METARESEARCH AND DEVELOPMENT
Changes in R & D funding and allocation
In a new report on workforce training and technological competitiveness, a task force led by former Commerce Secretary Penny Pritzker describes recent trends in research and development investment. Despite the fact that “total U.S. R&D funding reached an all-time high of nearly $500 billion in 2015, nearly three percent of U.S. gross domestic product,” the balance in funding has shifted dramatically to the private sector: “federal funding for R&D, which goes overwhelmingly to basic scientific research, has declined steadily and is now at the lowest level since the early 1950s.” One section of the report contains this striking chart:
- A deeper dive into the report's sourcing leads to a fascinating repository of data from the American Association for the Advancement of Science on the U.S. government's investments in research since the 1950s. Alongside the shift from majority federal to majority private R&D funding, the proportion of investments across different academic disciplines has also changed significantly. One table shows that the share of federal R&D funding for environmental science, engineering, and math/computer science has grown the most, from a combined 43.2% in 1970 to 54.8% in 2017. Meanwhile, funding for social science research has decreased the most. In 1970, the social sciences received 4.3% of the government's R&D funding; but in 2017, that share had fallen to 1.8%. Much more data on public sector R&D investments is available from the AAAS here.
- A March 2017 article in Science explains some of these shifts.
- A section of a 1995 report commissioned by the U.S. Senate Committee on Appropriations charts and contextualizes the explosion of federal research and development funding in the immediate aftermath of the Second World War.
- A study from the Brookings Institution finds that federal funding for research and development accounts for up to 2.8 percent of GDP in some of the largest metropolitan areas in America. The authors have fifty ideas for how municipalities can capture more of the economic impact generated by that R&D.
- Michael comments: "With the diminishing share (4.3% to 1.8% of total government research) of halved expenditures—and business not naturally inclined to conduct this kind of research (except in, as one would expect, instances of direct business application like surge pricing and Uber)—social science research appears to no longer have a natural home."