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Useful Stats: Industrial R&D Performance by State, 1999-2003

February 27, 2006

National R&D spending increased by $10.1 billion in fiscal year 2003, according to a recent National Science Foundation (NSF) InfoBrief. The increase followed an $8.1 billion decrease in FY 2002 expenditures over the FY 2001 level, the data show.

The NSF report, Increase in US Industrial R&D Expenditures Reported for 2003 Makes Up for Earlier Declines, breaks down R&D expenditures into three technology areas: biotechnology, materials synthesis and processing, and software development. According to the report, national tech-based R&D expenditures for FY03 totaled $14.2 billion for biotechnology, $15.9 billion for materials synthesis and processing, and $27.1 billion for software development.

Using NSF data, SSTI has prepared a table ranking states by percent change in R&D performance from 1999-2003. Mississippi experienced the most significant increase, 355.8 percent, over the five-year period. North Dakota, Oregon, Maryland and Hawaii posted increases of more than 95 percent from FY99, completing the top five, respectively.

California, which leads the nation in R&D spending at $47.1 billion, had the largest dollar increase ($8.97  billion) over the five years. In all, nine states had increases of more than $1 billion, including Texas ($2.4B), Washington ($2.1B), Maryland ($1.98B), Connecticut ($1.7B), Oregon ($1.6B), Virginia ($1.5B), Massachusetts ($1.3 B), Minnesota ($1.3B) and New Jersey ($1.98B).

Conversely, 20 states experienced a decrease in R&D spending over the five years. New Mexico incurred the largest percent decrease at a 74.5 percent clip, followed by Alaska (56.1 percent), Wyoming (43.1 percent), Louisiana (42.8 percent), and Idaho (39.9 percent).

The SSTI table is available at: http://www.ssti.org/Digest/Tables/022706t.htm

The NSF report is available at: http://www.nsf.gov/statistics/infbrief/nsf06305/