AIP FYI #99: Science & Engineering Indicators: Trends in U.S. R&D Expenditures

The recently-released “Science and Engineering Indicators – 2002”
report, produced by the National Science Foundation, contains
much detailed information on U.S. R&D funding trends, sources,
recipients and performers, as noted in FYI #98. This FYI looks
at data from Chapter 4 of the “Indicators” report.

The report provides information on funding trends for U.S. R&D,
by federal and non-federal government, industry, non-profit
organizations, universities and colleges, over more than four
decades. According to the data, when inflation is taken into
account, total federal R&D spending and federal spending on
applied research both declined between 1990 and 2000. The data
also show that industry’s share of R&D spending has grown
significantly, while federal support represents a decreasing
share of R&D expenditures. In 1960, the federal government
supported 65 percent of total R&D, as well as more than 50
percent of basic and applied research. By 2000, the federal
share of total R&D had fallen to 26.3 percent, and its shares of
basic and applied research had dropped to 48.7 percent and 26.3
percent, respectively. At the same time, industry support grew
to 68.4 percent of total R&D, 33.9 percent of basic research, and
66.1 percent of applied research. Below, selected funding trends
for total R&D, basic research, and applied research, are shown in
inflation-adjusted (constant 1996) dollars:

TOTAL U.S. R&D EXPENDITURES
(In millions of constant 1996 dollars)
1960: $61,790; 1970: $90,404; 1980: $110,927; 1990: $175,761; 2000: $247,519

FEDERAL R&D EXPENDITURES
(In millions of constant 1996 dollars)
1960: $40,176; 1970: $51,563; 1980: $52,656; 1990: $71,285; 2000: $65,127

INDUSTRY R&D EXPENDITURES
(In millions of constant 1996 dollars)
1960: $20,352; 1970: $35,955; 1980: $54,223; 1990: $96,183; 2000: $169,339

TOTAL BASIC RESEARCH EXPENDITURES
(In millions of constant 1996 dollars)
1960: $5,795; 1970: $12,367; 1980: $15,471; 1990: $26,667; 2000: $44,807

FEDERAL BASIC RESEARCH EXPENDITURES
(In millions of constant 1996 dollars)
1960: $3,578; 1970: $8,608; 1980: $10,913; 1990: $16,296; 2000: $21,804

INDUSTRY BASIC RESEARCH EXPENDITURES
(In millions of constant 1996 dollars)
1960: $1,543; 1970: $1,827; 1980: $2,255; 1990: $5,444; 2000: $15,174

TOTAL APPLIED RESEARCH EXPENDITURES
(In millions of constant 1996 dollars)
1960: $13,813; 1970: $19,795; 1980: $24,097; 1990: $40,428; 2000: $51,483

FEDERAL APPLIED RESEARCH EXPENDITURES
(In millions of constant 1996 dollars)
1960: $7,803; 1970: $10,669; 1980: $10,988; 1990: $15,920; 2000: $13,525

INDUSTRY APPLIED RESEARCH EXPENDITURES
(In millions of constant 1996 dollars)
1960: $5,525; 1970: $8,357; 1980: $11,742; 1990: $21,881; 2000: $34,047

The complete two-volume “Science and Engineering Indicators –
2002”, including appendix tables, is available on the web at
http://www.nsf.gov/sbe/srs/seind02/pdfstart.htm. A CD-ROM of the
Indicators can be ordered, free of charge, from the same site.
For a hardcopy version, contact paperpubs@nsf.gov or call (301)
947-2722.

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Audrey T. Leath

Media and Government Relations Division

The American Institute of Physics

fyi@aip.org

(301) 209-3094

http://www.aip.org/gov
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