“Basic Research: A Declining National Commitment
In 2006 the total expenditure for R&D conducted in the U.S. was about $340B in current dollars. Of this total, basic research accounts for about 18% ($62B), applied research about 22% ($75B), and development about 60% ($204B).[8] Over the past decades the U.S. institutions contributing to the output of basic research have shifted dramatically.[9] Although industrial contributions to national R&D now far outpace Federal R&D support, only about 3.8% of industry-performed R&D can be classified as ‘basic’, with the remainder devoted to applied R&D. For industry-funded and performed R&D, the basic percentage is about the same for 2006, 3.7%. This percentage of basic research performed by industry has hovered slightly below 4% of all industry-performed R&D for most years since the late 1990s.[10] In 2006, industry funded 17% of U.S. basic research, and performed 15% of it.
The Federal Government is the second largest source of R&D funding (28%) following industry. Federal expenditures vary greatly from agency to agency in terms of amounts, directions, and objectives, depending upon the mission of the particular agency.[11] Federal funding is the primary source of basic research support in the U.S. (over 59% in 2006[12]), of which about 56% is carried out by academic institutions. U.S. basic research is also funded by foundations (about 10%), universities and colleges (about 10%), and state and local governments (about 3.5% through funding of academic basic research).[13] Federal obligations for academic research (both basic and applied) and especially in the current support for National Institutes of Health (NIH) (whose budget had previously doubled between the years 1998 to 2003) declined in real terms between 2004 and 2005 and are expected to decline further in 2006 and 2007. This is the first multiyear decline in Federal obligations for academic research since 1982.[14] The intent of Federal policy is to increase support for physical sciences research in future years.[15]”
