Useful Stats: U.S. R&D Spending and Intensity by State, 2006-11

Despite a small decline in research investment in 2011, New Mexico continues to have the country’s most research-focused economy, according to the National Science Foundation National Patterns of R&D Resources survey.  NSF’s figures include all R&D investment in the state from all sources, including the federal government, private businesses, academic institutions and others. The data indicates that, as of 2011, research spending in New Mexico represents 7.63 percent of the state’s gross domestic product (GDP).  

New Mexico’s strong R&D focus is driven by the presence of large research institutions, including Sandia National Laboratories, Los Alamos National Laboratory and White Sands Missile Range. Due to the presence of these major research centers, the state’s R&D intensity is more than twice that of the U.S. as a whole, in which $2.84 was spent on research for every $100 in GDP.

Maryland, Massachusetts, Washington and California also ranked among the top most research-focused economies in 2011, according to NSF. In Maryland, the second most research-oriented state, about $6.30 was spent on research for every $100 in GDP.

SSTI has prepared tables, based on the NSF data, showing total R&D spending and R&D intensity at the national and state level from 2006-11. View the tables below or download them in Excel format at: http://ssti.org/sites/default/files/011414.xlsx.

Over the period from 2006-08, U.S. research investment grew more quickly than GDP, with that lead slowing in the 2009-10 period (detailed data in not available for 2009). Investment in research increased from 2.63 percent in 2006 to 2.84 percent in 2011. Most, but not all, states followed a similar trend, with gains in the pre-economic crisis period, followed by slowdown during and after the downturn. During that five-year span, Idaho’s R&D intensity grew the most of any state, from 1.91 percent to 3.14 percent. Large gains were also made in Iowa, California, Alabama and Maryland.

U.S. R&D intensity ranks tenth among the countries tracked by the Organization for Economic Co-operation and Development (OECD), according to a recent NSF InfoBrief. Israel leads OECD countries with a ratio of 4.38 percent, followed by South Korea, Finland, and Japan.  The closest overseas analogues to the U.S. are Germany and Switzerland, which had ratios of 2.88 and 2.87 percent, respectively.

California, in addition to ranking near the top of the list of R&D-focused states, leads in total R&D spending. Other top states include Massachusetts, Texas, Maryland and New York. In 2011, R&D spending in California reached $91.4 billion, accounting for more than one-fifth all U.S.  research investment.  During the five-year period between 2006-11, California’s actually slightly increased its share of U.S. R&D investment, from 20.6 percent to 21.4 percent.

In that same period, U.S. total R&D investment grew by 23.37 percent.  Most states posted gains during that time, but the actual percentages greatly varied. Idaho almost doubled its investment in research, from $927 million to $1.8 billion, though it remains 34th in total spending. Major increases also took place in Iowa, Utah, North Dakota and Louisiana.

Last week, SSTI reported on the changes in U.S. R&D investment over the past 10 years, with attention to the stage of research being funded. That data and analysis is available at: http://ssti.org/blog/useful-stats-us-research-and-development-expenditures-stage-work-2002-12.

NSF’s National Patterns of R&D Resources data is available at: http://www.nsf.gov/statistics/natlpatterns/.

U.S. R&D Spending by State, 2006-11 (in USD millions)

U.S. R&D Intensity by State, 2006-11

* 2009 R&D Intensity figures are reported only in integers.

011414.xlsx