by Renate Riedl

Approximately one-third of all funding for U.S. research and development comes from the federal budget. The remaining amounts come mostly from various American industries. The federal portion is the main source for most of the basic research performed in the U.S. This basic research is considered to be the driving force for knowledge and innovation. Furthermore, federal money is the main support for research at universities and colleges. The estimated 2005 federal budget for R&D in the U.S. was set at $132.2 billion. The President’s request for FY 2006 is $132.3 billion. This is about 5.1% of the overall federal R&D budget in 2006. The small increase over FY 2005 does not even cover the estimated inflation rate of 2%. For the first time in 15 years, the R&D budget is declining in real terms.