Research and Development
The United States is becoming an entrepreneurship and innovation economy, with the development of two markets: the market for ideas, in the form of patents, and the market for innovation, in the form of the commercialization of new technology.
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Government research
President Barack Obama's 2015 Budget proposes $135.4 billion for federal research and development (R&D), an increase of $1.7 billion or 1.2% from 2014. [1]
Out of this $135.4 billion, $69.5 billion is proposed for defense R&D, and $65.9 billion is proposed for non-defense R&D. Federal investment in basic and applied research totals $64.7 billion, investment in development totals $68.0 billion, and investment in R&D infrastructure totals $2.6 billion.
| FY 2013 Actual | FY 2014 Estimate | FY 2015 Budget | Change FY 14-15 Amount (Percent) | |
|---|---|---|---|---|
| Department of Defense | 63,838 | 63,856 | 64,430 | 574 (0.9%) |
| Health and Human Services | 29,969 | 30,912 | 31,069 | 157 (0.5%) |
| Energy | 10,740 | 11,359 | 12,309 | 950 (8.4%) |
| NASA | 11,282 | 11,667 | 11,555 | -112 (-1.0%) |
| NSF | 5,319 | 5,729 | 5,727 | -2 (0.0%) |
| Agriculture | 2,116 | 2,418 | 2,447 | 29 (1.2%) |
| Commerce | 1,360 | 1,632 | 1,597 | -35 (-2.1%) |
| Veterans Affairs | 1,164 | 1,174 | 1,178 | 4 (0.3%) |
| Interior | 785 | 840 | 925 | 85 (10.1%) |
| Homeland Security | 684 | 1,032 | 876 | -156 (-15.1%) |
| Transportation | 829 | 853 | 865 | 12 (1.4%) |
| Environmental Protection Agency | 532 | 560 | 560 | 0 (0.0%) |
| Patient Centered Outcomes Res. | 488 | 464 | 528 | 64 (13.8%) |
| Education | 319 | 323 | 336 | 13 (4.0%) |
| Smithsonian | 238 | 232 | 252 | 20 (8.6%) |
| Int'l Assistance Programs | 273 | 203 | 203 | 0 (0.0%) |
| All Other | 396 | 428 | 495 | 67 (15.7%) |
| Total | 130,332 | 133,682 | 135,352 | 1,670 (1.2%) |
In the last 40 years, spending on R&D has generally increased, but spending on R&D as a percentage of GDP has declined since the 1970s. 2010 to 2013 resulted in the largest overall decrease in a three-year period since the end of the space race. [3] [4]
National Institutes of Health
The National Institutes of Health (NIH) supports biomedical research aimed at improving the health of the American people. The 2015 Budget provides $30.2 billion for NIH, an increase of $200 million over the 2014 level. The Budget provides $100 million to The Brain Research through Advancing Innovative Neurotechnologies (BRAIN) Initiative.
National Science Foundation
The National Science Foundation (NSF) supports academic research for most non-biomedical disciplines. The 2015 Budget provides $7.3 billion for NSF, an increase of 1% over the 2014 level. NSF intends to invest in the research of advanced manufacturing and robotics technologies, the BRAIN Initiative, a cyberinfrastructure initiative, and an "Innovation Corps" program aimed at bringing discoveries out of university labs for application in the commercial sphere.
Department of Defense
The Department of Defense (DOD) drives innovation in military capabilities and help develop technology with commercial potential. The 2015 Budget proposes $64.4 billion for DOD R&D, an increase of 0.9% from 2014 levels.
Multi-agency initiatives
U.S. Global Change Research Program
The 2015 Budget provides $1.5 billion for the U.S. Global Change Research Program (USGCRP). According to the White House Office of Science and Technology, USGCRP coordinates and integrates Federal research and applications to assist the Nation and the world in understanding, assessing, predicting, and responding to the human-induced and natural processes of global change, including climate change, and their related impacts and effects.
Networking and Information Technology R&D
The 2015 Budget provides $3.8 billion for the Networking and Information Technology Research and Development (NITRD) Program. This program funds research in cybersecurity, high-end computing systems, software development, cloud computing, and other information technologies.
National Nanotechnology Initiative
The 2015 Budget proposes $1.5 billion for the multi-agency National Nanotechnology Initiative (NNI). The National Nanotechnology Initiative (NNI) member agencies support R&D focused on materials, devices, and systems that exploit the physical, chemical, and biological properties that emerge in materials at the nanoscale. Participating agencies support fundamental research for nanotechnology-based innovation, technology transfer, and nanomanufacturing.
Corporate R&D
Much of today's research is still dominated by the largest firms. Corporations with more than 10,000 employees account for more than half of research spending, while small businesses with less than 500 employees account for less than one-fifth of R&D expenditures.
