TOTAL R&D HIGHLIGHTS

June 12, 2014

Table of Contents

Highlights

Benchmarking Florida R&D Expenditures With The States

Characteristics of Florida R&D Activity

Characteristics of U.S. R&D Activity

Download a copy of Florida R&D Highlights

Florida R&D Highlights" is a summary of R&D performed in Florida and across the U.S. by colleges and universities, businesses, nonprofit organizations, federal agencies, and nonfederal government organizations.  The source of information for this report is the National Center for Science and Engineering Statistics (NCSES) at the National Science Foundation.  NCSES is responsible for collecting and analyzing current and historical patterns of U.S. R&D expenditures by performing sector, source of funds, character of work, and state. NCSES definitions for these terms are as follows:

  • Performers: businesses, federal government (intramural, FFRDCs), universities and colleges, and other nonprofit organizations
  • Funders: businesses, federal government, nonfederal government, universities and colleges, and other nonprofit organizations
  • Character of work: basic research, applied research, and development

Florida R&D Highlights includes a summary of Florida R&D expenditures by performers and sources of funds ("Funders").  The report compares Florida R&D expenditures to other states based on total R&D expenditures and R&D expenditures per capita. The report also summarize U.S. R&D expenditures by performers, funders, and character of work.

The purpose of this report is to establish performance metrics that consistently compare current R&D activity to prior periods and to other States.  It is a tool to stimulate dialogue to better understand our innovation ecosystem, its impact on the competitiveness of industries, and opportunities to leverage innovation to stimulate job creation and economic growth.  

Watch for a new Highlights report titled "Florida Academic R&D Highlights."  This report will feature Florida and U.S. R&D expenditures at colleges and universities during the five year period ending 2012.  The report includes an analysis of R&D expenditures by field of research,  source of funding, and federal agency.  The report also includes a benchmark comparison of Florida to other states and a comparison of expenditures in each of the Enterprise Florida regions.

Highlights:

2011 U.S. R&D expenditures were $428 billion according to the most recent information available from NCSES.   2011 R&D expenditures performed in Florida were $9 billion or 2.1 percent of all U.S. R&D expenditures.  

2011 U.S. R&D activity

  • The federal government was the source of $129 billion or 30 percent of funds for all U.S. R&D expenditures
  • The business sector funded $267 billion or 62 percent of all U.S. R&D expenditures
  • Business performed $294 billion or 68.7 percent of all U.S. R&D expenditures
  • College & university performed $62.5 billion or 14.6 percent of all U.S. R&D expenditures

2011 Florida R&D activity

  • Florida's share of U.S. R&D expenditures increased from 1.9 percent in 2007 to 2.1 percent in 2011
  • The business sector funded $3.9 billion or 44 percent of Florida R&D expenditures
  • The federal government funded $3.8 billion or 42 percent of Florida R&D expenditures
  • The business sector performed $6 billion or 66 percent of all Florida R&D expenditures
  • College & university performed $2.1 billion or 23 percent of all Florida R&D expenditures

Florida Compared To the States

  • 14th based on total expenditures
  • 39th based on expenditures per capita
  • 7th based on federal expenditures
  • 15th based on business sector expenditures

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Benchmarking Florida R&D Expenditures With The States

Florida R&D expenditures slipped to $6.5 billion in 2008, increasing to $9 billion by 2011.  

Total R&D performed in Florida increased by 13.4 percent in 2011, compared to 5 percent nationwide.  Florida ranked 14th based on total R&D expenditures and 39th based on expenditures per capita.  Top performing states based on total R&D investment were California ( $91 billion), Massachusetts ($22 billion), Texas ($21 billion), Maryland ($19 billion) and New York ($18.5 billion).  The top performing states based on per capita R&D expenditures were Alabama, District of Columbia, Massachusetts, Maryland, and New Mexico.

Businesses located in Florida increased R&D expenditures in 2011 by 16.8 percent compared to 5.4 percent nationwide.  R&D performed by Florida businesses ranked 15th based on total expenditures and 34th based on per capital expenditures.   Top performing states based on total R&D performed by businesses were California ( $75 billion), Massachusetts ($16 billion), Texas ($15 billion), Washington ($15 billion), and New Jersey ($12 billion).  The top performing states on a per capita basis were Massachusetts, Delaware, Washington, Connecticut, and California.

Florida ranked 7th in total R&D expenditures and 24th in per capita expenditures performed by the federal government within a state.  Federal government R&D expenditures performed in Florida and nationwide increased at the same pace of 12 percent in 2011.  Top performing states based on R&D performed by the federal government were Maryland ($10 billion), California ($2.9 billion), Virginia ($2.7 billion), District of Columbia ($2.2 billion), and Alabama ($2.1 billion).  The top performing states on a per capita basis were the District of Columbia, Maryland, Alabama, Virginia, and Rhode Island.

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Characteristics of Florida R&D Activity

Florida R&D Expenditures By Performing Sector

The business sector performed $6 billion of R&D or 66 percent of all R&D performed in Florida during 2011.  This compares to $5.1 billion or 64.1 percent of all R&D performed in 2010.

During 2011 the federal government sector performed $792 million or 8.7 percent of all R&D performed in Florida. 

R&D performed by Florida colleges and universities increased considerably during the last five years, from $1.6 billion in 2007 to $2.1 billion in 2011.  Colleges and universities accounted for 23.4 percent of all R&D performed in Florida during 2011.

 

Sources of Funds For Florida R&D Expenditures 

During 2011 the business sector funded $3.9 billion or 43.5 percent of all Florida R&D expenditures.  Of this amount, $89 million funded R&D at Florida colleges and universities.  2011 Business sector R&D funding was at the highest level since peaking in 2007 at $3.4 billion.   In fact, business sector funding increased $819 million in 2011, represented 76 percent of Florida's overall increase in R&D funding.

Federal government funding of Florida R&D expenditures increased by $59 million to $3.8 billion in 2011.  R&D funded by the federal government was $3.7 billion in 2010, significantly higher than amounts funded in prior years.

Florida college and university funding of R&D accounted for 6.5 percent of total Florida R&D.   Florida college and university funding has increased steadily from $401 million in 2007 to $590 million in 2011.

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Characteristics of U.S. R&D Activity

U.S. R&D Expenditures By Performer

In 2011, the business sector continued to be the largest R&D performer with expenditures of $294 billion, or 68.7 percent of all U.S. R&D expenditures.  NCSES indicates that the business sector position as the largest performer has been the case for many years, with its annual share ranging between 68% and 74% over the 20-year period 1991–2011.

The federal government performed $35.8 billion, or 8.4 percent of all U.S. R&D in 2011.  According to NCSES, in 1991 the federal performance share was 15%, gradually declining since 2006.

Sources of Funds For U.S. R&D Expenditures

The business sector funded $267.3 billion or 62.4 percent of all U.S. R&D during 2011.  Funds from the federal government accounted for $129.1 billion or 30.1 percent of total U.S. R&D expenditures.  

Colleges & universities funded $13 billion of R&D expenditures or 3 percent of total U.S. expenditures.  Funding from nonfederal government agencies and other nonprofit organizations accounted for the remainder of U.S. R&D funding at $3.7 billion and $15.1 billion respectively.

U.S. R&D By Character of Work

Developmental work continues to be the primary focus of  U.S. R&D, with expenditures of $271.6 billion during 2011.  Basic research and applied research accounted for the remaining amount at $74.2 billion and $82.4 billion respectively.

During 2011 colleges and universities performed $40.3 billion or 54.3 percent of basic research conducted in the U.S.  The business sector accounted for $47.2 billion and $233.9 billion of applied research and development R&D expenditures, representing 57.2 percent and 86.1 percent of respective U.S. expenditures.  

During 2011 business performed $233.9 billion of development and $47.2 billion of applied research.  The federal government performed $23 billion of development and $7.8 billion of applied research.  College and university focused their R&D activity on basic research ($40.3 billion) and applied research ($16.6 billion).  Other nonprofit organizations performed $9.5 billion of basic research and $5.6 billion of applied research.

The source of information for this report is the National Science Foundation, National Center for Science and Engineering Statistics. 2013. National Patterns of R&D Resources: 2011–12 Data Update. Detailed Statistical Tables NSF 14-304. Arlington, VA. Available at http://www.nsf.gov/statistics/nsf14304/.

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Florida Innovation Highlights is the property of Cherrystone Management Consultants Inc. It is being posted on the InternetCoast website as a resource to achieve InternetCoast's mission to "Be a proactive forum and catalyst to stimulate collaboration between leaders in business, government, communities, academia, and research to position South Florida as one of the world's top innovation regions."  

Cherrystone provides strategic consulting services, specializing in business development; development of innovative joint ventures and partnerships; creating product and service distribution channels; corporate finance; and transformational leadership.  For more information contact Dale Gregory, Executive Vice President at 561 212 8385 or dgregory@cmci1.com.

© Property of Cherrystone Management Consultants Inc., All Rights Reserved

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