Search

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.

From 2022 to 2023, domestic R&D expenditures increased 4%, or $29 billion, but remained nearly unchanged when adjusted for inflation. This apparent slowdown follows a streak averaging nearly 12% ($59 billion) year-over-year growth from 2018 to 2022, and 8% over the past decade from 2014 to 2023. Adjusting for inflation paints a different picture of the growth trends, with a more modest annual average of 8% from 2018 to 2022 and 6% over the past decade.

A recently published InfoChart from the National Center for Science and Engineering Statistics (NCSES) presents an annotated walk through federal R&D obligations from FY 1951 through 2024, explaining key events influencing key moments in the surges and downswings along the nation’s path to supporting discovery, research, development and innovation. The data is presented in constant 2017 dollars. 

Manufacturing industries accounted for approximately $372 billion, or 54%, of all domestic business enterprise R&D (BERD) expenditures in 2022, up 36% from $274 billion in 2018. Despite this increase of nearly $100 billion over the past five years, the share of BERD expenditures in manufacturing industries has decreased eight percentage points from its 2018 value of 62%.

While both gross domestic product (GDP) and population have steadily increased across the United States over the last decade, the growth of business enterprise R&D (BERD) expenditures has surged ahead at an even faster pace.

As business R&D expenditures continue to increase nationwide, disparities between states deepen, an SSTI analysis of new Business Enterprise Research and Development (BERD) survey data reveals.

Domestic business R&D expenditures have jumped 15% ($89 billion) from 2021 to 2022. This jump continues a decade-long trend of year-over-year increases, as a new 2022 Business Enterprise R&D (BERD) survey shows.

Despite the pandemic and accompanying global economic slowdown in 2020 and 2021, U.S. business spending on research and development (R&D) activities increased by nearly $65 billion (12%), rising from $538 billion in 2020 to $602 billion in 2021. This increase was led by a $61 billion, or 13% increase, in R&D paid for by the company, compared to a $3 billion, 5% increase, in R&D paid for by others.

The National Science Foundation (NSF) is expanding a network of research centers across the country to translate university-based R&D into new, and hopefully, better advanced materials. In late June, NSF announced the distribution of $162 million to support the creation of nine more Materials Research Science & Engineering Centers (MRSECs), bringing the total number of centers to twenty. Each of the new centers will receive $18 million over six years.

The U.S. National Science Foundation announced a new $60 million investment led by NSF's Directorate for Technology, Innovation and Partnerships — the Accelerating Research Translation, or ART, program. The program will build capacity and infrastructure at higher education institutions that are needed to strengthen and scale the translation of basic research outcomes into impactful solutions and practice.

Despite COVID-induced setbacks continuing to keep some people out of offices and laboratories, new Business Enterprise Research and Development Survey (BERD) data reveals that domestic research and development (R&D) spending, although slowing, is still on an uptrend.

An SSTI analysis of business R&D employment data from the National Science Foundation’s recently updated 2019 Business Enterprise R&D (BERD) Survey finds that nationally in 2019, R&D employment at private businesses accounted for 8.6 percent of total employment. The states where the business R&D employment shares of total employment were the greatest in 2019 were Washington (20.9 percent); Massachusetts (19.3 percent); California (17.7 percent); New Hampshire (14.7 percent); and Michigan (12.7 percent).

Private sector investment into research and development (R&D) is a critical component of innovation, new product development, and regional economic vitality. As a substantial performer and funder of R&D in the United States, the strength of private industry’s R&D activity in a region can provide an indication of the region’s capacity for developing and bringing innovative technologies to market.

A bipartisan, bicameral group of legislators have introduced bills that would make a five-year commitment to increase America’s investment in R&D by $100 billion, while also investing $10 bi

Across the U.S., the federal government provided 53 percent of R&D funding at institutions of higher education in FY 2018. Those institutions provided 26 percent of the funding themselves, and most of the remainder was provided by a mix of nonprofit organizations (7 percent), industry (6 percent), and state and local government (5 percent). The specific contributions varied from state to state, however, with some relying more on specific relationships to support R&D within the state.

Nearly three-quarters of all research and development was performed by the private sector in fiscal year 2016, though this share differed greatly across the states, according to an SSTI analysis of recently released data from the National Science Foundation’s National Center for Science and Engineering Statistics (NSF NCSES).

For the first time in five years, federal funding for higher education research and development increased in both current and constant dollars, according to recently released data from the National Center for Science and Engineering Statistics within the National Science Foundation. In FY 2016, universities reported $72.0 billion in total R&D expenditures, a 4.8 percent increase from FY 2015. Of this amount, more than half (54 percent) came from the federal government.

In 2015, businesses spent 4.4 percent more on R&D performed in the U.S. than they did in 2014, reaching $356 billion total, the NSF reports. Of the total R&D expenditures in 2015, companies spent $22 billion (6 percent) on basic research, $56 billion (16 percent) on applied research, and $278 billion (78 percent) on development.

The National Science Foundation (NSF) estimates that U.S. research and development (R&D) funding reached an all-time high of $499.3 billion in 2015 – an increase of approximately $21.6 billion over 2014 levels ($477.7 billion). The $21.6 billion increase marks the third time in three years that overall U.S. R&D funding grew by more than $20 billion – $20.4 billion in 2013 and $21.1 billion in 2014.

U.S. research and development (R&D) performance rose to $477.7 billion in 2014 – an increase of $21.1 billion over 2013, according to a recent National Science Foundation (NSF) InfoBrief. When adjusted for inflation, growth in U.S. total R&D performance (1.2 percent annually between 2008 and 2014) matched the average pace of U.S. gross domestic product (GDP).

U.S. companies continue to emphasize innovation, as private performance of R&D increased for the fourth consecutive year, according to recently released data from the National Science Foundation. In total, U.S. businesses performed 6.7 percent more R&D in 2013 than in 2012, according to the data, and nearly 19 percent more R&D from 2010 to 2013. Combined, the top 10 states performed approximately two-thirds (65.3 percent) of all private research and development in the United States, led by California, whose $89.4 billion in corporate R&D performance accounted for 27.7 percent of the national total.

In FY13, federal agencies obligated $29 billion to 995 academic institutions for science and engineering (S&E) activities, according to a recent National Science Foundation (NSF) InfoBrief. The FY13 federal obligation represented a 6 percent decrease in current dollars from the $31 billion that federal agencies obligated to 1,073 academic institutions in FY12 – the third year in a row of declining S&E funding to academic institutions.

Funding obligated by federal agencies for research and development (R&D) and R&D plant (facilities and fixed equipment) dropped from $141 billion to $127 billion (9 percent decrease) in current dollars from FY12 to FY13, according to a new National Science Foundation (NSF) InfoBrief. NSF researchers found that federal funding for research dropped by 4 percent; support for development efforts dropped by 14 percent; and, R&D plant funds were reduced by 11 percent.

The National Science Foundation (NSF) was appropriated $7.2 billion in FY14 (not including mandatory accounts) of which over $6.8 billion (nearly 95 percent of NSF’s total appropriations) was used to support research and education awards. Over 1,800 institutions of higher education and other organizations received funding from NSF including 11,000 competitively reviewed awards according to a report released by the NSF.  Other highlights include: