Alabama is by far the largest performer of federal R&D in the Gulf States region. DOD and NASA both have key facilities in Alabama coupled with strong university research initiatives. In FY 1997, Alabama received almost $2.3 billion in R&D funds from the federal government, placing it ninth among the 50 states and the District of Columbia (see Alabama Table). This is 3.2 percent of total federal R&D for a state with a population of 4.3 million or 1.6 percent of the total U.S. population.

DOD and NASA are the two biggest contributors to Alabama's R&D base. DOD accounts for almost 60 percent of federal R&D funds for Alabama providing $1.3 billion in 1997. NASA contributed $736 million in FY 1997 or 33 percent of Alabama's total.

The largest recipient of federal funds for R&D in Alabama is industry. $1.36 billion of federal funds was provided to industry in the performance of R&D in Alabama during FY 1997. Federal labs received $661 million, universities received $220 million on R&D, and other nonprofit institutions were provided $20 million in FY 1997.

The majority of federal funds for industry came from DOD which contributed $930 million. NASA was next with $401 million and DOE provided $22 million in FY 1997. The majority of R&D performed by industrial firms in Alabama appears to support initiatives for the two major federal laboratories in the area, the Army's Redstone Arsenal and NASA George C. Marshall Space Flight Center.

Some of the more notable industrial firms located in Alabama include the Aegis Research Corporation which develops defense and aerospace software; Teledyne Advanced Materials and Teledyne Brown Engineering; Chrysler Huntsville Electronics which performs R&D for advanced electronic products; Monsanto's Decatur Technical Center which conducts basic and applied research in polymers and textiles; the Nichols Research Corporation which performs R&D on information technology issues concerning healthcare information; and Raytheon Engineering & Constructors, Inc. which specializes in engineering and construction of industrial plants and energy-related installations.

Not surprising, DOD and NASA are again the two primary sources of federally funded R&D performed in federal laboratories with contributions of $350 million and $300 million respectively. The USDA is a distant third with $6 million for R&D performed in federal labs in FY 1997.

The two most obvious federal labs in Alabama are the Redstone Arsenal and the George C. Marshall Space Center. The Redstone Arsenal is part of the U.S. Army Missile Command and conducts R&D for the Army's missile and rocket program along with providing support for already existing weapons.

The Marshall Space Flight Center is NASA's prime facility for developing space transportation and propulsion systems. It is also NASA's "center of excellence" for microgravity research and space optics manufacturing technologies.

Other federal lab initiatives include the USDA's Fish Disease and Parasites Research Laboratory and National Soil Dynamics Laboratory, the Tennessee Valley Authority's Analytical Laboratory and Environmental Research Center; the EPA's National Air and Radiation Environmental Laboratory; and the U.S. Air Force's Air University and Air Power Research Institute at Maxwell Air Force Base.

Alabama universities performed $220 million of federal R&D in FY 1997 with the HHS contributing the most with $134 million. The University of Alabama Birmingham (UAB) led the way with $152 million in federal funds in FY 1997. Auburn University ($23 million), University of Alabama Huntsville ($19 million), Alabama A&M ($10 million), University of Southern Alabama ($10 million), and Tuskegee University ($7 million) followed.

UAB is one of the leading medical research universities in the nation. It ranked 19th in NIH funds in 1997, 15th in school of medicine NIH funds, 25th in overall federal R&D funds, and is a Research I University according to the Carnegie groupings. Some of its research centers include the Alabama Congenital Heart Disease Diagnosis and Treatment Center, Kirklin Pain Treatment Center, Multipurpose Arthritis and Muscoskeletal Diseases Center, and Gregory Fleming James Cystic Fibrosis Research Center.

Other university initiatives include the Space Power Institute at Auburn University, the Automation Robotics Center and the Center for Space Plasma and Aeronomic Research at the University of Alabama Huntsville, the Center for Materials and Information Technology at the University of Alabama, and the Center for Food and Environmental Systems for Human Exploration of Space and the Tuskegee Center for Advanced Materials at Tuskegee University.

Alabama universities have also banded together to create the Alabama Space Grant Consortium. The Consortium consists of six doctoral granting universities and other colleges (Alabama A&M, the Alabama School for Math and Science, Athens State College, Auburn, Birmingham-Southern College, Miles College, Oakwood College, Samford University, Spring Hill College, Stillman College, UAB, UAH, and the University of Alabama Tuscaloosa). The consortium's aim is to coordinate the state's participation in NASA's EPSCoR program. It has achieved a funding of $6 million for the next five years.

Alabama's independent nonprofit research institutions received $20 million in federal funds in FY 1997. The largest of these is the Southern Research Institute in Birmingham. The Institute specializes in a variety of research fields ranging from metal-lurgy to animal pathology. Also, UAB has created the UAB Re-search Foundation whose mission is to identify, assess, and mar-ket any commercially viable technologies developed at UAB.

State initiatives in Alabama are abundant, starting with the Alabama Innovation Fund created to provide capital to university and business partnerships to promote development of products and services utilizing cutting edge technology. The Alabama Research Institute, funded through state general revenue, is a board consisting of private sector, government, and university officials whose interest is supporting research that address activities critical to Alabama's economy. The Alabama Educational Trust Fund supports the Alabama Supercomputer Center in Huntsville. Monies for the Trust Fund come from sales of services to industry, and federal contracts and grants. The Alabama Research and Education Network (AREN) was established to provide Internet access to state universities, colleges, and schools. AREN is part of Internet 2, a national effort between universities, industry, and nonprofit institutions to provide computer science and technology tools for education.