r&d

In tech-based economic development circles, universities are frequently thought of as engines for regional economic growth, engines whose effectiveness is determined by the volume of research conducted and the ability of faculty and staff to turn discoveries into commercially available goods and services. The authors of two recent academic articles suggest that regional economies are also a key determinant of university success.

According to the National Science Foundation’s (NSF) Higher Education Research and Development (HERD) Survey the percentage of university R&D funded by private sector investment has remained mostly stable since the late 1970s, hovering between 5 percent and 7 percent of total R&D expenditures. In FY 2011 the private sector invested $3.2 billion, or 4.9 percent of the total $65 billion university R&D expenditures.

Under a new set of proposed rules issued by the U.S. Department of the Treasury, companies will be able to claim the federal research and experimentation (R&E) tax credit on eligible expenditures regardless of any subsequent actions taken by businesses with the purchases. The change would allow businesses to claim the credit on research expenses used to create prototypes, pilot models and process improvements.

Well-designed research centers can help bring an innovation ecosystem together through the spillover effects of knowledge dissemination, student learning experiences, local early access to new technologies, and by attracting R&D funding. In New York, Gov. Andrew Cuomo recently announced a $30 million initiative led by SUNY’s College of Nanoscale Science and Engineering (CNSE) to transform and revitalize a vacant building into a hub for smart cities technology companies, research, education and workforce training.

Electric vehicles may be gaining momentum.

The National Institutes of Health (NIH) has launched a new initiative to fund the exploration of using Big Data to improve national health care outcomes. NIH will provide $24 million per year for four years to establish six to eight Big Data Centers of Excellence. The centers will be used by researchers and students for training in data science and testing the use of large and complex datasets to create tools, methods, and software that can improve health care processes.

U.S. research universities have launched several new initiatives to impact international development across Africa by leveraging their institutional knowledge to support tech-based economic growth on the continent. The African Development Bank, a regional multilateral development bank, also announced that it will commit $45 million for the creation of a Pan African University consisting of five thematic institutes focused primarily on science, technology and innovation.

Department of Energy (DOE) Secretary Ernest Moniz is leading a restructuring of the department's management, reorganizing programs and undersecretary positions to better align with the operational goals of supporting President Obama's Climate Action Plan, an "all of the above" energy strategy, and strengthening nuclear security. The move will create an Under Secretary for Management and Performance, merge the energy and science programs, and consolidate the department's defense waste cleanup efforts.

The National Science Foundation (NSF) has conducted a Survey of Federal Funds for Research and Development for fiscal years 2010-12. In total, federal R&D obligations were $144.7 billion in FY10. The top state recipients, in absolute terms, are California ($28.3 billion, representing 19.6% of the national total), Maryland ($17.0 billion, 11.8%), Virginia ($9.3 billion, 6.4%), Massachusetts ($8.9 billion, 6.1%), and Texas ($7.3 billion, 5.0%).

A continued trend toward improved fiscal conditions gave rise to targeted and riskier investments in research for several states this legislative session. In particular, lawmakers dedicated funds for life sciences research and for initiatives aimed at commercialization through partnerships with higher education and the private sector. Other states dedicated additional funds to expand promising research and technology-focused initiatives already underway.