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The Future of Research & Development in the Midwest: Trends and Indicators

The seven states of the Midwest play a significant role in the U.S. R&D enterprise. One-fifth of the nation’s R&D is performed in this region, primarily by industrial firms. The federal government plays a strong role in this R&D enterprise, and spends billions of dollars a year in the Midwest on research and development projects that underpin the Midwest’s strengths in high-
technology sectors. This region received $8.1 billion in federal R&D funds in fiscal year (FY) 2005, 7.3 percent of the national total.

The Midwest’s strength comes from the diversity of the R&D performed in each of the states. Ohio has a strong network of federal and industrial labs performing R&D for the Department of Defense (DOD) and other federal agencies; Illinois has the Argonne National Laboratory and the Fermi National Accelerator Laboratory and four major research universities; Michigan has the fifth-ranked research university in the nation a nd a large private-sector R&D presence; Indiana performs automobile-related R&D and defense development; Minnesota maintains a varied portfolio of R&D on health, defense, and agriculture; Wisconsin has the tenth-ranked research university in the nation; and Iowa has a diverse and well-balanced set of R&D performers, including a national lab, research universities, federal labs, and industrial firms.