Business Sector Increases Funding for Basic Research

Expenditures on the performance of basic research funded by the business sector have increased dramatically over the past 2 decades. Based on the institutions that performed the work, funding from the business sector for basic research has increased from $10.4 billion in 2000 to an estimated $36.0 billion in 2021 in constant 2012 dollars. Although federal funding for basic research performance increased in real terms from $31.1 billion in 2000 to $40.6 billion in 2005, little has changed since. Subsequently, federally funded basic research performance has essentially remained near or below $40 billion. The longer-term trends in funding shares follow a similar pattern of decreased relative importance of the federal government as a funding source. From 1961–70, on average the federal government funded 70% of basic research performance and the business sector funded less than 20%. The latest estimate for 2021 indicates that the federal government funded 40% of basic research and the business sector was responsible for 36% of basic research funding. Prior to 2016, the 1950s were the last time that business funded 30% or more of basic research performance.

Suggested citation: Anderson G; National Center for Science and Engineering Statistics (NCSES). 2023. Business Sector Increases Funding for Basic Research. NSF 23-338. Alexandria, VA: National Science Foundation. Available at https://ncses.nsf.gov/pubs/nsf23338/.