NSF Reports That States Have Increased R&D Budgets by 1% in FY 2020

The National Science Foundation (NSF) has shared that state government agencies have increased their research and development (R&D) budgets by 1% from FY 2019 to FY 2020. Of the $2.4 billion in R&D expenditures in FY 2020, 75% came from states and non-federal sources (25% came from the federal government). While total R&D expenditures are net-positive, it is important to note that health-related R&D declined during this timeframe for the second year in a row.

Despite the overall decline in the percentage of health funding, health remains the largest governmental function for states’ R&D activities. Health R&D received a total of $1 billion from states in FY 2020, which is more than double the next closest expenditure (environment and natural resources at $448 million).

Higher education institutions received 54% of the funding (which is 8.1% lower than the previous year) and companies received 26% (which is 5% higher than the previous year). Energy project funding grew by 17.3%, the most of any industry in FY 2020.

While all states reported R&D expenditures for FY 2020, five states alone make up for 61% of the funding: California, New York, Texas, Florida, and Pennsylvania.

New York received the most federal funding (28%), followed by Florida, South Carolina, Texas, California, and Pennsylvania.

For more specifics on states R&D funding in FY 2020, view the entire NSF report here: https://ncses.nsf.gov/pubs/nsf22308#utm_medium=email&utm_source=govdelivery.