Overview
A state’s academic institutions play a critical role in attracting the funds and talent to support research and innovation. This quarterly report examines recent trends in a key indicator — academic R&D expenditures — with a focus on leading Illinois metropolitan statistical areas (MSAs). Recent data from the National Science Foundation indicate that R&D spending at academic institutions in Illinois rose slightly in 2012 (the latest year for which data are available).
Key findings
- Illinois continued to be most specialized in math and computer science R&D among all states nationwide.
- Illinois academic institutions increased their total R&D expenditures to $2.36 billion in 2012 — a small year-on-year increase, but slow compared to previous years the Index has studied.
- In 2012, Chicago maintained its position as one of the top MSAs in the country for academic R&D expenditures, ranking eighth with a total of $1.67 billion. Other Illinois MSAs exhibited a strong concentration in various R&D areas; Champaign, for instance, boasts the highest specialization in math and computer science expenditures among the top 100 MSAs by academic R&D spending.
- At the institution level, the University of Illinois at Springfield had the highest specialization in social sciences R&D among all schools nationwide; Columbia College Chicago was second-most specialized nationally in math and computer science R&D; and DePaul University was third-most specialized nationally in psychological sciences R&D.
About the data
Each year, the National Science Foundation (NSF) sends out its Higher Education Research and Development Survey (HERD) to academic institutions, which report on their R&D expenditures. Beginning with the most recent HERD survey, the NSF provided a short-form questionnaire to institutions with less than $1 million in total R&D spending in 2011. By moving these schools to the short-form survey, the full survey’s sample size was reduced from 912 institutions in 2011 to 655 in 2012. Although many in number, the short-form schools collectively spent $145 million — just 0.2 percent — of the nearly $66 billion in total expenditures. As a result, their effect on the full-survey totals is negligible. However, the full-survey respondents for certain MSAs did drop as a result. Chicago, for instance, saw its number of institutions drop from 28 in 2011 to 18 in 2012. All numbers in this report reflect only the full-survey data.
The Chicago MSA’s performance
In 2012, the academic institutions in the Chicago MSA invested $1.67 billion in R&D, just below the $1.69 billion from the previous year (see the Q1 2013 report for more detail). This level of spending placed Chicago universities eighth among the nation’s MSAs — unchanged from 2011 rankings. Nearly two-thirds of Chicago’s spending was concentrated in life sciences, though several areas — physical sciences, psychology, and other sciences — also reflected significant emphasis. (For more information on expenditure categories, see sidebar “Know your sciences.”) This spending helps Chicago academic institutions conduct cutting-edge research as well as attract top talent in science fields. For instance, according to a World Business Chicago (WBC) analysis, the Chicago MSA has the second-highest number of graduates with master’s and doctorate degrees in math and computer science (1,785) among the top 100 MSAs on an annual basis. Chicago-area institutions’ R&D spending in non–science and engineering fields, which includes business management and communications, was fifth among the top MSAs.
Know your sciences
The categories of academic R&D expenditures consist of a number of distinct sciences. The composition of each category informs the concentration of R&D expenditures by certain institutions and suggests opportunities for greater collaboration with industry. For example, universities with significant investments in life sciences could be well placed to team with agribusiness or biopharma companies.
- Computer and math sciences — Data processing; information sciences; applied mathematics; geometry
- Engineering — Aeronautical/astronautical, bio/biomedical, chemical, civil, electrical, mechanical, and metallurgical/materials engineering
- Environmental sciences — Atmospheric and earth sciences; oceanography
- Life sciences — Agricultural, biological, and medical sciences
- Other sciences — Expenditures not elsewhere classified
- Physical sciences — Astronomy; chemistry; physics
- Psychology — Educational psychology; human development and personality
- Social sciences — Economics; political science; sociology
- Non–science and engineering — Business and management; communications, journalism, and library science; education; humanities; law; social work; visual and performing arts
Illinois’ performance compared with top states
In 2012, academic institutions throughout the state of Illinois invested a total of $2.36 billion in R&D, an increase of $11.2 million or 0.5 percent over 2011. Massachusetts had the largest one-year increase in total R&D investment, while several states saw their totals drop from the previous year. The only change to the top-ten rankings by total spending in 2012 occurred in the last two slots, as Michigan took 9th place (from 10th in 2011), Florida took 10th place (from 11th), and Ohio fell to 11th (from 9th).
For the top states, federal funding accounted for anywhere from one-half to two-thirds of total expenditures. Academic institutions’ dependence on this funding warrants a discussion of the impact of the federal budget on universities and research, especially in light of the Budget Control Act of 2011. The impending risk of an innovation gap is discussed further in the ISTC Catalyst article “Federal Support for Basic Science & Technology Commercialization: Sparking Economic Growth for Illinois.”
Illinois’ performance in math and computer science
Illinois academic institutions excelled in a number of categories in 2012. That year, the state ranked sixth in the nation by total investment in math and computer science R&D and graduated the third-highest number of students with master’s and doctorate degrees in this field. According to the National Center for Education Statistics, in 2012 more than 8,000 undergraduate students were enrolled in engineering fields across University of Illinois campuses (Urbana–Champaign and Chicago)—a number that exceeds the combined total of Berkeley, Caltech, MIT, and Stanford. MSAs across the state have developed concentrations in specific science categories, as defined by the location quotient (LQ) of academic expenditures; this specialization helps define the priorities and strengths of specific institutions and geographic areas by identifying outsized focus even when total expenditures are relatively small.
The strength of the state’s academic network is reinforced by the emergence of several MSAs in selected categories. The Champaign–Urbana MSA’s R&D expenditures, for example, increased by $38 million from 2011 to 2012. Its $97.6 million investment in math and computer science R&D ranked seventh in the nation among MSAs, behind only vastly larger metros (such as Los Angeles, New York, and Boston). This emphasis on math and computer science enabled Champaign–Urbana to record the highest LQ in this category among the top 100 metros. Also in 2012, Peoria ranked third out of 235 metros with a surveyed institution by percentage of R&D funding from the private sector: 38.5 percent of its expenditures came from business compared with the national average of 6 percent. And Springfield was the most specialized in social science R&D investment out of all 235 MSAs across the nation with an LQ of 27.2. All of these findings suggest that central Illinois is becoming a powerhouse for both research and partnerships with private companies.
Illinois on the forefront of advanced manufacturing
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When President Obama announced that Illinois would be home to the new Digital Manufacturing and Design Innovation (DMDI) Institute, it was a recognition of state’s vision to establish an advanced manufacturing hub—an achievement that will be aided by harnessing academic R&D. UI Labs will host the institute, which received $70 million in federal funding and an additional $250 million in industry commitments. The project represents an important collaboration between 23 academic institutions, 41 corporations, and 9 nonprofit organizations. The DMDI Institute will focus on the flow of digital data across design, engineering, manufacturing, and maintenance systems and the networked supply chain as a whole.
Note: Since the DMDI Institute is a public-private partnership, its funds will not appear in figures for academic or industry R&D.
Looking ahead
Over the past several months, the Index has explored the impact of academic R&D on the innovation ecosystem through indicators such as technology transfer and patent output. The recent announcement of the DMDI Institute demonstrates how collaboration among academia and business has the potential to accelerate innovation and further the state’s goals. As the October 2013 Index noted, industry R&D in Illinois was more than $12 billion in 2011 but accounted for just $100 million in academic R&D expenditures, suggesting an opportunity to boost industry funding for academic R&D through closer collaboration. And in support of federal investment in academic R&D, earlier this month, earlier this month US Senator Dick Durbin (D-IL) introduced legislation that would provide $150 billion over the next decade to fund biomedical research through four federal agencies.