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Chapter 8. State Indicators

Financial Research and Development Outputs

R&D as a Percentage of Gross Domestic Product



Findings

  • The national value of this indicator rose slightly between 2000 and 2010, from 2.48% to 2.61%.
  • In 2010, state values for this indicator ranged from 0.29% to 8.01%, indicating large differences in the geographic concentration of R&D activity.
  • New Mexico has a large amount of federal R&D activities and a relatively small GDP, giving it the highest value for 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 Experimental Program to Stimulate Competitive Research (EPSCoR) group was approximately 9% of that performed in states in the non-EPSCoR group in 2010.


Description

This indicator represents 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 performed” refers to R&D activities conducted or funded by federal and state agencies, businesses, universities, and nonprofit organizations. In 2010, business performed nearly 69% of the total R&D at the national level. The remaining R&D was performed by colleges and universities, government facilities (including federally funded R&D centers), and nonprofit institutions.

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.


Data Table

Table 8-40
R&D as a percentage of gross domestic product, by state: 2000, 2005, and 2010
 
R&D performed ($millions) State GDP ($millions) R&D performed/
state GDP (%)
State 2000 2005 2010 2000 2005 2010 2000 2005 2010
 
EPSCoR states 18,292 27,056 31,731 1,309,452 1,725,273 2,017,488 1.40 1.57 1.57
Non-EPSCoR states 223,827 279,001 339,269 8,456,735 10,649,784 12,164,950 2.65 2.62 2.79
Average EPSCoR state value na na na na na na 1.62 1.76 1.75
Average non-EPSCoR state value na na na na na na 2.47 2.65 2.83
 
United States 244,852 310,197 375,724 9,884,170 12,539,116 14,388,814 2.48 2.47 2.61
Alabama 1,730 2,804 3,738 116,009 150,968 172,842 1.49 1.86 2.16
Alaska 196 266 347 25,911 37,774 47,910 0.76 0.70 0.72
Arizona 3,107 4,139 5,481 161,792 222,569 247,329 1.92 1.86 2.22
Arkansas 454 528 590 68,335 88,501 103,170 0.66 0.60 0.57
California 55,093 63,874 81,005 1,319,472 1,688,949 1,845,249 4.18 3.78 4.39
Colorado 4,230 5,807 6,164 172,037 217,329 254,551 2.46 2.67 2.42
Connecticut 4,888 8,987 7,435 163,455 196,307 221,767 2.99 4.58 3.35
Delaware 1,532 1,635 2,327 40,614 54,422 62,832 3.77 3.00 3.70
District of Columbia 2,296 3,342 3,568 58,267 82,488 103,745 3.94 4.05 3.44
Florida 4,663 6,224 7,952 481,239 681,225 727,972 0.97 0.91 1.09
Georgia 2,796 3,867 5,451 293,966 363,177 402,006 0.95 1.06 1.36
Hawaii 291 513 688 41,450 56,901 67,274 0.70 0.90 1.02
Idaho 1,434 1,030 1,779 36,147 48,683 55,639 3.97 2.12 3.20
Illinois 12,767 12,519 15,820 474,520 568,114 642,769 2.69 2.20 2.46
Indiana 3,252 5,455 6,339 198,238 239,321 270,739 1.64 2.28 2.34
Iowa 1,017 1,669 2,765 93,312 119,998 138,378 1.09 1.39 2.00
Kansas 1,420 2,366 2,002 85,722 104,869 126,640 1.66 2.26 1.58
Kentucky 866 1,136 1,498 113,233 138,772 161,064 0.76 0.82 0.93
Louisiana 627 966 1,200 131,289 196,917 227,373 0.48 0.49 0.53
Maine 319 524 488 36,438 45,520 51,343 0.88 1.15 0.95
Maryland 8,634 14,136 18,429 182,923 247,241 295,981 4.72 5.72 6.23
Massachusetts 13,004 17,757 20,195 273,006 323,314 376,908 4.76 5.49 5.36
Michigan 18,892 18,372 14,702 337,459 375,753 367,107 5.60 4.89 4.00
Minnesota 4,299 7,137 7,393 188,818 237,813 268,578 2.28 3.00 2.75
Mississippi 513 777 852 65,625 81,360 95,763 0.78 0.96 0.89
Missouri 2,583 3,627 9,253 180,967 216,336 243,876 1.43 1.68 3.79
Montana 170 318 390 21,633 30,054 36,521 0.79 1.06 1.07
Nebraska 439 800 935 57,333 72,505 90,910 0.77 1.10 1.03
Nevada 377 614 939 75,895 114,478 124,838 0.50 0.54 0.75
New Hampshire 775 1,776 2,159 44,161 53,693 61,147 1.75 3.31 3.53
New Jersey 13,133 14,900 17,876 350,110 430,246 483,007 3.75 3.46 3.70
New Mexico 3,085 5,265 6,225 50,294 67,763 77,686 6.13 7.77 8.01
New York 13,556 14,103 17,141 769,291 959,867 1,136,417 1.76 1.47 1.51
North Carolina 5,045 7,329 8,746 281,542 354,664 426,875 1.79 2.07 2.05
North Dakota 146 285 468 18,266 24,670 35,357 0.80 1.16 1.32
Ohio 7,662 8,267 10,048 380,895 444,083 465,679 2.01 1.86 2.16
Oklahoma 660 814 1,029 91,273 120,529 147,649 0.72 0.68 0.70
Oregon 2,116 3,920 5,250 113,180 143,429 181,523 1.87 2.73 2.89
Pennsylvania 9,842 11,916 13,074 395,602 482,200 558,818 2.49 2.47 2.34
Rhode Island 1,501 1,990 1,439 33,584 44,189 48,572 4.47 4.50 2.96
South Carolina 1,126 2,108 2,384 115,443 141,877 162,292 0.98 1.49 1.47
South Dakota 85 157 270 24,038 31,549 38,297 0.35 0.50 0.71
Tennessee 2,057 3,009 3,955 177,540 224,288 253,602 1.16 1.34 1.56
Texas 11,552 15,867 19,504 731,064 968,553 1,226,714 1.58 1.64 1.59
Utah 1,361 1,886 3,197 69,489 90,616 118,225 1.96 2.08 2.70
Vermont 465 493 452 18,039 22,743 25,809 2.58 2.17 1.75
Virginia 5,069 8,568 10,063 261,759 356,370 422,763 1.94 2.40 2.38
Washington 10,516 11,864 16,685 227,704 279,333 342,702 4.62 4.25 4.87
West Virginia 457 567 584 41,386 51,857 62,732 1.10 1.09 0.93
Wisconsin 2,693 3,802 5,346 177,355 218,689 245,415 1.52 1.74 2.18
Wyoming 61 122 104 17,050 26,250 36,459 0.36 0.46 0.29
 
Puerto Rico NA NA NA 69,208 86,158 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, businesses, universities, other nonprofit organizations, and state agencies. For an explanation of EPSCoR and non-EPSCoR averages, see the chapter introduction.

SOURCES: National Science Foundation, National Center for Science and Engineering Statistics, National Patterns of R&D Resources (various years); Bureau of Economic Analysis, Gross Domestic Product data (June 2013).

Science and Engineering Indicators 2014


State Data Tool

The state data tool allows interactive exploration of the 58 indicators in this chapter. Users have the ability to choose and explore a single indicator in-depth, compare multiple indicators for preselected groups, customize their own graphics, or download data tables. Click the button below to get started.

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