[Analytical Perspectives]
[Special Analyses and Presentations]
[7. Research and Development Expenditures]
[From the U.S. Government Publishing Office, www.gpo.gov]
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7. RESEARCH AND DEVELOPMENT FUNDING
Investments in scientific discovery and technological development--
both public and private--have driven economic growth and improvements in
the quality of life in America for long as our Nation has existed. In
the last 50 years, developments in science and technology have generated
at least half of the Nation's productivity growth, creating millions of
high-skill, high-wage jobs and leading to advances in the economy,
national security, the environment, transportation and medical care.
Federal government support for science and technology has helped put
Americans on the moon, boosted agricultural productivity, harnessed the
atom, devised more effective treatments for cancers, tracked weather
patterns and earthquake faults, and deciphered the chemistry of life.
Because technological advances are key to progress and economic
growth, in 1993 President Clinton took office committed to expanding
Federal investment in civilian research and development. The President's
economic strategy relied upon the critical element of investing in
people and proposed targeted investments to help the Nation compete in
the global economy and improve our quality of life.
The Administration's support for R&D has been essential to the flow of
innovative ideas, which have resulted in everything from the discovery
of the first multi-planet system beyond our own to unraveling human,
plant and microbial genomes, a critical step in understanding the
function of genes, and, in turn, potentially treating and curing
diseases that are now beyond the reach of medical science. Investments
in science and technology can bring us breakthroughs in the areas of the
environment, health, national security, and more, including, for
example: fuel economies that are double those of today; a strong defense
that continually hones its technological edge; and fundamental research
that may be able to unlock the answers to some of the most basic
questions: why cells age and die, how human beings learn and remember
information, and whether there is life on other planets.
Over the last several years, private industry has expanded its support
for research and development, but most of these efforts focus on
bringing new products to market rather than funding the basic research
that can lead to break-through applications in a wide range of fields.
By supporting fundamental research that can provide the foundation for
tomorrow's technologies, the Federal Government can act as a catalyst
for these breakthroughs. Federal investment in basic research increased
by nearly 45 percent from 1993 to 2000, with emphasis on health
research. The budget proposes $20.3 billion to advance a balanced
portfolio in basic research, an increase of $1.3 billion, or 7 percent,
over 2000.
Basic university-based research plays a special role in the
development of scientific advances. The competitive grants process upon
which university research relies fosters innovation and expands
scientific frontiers. At the same time, these research grants provide a
training ground for the next generation of scientists and engineers.
Funding support for universities has grown to roughly $17.8 billion, a
53 percent increase, since 1993. Funding the academic researcher through
a peer-reviewed, merit-based competitive process is the Federal
government's strategy for pursuing the most promising long-term
research. Researchers at national laboratories, in the private sector,
and at non-profit companies may also be funded through such a
competition. In 2001, $28.2 billion in research funds will be awarded
through a peer-reviewed, merit-based competitive process.
Other processes for allocating research dollars are appropriate in
special cases. For example, agencies may decide that they wish to
spearhead research in a particularly risky, but highly promising, field
that can further the agency's mission. Agency program managers with in-
depth knowledge and expertise are likely to have the best judgement for
making such decisions. One example of this approach is the National
Science Foundation, where program managers may award up to 5 percent of
their funds through ``Small Grants for Exploratory Research,'' which are
made at the program manager's discretion, without peer review. In other
agencies, there are well-known centers of excellence at the national
laboratories, where there are unique capabilities. An agency may
determine that maintaining and exploiting this excellence requires long-
term financial stability for expensive world-class machines that will
ultimately benefit many researchers.
In the appropriations process, Congress may require awards to be made
to a single performer or collection of performers without competitive
selection. This Congressional direction may be established in law,
report language, or by other means. As a result of a recommendation in
the National Science and Technology Council's report on the Government-
University Partnership, agencies have reported the amount of funding
that was awarded through such Congressional direction. The
Administration is in the process of developing consistent measures
across Federal agencies for these latter two categories of research, in
order to publish the data in the 2002 budget.
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The tables below provide data on Federal spending for research and
development. Table 7-1 shows agency-by-agency spending on basic and
applied research, development, and equipment and facilities. Table 7-2
shows agency-by-agency spending for two initiatives of the National
Science and Technology Council, which are required by statute.
Table 7-1. FEDERAL RESEARCH AND DEVELOPMENT SPENDING
(Budget authority, dollar amounts in millions)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Dollar Percent
1999 2000 2001 Change: Change:
Actual Estimate Proposed 2000 to 2000 to
2001 2001
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By Agency
Defense................................................................................................ 38,850 38,719 38,640 -79 0%
Health and Human Services.............................................................................. 15,797 18,063 18,998 935 5%
National Aeronautics and Space Administration.......................................................... 9,715 9,753 10,035 282 3%
Energy................................................................................................. 6,992 7,091 7,655 564 8%
National Science Foundation............................................................................ 2,702 2,903 3,464 561 19%
Agriculture............................................................................................ 1,645 1,773 1,828 55 3%
Commerce............................................................................................... 1,084 1,073 1,152 79 7%
Interior............................................................................................... 786 585 731 146 25%
Transportation......................................................................................... 670 648 679 31 5%
Veterans Affairs....................................................................................... 644 655 655 0 0%
Environmental Protection Agency........................................................................ 500 584 590 6 1%
Education.............................................................................................. 205 233 271 38 16%
Other.................................................................................................. 752 664 635 -26 -4%
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TOTAL................................................................................................ 80,342 82,744 85,333 2,589 3%
Basic Research
Defense................................................................................................ 1,082 1,175 1,230 55 5%
Health and Human Services.............................................................................. 8,642 9,857 10,422 565 6%
National Aeronautics and Space Administration.......................................................... 1,981 1,947 1,895 -52 -3%
Energy................................................................................................. 2,228 2,242 2,379 137 6%
National Science Foundation............................................................................ 2,330 2,512 3,000 488 19%
Agriculture............................................................................................ 634 692 740 48 7%
Commerce............................................................................................... 39 39 52 13 33%
Transportation......................................................................................... 42 46 69 23 50%
Environmental Protection Agency........................................................................ 57 58 76 18 31%
Veterans Affairs....................................................................................... 263 268 268 0 0%
Interior............................................................................................... 50 61 63 2 3%
Education.............................................................................................. 2 2 2 0 0%
Other.................................................................................................. 118 128 132 4 3%
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SUBTOTAL............................................................................................. 17,468 19,027 20,328 1,301 7%
Applied Research
Defense................................................................................................ 3,064 3,383 3,087 -296 -9%
Health and Human Services.............................................................................. 4,998 5,728 5,935 207 4%
National Aeronautics and Space Administration.......................................................... 2,306 2,365 2,817 452 19%
Energy................................................................................................. 1,810 1,913 2,174 261 14%
National Science Foundation............................................................................ 147 164 193 29 18%
Agriculture............................................................................................ 743 807 821 14 2%
Commerce............................................................................................... 799 770 834 64 8%
Transportation......................................................................................... 368 384 477 93 24%
Environmental Protection Agency........................................................................ 401 387 377 -10 -3%
Veterans Affairs....................................................................................... 365 370 370 0 0%
Interior............................................................................................... 418 482 486 4 1%
Education.............................................................................................. 141 150 165 15 10%
Other.................................................................................................. 355 290 290 0 0%
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SUBTOTAL............................................................................................... 15,915 17,193 18,026 833 5%
Development
Defense................................................................................................ 34,423 33,913 33,937 24 0%
Health and Human Services.............................................................................. 1,919 2,229 2,408 179 8%
National Aeronautics and Space Administration.......................................................... 5,092 5,093 4,920 -173 -3%
Energy................................................................................................. 2,003 2,036 2,163 127 6%
National Science Foundation............................................................................ 0 0 0 0 NA
Agriculture............................................................................................ 109 109 118 9 8%
Commerce............................................................................................... 137 106 176 70 66%
Transportation......................................................................................... 161 145 171 26 18%
Environmental Protection Agency........................................................................ 96 93 84 -9 -10%
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Veterans Affairs....................................................................................... 16 17 17 0 0%
Interior............................................................................................... 25 24 34 10 42%
Education.............................................................................................. 62 81 104 23 28%
Other.................................................................................................. 259 225 189 -36 -16%
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SUBTOTAL............................................................................................. 44,302 44,071 44,321 250 1%
Facilities and Equipment
Defense................................................................................................ 281 248 386 138 56%
Health and Human Services.............................................................................. 238 249 233 -16 -6%
National Aeronautics and Space Administration.......................................................... 336 348 403 55 16%
Energy................................................................................................. 951 900 939 39 4%
National Science Foundation............................................................................ 225 227 271 44 19%
Agriculture............................................................................................ 159 165 149 -16 -10%
Commerce............................................................................................... 109 158 90 -68 -43%
Transportation......................................................................................... 215 10 14 4 40%
Environmental Protection Agency........................................................................ 116 110 142 32 29%
Veterans Affairs....................................................................................... 0 0 0 0 NA
Interior............................................................................................... 7 17 7 -10 -59%
Education.............................................................................................. 0 0 0 0 NA
Other.................................................................................................. 20 21 24 3 14%
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SUBTOTAL............................................................................................. 2,657 2,453 2,658 205 8%
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NA = Not applicable.
Table 7-2. AGENCY DETAIL OF MAJOR INITIATIVES
(Budget authority, dollar amounts in millions)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Dollar Percent
1999 2000 2001 Change: Change:
Actual Estimate Proposed 2000 to 2000 to
2001 2001
--------------------------------------------------------------------------------------------------------------------------------------------------------
Information Technology R&D*
National Science Foundation............................................................................ 393 517 740 223 43%
Energy (Defense--Advanced Strategic Computing Initiative).............................................. 301 397 477 80 20%
Energy (Civilian programs)............................................................................. 139 120 190 70 57%
Defense................................................................................................ 215 282 397 115 41%
Health and Human Services.............................................................................. 118 191 233 42 22%
National Aeronautics and Space Administration.......................................................... 106 174 230 56 32%
Commerce............................................................................................... 25 36 44 8 22%
Environmental Protection Agency........................................................................ 4 4 4 0 0%
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TOTAL................................................................................................ 1,301 1,721 2,315 594 35%
U.S. Global Change Research Program
National Aeronautics and Space Administration.......................................................... 1,155 1,173 1,149 -24 -2%
National Science Foundation............................................................................ 182 187 187 0 0%
Energy................................................................................................. 114 120 123 3 2%
Commerce............................................................................................... 63 67 93 26 39%
Agriculture............................................................................................ 52 53 85 32 60%
Health and Human Services.............................................................................. 40 46 48 2 4%
Interior............................................................................................... 27 27 25 -2 -7%
Environmental Protection Agency........................................................................ 17 21 23 2 10%
Smithsonian Institution................................................................................ 7 7 7 0 0%
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TOTAL................................................................................................ 1,657 1,701 1,740 39 2%
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* Merges both the High Performance Computing and Communications program and the Information Technology Initiative (IT2).