Estimating the Economic and Scientific Impact of Federal R&D Spending by Universities

Regents Of The University Of Michigan - Ann Arbor, Ann Arbor MI

Investigators

Abstract

This pilot project contributes to the scientific understanding of the role universities and federally funded research play in the larger economy. It does this by linking two rich and novel data sources -- the well-established and pivotal Longitudinal Household Employer Dynamics (LEHD) data program of the U.S. Census Bureau and the new STAR METRICS data being developed by the federal science-funding agencies. The goal is to estimate the impact of Federal academic R&D funding on regional and national economies. These data will be used to develop measures of the direct and indirect impact federal funding for academic science and engineering research has on human knowledge, technological developments, economic growth and resilience, and employment. Intellectual Merit: The project characterizes different strategies for organizing university research and to use those differences to explain variations in the productivity of academic science. The data are also used to determine how research spending on campuses 'spills out' into the economy through subcontracts and vendor relationships, entrepreneurship, graduating students, and technological innovations. The ultimate goal is to document what campus expenditures mean for job creation, economic competitiveness and growth. Because this is a pilot study the project focuses on the social networks that underpin university research conducted in five states, and on economic spillovers in one state. Broader Impacts. The project develops technical tools that can be used for later, nationwide research will be developed that enable more effective use of existing data for the analysis of science policy and its effects. The analysis also informs efforts to expand or modify existing data collection in the STAR METRICS program, helping to insure that those data will be useful for policy makers and researchers alike. The work contributes to the development of an evidence based science of science policy and thus helps to develop tools to ensure that national investments in fundamental science and engineering research are effective.