Useful Stats: Federal Obligations for R&D to Industry by State FY2001-07

The State of Washington led the country in 2007 in federal funding for industrial research and development (R&D), receiving $3.27 billion, according to the latest numbers from the National Science Foundation (NSF). While 42.3 percent of total federal R&D funding supported industrial R&D, 69.5 percent of federal funding in Washington went to private companies. Arizona, Maine, Connecticut, Nevada and Texas all received more than 65 percent of their federal R&D dollars in industrial support. Trends over the past six years indicate that industrial R&D is becoming a more important target for federal R&D investment.

The NSF's Federal Funds for Research and Development series illustrates trends in the federal government's funding obligations for science and engineering R&D. The series tracks federal support to government agencies, academic institutions, research centers, state and local governments, nonprofit organizations, as well as private companies. It includes detailed information on funding agencies and research performers by state.

SSTI has prepared a table showing industrial R&D funding by state for each year from 2002 to 2007. It includes data from 2007 on the proportion of industrial R&D within total federal R&D funding by state, and data on state increases in industrial R&D funding between 2002 and 2007. The table is available at: http://www.ssti.org/Digest/Tables/052610t.htm.

Between 2002 and 2007, overall federal industrial R&D funding increased by 60.08 percent, from $29.45 billion to $47.14 billion. Industrial R&D also has become a larger part of the federal government's overall R&D spending overall. In 2002, 35.06 percent of federal R&D funding went to industry. By 2007, that figure rose to 42.3 percent.

In most states, both industrial R&D dollars and the percentage of federal R&D going to industry have increased, with some exceptions. California leads in industrial R&D dollars ($12.2 billion in 2007) and increased its funding by 82.2 percent between 2002 and 2007. In addition to its rank as the state with the highest percentage of industrial R&D, Washington increased its industrial R&D dollars by 402.2 percent, from $652.7 million in 2002 to $3.27 billion in 2007. Iowa also quadrupled its industrial R&D funding during that period, from $45.43 million to $299 million. Other states that increase their industrial funding more than three times over between 2002 and 2007 include Arkansas, Montana and Tennessee.

Several states experienced decline during this six-year period, including Alabama, Georgia, Indiana, Maryland, Mississippi, Missouri, Nevada, Ohio, South Dakota, Vermont and West Virginia. In most cases, however, these declines did not represent a consistent downward trend.

Federal Funds for Research and Development: Fiscal Years 2007-09 is available at: http://www.nsf.gov/statistics/nsf10305/pdf/nsf10305.pdf.