U.S. R&D is performed and funded by businesses, governments, higher education, and nonprofit organizations. R&D performance refers to who conducts R&D, whether it is funded from internal funds or external financial sources (e.g., contracts, grants). From the perspective of R&D funding, funds may be devoted to own R&D or to pay for R&D in other sectors or organizations (private R&D services suppliers, academic or nonprofit grantees) (OECD 2015:126). Academic R&D is covered only briefly in this report given that the Indicators 2024 report “Academic Research and Development” provides comprehensive information for this sector.

U.S. Total R&D and R&D Intensity

U.S. Total R&D

In 2022, the United States performed an estimated $885.6 billion in R&D in current (nominal) U.S. dollars (Figure RD-1, Figure RD-2; Table RD-1), based on National Patterns statistics (Anderson 2024; NCSES 2024). This is an increase of 12% from 2021 but only of 5% in constant (inflation-adjusted) 2017 U.S. dollars.

U.S. R&D, by performing sector: 1953–2022
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U.S. R&D, by performing sector: 1953–2022

(Billions of current U.S. dollars)
Year U.S. total R&D Business Federal government Nonfederal government Higher education Nonprofit organizations
1953 5.2 3.6 1.1 NA 0.3 0.1
1954 5.6 4.1 1.1 NA 0.3 0.1
1955 6.2 4.4 1.3 NA 0.3 0.1
1956 8.5 6.3 1.7 NA 0.4 0.1
1957 9.9 7.3 2.0 NA 0.4 0.2
1958 10.9 8.1 2.2 NA 0.5 0.2
1959 12.5 9.2 2.5 NA 0.6 0.2
1960 13.7 10.0 2.7 NA 0.7 0.3
1961 14.6 10.4 3.1 NA 0.8 0.3
1962 15.6 11.0 3.2 NA 1.0 0.4
1963 17.5 12.2 3.7 NA 1.2 0.4
1964 19.1 13.0 4.3 NA 1.4 0.4
1965 20.3 13.8 4.4 NA 1.6 0.5
1966 22.1 15.2 4.5 NA 1.8 0.5
1967 23.3 16.0 4.8 NA 2.0 0.6
1968 24.7 17.0 4.9 NA 2.2 0.6
1969 26.0 17.8 5.2 NA 2.3 0.6
1970 26.3 17.6 5.6 NA 2.4 0.7
1971 27.0 17.8 5.8 NA 2.6 0.7
1972 28.7 19.0 6.2 NA 2.8 0.8
1973 31.0 20.7 6.4 NA 3.0 0.9
1974 33.4 22.2 6.9 NA 3.2 1.0
1975 35.7 23.5 7.6 NA 3.6 1.1
1976 39.4 26.1 8.3 NA 3.9 1.1
1977 43.3 28.9 8.9 NA 4.3 1.2
1978 48.7 32.2 10.1 NA 5.0 1.4
1979 55.4 37.1 11.0 NA 5.7 1.6
1980 63.2 43.2 11.9 NA 6.5 1.7
1981 72.3 50.4 13.0 NA 7.1 1.8
1982 80.7 57.2 14.1 NA 7.6 1.9
1983 89.9 63.7 15.8 NA 8.3 2.2
1984 102.2 73.1 17.5 NA 9.2 2.5
1985 114.7 82.4 19.2 NA 10.3 2.8
1986 120.2 85.9 19.9 NA 11.5 2.9
1987 126.4 90.2 20.4 NA 12.8 3.0
1988 133.9 94.9 21.6 NA 14.2 3.2
1989 141.9 99.9 22.7 NA 15.6 3.7
1990 152.0 107.4 23.5 NA 16.9 4.1
1991 160.9 114.7 23.3 NA 18.2 4.7
1992 165.4 116.8 24.2 NA 19.4 5.0
1993 165.7 115.4 24.5 NA 20.5 5.3
1994 169.2 117.4 24.6 NA 21.6 5.6
1995 183.6 129.8 25.4 NA 22.6 5.8
1996 197.3 142.4 25.0 NA 23.7 6.2
1997 211.9 155.4 25.2 NA 24.6 6.6
1998 225.8 167.1 25.8 NA 25.6 7.2
1999 244.5 182.1 26.8 NA 27.5 8.0
2000 267.9 200.0 28.5 NA 29.9 9.6
2001 278.5 202.0 32.8 NA 32.7 11.0
2002 277.9 193.9 35.5 NA 36.7 11.9
2003 291.4 200.7 37.2 NA 40.6 12.8
2004 302.7 208.3 37.7 NA 43.3 13.4
2005 325.3 226.2 39.6 NA 45.5 14.1
2006 350.9 247.7 41.6 0.3 47.4 14.0
2007 377.9 269.3 44.1 0.4 49.4 14.7
2008 404.8 290.7 45.6 0.5 52.1 15.9
2009 402.9 282.4 47.6 0.6 54.9 17.5
2010 406.6 279.0 50.8 0.7 58.1 18.0
2011 426.2 294.1 53.5 0.7 60.1 17.8
2012 433.7 302.3 52.1 0.7 60.9 17.8
2013 454.2 322.5 51.1 0.6 61.5 18.5
2014 475.9 340.7 52.7 0.6 62.3 19.6
2015 494.5 355.8 52.8 0.6 64.6 20.6
2016 521.7 379.5 51.2 0.6 67.8 22.6
2017 553.6 405.8 52.6 0.6 71.1 23.5
2018 604.0 445.6 58.4 0.6 74.9 24.6
2019 665.6 498.2 62.8 0.7 78.2 25.7
2020 716.9 543.2 65.1 0.7 80.8 27.1
2021 789.1 608.6 66.8 0.7 85.8 27.2
2022 885.6 692.7 73.3 0.7 91.5 27.3
Note(s):

Some data for 2021 are preliminary and may be revised later. The data for 2022 include estimates and are likely to be revised later. Federal performers of R&D include federal agencies and federally funded research and development centers. Nonfederal government R&D performance is that of state governments (data in this series were not available prior to 2006). For more information, see Table 2 and Table 6 of National Patterns of R&D Resources (2021–22 edition).

Source(s):

National Center for Science and Engineering Statistics, National Patterns of R&D Resources (2021–22 edition).

Science and Engineering Indicators

U.S. R&D, by source of funds: 1953–2022
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U.S. R&D, by source of funds: 1953–2022

(Billions of current U.S. dollars)
Year U.S. total R&D Business Federal government Higher education Other
1953 5.2 2.2 2.8 0.0 0.1
1954 5.6 2.4 3.1 0.0 0.1
1955 6.2 2.5 3.5 0.0 0.1
1956 8.5 3.3 5.0 0.0 0.1
1957 9.9 3.5 6.2 0.1 0.2
1958 10.9 3.7 7.0 0.1 0.2
1959 12.5 4.1 8.2 0.1 0.2
1960 13.7 4.5 8.9 0.1 0.2
1961 14.6 4.8 9.5 0.1 0.2
1962 15.6 5.1 10.1 0.1 0.3
1963 17.5 5.5 11.6 0.1 0.3
1964 19.1 5.9 12.8 0.1 0.3
1965 20.3 6.5 13.2 0.1 0.4
1966 22.1 7.3 14.2 0.2 0.4
1967 23.3 8.1 14.6 0.2 0.4
1968 24.7 9.0 15.0 0.2 0.5
1969 26.0 10.0 15.2 0.2 0.5
1970 26.3 10.4 15.0 0.3 0.6
1971 27.0 10.8 15.2 0.3 0.6
1972 28.7 11.7 16.0 0.3 0.7
1973 31.0 13.3 16.6 0.3 0.7
1974 33.4 14.9 17.3 0.4 0.8
1975 35.7 15.8 18.5 0.4 0.9
1976 39.4 17.7 20.3 0.5 1.0
1977 43.3 19.6 22.1 0.6 1.1
1978 48.7 22.5 24.4 0.7 1.2
1979 55.4 26.1 27.2 0.8 1.3
1980 63.2 30.9 30.0 0.9 1.4
1981 72.3 35.9 33.7 1.1 1.5
1982 80.7 40.7 37.1 1.2 1.7
1983 89.9 45.3 41.5 1.4 1.9
1984 102.2 52.2 46.5 1.5 2.1
1985 114.7 58.0 52.6 1.7 2.3
1986 120.2 61.0 54.6 2.0 2.6
1987 126.4 62.6 58.6 2.3 2.9
1988 133.9 68.0 60.1 2.5 3.2
1989 141.9 75.0 60.5 2.9 3.6
1990 152.0 83.2 61.6 3.2 4.0
1991 160.9 92.3 60.8 3.5 4.3
1992 165.4 96.2 60.9 3.6 4.6
1993 165.7 96.5 60.5 3.7 4.9
1994 169.2 99.2 60.8 3.9 5.3
1995 183.6 110.9 63.0 4.1 5.7
1996 197.3 123.4 63.4 4.4 6.1
1997 211.9 136.2 64.4 4.9 6.5
1998 225.8 147.8 65.9 5.2 6.9
1999 244.5 164.5 66.8 5.7 7.4
2000 267.9 186.0 67.2 6.3 8.5
2001 278.5 188.4 73.8 6.9 9.5
2002 277.9 180.7 78.9 7.7 10.7
2003 291.4 186.2 85.1 8.3 11.8
2004 302.7 191.3 90.8 8.6 12.0
2005 325.3 207.8 95.4 9.4 12.7
2006 350.9 227.2 99.9 10.2 13.6
2007 377.9 246.8 105.1 10.9 15.0
2008 404.8 258.0 117.6 11.7 17.4
2009 402.9 246.6 125.8 12.1 18.5
2010 406.6 248.1 126.6 12.3 19.6
2011 426.2 266.4 127.0 13.1 19.7
2012 433.7 275.7 123.8 14.3 19.9
2013 454.2 297.2 120.1 15.3 21.6
2014 475.9 318.4 118.4 16.2 23.0
2015 494.5 333.2 119.5 17.3 24.4
2016 521.7 360.3 118.2 18.7 24.5
2017 553.6 386.5 122.5 19.9 24.7
2018 604.0 426.5 131.1 21.0 25.5
2019 665.6 482.2 135.8 21.9 25.7
2020 716.9 520.4 148.2 22.6 25.8
2021 789.1 591.0 147.5 23.8 26.7
2022 885.6 672.9 159.8 25.5 27.3
Note(s):

Some data for 2021 are preliminary and may be revised later. The data for 2022 include estimates and are likely to later be revised. Federal performers of R&D include federal agencies and federally funded research and development centers. R&D funding listed as Other combines data from nonfederal governments (state and local) and nonprofit organizations. For more information, see Table 2 and Table 6 of National Patterns of R&D Resources (2020–21 edition).

Source(s):

National Center for Science and Engineering Statistics, National Patterns of R&D Resources (2021–22 edition).

Science and Engineering Indicators

U.S. R&D expenditures, by performing sector and source of funds: 2010–22

(Millions of current and constant 2017 dollars)

FFRDC = federally funded research and development center.

a Some data for 2021 are preliminary and may be revised later.

b The data for 2022 are estimates and are likely to be revised later.

c Includes expenditures of federal intramural R&D as well as costs associated with administering extramural R&D.

Note(s):

Data are based on annual reports by performers, except for the nonprofit sector. Expenditure levels for higher education, federal government, and nonfederal government performers are calendar year approximations based on fiscal year data.

Source(s):

National Center for Science and Engineering Statistics, National Patterns of R&D Resources (2021–22 edition).

Science and Engineering Indicators

U.S. R&D performance has been on a long-term growth trajectory since the post–World War II era, with a compound annual growth rate (CAGR) of 4% since 1953 in constant dollars (NCSES 2024, Table 1). The top three U.S. R&D-performing sectors are business, higher education, and the federal government (Figure RD-3), with business being the largest-performing sector by far, with a 78% share in 2022. The higher education sector has been the second-largest performer since 2002, remaining slightly ahead of the federal government sector since then. On the other hand, the federal government and business sectors have funded a combined share of over 90% of U.S. R&D since the 1950s, trading first and second place in 1980 when the business sector surpassed the federal government as the largest funder (Figure RD-4).

U.S. R&D expenditures, shares by performing sector: 1953–2022
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U.S. R&D expenditures, shares by performing sector: 1953–2022

(Percent)
Year Business Federal government Higher education Other
1953 70.3 22.2 5.3 2.2
1954 72.4 20.1 5.4 2.2
1955 71.5 20.9 5.5 2.1
1956 73.8 19.9 4.6 1.7
1957 73.9 20.0 4.4 1.7
1958 73.9 19.8 4.5 1.8
1959 73.7 19.8 4.7 1.9
1960 73.2 19.8 5.1 1.9
1961 71.1 21.1 5.7 2.1
1962 70.6 20.7 6.3 2.3
1963 69.7 21.2 6.7 2.3
1964 68.3 22.3 7.2 2.2
1965 68.2 21.6 7.9 2.3
1966 68.8 20.5 8.2 2.4
1967 68.4 20.5 8.7 2.4
1968 69.0 19.7 8.9 2.4
1969 68.6 20.1 8.8 2.5
1970 67.0 21.3 9.2 2.6
1971 66.2 21.7 9.5 2.6
1972 66.1 21.6 9.6 2.7
1973 66.9 20.7 9.5 2.8
1974 66.7 20.7 9.6 3.0
1975 65.8 21.3 10.0 3.0
1976 66.2 21.0 9.9 2.9
1977 66.6 20.6 10.0 2.8
1978 66.1 20.8 10.3 2.8
1979 66.9 19.9 10.3 2.8
1980 68.4 18.8 10.2 2.6
1981 69.8 18.0 9.8 2.5
1982 70.8 17.4 9.4 2.4
1983 70.8 17.6 9.2 2.4
1984 71.5 17.1 9.0 2.5
1985 71.8 16.8 9.0 2.4
1986 71.5 16.6 9.6 2.4
1987 71.4 16.1 10.1 2.4
1988 70.9 16.1 10.6 2.4
1989 70.4 16.0 11.0 2.6
1990 70.7 15.5 11.1 2.7
1991 71.3 14.5 11.3 2.9
1992 70.6 14.6 11.7 3.0
1993 69.7 14.8 12.4 3.2
1994 69.4 14.5 12.8 3.3
1995 70.7 13.8 12.3 3.2
1996 72.1 12.7 12.0 3.1
1997 73.3 11.9 11.6 3.1
1998 74.0 11.4 11.3 3.2
1999 74.5 11.0 11.2 3.3
2000 74.6 10.6 11.2 3.6
2001 72.5 11.8 11.8 3.9
2002 69.8 12.8 13.2 4.3
2003 68.9 12.8 13.9 4.4
2004 68.8 12.4 14.3 4.4
2005 69.5 12.2 14.0 4.3
2006 70.6 11.9 13.5 4.1
2007 71.3 11.7 13.1 4.0
2008 71.8 11.3 12.9 4.1
2009 70.1 11.8 13.6 4.5
2010 68.6 12.5 14.3 4.6
2011 69.0 12.6 14.1 4.3
2012 69.7 12.0 14.0 4.2
2013 71.0 11.2 13.5 4.2
2014 71.6 11.1 13.1 4.2
2015 72.0 10.7 13.1 4.3
2016 72.8 9.8 13.0 4.4
2017 73.3 9.5 12.8 4.4
2018 73.8 9.7 12.4 4.2
2019 74.9 9.4 11.7 4.0
2020 75.8 9.1 11.3 3.9
2021 77.1 8.5 10.9 3.5
2022 78.2 8.3 10.3 3.2
Note(s):

Some data for 2021 are preliminary and may be revised later. The data for 2022 include estimates and are likely to later be revised. Federal performers of R&D include federal agencies and federally funded research and development centers. R&D funding listed as Other combines data from nonfederal governments (state and local) and nonprofit organizations. For more information, see Table 2 and Table 6 of National Patterns of R&D Resources (2021–22 edition).

Source(s):

National Center for Science and Engineering Statistics, National Patterns of R&D Resources (2021–22 edition).

Science and Engineering Indicators

U.S. R&D expenditures, shares by funding sector: 1953–2022
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U.S. R&D expenditures, shares by funding sector: 1953–2022

(Percent)
Year Business Federal government Higher education Other
1953 43.5 53.9 0.7 1.8
1954 42.2 55.2 0.7 1.9
1955 40.8 56.7 0.7 1.8
1956 39.4 58.6 0.5 1.5
1957 35.0 62.9 0.5 1.6
1958 34.0 63.9 0.5 1.6
1959 32.5 65.4 0.5 1.6
1960 32.9 65.0 0.5 1.6
1961 32.7 65.1 0.5 1.7
1962 32.8 64.8 0.5 1.9
1963 31.1 66.5 0.5 1.8
1964 30.8 66.8 0.6 1.8
1965 32.3 65.1 0.7 1.8
1966 33.2 64.2 0.7 1.9
1967 34.9 62.4 0.9 1.9
1968 36.5 60.7 0.9 1.9
1969 38.5 58.6 0.9 2.0
1970 39.8 57.0 1.0 2.2
1971 40.2 56.4 1.1 2.3
1972 40.8 55.8 1.1 2.3
1973 43.0 53.6 1.1 2.3
1974 44.6 51.8 1.2 2.4
1975 44.4 52.0 1.2 2.5
1976 44.9 51.5 1.2 2.4
1977 45.3 50.9 1.3 2.4
1978 46.1 50.1 1.4 2.4
1979 47.1 49.2 1.4 2.3
1980 48.9 47.4 1.5 2.2
1981 49.7 46.7 1.5 2.1
1982 50.4 46.0 1.5 2.1
1983 50.3 46.1 1.5 2.1
1984 51.0 45.5 1.5 2.0
1985 50.5 45.9 1.5 2.0
1986 50.7 45.4 1.7 2.2
1987 49.5 46.4 1.8 2.3
1988 50.8 44.9 1.9 2.4
1989 52.8 42.6 2.0 2.5
1990 54.7 40.5 2.1 2.6
1991 57.4 37.8 2.1 2.7
1992 58.2 36.8 2.2 2.8
1993 58.3 36.5 2.2 3.0
1994 58.6 35.9 2.3 3.1
1995 60.4 34.3 2.2 3.1
1996 62.5 32.1 2.2 3.1
1997 64.3 30.4 2.3 3.1
1998 65.5 29.2 2.3 3.0
1999 67.3 27.3 2.3 3.0
2000 69.4 25.1 2.3 3.2
2001 67.6 26.5 2.5 3.4
2002 65.0 28.4 2.8 3.8
2003 63.9 29.2 2.8 4.0
2004 63.2 30.0 2.9 3.9
2005 63.9 29.3 2.9 3.9
2006 64.7 28.5 2.9 3.9
2007 65.3 27.8 2.9 4.0
2008 63.7 29.1 2.9 4.3
2009 61.2 31.2 3.0 4.6
2010 61.0 31.1 3.0 4.8
2011 62.5 29.8 3.1 4.6
2012 63.6 28.6 3.3 4.6
2013 65.4 26.4 3.4 4.7
2014 66.9 24.9 3.4 4.8
2015 67.4 24.2 3.5 4.9
2016 69.1 22.7 3.6 4.7
2017 69.8 22.1 3.6 4.5
2018 70.6 21.7 3.5 4.2
2019 72.5 20.4 3.3 3.9
2020 72.6 20.7 3.1 3.6
2021 74.9 18.7 3.0 3.4
2022 76.0 18.0 2.9 3.1
Note(s):

Some data for 2021 are preliminary and may be revised later. The data for 2022 include estimates and are likely to later be revised. Federal performers of R&D include federal agencies and federally funded research and development centers. R&D funding listed as Other combines data from nonfederal governments (state and local) and nonprofit organizations. For more information, see Table 2 and Table 6 of National Patterns of R&D Resources (2021–22 edition).

Source(s):

National Center for Science and Engineering Statistics, National Patterns of R&D Resources (2021–22 edition).

Science and Engineering Indicators

U.S. National R&D Intensity

The ratio of R&D expenditures to gross domestic product (GDP) is an intensity measure at the national level used for analysis and policymaking. For the United States, this measure has been above 3.0% since 2019 and was 3.4% in 2022, based on National Patterns statistics (Figure RD-5) (NCSES 2024, Table 1). Based on R&D funding measures, the ratio follows the pattern of relative shares of business versus federal sources (Figure RD-4), with the business R&D-to-GDP ratio being higher than the federal R&D-to-GDP ratio for the last few decades. The federal R&D-to-GDP ratio has declined since the last peak in 2009, associated with funds from the American Recovery and Reinvestment Act (ARRA).

Ratio of U.S. R&D to GDP, by funding source: 1953–2022
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Ratio of U.S. R&D to GDP, by funding source: 1953–2022

(Percent)
Year Total Business funded Federally funded Other funded
1953 1.33 0.58 0.71 0.03
1954 1.44 0.61 0.79 0.04
1955 1.45 0.59 0.82 0.04
1956 1.89 0.74 1.11 0.04
1957 2.09 0.73 1.31 0.04
1958 2.27 0.77 1.45 0.05
1959 2.39 0.78 1.57 0.05
1960 2.53 0.83 1.64 0.05
1961 2.59 0.85 1.69 0.06
1962 2.59 0.85 1.68 0.06
1963 2.75 0.86 1.83 0.07
1964 2.79 0.86 1.86 0.07
1965 2.73 0.88 1.78 0.07
1966 2.71 0.90 1.74 0.07
1967 2.71 0.95 1.69 0.07
1968 2.62 0.96 1.59 0.07
1969 2.55 0.98 1.50 0.07
1970 2.45 0.97 1.40 0.08
1971 2.31 0.93 1.31 0.08
1972 2.25 0.92 1.25 0.08
1973 2.17 0.93 1.16 0.07
1974 2.16 0.96 1.12 0.08
1975 2.12 0.94 1.10 0.08
1976 2.10 0.94 1.08 0.08
1977 2.08 0.94 1.06 0.08
1978 2.07 0.95 1.04 0.08
1979 2.11 0.99 1.04 0.08
1980 2.21 1.08 1.05 0.08
1981 2.25 1.12 1.05 0.08
1982 2.41 1.22 1.11 0.09
1983 2.48 1.25 1.14 0.09
1984 2.53 1.29 1.15 0.09
1985 2.64 1.34 1.21 0.09
1986 2.63 1.33 1.19 0.10
1987 2.60 1.29 1.21 0.11
1988 2.56 1.30 1.15 0.11
1989 2.52 1.33 1.07 0.11
1990 2.55 1.40 1.03 0.12
1991 2.61 1.50 0.99 0.13
1992 2.54 1.48 0.93 0.13
1993 2.42 1.41 0.88 0.13
1994 2.32 1.36 0.83 0.13
1995 2.40 1.45 0.82 0.13
1996 2.44 1.53 0.79 0.13
1997 2.47 1.59 0.75 0.13
1998 2.49 1.63 0.73 0.13
1999 2.54 1.71 0.69 0.14
2000 2.61 1.81 0.66 0.14
2001 2.63 1.78 0.70 0.15
2002 2.54 1.65 0.72 0.17
2003 2.54 1.63 0.74 0.18
2004 2.48 1.57 0.74 0.17
2005 2.49 1.59 0.73 0.17
2006 2.54 1.64 0.72 0.17
2007 2.61 1.71 0.73 0.18
2008 2.74 1.75 0.80 0.20
2009 2.78 1.70 0.87 0.21
2010 2.70 1.65 0.84 0.21
2011 2.73 1.71 0.81 0.21
2012 2.67 1.70 0.76 0.21
2013 2.69 1.76 0.71 0.22
2014 2.70 1.81 0.67 0.22
2015 2.70 1.82 0.65 0.23
2016 2.77 1.92 0.63 0.23
2017 2.82 1.97 0.62 0.23
2018 2.92 2.06 0.63 0.22
2019 3.09 2.24 0.63 0.22
2020 3.36 2.44 0.69 0.23
2021 3.34 2.50 0.63 0.21
2022 3.44 2.61 0.62 0.21

GDP = gross domestic product.

Note(s):

Some data for 2021 are preliminary and may be revised later. The data for 2022 include estimates and are likely to be revised later. The Other funded category includes higher education, nonfederal government, and nonprofit organizations. The GDP data used reflect the Bureau of Economic Analysis statistics as used in National Patterns of R&D Resources (2021–22 edition).

Source(s):

National Center for Science and Engineering Statistics, National Patterns of R&D Resources (2021–22 edition).

Science and Engineering Indicators

R&D-Performing Sectors

This section briefly describes U.S. R&D performance for all major sectors: business, higher education, federal and state government, and nonprofit. Later sections in this thematic report discuss additional details for business and the federal government.

The business sector is by far the largest performer of U.S. R&D. In 2022, this sector performed $692.7 billion in domestic R&D (current U.S. dollars), compared with $608.6 billion in 2021 for a 14% increase (6% in constant dollars) (Figure RD-3, Figure RD-4, Figure RD-6; Table RD-1, Table RD-2). From 2010 to 2022, business R&D grew at an annual CAGR of 5% in constant dollars, the highest rate across all sectors. This growth was driven by several R&D-intensive industries, as discussed later in this thematic report.

Annual percent changes in U.S. R&D, by performing sector: 2018–22
Keyboard instructions

Annual percent changes in U.S. R&D, by performing sector: 2018–22

(Percent change)
Performing sector 2018–19 2019–20 2020–21 2021–22
All performing sectors 10.2 7.7 10.1 12.2
Business 11.8 9.0 12.0 13.8
Federal 7.6 3.6 2.6 9.8
Higher education 4.4 3.4 6.1 6.6
Nonprofit organizations 4.8 5.1 0.5 0.5
(Percent change)
Performing sector 2018–19 2019–20 2020–21 2021–22
All performing sectors 8.4 6.3 5.2 4.8
Business 10.0 7.6 7.1 6.3
Federal 5.8 2.3 -1.9 2.6
Higher education 2.6 2.1 1.5 -0.4
Nonprofit organizations 3.0 3.7 -3.9 -6.1
Note(s):

Some data for 2021 are preliminary and may be revised later. The data for 2022 are estimates and are likely to be revised later. Data are based on annual reports by performers, except for the nonprofit sector. Expenditure levels for higher education, federal government, and nonfederal government performers are calendar year approximations based on fiscal year data.

Source(s):

National Center for Science and Engineering Statistics, National Patterns of R&D Resources (2021–22 edition).

Science and Engineering Indicators

U.S. R&D expenditures, by performing sector, source of funds, and type of R&D: 2022

(Millions of dollars and percent)

NA = not available; amount not published in source data.

FFRDC = federally funded research and development center.

a Higher education totals for R&D, basic research, applied research, and experimental development are not published in the source data.

Note(s):

The data for 2022 are estimates and are likely to be revised later.

Source(s):

National Center for Science and Engineering Statistics, National Patterns of R&D Resources (2021–22 edition).

Science and Engineering Indicators

The second-largest performer sector was higher education, with $91.4 billion (or a 10% share) in 2022. This represented a 7% change from 2021 in current dollars but stagnated (-0.4% change) in constant dollars. Since 2010, the CAGR was 1.5% in constant dollars.

In 2022, the federal government performed $73.3 billion, or an 8% share of U.S. R&D, compared with $66.8 billion in 2021 for a 10% increase (3% in constant dollars) (Table RD-1, Table RD-2). The 2022 number included $47.0 billion in intramural R&D and $26.4 billion performed by federally funded R&D centers (FFRDCs). Nonfederal government R&D performance in 2022 was estimated to be $697 million, averaging $655 million from 2010 to 2022 in constant dollars. In 2022, it represented about 0.1% of the U.S. total (Table RD-1, Table RD-2).

Nonprofit organizations (excluding higher education institutions, the federal government, and nonfederal governments) performed $27.3 billion of R&D in 2022 ($23.2 billion in constant dollars) (Table RD-1, Table RD-2). Since 2010, the share of the sector has been between 3% and 4%.

Sources of R&D Funding

The business sector is the largest R&D funder in the United States. In 2022, the sector funded $672.9 billion ($570.4 billion in constant 2017 dollars), or 76% of total U.S. R&D (Table RD-2). Virtually all (99%) of the 2022 business R&D funding supported business R&D.

The federal government funded another 18% ($159.8 billion, or $135.5 billion in constant dollars) in 2022 as the second-largest source of funding for U.S. R&D (Figure RD-4; Table RD-1). The largest recipient sectors of federal R&D funding in 2022 were higher education (30%), intramural federal R&D (29%), businesses (17%), and FFRDCs (16%) (NCSES 2024, Table 6). The remaining sectors funded another 6%: higher education (3%), nonprofit organizations (2%), and state and other local or nonfederal government (1%) (Figure RD-4; Table RD-1, Table RD-2).

Type of R&D

Most R&D performed in the United States is devoted to experimental development (hereafter, development), reflecting the large role of for-profit businesses in funding and performance. In 2022, development activities accounted for $596.2 billion in current dollars, or 67% of the $885.6 billion in total U.S. R&D performance. This was followed by applied research (18%) and basic research (15%). These relative shares have been stable for many years (Table RD-3). The higher education sector performs the largest share of basic research ($57.8 billion of $129.4 billion, or 45%), whereas the business sector performs 63% of applied research ($100.3 billion of $159.9 billion) and 92% of experimental development ($546.1 billion of $596.2 billion) (Table RD-2).

U.S. R&D expenditures, by type of R&D: Selected years, 2000–22

(Billions of current dollars, billions of constant 2017 dollars, and percent distribution)

a Some data for 2021 are preliminary and may be revised later.
b The data for 2022 are estimates and are likely to be revised later.

Note(s):

Data throughout the time series reported here are consistently based on the Organisation for Economic Co-operation and Development's Frascati Manual 2015 (OECD 2015) definitions for basic research, applied research, and experimental development. Prior to 2010, however, some changes were introduced in the questionnaires of the sectoral expenditure surveys to improve the accuracy of respondents' classification of their R&D by type. Accordingly, small percentage changes in the historical data may not be meaningful.

Source(s):

National Center for Science and Engineering Statistics, National Patterns of R&D Resources (2021–22 edition).

Science and Engineering Indicators

U.S. businesses funded 88% of development expenditures in 2022, compared with 76% of overall U.S. R&D (Figure RD-7). Businesses also funded the largest share of applied research (62%). The federal government funded the largest proportion of total U.S. basic research (40%), followed by the business sector (37%) and the higher education sector (12%) (Table RD-2). For basic research performed by the higher education sector, 53% was funded by the federal government. For more information on long-term trends by type of R&D and on the higher education sector, see, respectively, Anderson (2024) and the Indicators 2024 report “Academic Research and Development.”

U.S. R&D, by type and funding source: 2022
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U.S. R&D, by type and funding source: 2022

(Percent)
Type of R&D Business Federal government Higher education Other
Total R&D 76.0 18.0 2.9 3.1
Basic 37.1 39.6 12.5 10.8
Applied 61.8 28.8 4.2 5.2
Development 88.2 10.5 0.4 0.8
Note(s):

The data for 2022 are estimates and may be revised later. The Other category includes nonfederal government and nonprofit organizations.

Source(s):

National Center for Science and Engineering Statistics, National Patterns of R&D Resources (2021–22 edition).

Science and Engineering Indicators