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.

Federal funds for science and engineering at American universities grew steadily from 2001 to 2008, jumped in 2009 and 2010 due to the American Reinvestment and Recovery Act (ARRA), and more or less returned to its original trajectory in 2011, according to survey data from the National Science Foundation (NSF). Federal S&E funding in most states followed a similar pattern. A few states, including Minnesota and Delaware, managed to sustain their level of federal S&E support after the Recovery Act funds ceased.

With Earth Day just around the corner, SSTI is taking a closer look at environmental science research spending in the states.  Even as climate change emerged as a key political topic during the first decade of the millennium, spending on environmental research at American colleges and universities declined as a percentage of all R&D, according to data from the National Science Foundation (NSF) Higher Education Research and Development (HERD) Survey. Between 2003-12, environmental science expenditures fell from 5.3 percent of all R&D expenditures to 4.8 percent.

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.

This article was edited on April 19th, 2023, to correct for an error in the original data analysis.

This article was edited on April 19th, 2023, to correct for an error in the original data analysis.

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).

The National Science Foundation (NSF), the fifth largest distributor of SBIR awards among federal agencies, received more than 20,000 proposals over the decade long period from 2008 to 2017, approving more than 3,600 (16.8 percent), according to an SSTI analysis of NSF data. NSF SBIR awards are the least concentrated of all federal agencies, as measured by share of awards going to firms with more than 10+ awards.

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.

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.

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.

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.

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.

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%.