Press Release 08-144
Universities Detail Declines in Federal R&D Funding for Science and Engineering Fields

Federal R&D funding for science and engineering in academia fell 1.6 percent from fiscal 2006-2007. Credit and Larger Version

August 21, 2008

Federal funding of academic science and engineering research and development (R&D) failed to outpace inflation for the second year in a row, according to recently released fiscal year (FY) 2007 data from the National Science Foundation (NSF).

The data from NSF's Survey of Research and Development Expenditures at Universities and Colleges showed an increase in federally funded expenditures of 1.1 percent in current dollars to $30.4 billion, but after adjusting for inflation, the number signified a 1.6 percent decline from FY 2006 R&D expenditures. This decline follows a 0.2 percent decline between FY 2005 and FY 2006. A two-year decline in federal funding in constant dollars is unprecedented for this 35 year data series.

Traditionally, the federal government has been the largest source of academic R&D funding, accounting for more than 60 percent of total R&D expenditures in most years. Although this is still the case, the share recently decreased, from 64 percent in FY 2005 to 62 percent in FY 2007.

Overall, R&D expenditures related to science and engineering reported by universities was $49.4 billion in FY 2007. Combined sources of nonfederal funding grew by 7.8 percent in FY 2007, or 5 percent in inflation-adjusted dollars with noteworthy increases in R&D funding from industry.

After three consecutive years of decline between FY 2001 and FY 2004, industry funding of academic R&D in science and engineering fields grew 11.2 percent to $2.7 billion in FY 2007.

At the same time, state and local government funding of R&D expenditures grew by 6.1 percent in FY 2007, increasing to $3.1 billion. Funding from academic institutions increased 6.6 percent in FY 2007 to $9.7 billion. Funding from all other sources combined, including nonprofit organizations and other nongovernmental entities, increased 10.0% to $3.5 billion.

-NSF-

Media Contacts
Bobbie Mixon, NSF (703) 292-8070 bmixon@nsf.gov

Program Contacts
Ronda Britt, NSF (703) 292-7765 rbritt@nsf.gov

Related Websites
Universities Report Continued Decline in Real Federal S&E R&D Funding in FY 2007 (NSF 08-320): http://www.nsf.gov/statistics/infbrief/nsf08320/
SRS New Releases: http://www.nsf.gov/statistics/new.cfm

The National Science Foundation (NSF) is an independent federal agency that supports fundamental research and education across all fields of science and engineering, with an annual budget of $6.06 billion. NSF funds reach all 50 states through grants to over 1,900 universities and institutions. Each year, NSF receives about 45,000 competitive requests for funding, and makes over 11,500 new funding awards. NSF also awards over $400 million in professional and service contracts yearly.

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