Chapter 4: Science & Engineering Indicators 93

Patterns in Federal Labs R& D Performance

(Click here for footnote 82.)
The role of federal lab activity in the Nation's S& T enterprise has attracted considerable attention of late, especially in the context of debates on making federal labs' R& D programs commercially relevant. (See "Technology Transfer and Commercialization.") Out of a total federal $70 billion R& D investment in 1993, laboratories owned or principally funded by the Federal Government received one-third ($23.2 billion). Intramural laboratories owned by the government and operated by agency personnel (government-owned, government operated) accounted for 72 percent ($16.6 billion) of the federal lab total; FFRDCs (including both government-owned, contractor-operated labs, and labs owned by nongovernment organizations but which do virtually all of their work for government) accounted for 28 percent ($6.6 billion). (See text table 4-4.)

Three agencies account for almost 80 percent of the 1993 intramural lab effort: DOD labs performed half of this federal total;(Click here for footnote 83.) about 15 percent each was undertaken in NASA and HHS (primarily NIH) labs. Three agencies also account for most (95 percent) FFRDC support. DOD and DOE provide most of the funding for FFRDCs administered by firms and nonprofit organizations: These two agencies, along with NASA, provide most of the university-administered FFRDC R& D funds. This high concentration in the federal labs R& D effort has been maintained over time. (For longitudinal data on intramural R& D, see appendix table 4-13; on FFRDCs, see see appendix table 4-14.)

About half of the money going to all federal labs is for nondefense programs. Nondefense lab performance includes funding for several agencies with a long track record in cooperating with private industry. For example, NASA devotes about 10 percent of its R& D to aeronautics research (SRS 1993b), which by statute is closely aligned to the interests of the commercial aircraft industry. Approximately 40 percent of the NIH research budget is applied and supports programs of interest to the pharmaceutical and biotechnology industries (OTA 1993). Moreover--as is borne out by technology transfer metrics (see "Technology Transfer and Commercialization")--USDA labs have long undertaken research programs of interest to private agriculture, and the central mission of the growing NIST labs' budgets is to serve industry needs.

The remaining half of the federal total is for defense labs, including much of the R& D in DOE's national weapons laboratories--Sandia, Lawrence Livermore, and Los Alamos. It is these labs that are facing the challenge to find alternative activities in light of expected reductions in defense R& D support. Up until recently, DOD and DOE labs have focused R& D efforts on their defense missions. Little attention was given to technology transfer activities. However, with no new nuclear weapons now planned and with the defense drawdown continuing, defense labs have turned increasingly toward nondefense research subjects including environmental technologies and the development of new products for industry. Indeed, technology transfer is now identified as a core mission activity of the Department of Energy. Systematically compiled data on defense/nondefense resources allocations, however, are not easily obtained.


Footnote 82:
Comprehensive coverage of issues related to federal laboratories--particularly to DOE's multi-program nuclear weapons laboratories--in the post-Cold War environment may be found in the recent OTA (1993), in which ideas, for this section originated. See also Davey (1992) for information on DOD's FFRDCs, and Sanders (1993) for a concise historical perspective on current FFRDC issues.


Footnote 83:
There is some confusion as to the actual level of DOD's intramural R& D effort. The NSF numbers reported here are defined to include only funds for in-house activities, yet OTA (1993) reports that over half of this money is passed through to outside defense contractors. The basis for their conclusion is DOD's (undated) self-reports stating that only $4.0 billion of total $8.5 billion laboratory research, develop, test and evaluation program funds are used for in-house activities.

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