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R&D EXPENDITURE/
UNITED STATES
source: www.ntu.edu.sg/idss/Perspective/
research_050333.htm
www.epinions.com/content_
4276854916
powerelectronics.com/mag/power_
exploring_latest_developments/
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In spite of the traditional reliance on private sector for innovation, US government has spent vast sums in R&D over the last 50 years. The combined Federal and industrial spending places the United States by far at the number one position in the world… - released in March 2005, the R&D proposed budget for 2006 substantially confirmed the previous trends within the sector: wherehas US R&D spending has increased by a healthy 6% a year between 1994 and 2002, recently it seems to be time for belt tightening;
- traditionally, industry has been contributing over 60% of the total spending (over $300 billion), which is about as much as that of the other G-7 nations combined. Recently, industry has been suffering a serious downturn, and R&D spending has not kept up with that of previous year. In parallel, the Federal R&D budget has been ‘flatened’ at $132 billion;
- the National Institute of Health (NIH) registers a 0.5% increase. With $28.7 billion, this agency's budget still represents a formidable commitment to health care and related areas. Of course, funds are targeted, and newly funded projects include biodefense and chemical defense;
- the National Science Foundation (NSF), the agency responsible for funding much of basic science, receives a 2.4% increase, barely enough to compensate for the disastrous cut in 2005;
- the Department of Energy gets a substantial cut (3.8%). Coal-related initiatives receive $300 million, whereas renewable energy R&D only gets $350 million. Among the budget items which are worst hit are Environmental Cleanup R&D, slashed by 64%;
- Agricultural Research (USDA) appears severely cut also (by 13%), whereas the Environmental Protection Agency (EPA) receives a small increase;
- concerning the economic development, which is represented by the National Institute of Standards and Technology (NIST), with a $400 million budget, increases substantially, by 12.6%, perhaps in response to the country's diminishing economic competitiveness;
- it is instructive to compare the US spending with that of other Western countries: the US spends more in health, 24% of the budget vs. 5% for both Japan and Germany. Most countries spend large amounts of their budget in economic development initiatives (35% and 20% for Japan and Germany, respectively), whereas the US does not (only 1%). Japan and Germany spend >50% of their federal R&D budget in ‘knowledge creation’, i.e. less targeted general funding of universities. USA registers a 6% spending in this area, mainly through the NSF.
…whereas the US spends more than half of his Federal R&D funds in weapons. - the biggest part of 2006 R&D budget has been destined to Defense R&D ($71 billion, representing a 1% increase). Of this, >90% is for weapon testing and evaluation, i.e. activities whose benefits will not extend to the economy at large;
- currently each US citizen spends $1,400 of his money each year in buying weapons for his/her government, which is more than 10 times that of any citizen of any other country in the world;
- according to OECD’s figures, the US invests around 0.48% of its GDP into defense-related R&D—more than twice the proportion allotted by the UK or France.
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