A National Science Foundation survey of federal agencies shows federal obligations for research and development and R&D plant at an estimated $110.2 billion in FY 2005, an increase of 3.5 percent (1.4 percent in inflation-adjusted 2000 dollars) over FY 2004 (table 1). Obligations for research are expected to account for nearly half of that amount. FY 2005 figures in this report are projections based on obligations provided by the agencies surveyed; FY 2004 figures are preliminary.
Table 1 Source Data: Excel file
Federal Funding for Research
Federal research obligations for all agencies in FY 2005 show a slim 0.5 percent current-dollar increase over FY 2004 (a 1.5 percent decrease in constant 2000 dollars). Research accounts for 49.6 percent ($54.7 billion) of total R&D and R&D plant dollars.
The Departments of Health and Human Services (HHS), Defense (DOD), Energy (DOE), and Agriculture (USDA), the National Aeronautics and Space Administration (NASA), and the National Science Foundation (NSF) have consistently been the top research-funding agencies. Combined, these six agencies account for 93.5 percent of FY 2005 federal research dollars (table 2). Of all FY 2005 federal research funding, HHS provides the largest share, 52.6 percent ($28.8 billion), followed by DOE (10.6 percent), DOD (10.5 percent), NASA (9.5 percent), NSF (7.0 percent), and USDA (3.3 percent).
Table 2 Source Data: Excel file
Basic Research
From FY 1990 to FY 2005 federal obligations for basic research grew at an average annual rate of 6.0 percent (3.8 percent in constant 2000 dollars). As a share of total R&D and R&D plant, obligations for basic research increased from 17.1 percent in 1990 to 26.3 percent in FY 2002 (table 1). According to estimates, that share drops to 24.4 percent ($26.9 billion) in FY 2005.
Applied Research
Federal obligations for applied research in FY 1990–2005 grew at an average annual rate of 6.8 percent (4.7 percent in constant 2000 dollars). The applied research share of the R&D and R&D plant total increased from 15.7 percent in FY 1990 to 27.1 percent in FY 2001, its highest level. That share is estimated to drop to 25.3 percent ($27.8 billion) in FY 2005.
HHS Funding for Research
HHS obligations for research in FY 1990–2005 grew at an average annual rate of 9.4 percent (7.2 percent in constant 2000 dollars) and doubled between FY 1999 and FY 2005. The HHS share of agency-funded research has increased each year since FY 2001. Estimates for FY 2005 show an increase of 2.4 percent (0.3 percent in constant 2000 dollars), or $0.7 billion, over FY 2004. Nearly all (96.2 percent) of the HHS research total is slated for the National Institutes of Health (table 3); 88.6 percent ($25.5 billion) of FY 2005 HHS research funding is planned in support of the life sciences (table 4).
Table 3 Source Data: Excel file
Table 4 Source Data: Excel file
DOE Funding for Research
DOE obligations for research in FY 1990–2005 grew at an average annual rate of 5.6 percent (3.4 percent in constant 2000 dollars). DOE obligations account for $5.8 billion of all FY 2005 federally funded research, down $18 million from FY 2004 (table 2). Two components of DOE, Office of Science at $2.6 billion (45.3 percent) and defense programs at $2.4 billion (41.1 percent), account for most of the department's FY 2005 research dollars (table 3). Of total FY 2005 DOE research funding, 73.5 percent is planned in support of the physical sciences ($2.3 billion) and engineering ($2.0 billion) (table 4).
DOD Funding for Research
DOD obligations for research in FY 1990–2005 grew at an average annual rate of 3.3 percent (1.2 percent in constant 2000 dollars), even though the DOD share of agency-funded research has been declining since FY 2001. DOD accounts for $5.7 billion of FY 2005 agency-funded research, down 3.9 percent (5.8 percent in constant 2000 dollars) from FY 2004 (table 2). The Departments of the Air Force, Army, and Navy and the Defense Advanced Research Projects Agency account for most (88.6 percent) of the DOD research dollars (table 3). Of total FY 2005 DOD research funding, 52.9 percent ($3.0 billion) is planned in support of engineering (table 4).
Defense research in FY 2005 (defense research funding from DOD plus DOE defense programs) accounts for $8.1 billion (14.8 percent) of the federally funded research total, down 1.1 percent (3.1 percent in constant 2000 dollars) from FY 2004 estimates.
NASA Funding for Research
NASA obligations for research in FY 1990–2005 grew at an average annual rate of 3.6 percent (1.5 percent in constant 2000 dollars). In FY 2005 NASA's portion of agency-funded research dollars is $5.2 billion, a slight current-dollar increase of 0.9 percent over FY 2004 but a 1.1 percent decrease in constant 2000 dollars (table 2). NASA plans to provide 88.0 percent of its total FY 2005 research funding in support of engineering ($2.4 billion), environmental sciences ($1.2 billion), and physical sciences ($1.1 billion) (table 4).
NSF Funding for Research
NSF obligations for research in FY 1990–2005 grew at an average annual rate of 5.6 percent (3.5 percent in constant 2000 dollars). NSF is providing $3.8 billion of the agency-funded research total in FY 2005, an increase of 3.1 percent (1.0 percent in constant 2000 dollars) over FY 2004 (table 2). Of total FY 2005 NSF research funding, 75.0 percent is planned in support of mathematics and computer sciences ($0.8 billion), physical sciences ($0.7 billion), environmental sciences ($0.7 billion), and engineering ($0.7 billion) (table 4).
USDA Funding for Research
USDA obligations for research in FY 1990–2005 grew at an average annual rate of 3.5 percent (1.4 percent in constant 2000 dollars). Obligations are slated to drop to $1.8 billion in FY 2005, a decrease of 9.3 percent (11.1 percent in constant 2000 dollars) from FY 2004 (table 2). The Agricultural Research Service; Cooperative State Research, Education, and Extension Service; and Forest Service account for most (94.7 percent) of the USDA research dollars (table 3). Of total FY 2005 USDA research funding, 80.2 percent ($1.4 billion) is planned in support of the life sciences (table 4).
Federal Funding for Development
From FY 1990 to FY 2005, total federal funding for development grew at an average annual rate of 1.4 percent (down 0.6 percent in constant 2000 dollars). Until FY 2002 the development share of total obligations for R&D and R&D plant had been decreasing, falling from 63.7 percent in FY 1990 to 41.9 percent in FY 2001 (table 1). Development shares have since risen from 42.0 percent in FY 2002 to 47.0 percent in FY 2005(table 1). Growth in the development share of the total reflects the Bush administration's relative emphasis on defense-related R&D, which is dominated by development.
Defense development funding (development funding from DOD plus DOE defense programs) for FY 2005 is $46.2 billion, or 89.2 percent of total obligations for development funding, and is up 7.9 percent (5.7 percent in constant 2000 dollars) from FY 2004.
Federal Funding for R&D Plant
From FY 1990 to FY 2005 federal funding for R&D plant has grown at an average annual rate of 3.3 percent (1.2 percent in constant 2000 dollars). Since FY 1990 obligations have fluctuated, reaching a low of $1.7 billion in FY 1996 and a high of $4.5 billion in FY 2000. R&D plant is slated to decrease 1.6 percent (3.6 percent in constant 2000 dollars) from FY 2004 levels, to $3.7 billion in FY 2005 (table 1). R&D plant accounts for 3.4 percent of all R&D and R&D plant obligations in FY 2005.
Data Notes
Preliminary estimates presented here are being released in advance of the NSF detailed statistical tables report Federal Funds for Research and Development: Fiscal Years 2003, 2004, and 2005, which will be available at http://www.nsf.gov/statistics/fedfunds/. Amounts agencies reported for 2004 reflect congressional appropriation actions as of that period, as well as apportionment and reprogramming decisions as of that time. Data for 2005 represent administration budget proposals that had not been acted on at the time agencies were surveyed.
Research is defined as systematic study directed toward fuller scientific knowledge or understanding of the subject studied and is classified as either basic or applied. Basic research is performed without specific applications in mind; applied research is performed to meet a recognized, specific need.
Development includes costs related to the production of materials, devices, and systems or methods and comprises design, development, and improvement of prototypes and new processes to meet specific requirements.
R&D plant includes costs related to structures, works, equipment, facilities, or land for use in R&D activities.
For 2003, federal agencies reported obligations of $93.7 billion in total R&D to all performers of R&D, compared with $85.3 billion in federal funding reported by the performers. Although NSF has not found a definitive explanation for this divergence, in 2005 the National Research Council noted that comparing federal R&D outlays (as opposed to obligations) with performer expenditures results in a smaller discrepancy. For 2003, federal agencies reported R&D outlays of $89.8 billion to all performers of R&D.
For more information, contact
Ronald L. Meeks
Research and Development Statistics Program
Division of Science Resources Statistics
National Science Foundation
4201 Wilson Boulevard, Suite 965
Arlington, VA 22230
703-292-7787
rmeeks@nsf.gov
Footnotes
[1] National Research Council. 2005. Measuring Research and Development Expenditures in the U.S. Economy. Panel on Research and Development Statistics at the National Science Foundation, Committee on National Statistics, Division of Behavioral and Social Sciences and Education. Washington, DC: The National Academies Press.
