R&DFY 2012 sees first constant-dollar decline in higher education R&D since FY 1974

Published 4 December 2013

The National Science Foundation (NSF) says that university spending on R&D in all fields totaled $65.8 billion in FY 2012. After adjusting for inflation, higher education R&D declined by 1 percent in FY 2012. This represents the first constant-dollar decline since FY 1974 and ends a period of modest growth in higher education R&D during FYs 2009-11, when R&D expenditures increased an average of 5 percent each year.

According to recent survey results published by the National Science Foundation (NSF), university spending on research and development (R&D) in all fields totaled $65.8 billion in fiscal year (FY) 2012. After adjusting for inflation, higher education R&D declined by 1 percent in FY 2012. This represents the first constant-dollar decline since FY 1974 and ends a period of modest growth in higher education R&D during FYs 2009-11, when R&D expenditures increased an average of 5 percent each year.

An NSF release reports that higher education R&D expenditures funded by the American Recovery and Reinvestment Act of 2009 (ARRA) decreased from $4.2 billion in FY 2011 to $2.4 billion in FY 2012. ARRA funding represented 6 percent of the federally funded R&D expenditures for FY 2012.

Most non-governmental funding sources demonstrated increases in higher education R&D expenditures between FY 2011 and FY 2012. Institution-funded R&D showed the most significant growth and rose by over $1 billion to $13.7 billion in FY 2012.

— Read more in Higher Education R&D Expenditures Remain Flat in FY 2012, NSF 14-303 (November 2013)