The United States is home to some of the world's most prestigious universities, each performing critical research that helps advance the country’s innovation economy. However, these universities are not evenly distributed across the country; many are concentrated within large cities in states where their spillover further impacts the local economies.
Research and Development (R&D) is an essential component of innovation and economic growth, where higher education institutions play a key role. However, with these institutions being responsible for funding just a quarter of all HERD expenditures, it is important to see the influence of outside funding sources on the fields of R&D.
Institutions of higher education spent $97.8 billion on research and development (R&D) activities in fiscal year (FY) 2022, an increase of nearly 9% over the prior year’s $89.8 billion. Over the past decade of available data, from FY 2013-2022, higher education R&D expenditures have increased 46%, from $67.1 to $97.8 billion. However, when adjusted for inflation, the growth is more modest at 17%.
The 2021 BERD dataset reveals the highest level of business R&D spending on record. Since 2015, R&D expenditures have increased by 69% from $356 to $602 billion, representing an average annual growth of $41 billion or 9%. But what industries are contributing the most to this trend?
The Department of Defense recently awarded six Defense Manufacturing Community Support Program (DMCSP) grants totaling approximately $30 million from the Office of Local Defense Community Cooperation (OLDCC). The DMCSP invests long-term in critical skills, facilities, workforce development, research and development, and small business support to strengthen the national security innovation base.
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.
SBA recently announced its 2023 Growth Accelerator Fund Competition Stage Two prize winners. The 35 award-winning accelerator partnerships will receive $150,000 each in unrestricted funds.
The Internal Revenue Service recently published new interim guidance for companies to use when amortizing research or experimental expenditures — a new requirement for tax year 2022 created in the Tax Cuts and Jobs Act.
The United States' 42 federally funded research and development centers (FFRDCs) received a record $26 billion in federal government funding in fiscal year 2022 — a nearly 6% increase compared to the previous year. FFRDCs expended $26.5 billion on R&D in FY 2022, marking the ninth consecutive year of nominal growth. On average, FFRDCs have increased R&D expenditures by 1.3% per annum since 2012.
A memo sent out last week by the Office of Management and Budget and the Office of Science and Technology Policy outlines this year’s R&D priorities. Federal science agencies will use this memo to design their budget requests for the fiscal year 2025.