Education Budgets | Research

Report: States Spent $1.4 Billion on R&D

State research and development expenditures increased by 11.3 percent in the last year to $1.4 billion. Education spent the largest share of these dollars.

According to a newly released brief based on the latest Survey of State Government Research and Development from the National Science Foundation, all told, states spent $942.3 million on external R&D. Exclusive of direct state appropriations, colleges and universities received $477.1 million of that pool in fiscal year 2011, up 4.3 percent from fiscal 2010. Businesses and individuals received $388.1 million, up 24.9 percent from 2010.

In the latest survey, covering fiscal 2011 and fiscal 2010, basic research accounted for $321.6 million of total expenditures, up 9.9 percent from 2010. Non-basic R&D accounted for about $1.08 billion, up 11.7 percent.

Environment and natural resources projects saw the highest level of expenditures from states at $336.8 million but also the second-lowest growth from the previous year (4.4 percent) of all of the R&D categories. Health was a close second at $314.2 million but also experienced relatively slow growth (6.6 percent). Transportation projects grew 7.4 percent, hitting $265.5 million. Energy saw significant growth (18.4 percent) and came in fourth in terms of expenditures at $256.2 million. Agriculture was dead last in expenditures ($74.5 million) and growth (2 percent) in FY 2011. All other expenditures totaled $156.6 million, up 46 percent.

Five individual states accounted for the majority (51 percent) of all R&D expenditures in FY 2011:

  1. New York: $182.7 million, with $70.9 million going toward health programs;
  2. Ohio: $159.3 million, with $47.1 million going to energy projects;
  3. Florida: $150.8 million, with $65.6 million going toward health projects;
  4. California: $149.8 million, with $96 million spent on energy projects; and
  5. Pennsylvania: $71.1 million, with $54.8 million spent on heath projects.

The same states made up the top 5 when taking into account only external expenditures, though the order shifted a bit:

  1. Ohio: $156.7 million;
  2. California: $111.4 million;
  3. Florida: $102.4 million;
  4. New York: $74.6 million; and
  5. Pennsylvania: $65.3 million.

According to the report: "New York, Ohio, Florida, California, and Pennsylvania reported a broad mix of R&D projects, although generally these states concentrated their activities in either energy or health. State government agencies in New York, Florida, and Pennsylvania had the largest share of their R&D investments in health-related projects. In FY 2011 these three states alone spent a combined $191 million on health R&D, or 61 percent of all state government expenditures on these types of projects. California and Ohio's largest shares of R&D expenditures were in energy projects. In FY 2011, California spent $96 million (37 percent of the U.S. total) and Ohio spent $47 million (18 percent of the U.S. total) on these types of projects.

Download the full brief at NSF's site.

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