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National Science Foundation
NSF 00-309, February 11, 2000
 

Federal Survey Shows Defense Funding of Industry Is Largest Share of Federal R&D in FY 2000

by
Ronald L. Meeks

 

 


Federal funding for R&D in FY 2000 is slated mostly for non-Federal sectors of the economy.

More than three-fourths of the total Federal obligations for research and development (R&D) and R&D plant ($77.2 billion) is slated for non-Federal sectors of the economy in fiscal year (FY) 2000, according to a survey of Federal agencies conducted in 1999 (figure 1). Survey results show that industry receives 42 percent ($32.2 billion) of the Federal R&D funds, of which 84 percent ($26.9 billion) is to support development work (table 1). The Department of Defense (DoD) is the source of three-fourths ($24.3 billion) of the Federal R&D and R&D plant monies obligated to industry.

Figure 1. Distribution of preliminary Federal obligations for R&D and R&D plant, by performer: FY 2000

 

Table 1.  Preliminary Federal obligations for research and development and for R&D plant, by agency, category, and performer: FY 2000


The two other major recipients of Federal R&D dollars—universities and colleges and the Federally Funded Research and Development Centers (FFRDCs)—are slated to receive 20 percent ($15.3 billion) and 10 percent ($7.4 billion), respectively, of the Federal R&D dollars. Universities and colleges get three-fifths ($9.2 billion) of their Federal R&D funds (including R&D plant) from the Department of Health and Human Services (HHS). These schools also get 15 percent ($2.3 billion) of their Federal R&D support from the National Science Foundation (NSF), while another 9 percent ($1.4 billion) comes from DoD. As a group, FFRDCs receive almost two-thirds ($4.9 billion) of their R&D money from the Department of Energy (DOE). FFRDCs use 61 percent ($4.5 billion) of this money to conduct basic and applied research.

Other nonprofit organizations (that is, independent private organizations other than universities and colleges) are slated to get 4.5 percent ($3.5 billion) of the total Federal R&D funds. These organizations use 79 percent ($2.8 billion) of this money to conduct basic and applied research. State governments and foreign performers are expected to receive very small portions of the Federal R&D total (0.5 percent or $0.4 billion and 0.3 percent or $0.3 billion, respectively).

Federal intramural (in-house) R&D performers will receive about 23.5 percent ($18.1 billion) of the Federal R&D total. Nearly equal amounts of these R&D dollars will go to development projects ($8.9 billion) and research activities ($8.8 billion). About 44 percent ($7.9 billion) of the Federal intramural funding is expected to come from DoD, followed by 19 percent ($3.4 billion) from HHS, and 13 percent ($2.4 billion) from the National Aeronautics and Space Administration (NASA).

Data Collection Notes

The 32 Federal agencies that report R&D obligations to the Federal Funds survey submitted actual obligations for FY 1998 and preliminary data for FYs 1999 and 2000. Data were reported during the period February through September 1999; therefore, these data are based on agencies' FY 2000 requests and do not represent agencies' actual appropriations. Agencies later revise their preliminary data to reflect actual changes in the funding levels of R&D programs. Further, agencies may provide changes in prior-year data to reflect program reclassifications or other data corrections.

The data presented in this Data Brief are being released in advance of the comprehensive Detailed Statistical Tables Report, Federal Funds for Research and Development: Fiscal Years 1998, 1999, and 2000, Volume 48.

This Data Brief was prepared by:

Ronald L. Meeks
Division of Science Resources Studies
National Science Foundation
4201 Wilson Boulevard, Suite 965
Arlington, VA 22230
703-306-1774 x6937
rmeeks@nsf.gov


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