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Chapter 8. State Indicators

Science and Technology in the Economy

Average annual federal small business innovation research funding per $1 million of gross domestic product



Findings

  • The SBIR program remained unchanged in size at about $1.2 billion both in 2000-2002 and in 2008–10 despite significantly higher spending in 2004–2006.
  • Over the 3 year period of 2008–2010, SBIR funds were concentrated in relatively few states; the total of annual state awards range from less than $1 million to $246 million.
  • Many of the states with the highest rankings on this indicator are locations of federal laboratories or well-recognized academic research institutions from which innovative small businesses have emerged.
  • States with a high ranking on this indicator also tended to rank high on the high-technology and venture capital indicators.


Description

Funds awarded through the federal Small Business Innovation Research (SBIR) program support technological innovation in companies with 500 or fewer employees. Awards are made to evaluate the feasibility and scientific merit of new technology (Phase 1–up to $150,000) and to develop the technology to a point where it can be commercialized (Phase 2–up to $750,000). The total award dollars include both Phase 1 and Phase 2 SBIR awards.

Because of year-to-year fluctuations, this indicator is calculated using 3-year averages. The 3-year average annual SBIR award dollars won by small businesses in a state are divided by the 3-year average annual gross domestic product for the same period. All data are expressed in current dollars. A high value indicates that small business firms in a state are doing cutting-edge development work that attracts federal support.

Data Table

Table 8-55
Average annual federal Small Business Innovation Research funding per $1 million of gross domestic product, by state: 2000–02, 2004–06, and 2008–10
 
  Average SBIR funding ($thousands)   Average state GDP ($millions)   SBIR funding ($)/$1 million GDP
State 2000–02 2004–06 2008–10   2000–02 2004–06 2008–10   2000–02 2004–06 2008–10
 
United States 1,234,995 1,904,499 1,258,785   10,224,860 12,551,462 14,279,027   121 152 88
Alabama 23,221 39,143 26,688   120,421 150,815 169,693   193 260 157
Alaska 480 345 793   27,516 38,017 48,056   17 9 16
Arizona 25,485 33,842 19,436   169,727 223,697 254,591   150 151 76
Arkansas 1,663 7,103 5,156   71,008 88,432 100,286   23 80 51
California 255,855 391,456 245,846   1,347,048 1,687,989 1,886,626   190 232 130
Colorado 61,513 85,830 58,409   179,766 216,425 254,174   342 397 230
Connecticut 19,923 26,823 18,742   167,173 198,636 230,256   119 135 81
Delaware 4,636 6,662 3,556   42,926 54,230 60,538   108 123 59
District of Columbia 5,069 3,725 1,472   63,259 82,698 99,847   80 45 15
Florida 26,348 41,292 30,486   507,821 677,240 742,762   52 61 41
Georgia 12,353 18,234 14,148   304,529 362,604 400,819   41 50 35
Hawaii 3,716 7,796 4,921   42,830 56,749 66,102   87 137 74
Idaho 2,365 3,994 1,252   36,692 47,750 54,769   64 84 23
Illinois 17,782 24,985 21,848   486,319 572,784 640,175   37 44 34
Indiana 6,048 15,759 11,505   202,128 240,248 266,395   30 66 43
Iowa 2,985 4,091 3,034   95,298 120,190 137,906   31 34 22
Kansas 3,808 5,359 2,569   88,939 105,782 125,016   43 51 21
Kentucky 3,280 4,406 5,886   116,894 139,389 158,217   28 32 37
Louisiana 2,585 5,002 2,669   136,238 191,291 212,470   19 26 13
Maine 3,098 9,264 2,607   38,156 45,872 50,551   81 202 52
Maryland 60,481 97,376 64,011   195,088 247,143 287,360   310 394 223
Massachusetts 181,889 250,946 165,114   280,962 323,833 368,297   647 775 448
Michigan 21,110 43,732 27,485   341,731 372,353 376,426   62 117 73
Minnesota 18,182 24,292 19,635   194,424 237,233 263,765   94 102 74
Mississippi 2,524 3,364 755   67,551 81,735 96,193   37 41 8
Missouri 4,967 9,959 5,725   186,134 216,371 241,105   27 46 24
Montana 6,847 8,460 4,539   22,839 30,069 35,635   300 281 127
Nebraska 2,259 4,003 2,404   59,339 72,889 87,027   38 55 28
Nevada 4,315 6,847 1,608   79,282 113,213 127,652   54 60 13
New Hampshire 15,483 22,097 16,847   45,109 53,672 59,383   343 412 284
New Jersey 35,400 48,903 32,895   363,315 431,713 480,947   97 113 68
New Mexico 19,955 24,172 17,663   51,974 67,821 77,906   384 356 227
New York 48,783 84,178 72,144   801,591 962,740 1,120,908   61 87 64
North Carolina 16,220 32,246 30,515   291,887 353,857 411,965   56 91 74
North Dakota 1,900 1,861 1,253   19,258 24,692 32,663   99 75 38
Ohio 50,697 79,947 43,551   387,263 442,611 470,118   131 181 93
Oklahoma 3,718 7,918 4,797   95,791 121,670 147,260   39 65 33
Oregon 14,792 28,485 18,417   114,930 146,903 172,029   129 194 107
Pennsylvania 42,299 79,624 44,611   408,829 483,960 553,805   103 165 81
Rhode Island 4,297 7,803 4,458   35,746 44,517 48,027   120 175 93
South Carolina 5,327 6,527 4,355   119,900 141,993 160,910   44 46 27
South Dakota 1,184 503 475   25,587 31,560 38,814   46 16 12
Tennessee 9,971 10,435 8,364   184,826 224,988 248,817   54 46 34
Texas 45,318 87,373 46,517   761,387 977,950 1,185,415   60 89 39
Utah 11,446 14,424 11,255   72,145 91,277 112,731   159 158 100
Vermont 2,956 5,061 3,823   18,822 22,778 24,960   157 222 153
Virginia 73,712 100,364 75,508   277,582 353,956 412,148   266 284 183
Washington 30,253 49,405 29,865   231,737 279,233 335,525   131 177 89
West Virginia 2,292 5,009 1,655   43,004 52,028 61,575   53 96 27
Wisconsin 11,944 21,382 16,402   183,789 219,114 242,343   65 98 68
Wyoming 2,262 2,695 1,116   18,348 26,752 38,068   123 101 29
                       
Puerto Rico 219 453 NA   NA NA NA   NA NA NA
 

NA = not available

GDP = gross domestic product; SBIR = Small Business Innovation Research

NOTE: GDP reported in current dollars.

SOURCES: Small Business Administration, Office of Technology, SBIR program statistics (various years); Bureau of Economic Analysis, Gross Domestic Product data; Government of Puerto Rico, Office of the Governor.

Science and Engineering Indicators 2012

Source Data

State Data Tool

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