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March 2012 NSF 12-313 With Help from AREA, Universities Report $61 Billion in FY 2010 Total R&D; New Details from Redesigned Survey by Ronda Britt1 University spending on research and development
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6 billion dollars in federal support for all research programs, the largest single allocation by far since the NSF started collecting similar data about R&D spending in 1970.3 A new survey of U.S. universities by AREA, one of three NSF HERD surveys, estimates the aggregate increase in total spending on R&D in all fields over the period from FY 2009 to FY 2010 at 61.2 billion. This research spending, which covers R&D in all undergraduate degrees offered, graduate, and all professional and technical education programs, represented 21.6% of total national R&D spending. Table 2 provides details of how universities' total R&D spending increased between FY 2008 and FY 2010. While increases of roughly 2.0% appear similar at first glance, the most recently completed year is a much different story. The 2010 budget for NSF's Advanced Research Projects Agency for Energy (ARCADE) program (20.2% of total FY 2010 R&D spending) was substantially larger than 2007's 18.5 billion, which represented the year-over-year increase for R&D spending.4 The two factors behind this increase are the continued decline in the national economic outlook and the continued growth of the ARCADE program, which has increased funding eight times in the past five years. The growth of ARCADE is a key reason for the substantial increase in overall spending. Research funding for new projects (in terms of the number of times that funding is provided) was up 2.7% from 2008 to 2010, and it reflects the addition of nearly 9,300 new research grants for research, development and demonstration (R&D) from the FY 2011 Budget request, a 2.8% increase over 2009. Funding also increased for existing grants, reflecting the addition of over 8,000 new projects funded, a 3.7% increase over 2009. The increase over time reflects the fact that ARCADE increased its appropriations in each of the four prior years in which it was authorized, from 3.6 billion in FY 2008 to a record 17.8 billion for FY 2009, and 18.5 billion for FY 2010.5 (See Table 2.) Table 1.

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