Nationally, almost two-thirds of academic R&D spending goes to basic research, largely through federal grants and awards. Applied research constitutes 28 percent and development 9 percent. In Maine\u2019s case, MEIF funds are directed by statute to support applied research and development. At the same time, any overall increase in R&D expenditure that preserves the important university role in basic research will require the universities to increase their capacity for external funding, largely from the federal government.<\/p>\n With additional resources and capacity from the state and the System, and from within the universities, our productivity in seeking and receiving external grants can increase. In terms of real-dollar federal funding obligations for science and engineering R&D, Maine ranks 47th among states in external funding from federal agencies (compared to New Hampshire at 34th). Of particular concern are the state\u2019s rankings with U.S. Department of Agriculture and National Science Foundation at 48th.xlviii<\/sup><\/a> Additional external support also would provide funding for more graduate students. According to the same federal data, among states and localities, including Washington, D.C. and Puerto Rico, Maine ranks 51st in total number of sciences, engineering, and health graduate students, and 52nd in science, engineering and health postdoctoral appointees.xlix<\/sup><\/a> There are few appropriate placements for postdoctoral scholars across the System and, at present, opportunities are limited to UMaine. For Maine, increased federal funding allows for support of more undergraduates in paid internships and lab experiences, tuition support for graduate students, expertise, and facilities to be shared with current and potential academic, business and industry partners.<\/p>\n Nationally, distribution of academic R&D expenditures is shifting, with life sciences receiving the largest share (57 percent) in 2016, followed by engineering at 16 percent.l<\/sup><\/a> Within engineering, the growth areas are bioengineering and biomedical engineering, and both fields are currently very strong in Maine. Other non-science and engineering fields, such as education, business, and the humanities, accounted for just under 6 percent of total academic R&D spending.li<\/sup><\/a> Those fields are critical to enhancing the quality of Maine as a place to live, work, and learn, and, thus, will need more state and institutional support.<\/p>\n In comparison to other states, Maine is still building its industry-led R&D. Historically, the focus in this state has been on agriculture, forestry and timber, fisheries, and manufacturing. Although many of our industries are R&D dependent, often that R&D is occurring at national and international headquarters, rather than in Maine. Yet at UMaine and across the System, research and development are underway that support growing and emerging business here, ranging from aquaculture, to repurposing of forest biomass, to renewable energy, to cellulose nanomaterials, to biomedical engineering, to aging. One way that universities can help draw business to Maine is to have the students, faculty, and facilities available to support targeted applied research, development, and incubation activity customized to industry needs and expectations. University-private sector partnerships can be developed to support research and development of interest to Maine industry. These types of partnerships can further build R&D connections, expand specialized capacity for development, and help establish workforce pathways. The UMaine University Research Council produced a plan in 2012lii<\/sup><\/a> that included a goal to \u201cincrease industry-funded research projects from the FY10 level of $4.5 million to $9.0 million by FY17.\u201d UMaine has not achieved that goal; in FY18, partnerships are at about $5 million. We can help to grow jobs and new business by having an attractive R&D ecosystem for Maine, with System institutions playing a central role.<\/p>\n In 2014, Richert advocated for increased R&D spending by businesses in the state of Maine in the frequently cited 30 and 1000 report.liii<\/sup><\/a> The report projected that \u201cif 30 percent of the state\u2019s adults had at least four-year degrees, and if businesses, academia, and government were spending $1,000 per employed worker on research and development, Maine\u2019s per capita income would reach the national average.\u201dliv<\/sup><\/a> This would rest on a combination of higher education, state, and industry R&D investment. Richert recommended two pathways to enhance industrial investments in R&D in Maine: First, \u201cretool sectors in which Maine has been traditionally strong [\u2026] but that are typically low R&D performers\u201d (e.g., the wood products sector, as it shifts to engineered wood composites and forest bioproducts); second, to work with sectors that are \u201chigh R&D performers [\u2026] in which new technologies and applications provide new options for Maine businesses to penetrate the sectors,\u201d (e.g., pharmaceuticals, or chemical, biological, and particle-detection and analytical instruments).lv<\/sup><\/a> System institutions already have been instrumental in the first, and are well poised, in partnership with the state and the private sector, to advance the second.<\/p>\n Essential to enhancing statewide R&D expenditures and impact on the economy is a robust, coordinated approach to innovation derived from all forms of research activity, and engaging students in that activity as preparation to be future leaders in Maine. This means cultivating innovators and entrepreneurs, supporting the identification and disclosure of intellectual property, enabling spin-off and spin-out companies growing out of university-based research, developing product development collaborations, and facilitating licensing agreements with commercial partners. In addition, partnership with the outstanding Maine research laboratories and private universities can expand the impact of work based in the public university system. There is federal support for promoting growth of small businesses through the Small Business Innovation Research program (SBIR) and the Small Business Technology Transfer program (STTR). In 2014\u201316, Maine ranked 35th of 52 states and territories nationally in SBIR\/STTR receipts, up from 38th in the 2012\u201314 data. This is encouraging and is an area on which to build. At other points in time, Maine has been significantly higher in the table (13th in 2004\u201306, 15th in 2006\u201308; above the national average in both instances).lxviii<\/sup><\/a> This suggests that, relative to the overall economy of Maine, federal funding for commercialization and small business expansion represents a meaningful opportunity for growth. The universities can be very helpful partners in these ventures, and can provide pathways for student engagement that could lead to new and expanded business in Maine.<\/p>\n![\"lobstering](\"https:\/\/umaine.edu\/researchplan\/wp-content\/uploads\/sites\/540\/2019\/09\/lobstering-Maine-coast-300x287.jpg\")
Gross domestic spending on R&D as a percentage of gross domestic product (GDP) for a country or a state is considered to be a leading indicator of economic success. Fortunately, for the past two decades Maine has steadily increased its investment in R&D, recognizing the importance of this to growing the economy. However, according to the Maine Development Foundation in the 2018 Measures of Growth update, \u201cMaine has historically devoted less than one percent of our total gross domestic product to Research and Development Expenditures, below the U.S. average and well below the New England average.\u201d The report authors continue, \u201cR&D spending supports innovation, the ultimate driver of most economic growth,\u201d and note that \u201cMaine\u2019s total spending on research and development was approximately 0.9 percent in 2015. The [Maine Economic Growth] Council\u2019s benchmark is 3 percent by 2020.\u201dxlvi<\/sup><\/a><\/p>\nIncreasing R&D-intensive business industry in Maine<\/h4>\n