Vol. 25 No. 19
Over the next year, Penn State researchers will probably be minimally affected by cutbacks in fiscal 1996 federal agency research and development budgets. The University relies the least on agencies cut the most. (See "Federal R&D" chart, right.) For example, Penn State receives only 0.2 percent of its total federal grant and contract dollars from the Department of Commerce, which was cut 30 percent in fiscal 1996.
FY 1996 research expenditures are down by 2.5 percent to date. However, reserve funding from grants and contracts received up to five years earlier is giving researchers a grace period in which to adjust.
"We should, therefore, be able to ride out the current period of disarray in Washington with minimal damage to the academic enterprise," Dr. Shirley said. "In fact our reduced R&D expenditure level is at least partially attributable to cautious spending by our faculty."
Based on Penn State researchers' activities over the past four years, Dr. Shirley predicted that total federal R&D support over the next seven years would fall somewhere between "constant dollars and growth with inflation, weighted more toward the former."
"I expect that our total grants and contracts income this year will fall somewhere in the range of the record last three years, which will keep our research enterprise very healthy," he said.
Penn State's research income from grants and contracts totaled $285.8 million in 1995, up from $202.8 million in 1991. Research expenditures, which take into account spending for research supported by federal and state appropriations and general University funds, reached $344 million, up from $275 million in fiscal year 1991. (See "Research Expenditures" graph, right.)
Dr. Shirley pointed out that, although some research funding comes from sources other than grants and contracts, more than 83 percent is generated as the result of proposals submitted by faculty members.
"Each year about 1,000 faculty members generate $300 million in income from grants and contracts for an average of $300,000 each," he said.
Research currently constitutes 20 percent of the University's total budget activity, Dr. Shirley said. If the 9 percent mean annual growth rate in research income experienced over the past four years were to continue, Penn State's income from the federal government would exceed that from the state within a few years, he said.
Industry support has also grown, by 6.5 percent annually, in the 1991-95 period. (See "Annualized Awards" graph, right.) With $57.25 million in annualized awards in 1995 from industry and private sponsors, Penn State ranks second in the nation among all universities and first among public universities in industry-sponsored research expenditures.
Dr. Shirley said, "Prospects for increasing industrial funding for university R&D look unusually bright."
"Only 1.3 percent of industrial R&D is presently outsourced to universities and other institutions. Re-engineering of industrial practices will very likely increase this percentage," he said.
The University also is experiencing increasing returns on its investment in an extensive research enterprise in other ways. The University's Intellectual Property Office has reported growth in revenue from licensing and patent reimbursement activities from $249,000 in 1994 to $524,000 in 1995.
"This represents return on a long-term investment in aggressive marketing by Penn State of our own intellectual property. We expect that revenues in this area will continue to grow robustly in the coming years," Dr. Shirley said.
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