The document, authored by Matt Hourihan for the June 2012 Council on Governmental Relations meeting, provides a detailed analysis of the U.S. federal research and development (R&D) budget proposals for fiscal year 2013. Drawing on historical and comparative data, the presentation evaluates R&D investment trends as a share of GDP, federal budget allocations across agencies and sectors, and the relative prioritization of R&D in the broader context of the federal fiscal environment. Special attention is given to international comparisons, with the U.S. R&D investment as a percent of GDP trailing countries such as South Korea and Japan while maintaining an overall high absolute expenditure. The analysis highlights specific growth areas, including clean energy, general science, and manufacturing innovation, alongside areas experiencing stagnation or decline, such as defense and agricultural R&D.
The document emphasizes the key priorities of the Obama Administration at the time, such as promoting innovation, jobs, STEM education, and transitioning towards a low-carbon economy. While the president's budget sought modest increases in targeted R&D sectors and the continuation of tax incentives, the report outlines the potential threats posed by fiscal pressures—most notably, the looming sequestration under the Budget Control Act, which could impose substantial cuts across both defense and non-defense R&D. The analysis projects that, depending on Congressional actions, certain fields like energy and general science may see significant growth, while others—such as health research (notably NIH), agriculture, and environmental sciences—face the risk of real-term funding declines in the absence of appropriations relief. The presentation concludes with an acknowledgment of the uncertain legislative environment, continued negotiations over spending bills, and the ongoing challenge of sustaining robust federal support for R&D amidst competing fiscal and policy priorities.
