What is the global annual expenditure of corporate research funding on research done in academia, by faculty & students. Divided into bins according to industry sector of the funder or research domain in the academia.
Hello! Thanks for your question about the global annual expenditure of corporate research funding on research done in academia by faculty and students. The short version is that global annual expenditure of corporate research funding in academia in the U.S. is $18.17 billion. You will find a deep dive of my findings in the attached spreadsheet. Final numbers can be found in “Global” tab of my spreadsheet. Percentage of each field can be found in the tab “By fields” in Column L.
After searching extensively through industry reports and surveys, we found data about research domain in the academic breakdown. We have numbers from which we can calculate percentage of R&D spending in each field from NSF.gov. From looking at the 'Non-federally financed higher education R&D expenditures, by R&D field: FYs 2006–15'. We also have university R&D data from NSF.gov which provides the whole U.S. market size. Therefore, we can calculate market share of university R&D. Businesses spent $356 billion on research and development performance in the United States in 2015, a 4.4% increase over the $341 billion spent in 2014. Funding from the companies' own sources was $297 billion in 2015, a 5.0% increase from the $283 billion spent in 2014. Funding from other sources was $59 billion in 2015 and $58 billion in 2014. Data for this InfoBrief are from the Business R&D and Innovation Survey (BRDIS), developed and co-sponsored by the National Center for Science and Engineering Statistics, within the National Science Foundation and the U.S. Census Bureau. Therefore, my calculation is: $356 billion + $69 billion (rounded-up by the statistic from Non-federally financed higher education R&D expenditures, by R&D field: FYs 2006–15) which equals $425 billion total spending on R&D in the U.S. Therefore, 69/425=16% comes from higher education.
I found that those kind of numbers are collected by NFS (for the U.S.). The latest data for higher education R&D expenditures, by source of funds and type is from 2015. I added these numbers to the spreadsheet as well. Therefore, all R&D expenditures: 68,667,801, (Dollars in thousands); Business: 4,000,614 (Dollars in thousands)---4,000 614/68,667,801=5.83%. So, we can calculate that 5.83% of all R&D spending is sponsored by corporations.
I found a general report about global R&D funding from the 2016 Global R&D Funding Forecast. I used the same calculations as I did for the retrieving the 16% of total spending coming from higher education (15% from Academia vs. 16% in 2015). So we can assume, that numbers in this report are accurate and we can calculate global numbers using percentages from the U.S. market. Global numbers for R&D are found from "GERD = Gross Expenditures on Research and Development"; "Global R&D=1947.75Bil, US$" (Estimated data for 2016). So to find the Global R&D university spending we multiplied the global R&D ($1947.75) by percent of R&D on universities (16%) and ended up with $311.64 billion. To get the total Global R&D university spending sponsored by business we multiplied percent of universities R&D sponsored by business (5.83%) by global R&D university spending ($311.64 billion) and received the final total of $18.17 billion.
We did find one source from Sciencemag.org regarding the pharmaceutical market. The mention in the article that, "According to NSF’s annual Business Research and Development and Innovation Survey (BRDIS), which tracks the research activities of 46,000 companies. Drug company investment in basic research soared from $3 billion in 2008 to $8.1 billion in 2014, according to the most recent NSF data by business sector. Spending on basic research by all U.S. businesses nearly doubled over that same period, from $13.9 billion to $24.5 billion."
To wrap it up, we calculated the global annual expenditure of corporate research funding in academia in the U.S. and found that it is equal to $18.17 billion. We also found that 5.83% of Universities R&D were sponsored by businesses, higher education institutions represent 16% of the R&D market in United States, and global R&D university spending is $311.64 billion.
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