Useful Stats: Business R&D continues to consolidate in top states
With federal R&D investments unlikely to keep pace with inflation or international competition based on the administration’s budget request, cuts to existing research grants, and Congress’s inability to pass a budget, business R&D investments become more critical for sustaining the competitiveness of regional innovation economies.
With federal R&D investments unlikely to keep pace with inflation or international competition based on the administration’s budget request, cuts to existing research grants, and Congress’s inability to pass a budget, business R&D investments become more critical for sustaining the competitiveness of regional innovation economies. Trends evident in new data released by the National Science Foundation point to areas of potential concern or need for state TBED policy attention and potential adjustment: business R&D is growing even more concentrated geographically, and for many areas of the country business investments likely are not growing at a sufficient pace to maintain the regions’ innovation capacity.
In 2023, just four states comprised 54% of the nation’s domestic business R&D expenditures, a sharp increase from being less than 45% in 2014, SSTI analysis of new Business Enterprise Research and Development (BERD) survey data reveals. The consolidation of BERD expenditures in the top states may lead one to think that less R&D is occurring outside of the largest states, but this is not the case; 24 jurisdictions doubled BERD expenditures in the past decade, with all but one state increasing total expenditures. Adjusted for inflation, however, reveals a more modest nine jurisdictions doubled their business R&D activities, while all but five increased. These trends and more are explored in this edition of Useful Stats.