by Michael Yamaner[1]

Current-dollar federal obligations[2] for research and development and R&D plant decreased 1% from FY 2014 to FY 2015, from $132.5 billion to $131.4 billion. Within this total, funding for research increased 1% to $63.6 billion while development funding fell 4% to $64.9 billion. R&D plant funding increased substantially (by 27%) to $2.8 billion (table 1). Federal agencies estimated an 8% total increase in FY 2016 obligations for R&D and R&D plant, to $142.6 billion, and projected a 2% increase in FY 2017 to $145.4 billion. After adjusting for inflation, total federal R&D and R&D plant obligations decreased 2% to $119.6 billion from FY 2014 to FY 2015. Constant-dollar obligations were estimated to increase 7% to $127.7 billion in FY 2016 and were projected to remain essentially flat at $128.0 billion in FY 2017 (table 1).

TABLE 1. Federal obligations for research and development and R&D plant, by type of R&D: FYs 2013–17

a To better differentiate between the part of the federal R&D budget that supports science and key enabling technologies (including technologies for military and nondefense applications) and the part that primarily supports testing and evaluation (mostly of defense-related systems), this survey collects development dollars from the Department of Defense in two categories: advanced technology development and major systems development.

NOTES: Gross domestic product implicit price deflators were used to convert current to constant dollars. Detail may not sum to total due to rounding.

SOURCE: National Science Foundation, National Center for Science and Engineering Statistics, Survey of Federal Funds for Research and Development.

Table 1 Source Data: Excel file

Type of R&D Current $millions Constant 2009 $millions
2013 2014 2015 2016
preliminary
2017
projected
  2013 2014 2015 2016
preliminary
2017
projected
All R&D and R&D plant 127,291 132,496 131,398 142,555 145,408   119,399 122,195 119,561 127,692 127,955
R&D 125,386 130,279 128,573 140,070 142,608   117,612 120,150 116,991 125,466 125,491
Research 59,198 62,909 63,645 67,761 69,744   55,528 58,018 57,912 60,696 61,373
Basic 29,779 31,588 31,527 33,227 34,323   27,933 29,132 28,687 29,763 30,203
Applied 29,419 31,321 32,118 34,533 35,421   27,595 28,886 29,225 30,932 31,169
Development 66,188 67,370 64,928 72,309 72,865   62,084 62,132 59,079 64,770 64,119
Science and technology 13,471 14,313 15,279 16,339 16,311   12,636 13,200 13,903 14,635 14,353
Major systemsa 52,717 53,057 49,649 55,971 56,554   49,448 48,932 45,177 50,135 49,766
R&D plant 1,905 2,218 2,825 2,485 2,799   1,787 2,046 2,571 2,226 2,463

Data are from the Survey of Federal Funds for Research and Development, sponsored by the National Center for Science and Engineering Statistics (NCSES) within the National Science Foundation (NSF). Figures for FY 2015 are actual amounts, for FY 2016 are preliminary, and for FY 2017 are projected.

Federal Funding for Research

In FY 2015, research accounted for 48% of all federal obligations for R&D and R&D plant. Total federal funding for research increased by $0.7 billion in FY 2015 to $63.6 billion (table 1), led by a $0.6 billion increase from the Department of Energy (DOE) (table 2). Research funding was estimated to increase by $4.1 billion to $67.8 billion (6%) in FY 2016 and was projected to increase by $2.0 billion (3%) to $69.7 billion in FY 2017.

Basic Research

Basic research obligations accounted for 24% of total R&D and R&D plant funding in FY 2015 and decreased by less than 1% ($61 million) from FY 2014 (table 1). The Department of Health and Human Services (HHS) accounted for almost all of the decrease with its basic research obligations falling by $928 million (6%) in FY 2015. HHS's decrease was mostly offset by increases at DOE ($385 million), NSF ($249 million), and the National Aeronautics and Aerospace Administration (NASA) ($187 million) (table 2). Funding for basic research was estimated to increase 5% to $33.2 billion in FY 2016 and was projected to increase 3% to $34.3 billion in FY 2017 (table 1).

TABLE 2. Federal obligations for research, by agency in FY 2015 rank order: FYs 2013–17

DOD = Department of Defense; DOE = Department of Energy; HHS = Department of Health and Human Services; NASA = National Aeronautics and Space Administration; NSF = National Science Foundation; USDA = Department of Agriculture.

NOTES: Gross domestic product implicit price deflators for 2015 were used to convert current to constant dollars. Detail may not sum to total due to rounding. Other agencies includes: Department of Commerce, Department of Education, Department of Homeland Security, Department of Housing and Urban Development, Department of the Interior, Department of Justice, Department of Labor, Department of State, Department of Transportation, Department of the Treasury, Department of Veterans Affairs, Agency for International Development, Appalachian Regional Commission, Consumer Product Safety Commission, Environmental Protection Agency, Federal Communications Commission, Federal Trade Commission, Library of Congress, National Archives and Records Administration, Nuclear Regulatory Commission, Smithsonian Institution, and Social Security Administration.

SOURCE: National Science Foundation, National Center for Science and Engineering Statistics, Survey of Federal Funds for Research and Development.

Table 2 Source Data: Excel file

Agency Current $millions Constant 2009 $millions
2013 2014 2015 2016
preliminary
2017
projected
  2013 2014 2015 2016
preliminary
2017
projected
All agencies 59,198 62,909 63,645 67,761 69,744   55,528 58,018 57,912 60,696 61,373
Basic 29,779 31,588 31,527 33,227 34,323   27,933 29,132 28,687 29,763 30,203
Applied 29,419 31,321 32,118 34,533 35,421   27,595 28,886 29,225 30,932 31,169
HHS 29,315 30,587 30,197 31,816 32,507   27,497 28,209 27,477 28,499 28,605
Basic 15,288 16,005 15,077 15,991 16,340   14,340 14,761 13,719 14,324 14,379
Applied 14,026 14,582 15,120 15,825 16,167   13,156 13,448 13,758 14,175 14,227
DOE 7,333 8,092 8,642 9,493 10,097   6,878 7,463 7,864 8,503 8,885
Basic 3,851 4,075 4,460 4,604 4,828   3,612 3,758 4,058 4,124 4,249
Applied 3,482 4,017 4,181 4,889 5,268   3,266 3,705 3,804 4,379 4,636
DOD 5,955 6,704 6,691 7,332 6,939   5,586 6,183 6,088 6,568 6,106
Basic 1,863 2,074 2,133 2,327 2,208   1,747 1,913 1,941 2,084 1,943
Applied 4,093 4,631 4,558 5,005 4,731   3,839 4,271 4,147 4,483 4,163
NSF 4,956 5,403 5,670 5,693 6,071   4,649 4,983 5,159 5,099 5,342
Basic 4,362 4,725 4,974 4,941 5,258   4,092 4,358 4,526 4,426 4,627
Applied 594 678 696 751 813   557 625 633 673 715
NASA 5,422 5,336 5,539 6,179 6,715   5,086 4,921 5,040 5,535 5,909
Basic 2,824 3,023 3,210 3,644 3,898   2,649 2,788 2,921 3,264 3,430
Applied 2,598 2,313 2,330 2,534 2,816   2,437 2,133 2,120 2,270 2,478
USDA 1,868 2,060 2,128 2,265 2,327   1,752 1,900 1,936 2,029 2,048
Basic 844 908 924 974 998   792 837 841 872 878
Applied 1,024 1,152 1,204 1,290 1,328   961 1,062 1,096 1,155 1,169
Other 4,349 4,727 4,778 4,983 5,089   4,079 4,359 4,348 4,463 4,478
Basic 747 778 748 746 792   701 718 681 668 697
Applied 3,602 3,948 4,030 4,238 4,298   3,379 3,641 3,667 3,796 3,782

Applied Research

Applied research obligations accounted for 24% of the total federal R&D and R&D plant funding in FY 2015. Applied research obligations increased 3% ($797 million) to $32.1 billion in FY 2015 (table 1). HHS, DOE, and the Department of Agriculture (USDA) combined accounted for 95% of the FY 2015 increase (table 2). Applied research was estimated to increase by 8% to $34.5 billion in FY 2016 and was projected to increase by 3% to $35.4 billion in FY 2017 (table 1)

Agencies' Funding for Research

HHS

HHS's funding for research decreased by 1% ($390 million) to $30.2 billion in FY 2015 but still was the largest agency share (47%) of the research total. HHS estimated a 5% increase in research obligations in FY 2016 and projected a 2% increase in FY 2017. It reported a 48% to 52% split between basic research and applied research, respectively, in FY 2013 and FY 2014. Beginning in FY 2015 and projected to continue through FY 2017 the basic research and applied research split is reported at 50% of total for each (table 2). In FY 2015, HHS accounted for 83% of the $30.5 billion of federal funding for the life sciences (table 3).

TABLE 3. Federal obligations for research, by broad field of science and engineering and agency in rank order: FY 2015
(Millions of dollars)

* = amount greater than 0 but less than 500,000.

DOD = Department of Defense; DOE = Department of Energy; HHS = Department of Health and Human Services; NASA = National Aeronautics and Space Administration; NSF = National Science Foundation; nec = not elsewhere classified; USDA = Department of Agriculture.

a Other sciences nec is used for multidisciplinary or interdisciplinary projects that cannot be classified within one of the broad fields of science.

NOTES: Detail may not sum to total due to rounding. Other includes the following agencies: Department of Commerce, Department of Education, Department of Homeland Security, Department of Housing and Urban Development, Department of the Interior, Department of Justice, Department of Labor, Department of State, Department of Transportation, Department of the Treasury, Department of Veterans Affairs, Agency for International Development, Appalachian Regional Commission, Consumer Product Safety Commission, Environmental Protection Agency, Federal Communications Commission, Federal Trade Commission, Library of Congress, National Archives and Records Administration, Nuclear Regulatory Commission, Smithsonian Institution, and Social Security Administration.

SOURCE: National Science Foundation, National Center for Science and Engineering Statistics, Survey of Federal Funds for Research and Development, FYs 2015–17.

Table 3 Source Data: Excel file

Field All agencies HHS DOD DOE NSF NASA USDA Other
All fields 63,645 30,197 6,691 8,642 5,670 5,539 2,128 4,778
Life sciences 30,473 25,164 785 394 702 318 1,756 1,353
Engineering 11,956 1,489 2,714 3,715 998 2,068 53 919
Physical sciences 6,510 109 788 2,741 911 1,490 83 387
Environmental sciences 4,414 454 177 326 1,199 1,270 18 971
Computer sciences and mathematics 3,863 191 1,276 1,017 1,047 96 8 229
Other sciences neca 3,299 792 864 449 591 275 0 329
Psychology 1,995 1,769 70 0 34 21 0 100
Social sciences 1,136 228 19 * 187 1 211 489

Department of Energy

DOE's obligations for research rose 7% to $8.6 billion in FY 2015, were estimated to increase 10% in FY 2016, and were projected to increase 6% in FY 2017. Of DOE's FY 2015 research obligations, 52% were for basic research and 48% for applied research (table 2). Most of this funding was slated to support research in engineering ($3.7 billion) and in the physical sciences ($2.7 billion), which together account for three-fourths of the department's total research funding in FY 2015 (table 3).

Department of Defense

Department of Defense (DOD) research funding decreased slightly ($12 million) in 2015, to $6.7 billion. Its research obligations were estimated to increase 10% in FY 2016 but were projected to decrease by 5% in FY 2017. DOD's share of total FY 2015 federal funding for research was 11% ($6.7 billion) (table 2). DOD reported that 41% ($2.7 billion) of its FY 2015 research funding supported engineering and 19% ($1.3 billion) supported computer sciences and mathematics (table 3).

NSF

NSF obligations for research grew by 5% to $5.7 billion in FY 2015, were estimated to increase slightly by $23 million in FY 2016, and were projected to increase 7% in FY 2017 (table 2). Almost all (88%) of NSF's research obligations in FY 2015 supported basic research. NSF's research support is spread more evenly than that of other agencies across multiple fields. Of total FY 2015 NSF research funding, 21% was for environmental sciences ($1.2 billion), 18% for mathematics and computer science ($1.0 billion), 18% for engineering ($1.0 billion), 16% for physical sciences ($0.9 billion), and 12% for life sciences ($0.7 billion) (table 3).

National Aeronautics and Space Administration

Federal funds obligated for research by NASA increased 4% to $5.5 billion in FY 2015, were estimated to increase 12% in FY 2016, and were projected to increase 9% in FY 2017 (table 2). NASA provided 87% of its total FY 2015 research funding in support of three fields: engineering ($2.1 billion), physical sciences ($1.5 billion), and environmental sciences ($1.3 billion) (table 3).

Federal R&D Obligations by State

The ten states that received the most federal R&D funding in FY 2015 through businesses, universities, federal labs, and all other institutions combined accounted for 57% ($71.7 billion) of total FY 2015 federal R&D obligations. Maryland, home of HHS's National Institutes of Health (NIH), was the top state recipient at $16.8 billion and received 48% of its funding from HHS. California was the second highest recipient at $15.3 billion and received most of its funding (93%) from DOD, DOE, HHS and NASA. Virginia ranked third, receiving $7.5 billion in federal R&D obligations, with 77% coming from DOD in FY 2015 (table 4).

TABLE 4. Federal obligations for research and development to the top 10 state or location recipients, by total amount received and selected agency: FY 2015
(Dollars in millions)

DHS = Department of Homeland Security; DOC = Department of Commerce; DOD = Department of Defense; DOE = Department of Energy; DOI = Department of the Interior; DOT = Department of Transportation; EPA = Environmental Protection Agency; HHS = Department of Health and Human Services; NASA = National Aeronautics and Space Administration; NSF = National Science Foundation; USDA = Department of Agriculture.

a Includes America Samoa, Baker Island, Guam, Howland Island, Jarvis Island, Johnston Atoll, Kingman Reef, Midway Islands, Navassa Island, Northern Mariana Islands, Palmyra Atoll, U.S. Virgin Islands, and Wake Island.
b Includes R&D performed or administered in foreign countries by the U.S. government.

NOTES: Detail may not sum to total due to rounding. Eleven agencies are required to report data for this section of the survey: the Departments of Agriculture, Commerce, Defense, Energy, Health and Human Services, Homeland Security, the Interior, and Transportation; the Environmental Protection Agency; the National Aeronautics and Space Administration; and the National Science Foundation. Obligations of these 11 agencies represented 98% of total federal R&D obligations in FY 2015. The totals reported here differ from the those in Table 1 because only 11 agencies are required to report these data. Geographic distribution of DOD development funding to industry reflects location of prime contractors and not the numerous subcontractors who perform much of the R&D.

SOURCE: National Science Foundation, National Center for Science and Engineering Statistics, Survey of Federal Funds for Research and Development, FYs 2015–17.

Table 4 Source Data: Excel file

Rank State or location Total DHS DOC DOD DOE DOI DOT EPA HHS NASA NSF USDA
All locations 125,846 731 1,330 60,891 11,389 800 855 515 30,006 11,344 5,648 2,337
1 Maryland 16,751 72 708 5,727 52 85 26 16 7,983 1,608 291 182
2 California 15,281 66 26 5,983 2,148 67 39 11 3,402 2,643 762 134
3 Virginia 7,487 90 14 5,778 153 96 171 59 364 554 186 22
4 Massachusetts 6,055 78 33 2,764 141 12 58 16 2,372 178 377 26
5 Texas 5,574 19 8 2,371 104 22 34 7 961 1,691 273 85
6 New York 4,567 31 23 935 1,000 12 21 5 1,996 103 395 47
7 Alabama 4,538 5 1 2,924 29 2 13 0 295 1,220 23 26
8 District of Columbia 4,222 48 33 2,385 604 22 132 76 231 143 192 356
9 Pennsylvania 3,710 3 3 1,245 563 4 25 1 1,525 34 241 66
10 New Mexico 3,543 47 4 1,120 2,156 6 4 1 95 37 60 13
All other states or locationsa,b 54,118 272 478 29,658 4,440 472 333 322 10,783 3,132 2,847 1,380

Data Notes

The 27 federal agencies that report R&D obligations to the Survey of Federal Funds for Research and Development submitted actual obligations for FY 2015, preliminary data for FY 2016, and projected data for FY 2017. Data were requested from agencies beginning in February 2016. Agencies later revise the preliminary data based on actual changes in the funding levels of R&D programs, and agencies may provide changes in prior-year data to reflect program reclassifications or other data corrections.

Definitions

Basic research is defined as systematic study directed toward fuller knowledge or understanding of the fundamental aspects of phenomena and of observable facts without specific applications toward processes or products in mind.

Applied research is defined as systematic study to gain knowledge or understanding necessary to determine the means by which a recognized and specific need may be met.

Development is defined as systematic application of knowledge or understanding that is directed toward the production of useful materials, devices, and systems or methods, including design, development, and improvement of prototypes and new processes to meet specific requirements.

Obligations represent the amounts for orders placed, contracts awarded, services received, and similar transactions during a given period, regardless of when the funds were appropriated and of when future payment of money is required.

Data Availability

The full set of detailed tables from this survey will be available in the report Federal Funds for Research and Development: Fiscal Years 2015–17 at https://www.nsf.gov/statistics/fedfunds/. Individual detailed tables may be available in advance of the full report. For more information, please contact the author.

Notes

[1] Michael Yamaner, Research and Development Statistics Program, National Center for Science and Engineering Statistics, National Science Foundation, 4201 Wilson Boulevard, Suite 965, Arlington, VA 22230 (myamaner@nsf.gov; 703-292-7815).

[2] Obligations represent the amounts for orders placed, contracts awarded, services received, and similar transactions during a given period, regardless of when the funds were appropriated and when future payment of money is required.