Science Resources Studies Division

DATA BRIEF Directorate for

Social, Behavioral

and Economic

Sciences

National Science Foundation Vol. 1995, No. 3, January 20, 1995

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T

otal expenditures for research and

development (R&D) performed in the

United States reached an estimated $177 billion in 1994, about 1 percent more than the

estimated $174 billion spent in 1993

(table 1). In inflation-adjusted terms,

however, 1994 expenditures declined by

approximately 1 percent. Of the Nation’s

1994 R&D total, 18 percent was expended

for basic research activities, 23 percent for

applied research, and 59 percent for develop -

ment. Overall, R&D was 2.6 percent of

gross domestic product (GDP). Estimates of

R&D spending for 1993 and 1994 are

projected from 1992 levels using more

recent information from R&D performers

and funders and time series modeling

techniques. Trends in these and other

R&D statistics are analyzed in the forthcoming report, National Patterns of R&D

Resources: 1994.

In 1994, industry provided 59 percent

($104 billion) and the Federal Government,

36 percent ($64 billion) of the Nation’s total

Among the Nation's

R&D-performing

sectors, only

universities and

colleges increased

their 1994 R&D

expenditures by

more than the rate

of inflation.

expenditures for R&D. State governments,

universities and colleges, and other nonprofit

organizations account for the remaining 5

percent ($9 billion). Industry support increased an estimated 2 percent in 1994, and

Federal support declined by 1 percent. In

constant-dollar terms, both industrial and

Federal support declined by 1 percent and 3

percent, respectively.

Consistent with providing most of the

financial support for R&D in the United

States, the industrial sector also performs the

majority of the Nation’s R&D. In 1994,

industry—including associated Federally

Funded Research and Development Centers

(FFRDCs)—increased its performance of

R&D by 1 percent, to a level of $127 billion

(a decrease of 2 percent after adjusting for

inflation). Industry received about $26 billion

from the Federal Government in support of

this work but financed most ($101 billion) of

the R&D with its own funds and with funds

received under contract to other private

organizations.

by John R.

Gawalt

SOURCE: NSF/SRS, National Patterns of R&D Resources: 1994, forthcoming (Arlington, VA, 1995)

Percent Percent 

Sector 1993 1994 change 1993 1994 change

1993-94 1993-94

Millions of dollars Millions of 1987 dollars

Total R&D........................................................... 174,350 176,500 1 140,485 138,755 -1

By performing sector

Industry.................................................................. 125,900 126,800 1 101,287 99,529 -2

Universities and colleges......................................... 19,700 20,800 6 15,951 16,430 3

University-administered FFRDCs................................. 5,150 4,950 -4 4,170 3,910 -6

Federal Government.............................................. 17,200 17,500 2 13,927 13,823 -1

Nonprofit institutions............................................. 6,400 6,450 1 5,149 5,063 -2

By funding sector

Industry.................................................................. 101,700 103,700 2 81,825 81,405 -1

Universities and colleges........................................ 5,350 5,800 8 4,332 4,581 6

Federal Government....................................................... 64,450 63,950 -1 52,027 50,367 -3

Nonprofit institutions................................................ 2,850 3,050 7 2,300 2,402 4

Table 1. National expenditures for research and development,

by performing sector and source of funds: 1993-94

U.S. Research & Development Expenditures

Continued Slow Growth in 1994
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industrial countries in total expenditures for R&D as a share of GDP.

Japan expended the largest share, 2.80

percent, and unified Germany was

third at 2.53 percent (chart 1). These

figures are for 1992, the most recent

year for which such international data

are available. Rankings based on

1992 expenditures for nondefense

R&D place the U.S. R&D/GDP ratio

(2.10 percent) in a more distant third

place, below that of Japan (2.77 percent) and unified Germany (2.42

percent).

U.S. national R&D expenditures data

were assembled from a number of

NSF surveys. Estimates for 1993 and

Universities and colleges are the

Nation’s second-largest R&D-performing sector, accounting for approximately 12 percent of the R&D performed in this country. According to

the most recent estimates, universities

and colleges increased their level of

performance by 6 percent (to $21billion) in 1994. This sector is the only

one to have increased R&D performance by more than the expected rate

of inflation, showing an inflationadjusted growth rate of 3 percent

between 1993 and 1994. The majority

of support for R&D performed by the

academic sector comes from the

Federal Government, which in 1994

provided $12 billion. R&D performed

by university-administered FFRDCs

declined by 4 percent, down 6 percent

in inflation-adjusted terms. These

FFRDCs spent an estimated $5 billion

in 1994 on R&D performance.

Both the Federal and nonprofit sectors

show small increases in R&D performance over their 1993 levels. The

Federal Government performed

$18 billion, up 2 percent over 1993

levels, and the nonprofit institutions,

$7 billion, up 1 percent. Both rates of

increase are less than expected inflation.

Spending 2.76 percent of its GDP on

R&D activities, the United States

ranked second among leading

1994 are projections of these survey

data and are based on more recent

information provided by Federal R&D

funding agencies, an independent

survey of industrial R&D performers,

and time series modeling techniques.

Foreign R&D expenditure data are

derived from national and international sources. For more information

contact John R. Gawalt, Science and

Engineering Activities Program,

Division of Science Resources Studies, National Science Foundation,

4201 Wilson Boulevard, Suite 965,

Arlington, VA 22230. For a free copy,

write to the above address, call

703-306-1773, or send e-mail to

srspubs@nsf.gov.

0

1

2

3

United States Japan Unified Germany France United Kingdom Canada Italy

Chart 1. Total and nondefense R&D as a percentage of GDP,

by country: 1992

Total R&D/GDP

Nondefense R&D/GDP

Percent