This indicator represents the ratio of state agency R&D funding to the size of a state’s economy. State R&D funding expenditures include state-administered funds from all sources, including the federal government, that support R&D performed by either a state agency or an external performer. Nationally, most R&D is performed by sources other than state agencies, which typically account for less than 1% of total R&D expenditures.

Data on state R&D funding cover R&D performed by intramural performers (state government departments, agencies, independent commissions, and other state-run entities) as well as extramural performers such as academic institutions, companies, and individuals.

State R&D totals can display considerable volatility between survey years due to state-specific factors. Large changes are not unusual, especially for discretionary spending items such as R&D. Because of differences in the survey populations, the definition of covered R&D activities, and collection methods, the results of the NCSES surveys on state government R&D prior to 2006 are not comparable.

Data sources: National Center for Science and Engineering Statistics, Survey of State Research and Development; Bureau of Economic Analysis, gross domestic product data; Government of Puerto Rico, Office of the Governor, gross domestic product data.