Federally Funded R&D Centers Report 13% Increase in R&D Spending in FY 2023
The nation’s 42 federally funded research and development centers (FFRDCs) spent $29.3 billion on research and development (R&D) in FY 2023, an annual increase of 12.7% in current dollars (table 1). The federal government funded $28.9 billion of the R&D total, which represented a 12.8% annual increase in federal support to FFRDCs. FY 2023 was the 10th consecutive year of nominal growth after 2 years of R&D expenditure declines in FYs 2011–13. The most recent decline in constant dollars occurred from FY 2021 to FY 2022. In constant dollars, total FFRDC R&D expenditures rose an average of 2.6% annually from FY 2013 to FY 2023 (figure 1). Average annual growth in current dollars was 5.2% during the same period. (All amounts and calculations are reported in current dollars unless otherwise noted. All growth rates are compound annual growth rates.) These and the other statistics in this report come from the FY 2023 FFRDC Research and Development Survey, conducted by the National Center for Science and Engineering Statistics within the U.S. National Science Foundation.
R&D expenditures at federally funded research and development centers, by source of funds: FYs 2013–23
Source(s):
National Center for Science and Engineering Statistics, FFRDC Research and Development Survey.
Total R&D expenditures at federally funded research and development centers: FYs 2013–23
| Fiscal year | Constant 2017 dollars | Current dollars |
|---|---|---|
| 2013 | 18,642 | 17,667 |
| 2014 | 18,377 | 17,719 |
| 2015 | 18,966 | 18,458 |
| 2016 | 19,564 | 19,220 |
| 2017 | 20,038 | 20,038 |
| 2018 | 20,698 | 21,172 |
| 2019 | 21,861 | 22,738 |
| 2020 | 22,314 | 23,514 |
| 2021 | 22,612 | 24,921 |
| 2022 | 22,045 | 26,007 |
| 2023 | 23,977 | 29,317 |
Source(s):
National Center for Science and Engineering Statistics, FFRDC Research and Development Survey.
R&D by Funding Source
Federal funding sources accounted for 98.5% ($28.9 billion) of FFRDC R&D expenditures in FY 2023 (table 1). This level of support is typical for FFRDCs, which are privately operated R&D organizations that are exclusively or substantially financed by the federal government. Nonfederal sources funded the remaining R&D, which totaled $436.9 million: businesses ($224.4 million); nonprofit organizations ($42.3 million); state and local governments ($35.4 million); and all other sources ($134.8 million), such as funds from foreign governments and foreign or U.S. universities.
Federal Agency Sources of R&D Funding
The Department of Energy (DOE) and the Department of Defense (DOD) combined to account for 77.4% of federally funded R&D expenditures at FFRDCs (table 2). DOE accounted for 56.7% ($16.4 billion) of the federally funded spending, and DOD accounted for 20.7% ($6.0 billion). The National Aeronautics and Space Administration (NASA) ($2.9 billion, or 10.1% of the total) and the Department of Health and Human Services (HHS) ($1.3 billion, or 4.6% of the total), which includes the National Institutes of Health, were the only other agencies funding greater than $1 billion. Almost $2.3 billion of federally funded R&D came from agencies other than the largest four. FFRDCs identified 21 other agencies as sources of federal funding in FY 2023 (table 3).
Federally financed R&D expenditures at federally funded research and development centers, by federal agency and FFRDC: FY 2023
DHS = Department of Homeland Security; DOD = Department of Defense; DOE = Department of Energy; DOT = Department of Transportation; FFRDC = federally funded research and development center; HHS = Department of Health and Human Services; NASA = National Aeronautics and Space Administration; NSF = National Science Foundation.
Source(s):
National Center for Science and Engineering Statistics, FFRDC Research and Development Survey, FY 2023.
Federally financed R&D expenditures at federally funded research and development centers, by federal agency: FY 2023
a Some funding sources were not identified for security reasons or because the original source was not known.
Source(s):
National Center for Science and Engineering Statistics, FFRDC Research and Development Survey, FY 2023.
Expenditure Trends at Specific FFRDCs
FFRDCs spent $6.6 billion more on R&D in FY 2023 than in FY 2019 (table 4). The majority of FFRDCs (37 centers) increased R&D spending in FY 2023 compared with FY 2022; 5 FFRDCs reported lower R&D totals in FY 2023. Eleven FFRDCs reported more than $1 billion each (a combined $22.6 billion) in R&D expenditures for FY 2023—the NASA-sponsored Jet Propulsion Laboratory; seven DOE-sponsored national laboratories specializing in energy and the environment, national security, and nuclear science (Argonne, Lawrence Berkeley, Lawrence Livermore, Los Alamos, Oak Ridge, Pacific Northwest, and Sandia National Laboratories); the DOD-sponsored National Security Engineering Center, Lincoln Laboratory, and Aerospace FFRDC. Sandia National Laboratories and Los Alamos National Laboratory were the two largest performers with $4.3 billion and $3.8 billion in total R&D, respectively. Between FY 2022 and FY 2023, three FFRDCs each increased their R&D expenditures by more than $400 million: Los Alamos ($473.8 million), Sandia ($464.0 million), and Lawrence Livermore ($451.1 million). Three other FFRDCs reported R&D expenditure increases greater than $200 million: Argonne National Laboratory ($271.7 million), Jet Propulsion Laboratory ($253.7 million), and Oak Ridge National Laboratory ($215.7 million).
R&D expenditures at federally funded research and development centers, by FFRDC: FYs 2019–23
NA = not available; na = not applicable.
FFRDC = federally funded research and development center; NSF = National Science Foundation.
a Prior to the FY 2021 collection, the National Center for Science and Engineering Statistics discovered that the Green Bank Observatory had split from the National Radio Astronomy Observatory on 1 October 2016; both retained FFRDC status. For FYs 2017–20, R&D expenditures reported for the National Radio Astronomy Observatory include the expenditures for the Green Bank Observatory. The Green Bank Observatory began reporting separately on the FY 2021 survey.
b The Judiciary Modernization Engineering Center was decertified as an FFRDC on 31 January 2021.
Source(s):
National Center for Science and Engineering Statistics, FFRDC Research and Development Survey.
Expenditures, by Type of R&D
In FY 2023, basic research activities accounted for 20% of total FFRDC R&D expenditures or $5.9 billion (figure 2). The remaining R&D expenditures were closely divided between applied research (40.7%, or $11.9 billion) and experimental development (39.4%, or $11.5 billion). These shares have changed only slightly over the last 5 fiscal years.
R&D expenditures at federally funded research and development centers, by type of R&D: FY 2023
| Type of R&D | Percent | Billions of current dollars |
|---|---|---|
| Basic research | 20.0 | 5.9 |
| Applied research | 40.7 | 11.9 |
| Experimental development | 39.4 | 11.5 |
Note(s):
Percentages are based on unrounded data available in the survey's data tables. Because of rounding, detail may not add to total.
Source(s):
National Center for Science and Engineering Statistics, FFRDC Research and Development Survey.
Data Sources, Limitations, and Availability
The statistics on FFRDC R&D expenditures presented in this report come from the FY 2023 FFRDC Research and Development Survey. This annual survey is completed by FFRDC administrators and collects data from FFRDCs on R&D expenditures by source of funds (federal government, state and local governments, businesses, nonprofit organizations, or other); federal agency source; type of R&D (basic research, applied research, or experimental development); type of cost (salaries, software, equipment, subcontracts, other direct costs, and indirect costs); R&D personnel headcounts and full-time equivalents; and total operating budget. This survey has been a census of the full population of FFRDCs since FY 2001. For a list of criteria used to define the set of FFRDCs, see the general guidelines of the Master Government List of FFRDCs at https://ncses.nsf.gov/resource/master-gov-lists-ffrdc/general-notes.
The full set of data tables from this survey and more information on the survey methodology are available at https://ncses.nsf.gov/surveys/ffrdc-research-development/2023.
Notes
1For annual totals from FY 2001 to FY 2023, see the full set of data tables: table 1.
2For FFRDC sponsoring agencies and locations, see the full set of data tables: table 6. The Master Government List of FFRDCs also provides details on sponsoring agencies, administrator types, locations, general and historical notes.
3For type of R&D from FY 2001 to FY 2023, see the full set of data tables: table 2.
Suggested Citation
Gibbons MT; National Center for Science and Engineering Statistics (NCSES). 2024. Federally Funded R&D Centers Report 13% Increase in R&D Spending in FY 2023. NSF 24-330. Alexandria, VA: U.S. National Science Foundation. Available at https://ncses.nsf.gov/pubs/nsf24330/.
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|July 15, 2024