FY 1995, Arizona was 19th out of the 50 states
and the District of Columbia as a recipient of federal funds
for research and development (R&D). The state received
$958 million, 1.4 percent of the national total.
Department of Defense (DOD) supplies over two-thirds of
Arizona’s federal R&D funds. Defense obligations to
the state, which totaled $657 million in FY 1995, account
for 1.9 percent of DOD’s total R&D funds.
National Science Foundation (NSF) is second as a source
of federal R&D funds to Arizona. In FY 1995, NSF allocated
$103 million for research conducted by Arizona universities
and by the state’s only federally funded research and development
center (FFRDC), the National Optical Astronomy Observatories.
Department of Health and Human Services (HHS) is the largest
sponsor of federal R&D at Arizona universities, providing
$66 million in FY 1995. NASA is second with $39 million,
followed by NSF with $30 million.
University of Arizona (UA) is by far the state’s largest
university recipient of federal R&D funding; it ranks
25th in the nation. In FY 1995, it received $137
million, or 77 percent of all federal R&D funding to
Arizona universities. UA is a Research I university and
received $152 million in federal funds for total science
and engineering (S&E; includes R&D as well as facilities
support, training, and other S&E activities).
State University (ASU) received $33 million in federal R&D
funding in FY 1995. The Carnegie Foundation for the Advancement
of Teaching classified ASU as a Research I university in
1996. ASU received $41 million in federal funding for total
S&E in FY 1995, placing it 96th in the nation.
1995, Arizona universities awarded over 8,600 bachelors,
masters, and doctoral degrees in science and engineering.
Arizona graduates in math and computer science account for
2 percent of the national total.
firms are the major recipients of federal R&D funding
to Arizona, receiving 55 percent ($528 million) of the state’s
total federal R&D obligations in FY 1995.
hosts numerous businesses specializing in aeronautics and
space. Boeing, AlliedSignal, and Honeywell each have facilities
in the state. Arizona is also an important site of semiconductor
and electronics development and production, an Arizona industry
sector led by Intel and Motorola.
laboratories in Arizona received $178 million in FY 1995,
almost one-fifth of the state’s federal R&D funds. Three-quarters
of these funds come from DOD.
support for R&D, particularly DOD support for industrial
R&D, in Arizona has been on the rise for the past several
years, despite a downward trend in federal R&D funding
for the nation as a whole.
100 years ago, Percival Lowell sought to investigate the possibility
of intelligent life on Mars. He chose Flagstaff as the site
for his observations of the solar system, establishing the
Lowell Observatory in 1894. Since then, Arizona’s research
institutions have led the nation in astronomy, optics, and
planetary science. More recently, the state’s R&D enterprise
has grown to include aeronautics, telecommunications, and
many other fields. Arizona now has a thriving high technology
sector, several federal labs, and some of the country’s top
universities. Almost $2 billion worth of R&D was performed
in Arizona in 1995 (see Table 1).
government supplies over half of Arizona’s R&D funding.
The state received $958 million in FY 1995, or 1.4 percent
of the national total (see Table
2). This places it 19th out of the 50 states
and the District of Columbia. The largest share of the federal
R&D funds goes to industry and is provided by the Department
of Defense (DOD) and the National Aeronautics and Space Administration
(NASA). Arizona is home to many companies and corporate subsidiaries
involved in developing space and military technologies. These
and other contractors account-ed for over half a billion dollars
in federal R&D obligations.
has a diverse set of federal labs that together receive $178
million from the federal government for R&D. DOD provided
most of this, mainly for researching, developing, testing,
and evaluating electronic systems. Arizona has one federally
funded research and development center (FFRDC), the National
Science Foundation (NSF)-funded National Optical Astronomy
(NOAO). NSF gave NOAO $29 million in FY 1995, not including
facilities support, to conduct astronomical research at its
sites in the United States and abroad. Arizona is also home
to a branch of the National Institute of Diabetes and Digestive
and Kidney Diseases, one of the National Institutes of Health
(NIH), which are funded by the Department of Health and Human
The University of Arizona and Arizona State University are
the state’s top two research universities. Together, these
two schools received over 95 percent of the federal R&D
funding to Arizona universities and colleges in FY 1995. HHS
provides over one-third of these funds. NASA, NSF, and DOD,
in that order, are the other main sponsors (see Table
plays an important role in Arizona’s economy. A 1995 report
to the Governor’s Arizona Science and Technology Council and
the Governor’s Strategic Partnership for Economic Development
states that the high technology sector was responsible for
nine percent of the state’s total employment, primarily related
to the areas of electronics, aircraft and missiles, and scientific
instruments, including optics. High technology products account
for 63 percent of the state’s foreign exports. The report
estimates that about 20 percent of people employed by high
technology companies are engaged in R&D. In calendar year
1995, Arizona businesses spent a total of $759 million on
R&D in order to maintain their innovative edge (see Table