Useful Stats

Higher levels of business creation can be linked to the presence of innovation in a state through entrepreneurial activity and transitioning to new industries, and this edition of Useful Stats examines data from the Census Bureau’s recently updated Business Dynamics Statistics (BDS) on net establishment formation and the job creation stemming from those establishments in 2019. While figures vary widely among the states, most saw growth in both net establishment creation and net job creation in 2019; this data is prior to the onset of the pandemic in early 2020. This analysis also provides additional context by examining the long-term state trends in these metrics from 1978 to 2019.

Understanding how federal funding for the science and engineering (S&E) activities of the nation’s institutions of higher education (IHEs) is distributed locally within states can help innovation leaders develop programs and policies tailored more carefully to the varying conditions of regional innovation economies. This edition of Useful Stats builds on our previous state-level analyses of federal S&E support to IHEs by type of S&E activity and by funding agency, using 2019 data on individual institutions from the National Science Foundation’s Survey of Federal Science and Engineering Support to Universities, Colleges, and Nonprofit Institutions, providing a detailed city-level view of the distribution of federal S&E funding to IHEs within states.

Federal funding is a major source of support for the science and engineering (S&E) activities of the nation’s institutions of higher education (IHEs). This week’s edition of Useful Stats shows that in 2019 (the most recent year for which data is available), the vast majority — 87.6 percent or $33.4 billion— of that federal support came from only three agencies: the Department of Health and Human Services (HHS), the National Science Foundation (NSF), and the Department of Defense (DoD). This analysis builds on our previous article using NSF’s data from the Survey of Federal Science and Engineering Support to Universities, Colleges, and Nonprofit Institutions to show that while the remaining agencies contributed relatively little to the national S&E effort of IHEs, there was still a wide range in the mix of agency funding at the state level in 2019.

Developing local assets and nurturing local talent in science and engineering (S&E) is paramount to productive innovation economies. Institutions of higher education (IHEs) are arguably the most important elements of these local knowledge-capital assets — housing physical R&D infrastructure, training new scientists and engineers, and creating and disseminating new knowledge across the academic, public, and private sectors. As such, understanding how federal funding to support S&E at IHEs is dispersed across states can help local innovation leaders develop programs and policies to continue growing their local innovation economies.

To assist in this goal, this edition of Useful Stats explores data from the National Science Foundation’s Survey of Federal Science and Engineering Support to Universities, Colleges, and Nonprofit Institutions. Specifically, this analysis examines state-level data for total S&E obligations to IHEs and the shares of total S&E funding by type of activity in 2019.

Editor's note: SSTI discovered that NASA updated their data which was used in this article after its publication. Specifically, the update included previously omitted 2020 application and awards data for Kentucky, Maine, Mississippi, and Nevada; and 2014 data for Iowa. While the changes to the data were minute, we strive to provide the most accurate and reliable data available. As such, the article and the interactive graphic below have been updated to reflect these changes.

Recession can drive increases in entrepreneurship as laid off workers look for other opportunities and start their own businesses. Increases in business startup activity throughout the 2020 recession were greater than any time in the 15 years prior. This edition of Useful Stats examines data from the Census Bureau’s Business Formation Statistics (BFS) series covering business initiation activity as indicated by applications for an Employer Identification Number (EIN). Specifically, this analysis examines high-propensity business applications (HBA*) per 1,000 residents per state — business applications that are associated with a high rate of business formation — for the 15-year period from 2006 to 2020.

Understanding enrollment trends at the nation’s institutions of higher education — an important indicator of the knowledge capital and skilled workforce available to local innovation economies — is paramount in developing appropriate strategies to bolster local and regional innovation and entrepreneurship. While many institutional reports cover only one or a few years’ worth of enrollment data, evaluating long-run trends can help policymakers and program designers identify issues that might otherwise be hidden, enabling the development of more effective policies and programs.

This edition of Useful Stats builds on last week’s analysis of data for spring term enrollment at degree-granting institutions of higher education from the National Student Clearinghouse Research Center (NSCRC). SSTI compiled data from several NSCRC reports to explore the 10-year trends in spring term enrollment per 1,000 residents by state from 2012 to 2021.

Enrollment in the nation’s institutions of higher education is an important indicator of the knowledge capital available to local innovation economies. This edition of Useful Stats explores enrollment data from the recently updated National Student Clearinghouse Research Center (NSCRC) report , Current Term Enrollment Estimates, covering spring term enrollment trends at degree-granting institutions of higher education. Specifically, this analysis examines enrollment per 1,000 residents by state*, the change in total enrollment over prior spring terms, as well as enrollment by type of institution by state from spring term 2019 to spring term 2021.

Enrollment per 1,000 residents

This edition of Useful Stats explores data from the U.S. Patent and Trade Office (USPTO) on new utility and plant patents granted in the U.S. by state/territory for the five-year period from 2016 to 2020. This analysis includes only utility and plant patents as these types are those associated with the invention of new products and services, and excludes reissued patents and those issued for purely aesthetic designs.

State patent activity is a good indicator of the health of local innovation economies. Patents for innovative products and processes are issued to inventors across academia, industry, and the public sector, and the number of these new patents issued in states over time can provide insights into the strengths of these sectors and how well they are collectively able to bring innovative technologies out of the lab and, potentially, to market. Understanding this patent activity can help program and policy designers in local innovation economies in evaluating, enhancing, and developing their initiatives.

Federally funded R&D is a pillar of the U.S. innovation economy, and understanding how that funding is disbursed among the various performers within a state can help regional innovation leaders in developing, designing and implementing investment strategies, programs, and policies. This edition of Useful Stats builds on a previous SSTI analysis of NSF’s recently-updated data on federal R&D funding obligations in 2019, and examines how that funding is distributed within states among industry, universities and colleges, federal agencies, Federally Funded Research and Development Centers (FFRDCs), other nonprofits, and state and local governments.

Nationally in 2019, the majority of the $138.2 billion in federal R&D funds went to industry performers (31.4 percent), followed by federal agencies (27.8 percent), universities and colleges (24 percent), FFRDCs (10.4 percent), other nonprofits (6 percent), and state and local governments (0.4 percent).

The level of federal R&D funding within a state can have important implications for local innovation economies. As such, understanding the amount of federal R&D funding and which agencies provide that funding within a state can help regional innovation leaders in designing and implementing programs and policies. This edition of Useful Stats explores NSF’s recently updated data on federal R&D funding obligations in 2019 by state and agency.

Increasing by $12.4 billion over 2018, federal R&D funding reached $138.2 billion in 2019. However, federal R&D spending in states varied widely as seen in the interactive map below. In 2019, the states that had the greatest levels of federal R&D funding were California ($19.2 billion), Maryland ($16.9 billion), Virginia ($8 billion), Massachusetts ($6.8 billion), and the District of Columbia ($6.2 billion). The states with the least amount of federal R&D funding were Vermont ($120 million), South Dakota ($88.9 million), Puerto Rico ($81.8 million), North Dakota ($73 million), and Wyoming ($67.7 million).

An SSTI data analysis finds that in FY 2020, small businesses were less successful in obtaining Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) funding from the Department of Health and Human Services (HHS) — particularly from the National Institutes of Health (NIH) — than they were in FY 2019. NIH provides more funding to the SBIR/STTR program in total than the other participating civilian agency combined, and is also the top funder of the program within most states among the civilian agencies.