Federal Labs and Research Funding in the Tri-State
From advancing research broadly to supporting the local economy, which includes small business, federal research has a profound impact on the tri-state region.
Published January 1, 2001
By Frank B. Hicks, Ph.D., Allison L. C. de Cerreño, Ph.D., and Susan U. Raymond, Ph.D
Academy Contributors
Federal Funding
TREND: $1.4 Billion and Counting
The region boasts $1.4 billion in annual funding to its Federally owned laboratories and R&D facilities, 7% of the national total. This does not include the additional $170 million appropriated for Brookhaven in September 2000 for nuclear energy research and environmental cleanup. Over 95% of total lab funding is dependent on Federal budget allocations.
UPSHOT: An Economic Boost
Using multipliers developed at the Brookhaven Laboratory to assess economic effect, we estimate that the regional $1.4 billion caused an additional $2.2 billion increase in regional economic output. Nevertheless, in California, federal lab allocations alone totaled $2.4 billion in 1999.
Jobs? Well, Some
TREND: A Stable Five-Figure Employer
The Federal laboratories employ just over 12,000 people in the region, a level that has remained fairly stable over the last decade. Not all are S&T professionals, of course, but economic impact is in the payroll, not necessarily in the job description. Payroll and benefits at the laboratories totals about $700 million annually.
UPSHOT: Multipliers Resonate in Other Sectors
Again using Brookhaven ratios, we estimate that the Federal laboratory jobs created an additional 24,300 jobs throughout the regional economy in 1998.
Doing What?
TREND: National Security Dominates
Region-wide, about 60% of the resources of the Federal R&D complex are in defense and national security work. In New Jersey, that ratio rises to over 75%, while in New York it is just under half.
UPSHOT: Need to Strengthen Non-Defense Capacity?
Assuming no striking increase in the defense budget of the United States, growth in the role of the Federal laboratories in the region will depend on strengthening their capacity in such sectors as energy and the environment. It may also depend, however, on their ability to loosen their dependence on the Federal budget by aggressively seeking R&D partnerships with private industry.
More Effort Needed to Corral Federal Funds for Small Business R&D
The Tri-State region’s economy has traditionally relied on a backbone of large, established businesses. So it is no surprise that when measured by venture investment (see the October 2000 issue) or Federal Small Business Innovation Research (SBIR) grants, small businesses are not major players in the regional economy.
Within the region, only Connecticut seems to be holding its own in taking advantage of SBIR opportunities. Between 1996 and 1998, Connecticut was one of only eight states that has averaged 10 or more SBIR awards for every 10,000 businesses; it also ranked in the top eight nationally in terms of SBIR funds earned as a fraction of GSP. New York and New Jersey, on the other hand, fail to distinguish themselves. The number of awards per business in Connecticut is nearly double the rate in New Jersey and three times the rate in New York.
Also read: Federal R&D Spending in the Tri-State Region
Sources
- U.S. Department of Energy and individual laboratory web sites.
- U.S. Department of Commerce, Technology Administration, Office of Technology Policy, State Science and Technology Indicators, June 2000.
