557   236,079 284,386 352,178   5.67 5.03 6.97
Michigan 13,655 15,082 17,402   309,431 349,837 379,934   4.41 4.31 4.58
Minnesota 3,818 5,247 7,533   164,897 198,558 252,472   2.32 2.64 2.98
Mississippi 366 691 838   60,513 68,144 87,652   0.61 1.01 0.96
Missouri 1,868 2,478 3,754   164,267 188,351 229,027   1.14 1.32 1.64
Montana 191 236 859   19,884 23,560 34,266   0.96 1.00 2.51
Nebraska 315 663 900   52,076 59,934 80,360   0.60 1.11 1.12
Nevada 571 524 794   63,635 81,274 129,314   0.90 0.64 0.61
New Hampshire 1,340 1,435 2,146   39,102 46,188 57,820   3.43 3.11 3.71
New Jersey 11,368 13,020 19,552   314,117 372,754 461,295   3.62 3.49 4.24
New Mexico 3,032 4,689 5,663   45,918 52,510 75,192   6.60 8.93 7.53
New York 13,731 13,354 15,939   686,906 821,577 1,105,020   2.00 1.63 1.44
North Carolina 4,560 5,135 9,204   242,904 296,435 390,467   1.88 1.73 2.36
North Dakota 119 295 327   16,936 19,880 28,518   0.71 1.48 1.15
Ohio 6,970 8,310 10,041   348,723 389,773 462,506   2.00 2.13 2.17
Oklahoma 513 793 921   79,341 97,170 136,374   0.65 0.82 0.68
Oregon 1,910 2,892 4,333   100,951 117,131 158,268   1.89 2.47 2.74
Pennsylvania 8,762 9,763 13,510   361,800 423,110 533,212   2.42 2.31 2.53
Rhode Island 1,677 1,639 1,081   29,537 36,909 46,699   5.68 4.44 2.32
South Carolina 989 1,668 2,291   102,945 121,582 151,703   0.96 1.37 1.51
South Dakota 60 111 240   20,771 26,416 35,211   0.29 0.42 0.68
Tennessee 2,503 2,568 3,659   160,872 191,525 245,162   1.56 1.34 1.49
Texas 10,774 14,223 17,853   629,209 783,480 1,148,531   1.71 1.82 1.55
Utah 1,495 1,572 2,337   60,168 72,665 105,574   2.48 2.16 2.21
Vermont 175 398 534   15,935 19,553 24,627   1.10 2.04 2.17
Virginia 4,934 5,895 9,473   226,569 285,759 384,132   2.18 2.06 2.47
Washington 8,466 10,511 15,061   195,794 231,463 310,279   4.32 4.54 4.85
West Virginia 421 542 650   39,500 45,032 57,877   1.07 1.20 1.12
Wisconsin 2,501 3,585 4,555   160,681 188,600 233,406   1.56 1.90 1.95
Wyoming 65 80 129   14,859 19,619 31,544   0.44 0.41 0.41
                       
Puerto Rico NA NA NA   54,086 71,624 NA   NA NA NA
 

na = not applicable; NA = not available

EPSCoR = Experimental Program to Stimulate Competitive Research; GDP = gross domestic product

NOTES: R&D includes R&D performed by federal agencies, business, universities, other nonprofit organizations, and state agencies. R&D and GDP reported in current dollars. For explanation of EPSCoR and non-EPSCoR averages, see chapter introduction.

SOURCES: National Science Foundation, Division of Science Resources Statistics, National Patterns of R&D Resources (various years); Bureau of Economic Analysis, Gross Domestic Product data; and Government of Puerto Rico, Office of the Governor.

Science and Engineering Indicators 2010

Source Data
 

Science and Engineering Indicators 2010   Arlington, VA (NSB 10-01) | January 2010