NSF Finds Top R&D-performing States Have Diverse R&D Patterns

The patterns of research and development (R&D) activities vary considerably among those states with the most R&D expenditures, the National Science Foundation's (NSF) latest InfoBrief reports. In 2000, 87 percent of the nation's total R&D investment of $265 billion occurred in 20 states. Only 4 percent of the U.S. R&D total was accounted for by the 20 lowest ranking states. California led all states with more than $55 billion in expenditures, a 14.9 percent increase over its 1999 total; the 2000 total equals more than one-fifth of the U.S. total.

Those states with $10 billion or more in R&D investments in 2000 include Michigan ($18.892B), New York ($13.556B), New Jersey ($13.133B), Massachusetts ($13.004B), Illinois ($12.767B), Texas ($11.552B) and Washington ($10.516B). Among these states, New Jersey showed the greatest growth with a 24.7 percent increase between 1999 and 2000. New York, Texas and Pennsylvania, which ranked ninth at $9.842 billion in R&D expenditures, all experienced declines.

Most of Michigan's industry R&D is accounted for by manufacturing industries (89 percent), according to the InfoBrief. Seventy-three percent of that total can be attributed to the transportation equipment industry, which accounts for only 15 percent of the nation's total industry R&D. Manufacturing as a whole accounts for 62 percent of the U.S. total.

For comparison, Washington has more of its industry R&D concentrated in nonmanufacturing industries. Most of the state's $6 billion-plus nonmanufacturing R&D in 2000 went to software research and development investment. Only 33 percent could be attributed to manufacturing industries — a figure less than that which the nation as a whole has in these industries.

Other leading states demonstrate similar diverse industry R&D patterns. Massachusetts, for example, has 43 percent of its industry R&D in computer and electronic products, while the industry accounts for only 23 percent of the nation's total. New Jersey and Pennsylvania, respectively having 25 percent and 33 percent shares in the chemicals industry, show a marked increase over the 10 percent national total for the industry. Chemicals is the largest single manufacturing industry in both of these states, NSF reports.

The full InfoBrief, NSF 03-303, is available at: http://www.nsf.gov/pubsys/ods/getpub.cfm?nsf03303