Funding for Research and Development in the United States: Dynamics, Structure and Priorities

Abstract

A key characteristic of the status of a national science and technology complex in any country is its funding. By investing heavily in R&D, developed countries could achieve the global leadership and global competitiveness of the national economy. Analysis of the distinctive features of financial support to research institutions in the U.S., structural change and priorities of the public policy in R&D is important given the high performance of the American R&D and its leadership by global investment in R&D. The aim of the article is to present the results of the study on the transformative change in the financing of research entities in the U.S.: national laboratories, universities and business sector.

By a review of international organizations’ reports, analytical material of experts from the Congressional Research Service, National Science Foundation, annual budget reports of the American Association for the Advancement of Science, the authors identified current trends in R&D funding, factors determining the amount and trends on R&D funding from the federal budget; highlighted the U.S. rank in the global science indicators. An analysis of science indicators for the U.S. showed that in the face of growing budget constraints, internal and external challenges, R&D investment in the U.S. was growing annually throughout 60 years in business sector and federal government; the share of federal government spending on R&D in GDP has declined since the 1970s, with the share of the business sector increased; the share of R&D expenditures on basic research has reduced.

The authors demonstrate that the U.S. leadership in science and technology has been achieved due to long-term investment in R&D, allowing the U.S. to produce results capable to meet the needs of the American society and ensure industrial efficiency and national security. The basis for success of the American R&D was the consistent and balanced policy of the federal government aimed at consolidating the national R&D capacity; implementation of advanced tools and schemes for science and technology policy; adjustments of budget priorities and areas of R&D funding in view of global and domestic challenges.