by Mark Boroush[1]

New data from the National Center for Science and Engineering Statistics (NCSES) within the National Science Foundation (NSF) indicate that research and experimental development (R&D) performed in the United States totaled $495.1 billion in 2015 (table 1). The estimated total for 2016, based on performer-reported expectations, is $510.0 billion. These numbers compare to U.S. R&D totals of $454.0 billion in 2013 and $475.4 billion in 2014. In 2008—just before the onset of the main economic effects of the national and international financial crisis and the Great Recession—the U.S. total was $404.8 billion. (All amounts and calculations are in current dollars, unless otherwise noted.)

TABLE 1. U.S. R&D expenditures, by performing sector and source of funding: 2008–16

FFRDCs = federally funded research and development centers.

a Some data for 2015 are preliminary and may later be revised.

b The data for 2016 are estimates and will later be revised.

c Includes expenditures of federal intramural R&D as well as costs associated with administering extramural R&D.

d Some components of the R&D performed by other nonprofit organizations are projected and may later be revised.

NOTES: Data are based on annual reports by performers, except for the nonprofit sector. Expenditure levels for higher education, federal government, and nonfederal government performers are calendar-year approximations based on fiscal year data.

SOURCE: National Science Foundation, National Center for Science and Engineering Statistics, National Patterns of R&D Resources (annual series).

Table 1 Source Data: Excel file

Performing sector and funding source 2008 2009 2010 2011 2012 2013 2014 2015a 2016b
Current $millions
All performing sectors 404,773 402,931 406,580 426,160 433,619 453,964 475,426 495,144 509,967
Business 290,680 282,393 278,977 294,092 302,251 322,528 340,728 355,821 363,753
Federal government 45,649 47,572 50,798 53,524 52,144 51,086 52,687 54,322 57,459
Federal intramuralc 29,839 30,560 31,970 34,950 34,017 33,406 34,783 35,673 37,999
FFRDCs 15,810 17,013 18,828 18,574 18,128 17,680 17,903 18,649 19,460
Nonfederal government 491 606 691 694 665 620 583 610 651
Higher education 52,054 54,909 58,084 60,089 60,896 61,546 62,354 64,653 67,520
Other nonprofit organizationsd 15,898 17,452 18,030 17,762 17,663 18,185 19,075 19,738 20,583
All funding sources 404,773 402,931 406,580 426,160 433,619 453,964 475,426 495,144 509,967
Business 258,016 246,610 248,124 266,421 275,717 297,167 318,382 333,207 343,562
Federal government 117,615 125,765 126,617 127,015 123,838 120,130 118,363 120,933 122,656
Nonfederal government 4,221 4,295 4,302 4,386 4,158 4,244 4,214 4,280 4,425
Higher education 11,738 12,056 12,262 13,104 14,300 15,378 16,217 17,334 18,686
Other nonprofit organizationsd 13,184 14,205 15,275 15,235 15,607 17,045 18,250 19,390 20,638
Constant 2009 $millions
All performing sectors 407,848 402,931 401,673 412,503 412,127 424,610 436,844 450,080 457,715
Business 292,888 282,393 275,610 284,667 287,271 301,673 313,077 323,437 326,482
Federal government 45,995 47,572 50,185 51,809 49,560 47,783 48,411 49,378 51,572
Federal intramuralc 30,066 30,560 31,584 33,830 32,331 31,246 31,961 32,427 34,106
FFRDCs 15,930 17,013 18,601 17,978 17,229 16,537 16,451 16,951 17,466
Nonfederal government 495 606 683 672 632 580 536 555 585
Higher education 52,450 54,909 57,383 58,163 57,877 57,566 57,293 58,768 60,602
Other nonprofit organizationsd 16,019 17,452 17,812 17,193 16,788 17,009 17,527 17,942 18,474
All funding sources 407,848 402,931 401,673 412,503 412,127 424,610 436,844 450,080 457,715
Business 259,975 246,610 245,129 257,883 262,051 277,952 292,544 302,881 308,360
Federal government 118,508 125,765 125,089 122,944 117,700 112,363 108,758 109,927 110,089
Nonfederal government 4,253 4,295 4,250 4,245 3,952 3,970 3,872 3,890 3,971
Higher education 11,827 12,056 12,114 12,684 13,591 14,383 14,901 15,756 16,771
Other nonprofit organizationsd 13,284 14,205 15,091 14,747 14,833 15,943 16,769 17,625 18,524

These data reflect sizable increases of $21.5 billion in 2014 and $19.7 billion in 2015. After essentially no change between 2008 and 2010, year-over-year increases in the U.S. total from 2010 to 2015 averaged $17.7 billion. The 2016 increase is estimated to be $14.8 billion. The 2014 and 2015 increases are mainly due to higher levels of business R&D performance (figure 1). However, as presently estimated, the business sector's role is noticeably less predominant in the 2016 increase.

FIGURE 1. Year-to-year changes in U.S. R&D expenditures, by performing and funding sources: 2010–16
FIGURE 1. Year-to-year changes in U.S. R&D expenditures, by performing and funding sources: 2010–16.

FFRDCs = federally funded research and development centers.

NOTE: Data for 2015 are preliminary, and those for 2016 are estimates; some of these data may later be revised.

SOURCE: National Science Foundation, National Center for Science and Engineering Statistics, National Patterns of R&D Resources (annual series).

Figure 1 Source Data: Excel file

Adjusted for inflation, growth in U.S. total R&D averaged 1.4% annually over the 7-year period 2008–15, marginally behind the 1.5% the average pace of U.S. gross domestic product (GDP) over the same period (table 2). By comparison, the average annual rate of growth was notably higher in the prior 10-year period (1998–2008): 3.6% for total R&D, and 2.2% for GDP. In part, the smaller average pace of R&D growth in 2008–15 reflects the inclusion of the Great Recession years (notably, 2009 and 2010). If just the 5-year period of 2010 to 2015 is considered, the average annual pace of growth is 2.3%, compared to 2.2% for GDP (table 2). The growth of business R&D over this same 5-year period is 3.3%, well ahead of GDP growth, but it is not strong enough to offset the slower average rates of growth (if not outright declines) in some of the other performing sectors. The estimate for 2016 shows R&D also expanding only a little faster than the pace of GDP (1.7%, compared to 1.5% for GDP).

TABLE 2. Annual rates of growth in U.S. R&D expenditures and gross domestic product, total and by performing sectors: 1988–2016
(Percent)

NA = not available.

FFRDCs = federally funded research and development centers.

a Includes expenditures of federal intramural R&D, as well as costs associated with administering extramural R&D.

b Survey data on state internal R&D performance was not available prior to 2006; data for 2008 were not collected.

c Some components of the R&D performed by other nonprofit organizations are projected and may later be revised.

NOTES: Longer-term trend rates are calculated as compound annual growth rates. Data for 2015 are preliminary and those for 2016 are estimates; some of these data may later be revised.

SOURCE: National Science Foundation, National Center for Science and Engineering Statistics, National Patterns of R&D Resources (annual series).

Table 2 Source Data: Excel file

Longer-term trends Most recent years
Expenditures and gross domestic
product
1988–98 1998–2008 2008–15   2008–09 2009–10 2010–11 2011–12 2012–13 2013–14 2014–15 2015–16
Current $
Total R&D, all performers 5.4 6.0 2.9   -0.5 0.9 4.8 1.8 4.7 4.7 4.1 3.0
Business 5.8 5.7 2.9   -2.9 -1.2 5.4 2.8 6.7 5.6 4.4 2.2
Federal government 1.8 5.9 2.5   4.2 6.8 5.4 -2.6 -2.0 3.1 3.1 5.8
Federal intramurala 1.9 5.6 2.6   2.4 4.6 9.3 -2.7 -1.8 4.1 2.6 6.5
FFRDCs 1.6 6.4 2.4   7.6 10.7 -1.4 -2.4 -2.5 1.3 4.2 4.4
Nonfederal governmentb NA NA 3.1   NA 14.1 0.4 -4.2 -6.8 -5.9 4.6 6.8
Higher education 6.0 7.4 3.1   5.5 5.8 3.5 1.3 1.1 1.3 3.7 4.4
Other nonprofit organizationsc 8.5 8.2 3.1   9.8 3.3 -1.5 -0.6 3.0 4.9 3.5 4.3
Gross domestic product 5.6 4.9 3.0   -2.0 3.8 3.7 4.1 3.3 4.4 4.0 2.8
Constant 2009 $
Total R&D, all performers 2.9 3.6 1.4   -1.2 -0.3 2.7 -0.1 3.0 2.9 3.0 1.7
Business 3.3 3.3 1.4   -3.6 -2.4 3.3 0.9 5.0 3.8 3.3 0.9
Federal government -0.6 3.4 1.0   3.4 5.5 3.2 -4.3 -3.6 1.3 2.0 4.4
Federal intramurala -0.5 3.2 1.1   1.6 3.4 7.1 -4.4 -3.4 2.3 1.5 5.2
FFRDCs -0.8 4.0 0.9   6.8 9.3 -3.3 -4.2 -4.0 -0.5 3.0 3.0
Nonfederal governmentb NA NA 1.6   NA 12.7 -1.6 -5.9 -8.3 -7.5 3.5 5.4
Higher education 3.5 4.9 1.6   4.7 4.5 1.4 -0.5 -0.5 -0.5 2.6 3.1
Other nonprofit organizationsc 5.9 5.7 1.6   8.9 2.1 -3.5 -2.4 1.3 3.0 2.4 3.0
Gross domestic product 3.4 2.2 1.5   -2.8 2.5 1.6 2.2 1.7 2.6 2.9 1.5

R&D Performers and Funders

The U.S. R&D system consists of the R&D activities of multiple performers and sources of funding. Performers and funders include private businesses, the federal government, nonfederal government agencies, higher education institutions, and other nonprofit organizations.[2] Organizations that perform R&D often receive significant levels of outside funding. Furthermore, R&D funders may also be significant performers.

R&D Performers

The business sector continues to be by far the largest performer of U.S. R&D. In 2015, domestically performed business R&D accounted for $355.8 billion, or 72% of the $495.1 billion national total (tables 1, 3). The business sector's predominance in the composition of national R&D performance has long been the case, with its annual share ranging between 69% and 75% over the 20-year period 1995–2015. Business R&D performance increased by $15.1 billion in 2015, following gains of $8.2 billion in 2012, $20.3 billion in 2013, and $18.2 billion in 2014 (figure 1).

TABLE 3. U.S. R&D expenditures, by performing sector, source of funds, and type of work: 2015

* = small to negligible amount, included as part of the funding provided by other sectors.

FFRDCs = federally funded research and development centers.

NOTES: Data for 2015 include some estimates and may later be revised. Some components of R&D performance and funding by other nonprofit organizations are projected and may later be revised.

SOURCE: National Science Foundation, National Center for Science and Engineering Statistics, National Patterns of R&D Resources (annual series).

Table 3 Source Data: Excel file

Source of funds ($millions)
Performing sector and type of work Total Business Federal
government
Nonfederal
government
Higher
education
Other
nonprofit
organizations
Percent
distribution by
performer
R&D 495,144 333,207 120,933 4,280 17,334 19,390 100.0
Business 355,821 327,589 26,990 127 * 1,115 71.9
Federal government 54,322 205 53,960 19 * 138 11.0
Federal intramural 35,673 0 35,673 0 0 0 7.2
FFRDCs 18,649 205 18,287 19 * 138 3.8
Nonfederal government 610 * 249 361 * * 0.1
Higher education 64,653 3,842 33,546 3,772 17,334 6,159 13.1
Other nonprofit organizations 19,738 1,572 6,189 * * 11,978 4.0
Percent distribution by funding source 100.0 67.3 24.4 0.9 3.5 3.9 -
Basic research 83,462 22,717 36,946 2,354 10,880 10,565 100.0
Business 21,792 19,621 2,038 14 * 120 26.1
Federal government 10,053 47 9,969 4 * 32 12.0
Federal intramural 5,926 0 5,926 0 0 0 7.1
FFRDCs 4,127 47 4,043 4 * 32 4.9
Nonfederal government 100 * 41 60 * * 0.1
Higher education 40,983 2,176 21,888 2,277 10,880 3,763 49.1
Other nonprofit organizations 10,534 873 3,010 * * 6,651 12.6
Percent distribution by funding source 100.0 27.2 44.3 2.8 13.0 12.7 -
Applied research 97,150 51,738 34,511 1,419 4,567 4,917 100.0
Business 56,472 50,137 6,102 24 * 209 58.1
Federal government 16,551 96 16,382 9 * 64 17.0
Federal intramural 9,200 0 9,200 0 0 0 9.5
FFRDCs 7,351 96 7,182 9 * 64 7.6
Nonfederal government 496 * 202 294 * * 0.5
Higher education 17,466 1,107 9,094 1,092 4,567 1,608 18.0
Other nonprofit organizations 6,165 398 2,731 * * 3,036 6.3
Percent distribution by funding source 100.0 53.3 35.5 1.5 4.7 5.1 -
Experimental development 314,532 258,753 49,476 507 1,888 3,908 100.0
Business 277,557 257,831 18,850 90 * 786 88.2
Federal government 27,718 62 27,609 6 * 42 8.8
Federal intramural 20,547 0 20,547 0 0 0 6.5
FFRDCs 7,171 62 7,062 6 * 42 2.3
Nonfederal government 14 * 6 8 * * 0.0
Higher education 6,204 560 2,565 404 1,888 789 2.0
Other nonprofit organizations 3,040 301 447 * * 2,292 1.0
Percent distribution by funding source 100.0 82.3 15.7 0.2 0.6 1.2 -

Inflation-adjusted growth in business R&D averaged 1.4% annually over the 7-year period 2008–15, equal to the 1.4% annual average for U.S. total R&D but just behind the 1.5% annual average for GDP (table 2). Nonetheless, growth in business R&D substantially surpassed the growth rates for both total R&D and GDP in 4 of the 7 years spanning the full 2008–15 period (2011, 2013, 2014, and 2015).

The higher education sector is the second-largest performer of U.S. R&D. Universities and colleges performed $64.7 billion in 2015, or 13% of U.S. total R&D (tables 1, 3).[3] Over the 20-year period 1995–2015, the higher education share of U.S. R&D has ranged between 11% and 14%.

Higher education R&D performance increased by $2 to $3 billion each year over 2009–11; however, the increases dropped below $1 billion in 2012–14 (figure 1). The data show a $2.3 billion increase in 2015. After adjustment for inflation, growth in this sector's R&D performance averaged 1.6% annually over 2008–15, compared to 1.4% for U.S. total R&D and 1.5% for GDP. However, when the year-by-year track is examined, the sector's growth was stronger in the first half of the period (2009, 2010, and 2011) (table 2).

The federal government conducted $54.3 billion, or 11%, of U.S. R&D in 2015 (tables 1, 3). This included $35.7 billion (7% of the U.S. total) for intramural R&D performed by federal agencies in their own research facilities and $18.6 billion (4%) of R&D performed by the 41 federally funded research and development centers (FFRDCs). In 1995, the federal performance share was about 14%, but it has gradually declined—with some occasional increases—in the years since.

The federal performance total increased by $2 to $3 billion each year over 2009–11. But it decreased $1.4 billion in 2012 and $1.1 billion in 2013. In 2014, there was a $1.6 billion increase, and there was about the same increase in 2015. These changes affected performance for both federal intramural R&D and FFRDCs (table 1). Adjusted for inflation, growth in this sector's R&D performance averaged 1.0% annually over 2008–15, behind that for U.S. total R&D (1.4%) and GDP (1.5%).

R&D performed in the United States by other nonprofit organizations (which excludes universities and FFRDCs) is estimated at $19.7 billion in 2015 (table 3). This was 4% of U.S. total R&D that year, a share that has increased only a little since the late 1990s.

R&D Funders

The business sector is also the leading source of funding for R&D performed in the United States. In 2015, business sector funding accounted for $333.2 billion, or 67% of the $495.1 billion of total U.S. R&D performance (tables 1, 3). Nearly all (98%) of the business sector's funding for R&D that year reflected R&D by business performers (even if funding provided by some businesses was performed by other businesses) (table 3). The small remainder went to R&D performers in higher education, other nonprofit organizations, and FFRDCs.

In 1995, R&D funding from the business sector accounted for 60% of the U.S. R&D total. It has been above that level throughout the years since, fluctuating in the range of 60%–69%.

Funds from the federal government accounted for $120.9 billion, or 24%, of U.S. total R&D in 2015 (tables 1, 3). This federal funding was directed mainly to R&D performance by the federal government, business, and higher education (table 3). Federal funding accounted for all the $35.7 billion of federal intramural R&D performance in 2015 and most of the $18.6 billion of R&D performed by FFRDCs. (Nonfederal support for FFRDC R&D has been around $0.4 billion in recent years, or 2% of the FFRDC's total support.) Federal funding to the business sector accounted for $27.0 billion of business R&D performance in 2015, or 8% of the sector's R&D total that year (table 3). Federal funds to higher education supported $33.5 billion (52%) of the $64.7 billion spent on academic R&D in 2015. For the R&D performed by other nonprofit organizations, $6.2 billion (31%) of this sector's $19.7 billion of performance was supported by federal funds.

In 1995, the federal funding share of U.S. total R&D was 34%. Thereafter, it declined to about 25% in 2000, rose gradually to 31% in 2009 and 2010, and then declined to 24% in 2015.

The remainder of R&D funding from other sources is relatively small: $41.0 billion in 2015, or 8% of all U.S. R&D performance. Of this amount, $17.3 billion (4%) was academia's own institutional funds, all of which remain in the academic sector; $4.3 billion (1%) was from state and local governments, primarily supporting academic research; and $19.4 billion (4%) was from other nonprofit organizations, the majority which funds this sector's own R&D. In addition, funds from the nonprofit sector support some R&D in higher education and small amounts of R&D in businesses and FFRDCs.

R&D by Type of Work

Basic research activities accounted for $83.5 billion in 2015, or 17% of the total of U.S. R&D expenditures (table 4). Applied research was $97.2 billion, or 20% of the total. Most of the R&D total is experimental development: $314.5 billion, or 64%.

TABLE 4. U.S. R&D expenditures, by type of work: 1970–2016

a Some data for 2015 are preliminary and may later be revised.

b The data for 2016 are estimates and will later be revised.

NOTES: Data throughout the time series reported here are consistently based on Organisation for Economic Co-operation and Development 's Frascati Manual definitions for basic research, applied research, and experimental development. Prior to 2010, however, some changes have been introduced in the questionnaires of the sectoral expenditure surveys to improve the accuracy of respondents' classification of their R&D. Therefore, small percentage changes in the historical data may not be meaningful.

SOURCE: National Science Foundation, National Center for Science and Engineering Statistics, National Patterns of R&D Resources (annual series).

Table 4 Source Data: Excel file

Type of work 1970 1980 1990 2000 2010 2011 2012 2013 2014 2015a 2016b
Current $billions
All R&D 26.3 63.2 152.0 267.9 406.6 426.2 433.6 454.0 475.4 495.1 510.0
Basic research 3.6 8.7 23.0 42.0 75.9 73.0 73.3 78.5 82.1 83.5 86.3
Applied research 5.8 13.7 34.9 56.5 79.3 82.1 87.1 88.3 91.9 97.2 100.3
Experimental development 16.9 40.7 94.1 169.4 251.4 271.0 273.3 287.1 301.5 314.5 323.4
Constant 2009 $billions
All R&D 115.3 142.5 227.6 327.2 401.7 412.5 412.1 424.6 436.8 450.1 457.7
Basic research 15.8 19.7 34.5 51.3 75.0 70.7 69.7 73.4 75.4 75.9 77.5
Applied research 25.2 30.9 52.3 69.0 78.3 79.5 82.8 82.6 84.4 88.3 90.0
Experimental development 74.3 91.8 140.9 206.9 248.4 262.3 259.7 268.6 277.0 285.9 290.2
Percent distribution
All R&D 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Basic research 13.7 13.8 15.2 15.7 18.7 17.1 16.9 17.3 17.3 16.9 16.9
Applied research 21.9 21.7 23.0 21.1 19.5 19.3 20.1 19.5 19.3 19.6 19.7
Experimental development 64.4 64.5 61.9 63.2 61.8 63.6 63.0 63.3 63.4 63.5 63.4

Higher education accounted for just under half (49%) of the $83.5 billion of basic research in 2015 (table 3). The business sector was the second-largest basic research performer (26%). Business was the predominant performer (58%) of the $97.2 billion of applied research in 2015. Higher education was second at 18%, and combining federal intramural performers and FFRDCs amounted to 17% of the applied research total. Business continues to dominate experimental development, accounting for 88% of the $314.5 billion of that category in 2015.

Federal funding accounted for 44% of the $83.5 billion of basic research in 2015. But federal funds were less prominent on a proportional basis for applied research (36% of $97.2 billion) and experimental development (16% of $314.5 billion). The business sector provided the greatest share of funding for applied research (53%) and the predominant share for experimental development (82%). It also accounted for a sizable share (27%) of funding for basic research.

Data on the split of U.S. total R&D among the three types of R&D in previous years appear in table 4. The shares of basic, applied, and experimental development in 2010 were largely the same as those reported above for 2015. Indeed, the shares are not dramatically different back to 2000 and earlier—although care is needed in drawing trend conclusions from this data (see table 4 notes).

Trend in National R&D Intensity

The ratio of total national R&D expenditures to GDP is often reported as a measure of the intensity of a nation's overall R&D effort and is widely used by national statistical offices and other policy analysts as an international benchmark for comparing the size of countries' R&D systems. The ratio of U.S. R&D expenditures to GDP was 2.73% in 2015, compared to 2.73% in 2014 and 2.72% in 2013 (figure 2).[4] The ratio for 2016 (2.74%) is estimated to be slightly above the 2015 level.

FIGURE 2. Ratio of U.S. R&D to gross domestic product, by source of business, federal, and nonfederal funding for R&D: 1953–2016
FIGURE 2. Ratio of U.S. R&D to gross domestic product, by source of business, federal, and nonfederal funding for R&D: 1953–2016.

NOTES: Data for 2015 are preliminary, and those for 2016 are estimates; some of these data may later be revised. The federally funded data represent the federal government as a funder of R&D by all performers; similarly for the business funded data. The other nonfederal category includes R&D funded by all other sources—mainly, higher education, nonfederal government, and other nonprofit organizations. The GDP data used reflect Bureau of Economic Analysis's comprehensive revisions of the National Income and Product Accounts of July 2017.

SOURCE: National Science Foundation, National Center for Science and Engineering Statistics, National Patterns of R&D Resources (annual series).

Figure 2 Source Data: Excel file

The U.S. R&D-to-GDP ratio stood at 2.79% in 2009—matching the ratio's highest level since the start of the time series in 1953 (it was also 2.79% in 1964). Over the 10-year period from 2005 to 2015, the ratio has fluctuated year to year, between a low of 2.48% in 2005 and the aforementioned high of 2.79% in 2009 (figure 2). The broader trend since the mid-1990s has been a rising R&D-to-GDP ratio, although with some periods of decline.

Most of the rises of the R&D-to-GDP ratio over the past several decades result from the increase of nonfederal spending on R&D, particularly by the business sector. This arises from the growing role of business R&D in the national R&D system, which in turn reflects the increase of R&D-dependent goods and services in the national and global economies.

By contrast, the ratio of federally funded R&D expenditures to GDP declined from the mid-1980s to the late 1990s, notably from cuts in defense-related R&D. There had been a gradual uptick in the ratio through 2009, the result of increased federal spending on biomedical and national security R&D and the one-time incremental funding for R&D provided by the American Recovery and Reinvestment Act of 2009 (ARRA). But the federally funded share has returned to a path of decline since 2010 (figure 2).

Data Sources and Availability

The statistics on U.S. R&D presented in this report result chiefly from integrating the data on R&D expenditures and funding collected from the annual national surveys conducted by NSF's National Center for Science and Engineering Statistics to gather information on the organizations that perform most of U.S. R&D. In some cases, the primary survey data are adjusted to enable consistent integration of the statistics from these separately conducted surveys. Further, preliminary or otherwise estimated values may be used where final data from one or more of the surveys are not yet available and can reasonably be calculated.

The R&D surveys involved include NCSES's Business R&D and Innovation Survey (for 2008 through 2015; for 2007 and earlier years, data from the preceding Survey of Industrial R&D are used), the Higher Education R&D Survey (for FY 2010 through 2016; for 2009 and earlier years, the preceding Survey of R&D Expenditures at Universities and Colleges), the Survey of Federal Funds for R&D (FYs 2015–17 and earlier years), and the FFRDC Research and Development Survey (FY 2016 and earlier years). Amounts for the R&D performed by other nonprofit organizations with funding from with the nonprofit sector and from business sources are estimated, based on parameters from the 1996–97 Survey of R&D Funding and Performance by Nonprofit Organizations.

A full set of detailed statistical tables associated with the National Patterns data will be available in the report National Patterns of R&D Resources: 2015–16 Data Update, at https://www.nsf.gov/statistics/natlpatterns/. For further information on the National Patterns data and methodology, contact the author.

Notes

[1] Mark Boroush, Research and Development Statistics Program, National Center for Science and Engineering Statistics, National Science Foundation, 2415 Eisenhower Avenue, Suite W14200, Alexandria, VA 22314 (mboroush@nsf.gov; 703-292-8726).

[2] NCSES identifies the main categories of R&D performers as follows: businesses, federal agencies, federally funded research and development centers (administered by businesses, universities, or nonprofit organizations), state government agencies, higher education, and other nonprofit organizations. For R&D funding, the main categories are businesses, the federal government, nonfederal government (state and local), higher education, and other nonprofit organizations.

[3] With this new edition of National Patterns, the data series for higher education R&D include a number of methodological improvements. First, starting with the FY 2012 survey year, the Higher Education R&D (HERD) Survey was revised to collect an abbreviated set of data from institutions reporting less than $1 million of R&D expenditures during the fiscal year. This increment of higher education R&D performance had not previously been included in the National Patterns total for the sector; it totaled $143 million in FY 2012 and has ranged from $130 million to $150 million in subsequent years. Second, with a larger effect, the adjustment to net out funds for R&D expenditures reported by academic institutions in the HERD Survey as passed through to subrecipients has been revised in several ways from 1998 (when the pass-through adjustment was first applied) up through the estimated data for 2016 in the InfoBrief presented here. For the 1998 to 2016 survey years, the coverage of the pass-through funding adjustment was expanded to include all non-educational recipients (i.e., businesses, nonprofit organizations, and others). The effect of this revised pass-through adjustment is that the annual totals of higher education R&D performance are some $0.4 billion lower in 1998, the first year for this adjustment, increasing to being annually approximately $2.5 billion lower in 2012 through 2015 than previously reported in National Patterns. For the 2010 to 2016 survey years, this more comprehensive pass-through funding adjustment was further improved by tabulating the adjustments on an institution-by-institution basis, which allows for a more precise estimate of the original non-federal sources of pass-through funds and better estimation of the type of R&D (basic, applied, or experimental development) being passed through to other R&D performers.

[4] The Department of Commerce's Bureau of Economic Analysis (BEA) introduced a comprehensive set of revisions to the National Income and Product Accounts in July 2013—including explicitly recognizing R&D as investment in the measure of U.S. gross domestic product. Although based on NCSES R&D data, BEA's R&D investment totals differ from the R&D expenditures totals reported here and by NCSES more generally. Notably, NSF-reported R&D devoted to software applications is not reported as R&D in the BEA R&D investment totals; instead, software R&D is included in BEA's software investment totals. For a fuller explanation of this development and its implications see NCSES's recent InfoBrief on this topic: https://www.nsf.gov/statistics/2015/nsf15315/.