Federal Funding for Academic and Health R&D

Indicator 14:  Federal Funding for Academic and Health R&D


How Does Massachusetts Perform?

 INDICATOR 14: Federal Funding for Academic and Health R&D text box stats: $3.2B in federal funding for academic and health R&D in 2016, second nationally.  Also 2nd nationally in NIH funding in 2017 with $2.7B  11 Research Organizations received more than $100M in NIH funding in 2017

Due to federal budget cuts, federal funding for academic R&D declined in all the LTS except Florida and New Hampshire in 2016, with every other state falling below its 2011 level. Massachusetts remains second among the LTS in federal R&D funding awarded to universities and non-profit institutions. Massachusetts received $3.2 billion in federal R&D funding in 2016, roughly 1/3rd less than California’s total ($4.8 billion), an impressive statistic considering the Commonwealth’s population, which is roughly 1/6th that of the Golden State.

Massachusetts continues to maintain a lead in federal funding for Academic R&D per $1,000 GDP at $6.40. This is more than twice as much as second ranked Rhode Island, which also benefits from a large concentration of research hospitals and medical schools, as well as a small population base. Despite leading the LTS, Massachusetts has suffered a 14% decrease in federal funding for Academic R&D per $1,000 GDP since 2011.  This is reflective of a long term decrease in the percentage of the federal budget spent on R&D, which has been declining since 1966.

Of the 54,194 awards from the National Institutes of Health (NIH) in the U.S. in 2017, Massachusetts accounts for 5,185 or 9.6% of total awards and a 10.4% share of NIH funding. Eleven Massachusetts research organizations attracted more than $100 million in NIH funding in 2017, totaling 3,739 awards and $2.1 billion in funding. Boston, Cambridge, and Worcester together combined for a total of 4,693 awards with 2.5 billion in NIH funding due to the high density of hospitals, universities, and pharmaceutical companies in those cities.

Massachusetts continues to attract the largest share of NIH funding per $1 million GDP among the LTS and nationally. Massachusetts’ amount of NIH funding per $1M GDP ($5,347) is unparalleled in the LTS, reaching more than 3 times the median share for the LTS. Massachusetts received the second highest number of NIH awards (5,185 in 2017) following only California (8,013). In terms of absolute amount of NIH funding, Massachusetts ranked second ($2.7B) to California ($4B).



Data Source for Indicator 14: NSF, BEA, National Institutes of Health (NIH), Census Bureau, https://www.aaas.org/programs/r-d-budget-and-policy/historical-trends-federal-rd