Illinois leads Midwest in R&D spending at universities

Illinois leads the Midwest in research and development expenditures at universities and colleges, but the state could benefit from additional diversity in the source of funds, according to the December installment of the Illinois Innovation Index.

The index, which was launched in September, tackles a new subject each month. December's version used 2009 data from the National Science Foundation and other sources to compile information on R&D spending at Illinois universities. 

R&D expenditures at Illinois colleges and universities totaled $2.1 billion in 2009, topping levels in Indiana, Michigan, Ohio and Wisconsin. Within Illinois, the top R&D institution was the University of Illinois Urbana-Champaign at $564 million, followed by Northwestern University at $515 million.

The 2009 data also showed that Illinois is No. 8 in university R&D in the country; California is the No. 1 state with $7.4 billion. On the national level, 59 percent of R&D funding comes from the federal government. More than half of Illinois' funding is also federal in nature.

Illinois should take measures now to bolster its other funding sources, the Illinois Innovation Index report said. As an example, it pointed to Ohio, whose Third Frontier state economic development initiative provides funding, mentorship and other programs to support entrepreneurs and high-tech commercialization.

In Illinois, there have been some recent actions that if you view them cumulatively, help move the needle, said Matthew Summy, president of the Illinois Science and Technology Coalition, which is one of the groups backing the index. One of those actions is recently passed legislation that awards tax credits to companies for R&D spending increases, he said.

Continuing to fund R&D is important because university research often results in commercial products in the long run. For example, the starch used to make diapers absorbent came out of the National Center for Agricultural Utilization in Peoria, a laboratory funded by the U.S. Department of Agriculture.

Without the basic science, you don't get those commercial pieces, Summy said. Basic science is the building block. It's an important resource for our regional economy on a daily basis, but the commercial potential can take time ... (If) we had any negative funding development for those labs, it would mean jobs.

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