NCSES - National Center for Science and Engineering Statistics

07/10/2025 | Press release | Distributed by Public on 07/10/2025 07:07

Since the 1950s, Over Half of R&D Expenditures at U.S. Colleges and Universities Have Been Funded by the Federal Government

Figure ​1. Higher education R&D expenditures, by source of funds: FYs 1953-2023

(Percent)

Fiscal year Federal government State and local government Institution funds Business Nonprofit organizations All other sources
1953 54 15 14 7 NA 10
1954 55 14 13 8 NA 10
1955 54 15 13 8 NA 10
1956 57 14 12 8 NA 9
1957 56 15 12 8 NA 9
1958 56 15 12 9 NA 9
1959 58 14 11 7 NA 9
1960 63 13 10 6 NA 8
1961 66 12 9 5 NA 8
1962 68 12 9 4 NA 7
1963 70 11 8 4 NA 7
1964 72 10 8 3 NA 7
1965 73 10 8 3 NA 6
1966 74 9 9 2 NA 6
1967 73 9 9 2 NA 6
1968 73 8 10 3 NA 6
1969 72 9 10 3 NA 7
1970 71 9 10 3 NA 7
1971 69 10 11 3 NA 7
1972 68 10 12 3 NA 7
1973 69 10 11 3 NA 7
1974 67 10 12 3 NA 7
1975 67 10 12 3 NA 8
1976 67 10 12 3 NA 8
1977 67 9 13 3 NA 8
1978 66 9 13 4 NA 8
1979 67 9 14 4 NA 7
1980 68 8 14 4 NA 7
1981 67 8 15 4 NA 6
1982 65 8 15 5 NA 7
1983 63 8 17 5 NA 7
1984 63 8 16 6 NA 7
1985 63 8 17 6 NA 7
1986 61 8 17 6 NA 7
1987 60 8 18 7 NA 7
1988 61 8 17 6 NA 7
1989 60 8 18 7 NA 7
1990 59 8 18 7 NA 7
1991 58 8 19 7 NA 7
1992 59 8 19 7 NA 7
1993 60 8 18 7 NA 7
1994 60 7 18 7 NA 7
1995 60 8 18 7 NA 7
1996 60 8 18 7 NA 7
1997 59 8 19 7 NA 7
1998 59 8 19 7 NA 7
1999 58 7 20 7 NA 7
2000 58 7 20 7 NA 7
2001 59 7 20 7 NA 7
2002 60 7 20 6 NA 7
2003 62 7 19 5 NA 7
2004 64 7 18 5 NA 6
2005 64 6 18 5 NA 7
2006 64 6 19 5 NA 7
2007 62 6 19 5 NA 7
2008 61 7 20 5 NA 7
2009 60 7 20 6 NA 8
2010 61 6 19 5 6 2
2011 62 6 19 5 6 2
2012 61 6 21 5 6 1
2013 59 6 22 5 6 2
2014 57 6 23 6 6 3
2015 55 6 24 6 6 3
2016 54 6 25 6 6 3
2017 54 6 25 6 7 3
2018 53 5 26 6 7 3
2019 53 5 25 6 7 3
2020 53 5 25 6 7 3
2021 55 5 25 6 6 3
2022 55 5 25 6 6 3
2023 55 5 25 6 6 3

Note(s):

Prior to FY 2010, nonprofit funding was included under all other sources.

Source(s):

National Center for Science and Engineering Statistics, Higher Education Research and Development Survey.

R&D expenditures at academic institutions are funded by six primary sources: the federal government, state and local governments, businesses, nonprofit organizations, the universities themselves, and all other sources. Total academic R&D expenditures increased from $255 million in FY 1953 to $109 billion in FY 2023, and federal funding of academic R&D increased from $138 million to $60 billion, all in current dollars. The federal share fluctuated over the years-for example, increasing due to national defense and space flight R&D spending in the 1960s-but accounted for over 50% of the total for the entire period.

Universities' own R&D funding increased during this period as well, from $35 million in FY 1953 to $28 billion in FY 2023. As a share of total expenditures, institution funds have represented 25% since 2016.

Information on higher education R&D funded by nonprofits is available only from FY 2010 onward, with expenditures increasing from $4 billion to $7 billion in FY 2023. Prior to FY 2010, nonprofit funding was included under all other sources. Nonprofit organizations have funded between 6% and 7% of higher education R&D since FY 2010, whereas all other sources-such as gifts from donors for research or support from foreign governments or universities-funded around 3% annually over the past decade.

See the full set of data tables at https://ncses.nsf.gov/surveys/higher-education-research-development/2023#data.

NCSES has reviewed this product for unauthorized disclosure of confidential information and approved its release (NCSES-DRN25-032).

Suggested citation: National Center for Science and Engineering Statistics (NCSES). 2025. Since the 1950s, Over Half of R&D Expenditures at U.S. Colleges and Universities Have Been Funded by the Federal Government. NSF 25-345. Alexandria, VA: U.S. National Science Foundation. Available at https://ncses.nsf.gov/pubs/nsf25345.

1 "The Global Research and Development Landscape and Implications for the Department of Defense." Congressional Research Service, 28 June 2021, www.congress.gov/crs-product/R45403.



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