Where is federally-funded R&D carried out?
Although the government maintains several hundred laboratories around the country, only a quarter of federally supported R&D is actually carried out in these labs. The largest share of federally funded R&D is performed by industrial firms under contracts. A significant amount is conducted under federal grants in colleges and universities as well as other nonprofit institutions, including FFRDCs (federally funded R&D centers) operated by contractors, such as the Department of Energy’s (DOE) Oak Ridge National Laboratory in Tennessee, which is operated by a partnership of the University of Tennessee and the Battelle Memorial Institute. Altogether, including the research that firms support with their own funds and that which is conducted under government contracts, industry is responsible for performing three-fourths of the nation’s total R&D. U.S. academic institutions perform about 11 percent, while federal laboratories, nonprofit institutions (research institutes, hospitals, etc.), and
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