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06.11

U.S. Support for Academic R&D Lagging Behind Other Nations

By IEEE-USA Staff

According to a recent report by the Information Technology and Innovation Foundation (ITIF), university research funding in the United States is falling behind that of other industrialized nations.

During the period 2000-2008, the U.S. ranking in government-funded university R&D slipped from 18th place to 22nd place among the 30 major economies tracked by the Organization for Economic Co-Operation and Development (OECD), despite that fact that U.S. government investments increased by 17% as a share of GDP. The slippage in ranking reflects the increased rates of government spending in the other OECD nations, which grew on average 24% during the same period. Also, the increases in federal support were partially offset by a 2% average decline in state funding of university research.

As a consequence, in 2008, the United States invested 0.24 percent of its GDP in university-based research, compared to the 0.34 percent average of other OECD nations.

The trends are even less encouraging in terms of business investments in university-based research, with business funding as a share of GDP declining by 7 percent, putting the United States at 23rd out of 30 nations.

The ITIF notes that “the United States ranks 6th in overall competitiveness and dead last in the rate of change in competitiveness over the last decade. The takeaway here is that, in a globalized economy, relative decline is decline, and this report presents one more piece of evidence that the U.S. innovation system is faltering.”

The report emphasizes the increasingly significant role that university-based research plays in the U.S. innovation system, which began to gain importance with the shut down of large corporate central research laboratories over the past three decades coupled with a decline in corporate basic research funding conducted in the United States by 3.2% during the period 1991 to 2008.

ITIF’s report red-flags this trend, noting that “this shift to shorter-term, less fundamental R&D risks a shrinking of the knowledge pool from which firms draw the ideas and information necessary to conduct later-stage R&D and to bring innovations to the market. As U.S. companies have shifted their R&D activities upstream, universities have taken on a larger role in the innovation system. Today, universities perform 56 percent of all basic research, compared to 38 percent in 1960.“

As a counterpoint to the ITIF findings on research dollars invested, the National Science Foundation recently reported that the amount of science and engineering research space at research-performing colleges and universities increased 4% between FY 2007 and FY 2009, from 188 million to 196 million net assignable square feet. This percentage increase is nearly three times the amount of growth found between FY 2005 and FY 2007 and reverses a trend of slowing growth for traced back to the 2001-2003 follows two consecutive survey cycles with slowing growth.

According to the NSF, research space available for biological and biomedical sciences research grew by 12% between 2007 and 2009, with much of the new facility located in medical schools. Computer and information science research space grew 8% during the same period, while space for engineering-related research increased by 6%.

The NSF report also shows divergent trends in federal versus state funding of new academic research research facilities. While overall government funding of new construction increased 43% to $2.7 billion, the state and local government share increased 36% in FY 2008–09. By constrast, the federal government's funding decreased 35% to $236 million, representing 3% of total new construction funds. The NSF concluded “this federal government share of new construction funding was the lowest reported for any period since the survey began collecting these data.”

For more information, see:

University Research Funding: The United States is Behind and Falling, Robert Atkinson and Luke A. Stewart, The Information Technology & Innovation Foundation (May 2011). On-line at: http://www.itif.org/files/2011-university-research-funding.pdf

Research Space at Academic Institutions Increased 4% Between FY 2007 and FY 2009, Leslie Christovich, National Science Foundation (NSF-11-312) (May 2011). On-line at: http://www.nsf.gov/statistics/infbrief/nsf11312/

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