Universities Report Largest Growth in Federally Funded R&D Expenditures since FY 2011 - InfoBrief - December 2022

Oct 15, 2026

Research and development spending by academic institutions reached $89.9 billion in FY 2021, rising $3.4 billion (4.0%) versus FY 2020. Federal sources accounted for $3.0 billion of the increase, with federally funded R&D not growing by $3 billion or more since FY 2011. University funds, state and local funding, and shifts in institutional accounting shaped other movements across sources. The report summarizes findings from the HERD Survey and highlights major federal agencies driving life sciences and engineering work.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages8

Reading Time20 min

AccessFree to download

Research and development spending overview

Federal funding drivers and agency highlights

Expenditures by source of funds (tables)

FY 2010–21 summary table

FY 2011–21 federal source table

InfoBrief Universities Report Largest Growth in Federally Funded R&D Expenditures since FY 2011 NSF 23-303 | December 2022 Michael T. Gibbons Research and development spending by academic institutions totaled $89.9 billion in FY 2021, an increase of $3.4 billion (4 . 0%) from FY 2020 (table 1) . R&D expenditures funded from federal sources accounted for $3.0 billion of the total increase. Federally funded R&D expenditures had not increased by $3 billion or more since FY 2011, when the American Recovery and Reinvestment Act of 2009 supplemented the flow of R&D support dollars.1 University-funded R&D expenditures were 2. 1% greater ($459 million) than in FY 2020 due largely to several institutions’ improved accounting of internally funded R&D through new financial systems and reorganizations.2 Universities reported $149 million more in R&D expenditures funded from state and local governments, an increase of 3. 2% from FY 2020. R&D expenditures funded by nonprofit organizations (-2 . 6%, -$150 million) and businesses (-1 .3%,-$68 million) decreased, while R&D funded by all other sources was virtually flat (0.2% increase, $6 million increase) . The data discussed in this report are from the Higher Education Research and Development (HERD) Survey, sponsored by the National Center for Science and Engineering Statistics (NCSES) within the National Science Foundation (NSF) . For more information on the survey, see “Data Sources, Limitations, and Availability.” Table 1 Higher education R&D expenditures, by source of funds: FYs 2010–21 (Millions of current dollars) | Fiscal year | All R&D
expenditures | Source of funds | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | Federal government | State and local government | Institution funds | Business | Nonprofit organizations | All other sources | | 2010 | 61,287 | 37,478 | 3,887 | 11,943 | 3,202 | 3,730 | 1,048 | | 2011 | 65,274 | 40,768 | 3,851 | 12,580 | 3,183 | 3,854 | 1,038 | | 2012 | 65,873 | 40,217 | 3,744 | 13,625 | 3,279 | 4,037 | 970 | | 2013 | 67,145 | 39,510 | 3,706 | 14,974 | 3,515 | 3,903 | 1,537 | Table 1 Higher education R&D expenditures, by source of funds: FYs 2010–21 (Millions of current dollars) | Fiscal year | All R&D
expenditures | Source of funds | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | Federal government | State and local government | Institution funds | Business | Nonprofit organizations | All other sources | | 2014 | 67,351 | 38,032 | 3,916 | 15,781 | 3,734 | 3,978 | 1,911 | | 2015 | 68,694 | 37,911 | 3,864 | 16,638 | 4,009 | 4,236 | 2,037 | | 2016 | 71,911 | 38,858 | 4,053 | 17,944 | 4,219 | 4,632 | 2,204 | | 2017 | 75,291 | 40,320 | 4,187 | 18,887 | 4,439 | 5,157 | 2,303 | | 2018 | 79,174 | 41,935 | 4,326 | 20,221 | 4,725 | 5,456 | 2,511 | | 2019 | 83,643 | 44,540 | 4,520 | 21,115 | 5,064 | 5,702 | 2,702 | | 2020 | 86,445 | 46,196 | 4,596 | 22,023 | 5,187 | 5,754 | 2,688 | | 2021 | 89,872 | 49,228 | 4,745 | 22,482 | 5,119 | 5,604 | 2,694 | Note(s): Because of rounding, detail may not add to total. Includes all institutions surveyed in the fiscal years shown. Source(s): National Center for Science and Engineering Statistics, Higher Education Research and Development Survey. R&D Expenditures, by Federal Funding Sources Federally funded R&D at universities surpassed $49 billion in FY 2021, which accounted for 55% of total R&D (table 2) . This is slightly higher than the 53% share from FY 2018 to FY 2020. The largest federal source of R&D expenditures for higher education institutions was the Department of Health and Human Services (HHS)—which includes the National Institutes of Health—at $27.5 billion, up $2.1 billion from FY 2020. HHS accounted for 56% of FY 2021 federally funded R&D and 71% of the overall FY 2021 increase in federally funded R&D. HHS funds supported over $24 billion in life sciences R&D, which notably includes biological and biomedical sciences and he

FAQs

What was the total R&D spending by academic institutions in FY 2021?

R&D spending totaled $89.9 billion in FY 2021, increasing by $3.4 billion (4.0%) from FY 2020.

How much of the FY 2021 increase came from federal funding?

Federal sources accounted for $3.0 billion of the total increase in FY 2021.

Which federal department was the largest source of federally funded R&D for higher education?

The Department of Health and Human Services (HHS), including the National Institutes of Health, provided $27.5 billion in FY 2021.

Oct 15, 2026

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