Appendix 1: Methodology and Data Sources
Within the federal budget there is no separately identified R&D budget as such; nor are most appropriations for R&D so labeled except for certain program areas, such as defense. Consequently, most funds for R&D are not line items in an agency's budget but are included within general program funding. The Office of Management and Budget (OMB) requires agencies whose annual R&D funding is greater than $10 million to submit data on their R&D programs as part of their annual budget submissions. Specifically, the agencies provide data (reported on MAX Schedule C as part of the budget process) on funding levels for basic research, applied research, development, and R&D facilities (see Appendix 2: Definitions). However, agencies differ in their reporting. For example, some agencies classify program direction or management support as R&D; others do not.
In the data tables, the columns "FY 2005 Estimate" and "FY 2006 Request" represent the agencies' best estimates of actual and proposed federal funding for R&D collected during February 2005 by OMB and AAAS. These figures incorporate information provided to OMB by 26 agencies accounting for more than 99 percent of all federal R&D and information collected by AAAS from individual agencies after the budget is prepared. Some figures (in DOD, NASA, and Commerce) have been revised extensively since the February release of the budget. "FY 2006 Final" figures are AAAS estimates of R&D contained in FY 2006 appropriations bills and their accompanying committee reports as approved by Congress and signed by the President between August and December 2005.
Due to rounding in the tables, the detail may not add to the totals, and the percentage changes may not correspond to the difference shown. Most figures are rounded to the nearest million; totals and changes are calculated from unrounded figures. In the tables, subtotals are occasionally provided for additional detail. These subtotals are shown in italics to indicate that they do not add into the totals.
Special Note on Table 2. Estimated Research by Agency. Most R&D programs contain a mix of basic research, applied research, and development. Agencies determine what proportions of a program's R&D are basic and applied research. "FY 2006 Final" figures for research (basic and applied) are AAAS estimates of basic and applied research contained in FY 2006 appropriations bills as approved by Congress and signed by the President in 2005, based on historical trends in basic and applied research and agency budget documents.
Special Note on Table 3. Major Functional
Categories of R&D. All activities in the federal budget are
classified into 20 broad functional categories. (AAAS separates the general
science, space, and technology function into its subfunctions of General
Science and Space). Each function often includes programs from several
agencies. Each R&D program is assigned to only one function, even
though the R&D activity may address several functional concerns. Homeland
Security is not a separate government function; homeland security programs
fall under the traditional government missions of defense, transportation,
health, and administration of justice, among others.
In this report, R&D refers to actual research and development activities as well as R&D facilities. These definitions are used by the Office of Management and Budget, the National Science Foundation, and AAAS.
Research is systematic study directed toward more complete scientific knowledge or understanding of the subject studied. The federal government classifies research as either basic or applied according to the objective of the sponsoring agency.
Development is the systematic use of the knowledge or understanding gained from research directed toward the production of materials; devices; systems; or methods, including design, development, and improvement of prototypes and new processes. It excludes quality control, routine product testing, and production.
R&D funding normally includes those personnel, program supervision, and administrative support costs directly associated with R&D activities. Laboratory equipment is also included. Defense R&D also includes testing, evaluation, prototype development, and other activities which precede actual production.
Funding for R&D facilities includes construction, repair, or alteration of physical plant (e.g., reactors, wind tunnels, particle accelerators, or laboratories) used in the conduct of R&D. This also includes funding for major capital equipment used in the conduct of R&D.
The federal R&D funding data in this report are presented in terms of budget authority. Budget authority is the initial budget parameter for congressional action on the Presidentís proposed budget. Other R&D data sources may express R&D funding in terms of obligations or outlays.† There are also R&D data sources which obtain funding data from funding recipients (companies, universities) rather than from funding sources (agencies).
Budget authority is the legal authorization to expend funds.
Obligations represent orders placed, contracts awarded, services received, and similar transactions during a given period, regardless of when the funds were appropriated and when the future payment of money is required.
Outlays represent checks issued and cash payments made during a given period, regardless of when the funds were appropriated or obligated. Some surveys refer to outlays as expenditures.†
from National Science Foundation, Federal R&D Funding by Budget
Function: Fiscal Years 2003-2005, Arlington, VA, 2004.)
on federal funding for R&D, including the complete text of this
book, detailed agency analyses, revised historical tables, and supplementary
materials, is available on the AAAS R&D Web Site at: