Research and Development (R&D) are recognized as the key drivers of economic growth and the lifeblood of national innovation and competitiveness. The U.S. is on the cutting edge of global competition because of past investments in research and development.  Economists estimate that up to half of the U.S. economic growth in the last five decades is due to advances in technology.  

The civilian research and development share of the Federal research portfolio has declined substantially since 2001, when civilian R&D accounted for 56% of the Federal research investment. Of the 42% of Federal R&D investment allocated for civilian research today, half is invested in health-related R&D. As a result, about 80% of Federal R&D investments are devoted to either defense (primarily weapons systems development and testing) or health. While defense and health research remain vitally important to the nation, it is essential that investment in the leading edge civilian technologies that underpin the U.S. economy be increased, and that a balanced investment portfolio be created.

While private interests provide the majority of the funding for the “development” side, it is the federal government that is largely responsible for the “research” side, as in basic research.  That is because basic research is, by its nature, risky, i.e., there is no guarantee of short- or even long-term return on the initial investment.  Yet, no other federal investment generates a greater long-term return to the economy and society than basic research.

Investments in research and development are essential to advancing innovation and for producing an engineering workforce that will be prepared to meet the challenges of the 21st century. In addition, federal research helps educate and train the next generation of scientists and engineers, which is critical to help meet the growing demand for skilled workers in the new economy.

POLICY OBJECTIVES:

• Commit to long-term investments in engineering and scientific research.
• Support a balanced portfolio of engineering and scientific research among the physical and life sciences.
• Sustain and strengthen the nation’s traditional commitment to long-term basic research that has the potential to be transformational to maintain the flow of new ideas that fuel the economy, provide security and enhance the quality of life.
• Support investments in research and development to advance the state of knowledge on international science and engineering workforce dynamics.
• Support efforts to double investments at the National Science Foundation (NSF), the Department of Energy’s (DOE) Office of Science and the National Institutes of Standards and Technology (NIST) that support basic research in engineering and have a potentially high impact on economic competitiveness.
• Support investments in science, engineering and technology programs at the Department of Defense at three percent of the total DOD budget.
• Promote a well-structured and vigorously funded national, multi-agency investment across the entire spectrum of key aerospace technologies and systems in both the commercial and military sectors.
• Support strong investments in environmental R&D, which are essential for the ongoing development of science-based decision making in areas such as human health; ecosystem health; and climate, particularly particulate matter, ozone, greenhouse gases, and water quality.
• Encourage and sustain the formation of R&D partnerships among federal governments, industry and universities.
• Leverage private sector investments in engineering research and other areas critical to economic growth.
• Permanently extend the research and development tax credit.

RELATED POSITION STATEMENTS: View All Federal Research and Development Position Statements