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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 decreased in size from $1.7 billion in 2002–04 to $700 million in 2010–12.
  • Over the 3-year period of 2010–12, SBIR funds were concentrated in relatively few states; the average annual state awards during this period ranged from $23,000 to nearly $133 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. A high value indicates that small business firms in a state are doing innovative development work that attracts federal support.


Data Table

Table 8-56
Average annual federal Small Business Innovation Research funding per $1 million of gross domestic product, by state: 2002–04, 2006–08, and 2010–12
 
Average SBIR funding ($thousands) Average state GDP ($millions) SBIR funding ($)/$1 million GDP
State 2002–04 2006–08 2010–12 2002–04 2006–08 2010–12 2002–04 2006–08 2010–12
 
United States 1,729,004 1,801,190 699,675 11,138,210 13,806,188 14,971,555 155 130 47
Alabama 33,192 39,376 11,461 132,668 164,976 178,307 250 239 64
Alaska 495 707 23 31,382 45,377 50,335 16 16 0
Arizona 28,534 29,003 11,280 189,045 255,461 256,736 151 114 44
Arkansas 3,240 6,965 2,463 78,672 97,210 106,428 41 72 23
California 361,242 350,717 133,814 1,472,700 1,856,525 1,919,238 245 189 70
Colorado 81,320 86,126 31,818 193,378 241,785 264,444 421 356 120
Connecticut 29,454 24,046 12,721 176,775 216,690 225,498 167 111 56
Delaware 4,195 7,215 3,292 47,198 57,943 64,398 89 125 51
District of Columbia 5,840 3,339 709 72,509 91,808 106,913 81 36 7
Florida 37,543 44,269 16,919 577,287 746,840 750,525 65 59 23
Georgia 16,484 17,983 7,069 327,221 394,815 417,671 50 46 17
Hawaii 5,772 7,820 3,350 48,379 63,680 69,901 119 123 48
Idaho 3,664 3,496 1,138 40,426 53,308 56,993 91 66 20
Illinois 22,500 28,052 14,109 520,654 619,747 669,418 43 45 21
Indiana 10,739 17,080 7,193 220,221 257,119 284,569 49 66 25
Iowa 4,875 4,290 1,949 106,253 130,673 145,624 46 33 13
Kansas 4,971 4,626 1,115 95,996 118,862 133,453 52 39 8
Kentucky 4,237 5,602 4,085 126,177 150,155 167,516 34 37 24
Louisiana 3,126 4,326 2,416 155,554 208,573 236,009 20 21 10
Maine 5,604 7,378 1,464 41,950 48,720 52,496 134 151 28
Maryland 93,753 79,860 39,756 218,398 270,963 306,278 429 295 130
Massachusetts 242,347 228,472 87,740 298,795 350,526 389,769 811 652 225
Michigan 33,544 44,746 19,609 360,031 377,254 384,245 93 119 51
Minnesota 24,805 26,318 8,603 213,719 253,502 281,098 116 104 31
Mississippi 3,232 1,040 1,070 73,636 91,141 98,262 44 11 11
Missouri 7,342 8,792 5,161 200,162 232,695 250,751 37 38 21
Montana 7,045 8,278 2,561 25,765 34,373 38,625 273 241 66
Nebraska 2,998 2,471 1,575 65,767 81,288 95,566 46 30 16
Nevada 7,772 3,364 2,452 90,871 129,638 129,281 86 26 19
New Hampshire 22,208 24,343 8,703 48,944 57,481 63,059 454 423 138
New Jersey 47,712 42,988 22,392 393,407 469,391 494,728 121 92 45
New Mexico 21,965 24,776 8,918 58,588 74,300 79,280 375 333 112
New York 75,741 83,045 33,447 852,183 1,062,116 1,170,594 89 78 29
North Carolina 22,739 36,235 14,732 313,544 394,114 439,664 73 92 34
North Dakota 1,960 918 691 22,033 28,794 40,455 89 32 17
Ohio 67,568 73,611 30,032 411,939 461,850 488,446 164 159 61
Oklahoma 6,630 7,104 2,065 105,269 141,926 154,887 63 50 13
Oregon 19,556 27,406 11,352 127,142 167,326 189,735 154 164 60
Pennsylvania 65,170 78,761 25,430 442,445 527,391 580,324 147 149 44
Rhode Island 7,783 7,056 1,004 40,575 46,991 49,650 192 150 20
South Carolina 7,397 4,630 3,146 129,895 155,340 169,075 57 30 19
South Dakota 1,291 526 110 29,034 34,818 40,809 44 15 3
Tennessee 9,411 13,239 4,072 202,354 242,165 264,755 47 55 15
Texas 71,023 79,874 25,681 836,983 1,137,028 1,315,029 85 70 20
Utah 14,299 15,540 2,820 78,275 107,495 124,388 183 145 23
Vermont 4,808 5,286 2,685 20,671 24,034 26,550 233 220 101
Virginia 98,902 102,923 38,430 309,279 387,343 434,083 320 266 89
Washington 46,963 47,165 13,361 247,384 319,661 358,496 190 148 37
West Virginia 6,002 2,186 1,060 46,373 56,765 66,074 129 39 16
Wisconsin 17,592 25,174 12,125 199,081 233,769 253,437 88 108 48
Wyoming 2,418 2,647 504 21,223 34,443 37,690 114 77 13
 
Puerto Rico 216 8 120 78,948 92,624 NA 3 0 NA
 

NA = not available.

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

SOURCES: Small Business Administration, Office of Technology, Small Business Innovation Research program statistics (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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