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Order Code RS,
Updated June 4,
CRS Report for Congress
Received through the CRS Web
Federal and Non-Federal Support of
University Based Research
Michael E. Davey
Specialist in Science and Technology
Resources, Science, and Industry
Summary
The most recent data of the National Science Foundation shows total national R&D
expenditures for university based research reached $36.333 billion in 2002. Between
1971 and 2002 university self financing of research increased at an average annual rate
of 5.9%, compared to an average annual rate of 3.6% for the federal government. The
academic community and some Members of Congress are concerned that rising federal
deficits will constrain the growth of future academic research expenditures. According
to the Chronicle ofHigher Education, in FY2003, congressionally directed (earmarked)
funds to colleges and universities reached $2 billion, or 9.2% of total federal support,
a 9.5% increase over the FY2002. This report will not be updated.
Introduction
While the federal government continues to be the primary supporter of university
based research and development (R&D), the financial composition of support for
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2004
university-based research has changed considerably over the past 31 years. The most
recent data of the National Science Foundation (NSF) total show national R&D
expenditures for university-based research reached $36.333 billion in 2002. This figure
represents a 11% increase over 2001 levels. When adjusted for inflation, academic R&D
increased 9%. This increase is in contrast to average annual increases of 4.4%, in real
dollars, over the previous ten years. Of the $36.333 billion for university R&D
expenditure, $21.834 billion (60%) came from federal sources; $7.109 billion (19.6%)
was financed by universities; industry contributed $2.188 billion (6%); state and local
governments provided $2.501 billion (6.9%); and other sources (foundations and private
donors) contributed $2.701 billion (7.5%).1
'U. S. Academic R&D Continue to Grow as More Universities and Colleges Expand Their R&D
Activities, by Brandon Shackelford, May 2004, NSF 04-319, page 3. Research and development
expenditures, by source of funds, are reported annually to the NSF by universities and colleges.
These numbers represent the most recent data NSF has reported on academic R&D expenditures.
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Congressional Research Service + The Library of Congress
