A three-decades-long trend of increasingly strong ties between industry and universities may have
ended. Between 1972 and 2001, industrial support to
universities and colleges grew more rapidly than any
other source of support for academic research and
development (NSB 2006, vol. 2: appendix table 5-2). A
1996 National Academy of Sciences report stated that "The prevalence and vitality of research partnerships
between industrial organizations and universities have
increased dramatically over the last two decades"
(NAS 1996:1). A decade later, at an April 2006 meeting
held at the National Academies, prominent industry and
university speakers indicated that negotiations of
sponsored research agreements, particularly disagreements
over the treatment of intellectual property (IP),
were negatively affecting the entire industry-university
research partnership in the United States.[1] It was
pointed out that U.S. companies increasingly choose to
work with foreign rather than U.S. universities, encouraged
by the more favorable IP rights that foreign
universities offer and the strong incentives for joint
industry-university research that foreign governments
provide.
Against this background, it is perhaps not surprising
that, beginning in 2002, the absolute value of industrial
R&D dollars to academic institutions—funds provided
directly to academic institutions for the conduct of
research—began to decline. This trend has continued through 2004, the latest year for which data are
available (NSF/SRS 2006).
Funding Trends
Industrial R&D support to U.S. universities and colleges
in current dollars reached a high of $2.2 billion in 2001
and has declined every year since, to $2.1 billion in
2004, a 5.1% decline over the 3 year period (figure 1).
The share of academic R&D support provided by
industry peaked at 7.4% in 1999 and declined every
year thereafter, reaching 4.9% in 2004. The decline in
industry's share was offset by an increase in the
federal government's share. Industry's contribution to
academic R&D as a proportion of all industry internal
R&D funds was 1.1% in 2004, down from 1.5% in
1994, and its lowest level since the mid 1980s.
Figure 1 Source Data: Excel file
Among academic institutions performing R&D during
the period 1994–2004, the number supported by
industry and the number supported by funds from any
source were both relatively stable (figure 2). However,
a year-to-year comparison shows that institutions
reporting an increase in industrial R&D support outnumbered
those reporting a decrease through 2001, but
the numbers between 2002 and 2004 were almost equal
(figure 3).
Figure 2 Source Data: Excel file
Figure 3 Source Data: Excel file
Distribution of Support
Industrial R&D support to academia has historically
been concentrated in relatively few institutions. Between
1993 and 2004 the distribution of such support became more concentrated at research-intensive
institutions (as defined by total R&D expenditures).
The top 200 universities and colleges (ranked by total
R&D expenditures) accounted for about 95%–96% of
total R&D and about 93%–94% of industry R&D
support in both 1993 and 2004. However, looking
separately at the top 100 institutions and those ranked
between 101 and 200, a different picture emerges. In
1993, the top 100 institutions received 74% of industry
funds; by 2004 they received 76%. Those institutions
ranked between 101 and 200 received 17% of industry
support in 2004, compared with 20% in 1993. There
was no such change in the distribution of total R&D
funds between these two groups during this period (see
also NSB 2006, chapter 5).
The importance of industrial R&D support to research
institutions with lower levels of total R&D expenditures
has also changed over the past decade. One analysis
ranked the top 200 academic institutions in terms of
total R&D expenditures in both 1980 and 1991 and
placed them in eight groups of 25 (NSB 1993, table 5-
1). It showed that in both years, each of the four lower-ranked groups received a larger average share of their
R&D support from industry than each of the four
higher-ranked groups. Table 1 shows comparable data
for 1993, 1998, and 2004. In 1993 the results were
identical to those in the earlier years, and in 1998, three
groups in the institutions ranked 101 to 200 received a
larger share of their funds from industry than any of
the four groups in the top 100 institutions. However, by
2004, only two of the four lower-ranked groups (151–175 and 176–200) received a larger share of their funds
from industry than any of the four top groups.
Table 1 Source Data: Excel file
Trends in the number of top 200 institutions that receive
more than 10% of their total R&D funds from industry
have changed as well (table 1). The number of such
institutions rose from 24 to 57 between 1980 and 1991,
but by 2004 that number had fallen to 21. Between 1993
and 2004, the total number of academic institutions
receiving more than 10% of their R&D funds from
industry fell from 179 to 101, a drop of more than 40%.
Public and Private Institutions
Industrial R&D support trends differ little between public
and private academic institutions. The absolute level of
support peaked in 2001 for both kinds of institutions, with
the share of support attributable to industry peaking
earlier—1998 for public institutions and 1999 for private
institutions. Both groups receive about the same share
of their R&D funds from industry. Between 1993 and
2004 the number of public institutions receiving industry
support increased slightly, and the number of private
institutions declined slightly. Less than 70% of private
institutions receive R&D support from industry, compared
with close to 80% of public institutions.
Other Indicators
Trends in academic scientific articles with industry
participation also suggest a recent decline in industry-university
collaboration (table 2). The percentage of all
academic articles with an industry coauthor increased
steadily between 1993 and 2001 but declined in both 2002
and 2003. Industry participation showed the same trend
when the set of academic articles was limited to those
whose coauthors were from a sector other than academe
(industry, government, not-for-profit) or were foreign.
Table 2 Source Data: Excel file
Fewer citations of U.S. science and engineering (S&E)
articles in U.S. industrial patents may also be suggestive of a decline in industry-university collaboration.[3] The
number of citations increased rapidly between 1995 and
1998, declined and leveled off for several years, and
declined again in 2003 and 2004 (figure 4).
Figure 4 Source Data: Excel file
Industry-university collaboration is a clear indicator of
the relevance of academic research to commercial
activity. Another promising area for study is the likely
relationship between commercial activities of U.S.
universities and industry-university collaboration. A
number of indicators of universities' commercial
activities show changes over time (table 3). However, the relationships between changes in these indicators
and changes in industry-university collaboration are not
yet clear.
Table 3 Source Data: Excel file
Patents awarded to U.S. academic institutions increased
between 1993 and 1999, dipped, and then
leveled off in 2002 and 2003. The number of new startup
companies peaked in 2001, as did new research funding from licenses. The number of equity licenses/options peaked in 2002. A number of other indicators
continued to rise through 2003: invention disclosures
received, new U.S. patent applications filed by universities,
and the number of revenue-generating licenses/options (table 3).
Conclusion
Although both R&D support and publication data
suggest a shift in the relationship between industry and
academia, the data are not conclusive. Industry can
cooperate or collaborate in research with academic
institutions in ways other than providing direct financial
support or coauthoring scientific articles, including using
academic consultants, providing research space or
equipment to academic researchers, making use of
specialized facilities at academic institutions, and
employing student interns. Further research is needed
to determine how these relationships have evolved over
the past few years and to clarify the relationship
between the commercial activities of universities and
industry-university collaboration.
References
National Academy of Sciences (NAS). 1996. Industry-University
Research Collaborations: Report of a Workshop. Washington, DC:
National Academy Press. Available at http://darwin.nap.edu/execsumm_pdf/5579.pdf.
National Science Board (NSB). 1993. Science & Engineering
Indicators—1993. Washington, DC: National Science Foundation
(NSB 93-1). Available at http://www.nsf.gov/statistics/seind93/.
National Science Board (NSB). 2006. Science and Engineering
Indicators 2006. Arlington, VA: National Science Foundation
(volume 1, NSB 06-01; volume 2, NSB 06-01A). Available at http://www.nsf.gov/statistics/seind06/.
National Science Foundation, Division of Science Resources
Statistics (NSF/SRS). 2006. Industrial Funding of Academic R&D
Continues to Decline in FY 2004. NSF 06-315. Arlington, VA.
Available at http://www.nsf.gov/statistics/infbrief/nsf06315/.
For further information, contact
Alan I. Rapoport
Science and Engineering Indicators Program
Division of Science Resources Statistics
National Science Foundation
4201 Wilson Boulevard, Suite 965
Arlington, VA 22230
703-292-7811
arapopor@nsf.gov
Footnotes
[1] Re-Engineering the Partnership: Summit of the University-Industry Congress, 25 April 2006, Washington DC. Meeting and
related materials available at http://www7.nationalacademies.org/guirr/Meetings.html.
[2] Not included are funds for consultants and undesignated
funds.
[3] The academic sector dominates U.S. S&E article production,
accounting for nearly three-quarters of U.S. output.