Higher education institutions are an essential component of the U.S. R&D system, performing almost half of U.S. basic research and training the next generation of scientists and engineers. The federal government, primarily through six agencies, provides more than half of academic R&D funding. Academic institutions themselves are the second largest contributor of funds spent on academic R&D. In recent years, the federal government share of academic R&D support for university-based R&D has declined, while the share of support from higher education institutions themselves increased. Most academic R&D is performed by the same small proportion of U.S. higher education institutions that award the majority of S&E doctoral degrees. Among S&E fields, life sciences and engineering continue to dominate academic R&D.

The United States ranked highest in overall higher education expenditures on R&D, but it ranked 23rd out of 32 countries or regions in academic R&D expenditure as a percentage of GDP.

Investments made by the federal government, academic institutions, and other funders in the education and training of graduate students and postdocs mirror their investments in academic R&D. Master’s students are largely self-supporting, and doctoral students are primarily funded by academic institutions and the federal government through funding mechanisms such as fellowships, RAs, and TAs. The federal government funded over one-fifth of S&E postdocs, mainly through research grants. Institutions themselves funded around a quarter of postdocs. S&E postdoctoral appointments were concentrated in the biological and biomedical sciences and health sciences.