RESEARCH EXPENDITURES

RESEARCH EXPENDITURES September 1, 2003 August 31, 2004 Texas Public Universities and Health-Related Institutions Texas Higher Education Coordinating Board Division of Finance, Campus Planning, and Research P.O. Box 12788 Austin, TX 78711-2788 April 2005

Texas Higher Education Coordinating Board Jerry Farrington (Chairman) Dallas Robert W. Shepard (Vice Chairman) Harlingen Cathy Obriotti Green (Secretary of the Board) San Antonio Neal W. Adams Bedford Laurie Bricker Austin Ricardo G. Cigarroa, M.D. Laredo Paul Foster El Paso Gerry Griffin Hunt Carey Hobbs Waco George Louis McWilliams Texarkana Nancy R. Neal Lubbock Lorraine Perryman Odessa Curtis E. Ransom Dallas A. W. Whit Riter, III Tyler Terdema L. Ussery, II Dallas Coordinating Board Mission The Texas Higher Education Coordinating Board s mission is to work with the Legislature, Governor, governing boards, higher education institutions, and other entities to provide the people of Texas the widest access to higher education of the highest quality in the most efficient manner. Coordinating Board Philosophy The Texas Higher Education Coordinating Board will promote access to quality higher education across the state with the conviction that access without quality is mediocrity and that quality without access is unacceptable. The Board will be open, ethical, responsive, and committed to public service. The Board will approach its work with a sense of purpose and responsibility to the people of Texas and is committed to the best use of public monies.

EXECUTIVE SUMMARY The first six sections of this report are based on data provided by each Texas public university and health-related institution for Fiscal Year 2004 September 1, 2003 through August 31, 2004. Highlights include: Total reported research expenditures increased 3.6 percent over Fiscal Year 2003. Research expenditures in Fiscal Year 2004 were $2,252,897,987. In Fiscal Year 2003, the total was $2,174,191,894. Research expenditures increased by 91.5 percent since Fiscal Year 1994. Most of the growth occurred at health-related institutions, which reported an increase of $87,516,698 (8.3 percent). At universities, research expenditures decreased $8,824,236 (-0.8 percent) when compared to Fiscal Year 2003. Scientific discipline categories benefitting from the largest research expenditures include medical sciences $769,574,622; biological and other life sciences $534,916,292; engineering $319,106,112; and physical sciences $146,513,008. Funding for medical sciences increased by 7.7 percent in Fiscal Year 2004 compared to the previous year. The federal government provided 58.1 percent of the research funds expended, an increase from 56.1 percent in Fiscal Year 2003. The seventh section of this report is based on data provided by the National Science Foundation for Fiscal Year 2002, the most recent year for which data are available. Highlights include: Texas ranked third among the states in total research expenditures for Fiscal Year 2002. Life sciences accounted for 66 percent of the research expenditures, followed by engineering (14 percent) and physical sciences (6 percent), at Texas institutions. Texas institutions of higher education ranked fifth in federal obligations for science and engineering, as well as fifth in federal obligations for research and development in science and engineering, after California, New York, Maryland, and Pennsylvania. The National Institutes of Health provide 64 percent of the federal research support for science and engineering to Texas higher education institutions. Eight institutions Baylor College of Medicine, The University of Texas at Austin, The University of Texas Southwestern Medical Center, Texas A&M University (including Texas A&M Service agencies), The University of Texas M.D. Anderson Cancer Center, The University of Texas Health Science Center at Houston, The University of Texas Health Science Center at San Antonio, and The University of Texas Medical Branch at Galveston accounted for 80.8 percent of the federal obligations for science and engineering to Texas higher education institutions in Fiscal Year 2002. i

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TABLE OF CONTENTS Executive Summary...i Overview...1 Major Findings...3 Statewide Summary Data...5 Institutional Data Universities...13 Institutional Data Health-Related Institutions...23 Historical Data...27 National Comparisons...32 Appendix A Research Expenditures Surveys...A-1 Appendix B Institutional Contacts...B-1 iii

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LIST OF TABLES AND FIGURES Tables: 1 Research and Development Expenditures Rankings, FY 2004...3 2 Federal/State Research and Development Expenditures Ratio Rankings, FY 2004...4 3 Sources of Funds for Research and Other Research-Related Sponsored Programs, FY 2004...5 4 Expenditures for Conduct of R&D by Field and Source of Funding, FY 2004, Texas Public Institutions of Higher Education...9 5 Expenditures for Conduct of R&D in Areas of Special Interest, FY 2004, Texas Public Universities...11 6 Expenditures for Conduct of R&D in Areas of Special Interest, FY 2004, Texas Public Health-Related Institutions...12 7 Total Expenditures for Research and Other Research-Related Sponsored Programs by Source of Funds, FY 2004, Texas Public Universities...14 8 Federal R&D Expenditures/FTE Faculty Ratio, FY 2004, Texas Public Universities...17 9 Expenditures for Conduct of R&D by Field, FY 2004, Texas Public Universities...18 10 Expenditures for Conduct of R&D by Area of Special Interest, FY 2004 Texas Public Universities...21 11 Total Expenditures for Research and Other Research-Related Sponsored Programs by Source of Funds, FY 2004...24 12 Expenditures for Conduct of R&D by Field, FY 2004, Texas Public Health-Related Institutions...25 13 Expenditures for Research and Development by Area of Special Interest, FY 2004 Texas Public Health-Related Institutions...26 14 Expenditures for Research and Development, Texas Public Universities...28 15 Federal Expenditures for Research and Development, Texas Public Universities...29 16 Expenditures for Research and Development, Texas Public Health-Related Institutions...30 17 Federal Expenditures for Research and Development, Texas Public Health-Related Institutions...30 18 Federal Expenditures for Research and Development by Field, Texas Public Universities and Health-Related Institutions...31 v

19 Top Five States in Federal R&D Expenditures, Selected Science and Engineering Fields, FY 2002...33 20 State Rank in Federal Obligations and Federally Financed R&D, FY 2002...33 21 Federal Obligations and Federally Financed R&D by Texas Institutions, FY 2002...36 22 Texas Universities and Colleges with Federal Science and Engineering R&D Obligations of More Than $10 Million by Support Agency, FY 2002...39 Figures: 1 Sources of Expenditures for Research and Development, Texas Public Institutions of Higher Education, FY 2004...6 2 Sources of Expenditures for Research and Development at Texas Public Universities, FY 2004...7 3 Sources of Expenditures for Research and Development at Texas Public Health-Related Institutions, FY 2004...7 4 Growth Rates in Research and Development Expenditures at Texas Public Institutions of Higher Education, FY 2000 - FY 2004...8 5 Expenditures for Conduct of R&D by Discipline...10 6 Expenditures for Research and Development at Texas Public Universities, FY 2004...13 7 Expenditures for Research and Development at Texas Public Health-Related Institutions, FY 2004...23 8 Expenditures for Research and Development, FY 1984 FY 2004...27 9 Federal Obligations for R&D in Science and Engineering, Universities and Colleges Selected States, 1993-2002...35 10 Federally Financed R&D Expenditures, Universities and Colleges Selected States, 1993-2002...35 11 Federal Obligations for R&D in Science and Engineering, Texas Universities and Colleges, 1993-2002 Top Five Support Agencies...38 12 Federally Financed Research Expenditures by Discipline, Texas Public and Private Institutions, FY 2002...39 vi

OVERVIEW The Texas Higher Education Coordinating Board s annual research expenditures report summarizes data submitted to the Board as required by Section 61.051(h) of the Texas Education Code, which states: Once a year, on dates prescribed by the board, each institution of higher education shall report to the board all research conducted at that institution during the last preceding year. The Coordinating Board s summary report is based on expenditures rather than awards because expenditures more accurately reflect the level of current research activity. Awards tend to fluctuate from year to year, making them a much less stable indicator for year-to-year comparisons. The Coordinating Board is only able to verify the accuracy of the research expenditures data by asking institutions to ensure that the data reported are consistent with data in their Annual Financial Reports. According to recent changes adopted by the Government Accounting Standards Board, expenses rather than expenditures will be reported in institutional annual financial reports prepared for Fiscal Year 2002 and beyond. The major difference for research reporting purposes is that capital outlays for research equipment will be depreciated over the life of the equipment and will not be separately identified as research items in current annual financial reports. To provide research expenditure data comparable to that gathered in the past, the institutions were allowed to add capital outlays for research equipment to their research expenses for this report. In addition, the current annual financial reports no longer have a section Exhibit C - Current Funds Expenditures, Expenditure Category Research that was used in previous years as the basis for reconciling data from those reports with data gathered for this report. To facilitate reconciliation, the institutions were asked to submit data using functional classifications that show expenses categorized by instruction, research, public service, and other categories. A set of definitions is provided in the research expenditures survey to help ensure consistency from institution to institution. Even with these safeguards, institutions have some latitude in determining how they report data. Data elements and definitions used in this year s report are comparable to similar research expenditure data elements used by the National Science Foundation (NSF). The two sets of elements differ to some degree because the NSF focuses on science and technology alone, while the Coordinating Board s report includes research in all disciplines. Collection of research expenditure data is a challenging task for institutions. Administrators face many difficulties as they sort out research expenditures at their institutions. For that 1

reason, information they have submitted and the Coordinating Board s research expenditures report should be considered indicative rather than definitive. Appendix A includes a copy of the survey form completed by each institution. Appendix B includes a list of the institutional contacts who collected the data on their campuses. This report also contains a section, beginning on page 32, that compares research funding in Texas with that of other states. These data are drawn from three National Science Foundation reports on research obligations and research expenditures. 2

---- MAJOR FINDINGS Total research expenditures at Texas public institutions of higher education increased by 3.6 percent during Fiscal Year 2004, continuing a long-term growth trend. Most of the growth occurred at health-related institutions, which reported an increase of $87,516,698 (8.3 percent). At universities, research expenditures decreased $8,824,236 (-0.8 percent) when compared to Fiscal Year 2003. As in most states, Texas higher education research expenditures were concentrated in a relatively small number of institutions. Collectively, the top five institutions in research spending accounted for 69 percent of total research expenditures. The top 10 institutions accounted for 88 percent of the total. Six of the state's health-related institutions ranked among the top 10 Texas public institutions in research expenditures. In addition, the top seven institutions in Table 1 also appear in the National Science Foundation s list of top 100 institutions in federal research and development expenditures for 2002. Table 1 Research and Development Expenditures Rankings, FY 2004 Institution 2000 2001 2002 2003 2004 Texas A&M University (including Texas A&M Services) 1 1 1 1 1 The University of Texas at Austin 2 2 2 2 2 The University of Texas Southwestern Medical Center at Dallas 3 3 3 4 3 The University of Texas M.D. Anderson Cancer Center 4 4 4 3 4 The University of Texas Health Science Center at Houston 5 5 5 5 5 The University of Texas Medical Branch at Galveston 6 7 7 6 6 The University of Texas Health Science Center at San Antonio 7 6 6 7 7 University of Houston 8 8 8 8 8 Texas A&M University System Health Science Center* - 10 10 10 9 Texas Tech University 9 9 9 9 10 *TAMU College of Medicine combined with TAMUS Baylor College of Dentistry to form Texas A&M HSC in FY 2000. The federal government funded 58.1 percent of all research expenditures by Texas public institutions of higher education, making it the source of most research funds as it is in other states. At academic institutions 1 nationwide, the National Science Foundation/SRS, Academic 1 For this purpose, academic institutions are generally defined as institutions of higher education that grant bachelor's or doctoratal degrees in science or engineering. 3

Research and Development Expenditures: Fiscal Year 2002, Table B-29 shows that 60.1 percent 2 of the academic research was funded by the federal government. State government in Texas provided 18 percent of the funds for all research expenditures in the state s public higher education institutions. Institutional and private funding accounted for the remaining 24 percent. The ratio of federal funds to state-appropriated funds for each of the 10 Texas institutions reporting the greatest research expenditures is provided in Table 2. Table 2 Federal/State Research and Development Expenditures Ratio Rankings, FY 2004 Institution R&D Rank Fed/State Ratio Ratio Rank The University of Texas Health Science Center at San Antonio 7 18.21 1 The University of Texas Medical Branch at Galveston 6 9.33 2 The University of Texas Southwestern Medical Center at Dallas 3 8.62 3 The University of Texas Health Science Center at Houston 5 7.95 4 The University of Texas at Austin 2 5.69 5 Texas A&M University System Health Science Center 9 2.87 6 The University of Texas M.D. Anderson Cancer Center 4 1.67 7 Texas Tech University 10 1.55 8 Texas A&M University (including Texas A&M Services) 1 1.53 9 University of Houston 8 1.24 10 Medical sciences, accounting for 34 percent of the total, led all other disciplines in expenditures. The top five disciplines medical sciences, biological and other life sciences, engineering, physical sciences, and environmental sciences collectively accounted for 83.7 percent of all reported research expenditures. California ($2.95 billion), New York ($1.68 billion), Pennsylvania ($1.38 billion), Maryland ($1.30 billion), Texas($1.22 billion), and Massachusetts ($1.15 billion) were the top six states in federal obligations for research and development in science and engineering for Fiscal Year 2002. The National Institutes of Health, the Department of Defense, and the National Science Foundation provided 71.4 percent, 10.3 percent, and 7.2 percent, respectively, of the Fiscal Year 2002 federal obligations for research and development in science and engineering to Texas higher education institutions. 2 This percentage was reported incorrectly in the FY 1999 and FY 2000 issues of Research Expenditures. The correct values are 58.6 percent for FY 1999 and 58.4 percent for FY 2000. 4

STATEWIDE SUMMARY DATA Expenditures related to research are divided into two categories: expenditures for the conduct of (1) research and development and (2) other research-related sponsored activities. Other research-related sponsored activities refers to support received from external sources to fund activities that cannot be considered strictly research. Examples include grants for equipment or facilities, contracts to perform studies, and training. Definitions for both categories are included in the survey form that is Appendix A. Table 3 and Figures 1 3 provide information on expenses and sources of funds for research and development and for other sponsored activities related to research at public universities and health-related institutions. Some institutions do not report funds used for other sponsored activities related to research. Expenditures for research and development account for 98.4 percent of all reported expenditures. Figure 4 shows growth rates in research and development expenditures for public universities and health-related institutions. Expenditures increased by $79 million from Fiscal Year 2003 to Fiscal Year 2004, after a decrease of $9 million at public universities and an increase of $88 million at public health-related institutions. Eighty-eight percent of the increase is from federal sources. Table 3 Sources of Funds for Research and Other Research-Related Sponsored Programs, FY 2004 Federal State Contracts Appropriated and Grants Institution Public Universities Research and Development $598,223,237 $164,060,466 $89,478,366 $109,589,358 Other $4,503,615 $3,313,314 $4,695,415 $3,402,984 Total $602,726,852 $167,373,780 $94,173,781 $112,992,342 Public Health-Related Institutions Research and Development $709,811,366 $149,560,559 $11,525,340 $43,950,813 Other $408,045 $6,008,954 $0 $2,658,835 Total $710,219,411 $155,569,513 $11,525,340 $46,609,648 All Public Institutions Research and Development $1,308,034,603 $313,621,025 $101,003,706 $153,540,171 Other $4,911,660 $9,322,268 $4,695,415 $6,061,819 Totals $1,312,946,263 $322,943,293 $105,699,121 $159,601,990 (table continued on next page) 5

Public Universities Table 3 - continued Sources of Funds for Research and Other Research-Related Sponsored Programs, FY 2004 Profit Private Non-Profit Total Research and Development $62,315,236 $85,934,918 $1,109,601,581 Other $80,487 $333,419 $16,329,234 Total $62,395,723 $86,268,337 $1,125,930,815 Public Health-Related Institutions Research and Development $67,521,973 $160,926,355 $1,143,296,406 Other $0 $145,520 $9,221,354 Total $67,521,973 $161,071,875 $1,152,517,760 All Public Institutions Research and Development $129,837,209 $246,861,273 $2,252,897,987 Other $80,487 $478,939 $25,550,588 Totals $129,917,696 $247,340,212 $2,278,448,575 Figure 1 Sources of Expenditures for Research and Development at Texas Public Institutions of Higher Education, FY 2004 Federal 58.1% State 18.4% Institution 6.8% Private 16.7% 6

Figure 2 Sources of Expenditures for Research and Development at Texas Public Universities, FY 2004 Federal 53.9% State 22.8% Institution 9.9% Private 13.4% Figure 3 Sources of Expenditures for Research and Development at Texas Public Health-Related Institutions, FY 2004 Federal 62.1% State 14.1% Institution 3.8% Private 20.0% 7

Figure 4 Growth Rates in Research and Development Expenditures at Texas Public Institutions of Higher Education FY 2000-FY 2004 FY2004 3.7% Increase over previous year FY2003 6.0% FY2002 FY2001 FY2000 10.4% 10.4% 15.9% Universities Health-Related Institutions 0 500 1,000 1,500 2,000 2,500 Dollars in Millions The accelerated growth in research expenditures peaked in 2002, dropping precipitously in the following years to overall growth rates comparable to those of the mid-1990 s, but well below those characteristic of the 1980 s. The sudden decline in the growth rate of research expenditures at public universities over the past two years is a unique feature for the 1982 through 2004 history of research expenditures at Texas public higher education institutions and results from slow growth in federal support and reduction in state support. 8

Table 4 indicates expenditures in the 16 different fields defined in Appendix A. The Coordinating Board s instructions directed institutions to assign project expenditures to only one field to avoid duplication. For the most part, this table reflects expenditures in particular academic disciplines. Some inconsistency may result, however, as institutions strive to categorize a particular research project into only one field. For example, a college of agriculture could perform basic research in biological sciences and report expenses in that field rather than in agricultural sciences. Proportions of expenses by discipline are shown in Figure 5. Medical and biological sciences account for slightly more than one-half of all research expenditures. Table 4 Expenditures for Conduct of R&D by Field and Source of Funding, FY 2004 Texas Public Institutions of Higher Education Federal State Contracts Appropriated and Grants Institution Agricultural Sciences $29,761,742 $24,311,447 $4,459,090 $9,924,202 Biological and Other Life Sciences $326,338,774 $85,286,618 $6,150,800 $33,611,480 Computer Science $32,913,333 $5,826,275 $4,136,932 $3,909,574 Engineering $161,944,610 $33,064,348 $47,978,018 $29,745,654 Environmental Sciences $78,624,859 $14,003,482 $5,693,972 $5,394,486 Mathematical Sciences $27,621,316 $8,725,680 $644,672 $1,217,501 Medical Sciences $470,857,882 $92,024,936 $10,455,298 $33,582,904 Physical Sciences $93,589,792 $19,950,471 $2,154,442 $10,397,189 Psychology $22,479,729 $1,349,426 $3,900,807 $1,758,104 Social Sciences $17,240,621 $9,296,269 $7,226,517 $3,435,696 Other Sciences $4,552,802 $2,603,178 $1,858,844 $1,282,022 Arts and Humanities $778,886 $859,719 $562,585 $3,214,404 Business Administration $2,829,412 $2,393,300 $995,602 $2,192,687 Education $27,239,592 $632,881 $3,375,371 $2,989,862 Law and Public Administration $2,234,255 $650,812 $714,298 $554,872 Other Non-Science Activities $9,026,998 $12,642,183 $696,458 $10,329,534 Totals $1,308,034,603 $313,621,025 $101,003,706 $153,540,171 (table continued on next page) 9

Table 4 - continued Expenditures for Conduct of R&D by Field and Source of Funding, FY 2004 Texas Public Institutions of Higher Education Profit Private Non-Profit Total Agricultural Sciences $3,775,555 $10,071,034 $82,303,070 Biological and Other Life Sciences $12,615,796 $70,912,824 $534,916,292 Computer Science $1,412,417 $1,319,500 $49,518,031 Engineering $30,150,849 $16,222,633 $319,106,112 Environmental Sciences $8,402,336 $4,164,406 $116,283,541 Mathematical Sciences $2,237,149 $1,830,416 $42,276,734 Medical Sciences $58,653,588 $104,000,014 $769,574,622 Physical Sciences $5,185,679 $15,235,435 $146,513,008 Psychology $626,970 $1,080,897 $31,195,933 Social Sciences $1,754,054 $7,211,585 $46,164,742 Other Sciences $820,312 $1,631,358 $12,748,516 Arts and Humanities $563,094 $1,138,892 $7,117,580 Business Administration $1,890,773 $3,371,655 $13,673,429 Education $229,825 $7,068,879 $41,536,410 Law and Public Administration $308,555 $582,938 $5,045,730 Other Non-Science Activities $1,210,257 $1,018,807 $34,924,237 Totals $129,837,209 $246,861,273 $2,252,897,987 Figure 5 Expenditures for Conduct of R&D by Discipline Biological and Other Life Sciences 23.7% Engineering 14.2% Physical Sciences 6.5% Medical Sciences 34.2% All Other 12.6% Environmental Sciences 5.2% Agricultural Sciences 3.7% 10

Table 5 shows research in nine different areas of special interest at public universities, and Table 6 shows research in six different areas of special interest at public health-related institutions. Double counting was allowed because many projects are relevant to two or more areas of research. Table 5 Expenditures for Conduct of R&D in Areas of Special Interest, FY 2004 Texas Public Universities Federal State Appropriated Contracts and Grants Institution Aerospace Technology $27,642,291 $22,232,866 $824,017 $11,777,703 Biotechnology $27,622,888 $1,481,054 $782,114 $5,091,974 Energy $31,697,927 $6,069,577 $836,449 $2,085,127 Environmental Science & Engineering $54,174,762 $30,795,619 $3,718,423 $15,304,643 Food, Fiber, Agricultural Products $11,376,310 $9,394,809 $1,587,142 $2,275,774 Manufacturing Technology $6,369,372 $449,192 $4,718,235 $281,534 Materials Science $26,197,218 $5,204,612 $1,425,642 $2,683,285 Microelectronics & Computer Technology $40,740,444 $5,422,598 $1,290,008 $2,484,203 Water Resources $6,213,711 $1,410,493 $1,967,914 $1,375,048 Totals $232,034,923 $82,460,820 $17,149,944 $43,359,291 Table 5 - continued Expenditures for Conduct of R&D in Areas of Special Interest, FY 2004 Texas Public Universities Profit Private Non-Profit Total Aerospace Technology $2,836,490 $5,351,208 $70,664,575 Biotechnology $1,845,297 $1,796,068 $38,619,395 Energy $1,384,585 $7,891,877 $49,965,542 Environmental Science & Engineering $3,875,953 $12,551,236 $120,420,636 Food, Fiber, Agricultural Products $1,854,917 $4,435,195 $30,924,147 Manufacturing Technology $1,675,216 $635,198 $14,128,747 Materials Science $3,594,631 $4,996,928 $44,102,316 Microelectronics & Computer Technology $1,871,448 $4,184,524 $55,993,225 Water Resources $523,702 $1,262,626 $12,753,494 Totals $19,462,239 $43,104,860 $437,572,077 11

Table 6 Expenditures for Conduct of R&D in Areas of Special Interest, FY 2004 Texas Public Health-Related Institutions Federal State Contracts Appropriated and Grants Institution Aging $37,854,264 $1,115,440 $208,804 $179,041 Cancer Research $192,917,008 $90,086,935 $1,411,481 $17,263,828 Cardiovascular Research $62,198,113 $1,114,180 $618,987 $1,842,747 Child Health and Human Development $27,747,428 $673,566 $4,841,332 $4,851,073 Mental Health $35,582,652 $1,313,061 $284,652 $303,688 Substance Abuse $22,125,230 $1,686,896 $86,041 $330,818 Totals $378,424,695 $95,990,078 $7,451,297 $24,771,195 Table 6 - continued Expenditures for Conduct of R&D in Areas of Special Interest, FY 2004 Texas Public Health-Related Institutions Private Total Profit Non-Profit Aging $619,661 $3,884,588 $43,861,798 Cancer Research $25,675,827 $47,419,527 $374,774,606 Cardiovascular Research $1,636,108 $19,085,971 $86,496,106 Child Health and Human Development $1,055,180 $4,403,092 $43,571,671 Mental Health $2,439,982 $3,180,777 $43,104,812 Substance Abuse $544,751 $363,115 $25,136,851 Totals $31,971,509 $78,337,070 $616,945,844 12

INSTITUTIONAL DATA UNIVERSITIES This section of the report contains detailed information on research expenditures reported by individual institutions. Statements related to data quality and applicability found on page 1 of this report also apply to the data shown in this section of the report. Figure 6 Expenditures for Research and Development at Texas Public Universities, FY 2004 (Millions of Dollars) 0 100 200 300 400 500 All Others Sam Houston State Lamar UT at Brownsville Stephen F. Austin State UT-Pan-American Texas A&M at Galveston Texas Southern West Texas A&M Tarleton State Texas State - San Marcos Texas A&M-Kingsville Prairie View A&M Texas A&M-Corpus Christi University of North Texas UT at San Antonio UT at Arlington UT at Dallas UT at El Paso Texas Tech Univ. of Houston UT at Austin Texas A&M and Services 10.0 2.9 3.2 3.3 3.6 4.3 4.5 4.6 5.5 8.6 9.1 10.5 10.7 13.7 15.6 16.5 22.4 31.3 32.1 48.1 75.9 382.4 390.7 13

Table 7 Total Expenditures for Research and Other Research-Related Sponsored Programs by Source of Funds, Texas Public Universities, FY 2004 State Institution Federal Appropriated Contracts and Grants R&D Other R&D Other R&D Other Midwestern State $77,388 $0 $0 $0 $225 $0 Stephen F. Austin State $1,025,461 $35,407 $0 $0 $158,570 $8,945 Texas A&M University System* Prairie View A&M $8,138,054 $152,268 $2,193,313 $285,227 $91,497 $232 Tarleton State $5,439,350 $0 $1,851,802 $0 $923,092 $0 Texas A&M and Services $174,570,204 $783,918 $75,477,044 $462,311 $38,566,087 $559,139 Texas A&M-Commerce $355,709 $0 $114,642 $0 $972 $0 Texas A&M-Corpus Christi $6,233,432 $0 $1,100,248 $0 $2,973,053 $0 Texas A&M at Galveston $2,757,465 $0 $388,714 $259,810 $228,189 $0 Texas A&M International $119,762 $0 $0 $0 $16,983 $0 Texas A&M-Kingsville $3,856,738 $0 $3,054,296 $0 $957,226 $0 Texas A&M-Texarkana $188,653 $0 $0 $4,759 $0 $0 West Texas A&M $2,580,645 $0 $2,619,011 $958,207 $51,559 $0 Texas Southern $3,969,899 $0 $0 $0 $354,305 $0 Texas State University System Angelo State $155,851 $0 $451,819 $0 $25,866 $0 Lamar $1,504,062 $41,058 $1,120,063 $250,750 $352,772 $11,210 Sam Houston State $2,175,912 $0 $29,756 $0 $269,445 $0 Sul Ross State $261,417 $0 $347,902 $0 $68,558 $0 Sul Ross - Rio Grande $0 $0 $3,506 $0 $0 $0 Texas State - San Marcos $3,536,053 $0 $1,673,469 $0 $1,070,401 $0 Texas Tech $23,393,040 $0 $11,326,727 $0 $3,802,483 $0 Texas Woman's $1,238,556 $0 $405,110 $339,711 $280,723 $0 University of Texas System UT at Arlington $11,093,256 $0 $6,373,703 $0 $1,561,940 $0 UT at Austin $249,014,154 $0 $24,957,887 $0 $18,838,740 $0 UT at Brownsville $2,889,894 $0 $0 $0 $0 $0 UT at Dallas $15,733,571 $0 $6,013,499 $752,539 $3,100,438 $4,115,889 UT at El Paso $22,232,318 $3,490,964 $6,141,840 $0 $1,144,301 $0 UT-Pan American $2,666,191 $0 $1,271,516 $0 $23,659 $0 UT of the Permian Basin $1,215,420 $0 $449,088 $0 $12,536 $0 UT at San Antonio $11,705,185 $0 $1,837,493 $0 $1,295,960 $0 UT at Tyler $585,874 $0 $0 $0 $124,499 $0 University of Houston System Univ. of Houston $31,682,165 $0 $14,193,639 $0 $11,286,912 $0 Univ. of Houston-Clear Lake $396,016 $0 $508,573 $0 $33,317 $0 Univ. of Houston-Downtown $490,584 $0 $155,806 $0 $0 $0 Univ. of Houston-Victoria $13,631 $0 $0 $0 $0 $0 University of North Texas $6,927,327 $0 $0 $0 $1,864,058 $0 Totals $598,223,237 $4,503,615 $164,060,466 $3,313,314 $89,478,366 $4,695,415 Shading indicates the five highest in each category. * A&M agency and research foundation expenditures reported by individual affiliated university. (table continued on next page) 14

Institution Table 7 - continued Total Expenditures for Research and Other Research-Related Sponsored Programs by Source of Funds, Texas Public Universities, FY 2004 Institution Private, Profit Private, Non-Profit R&D Other R&D Other R&D Other Midwestern State $0 $0 $0 $0 $42,040 $0 Stephen F. Austin State $1,391,960 $2,200 $555,342 $5,250 $508,124 $52,628 Texas A&M University System* Prairie View A&M $113,700 $85,127 $30,338 $0 $130,226 $0 Tarleton State $137,621 $0 $152,437 $0 $74,900 $0 Texas A&M and Services $55,630,504 $1,946,172 $15,221,865 $52,115 $31,188,966 $84,553 Texas A&M-Commerce $826 $0 $0 $0 $137,715 $0 Texas A&M-Corpus Christi $1,812,316 $0 $43,669 $0 $1,520,193 $0 Texas A&M at Galveston $153,704 $29,569 $4,267 $0 $1,005,306 $569 Texas A&M International $48,392 $0 $0 $0 $0 $0 Texas A&M-Kingsville $347,213 $0 $431,599 $0 $1,889,737 $0 Texas A&M-Texarkana $0 $0 $0 $0 $0 $0 West Texas A&M $0 $0 $117,573 $0 $134,363 $0 Texas Southern $0 $0 $52,092 $0 $271,684 $0 Texas State University System Angelo State $0 $0 $41,866 $0 $210,024 $0 Lamar $34,197 $175,048 $86,312 $23,122 $112,844 $46,339 Sam Houston State $229,625 $0 $0 $0 $153,391 $0 Sul Ross State $0 $0 $0 $0 $380,787 $0 Sul Ross - Rio Grande $0 $0 $0 $0 $0 $0 Texas State - San Marcos $1,708,780 $0 $59,027 $0 $1,082,268 $0 Texas Tech $1,206,334 $204,174 $4,172,266 $0 $4,241,811 $0 Texas Woman's $0 $0 $143,459 $0 $165,237 $2,007 University of Texas System UT at Arlington $98,003 $0 $1,894,383 $0 $1,395,845 $0 UT at Austin $31,553,970 $0 $34,323,658 $0 $23,703,362 $0 UT at Brownsville $246,601 $0 $0 $0 $136,831 $0 UT at Dallas $1,368,108 $244,110 $1,015,628 $0 $4,043,346 $0 UT at El Paso $747,991 $716,584 $197,243 $0 $1,604,042 $147,323 UT-Pan American $42,050 $0 $15,628 $0 $290,218 $0 UT of the Permian Basin $156,078 $0 $0 $0 $62,442 $0 UT at San Antonio $812,007 $0 $115,731 $0 $750,081 $0 UT at Tyler $26,370 $0 $7,364 $0 $149,927 $0 University of Houston System Univ. of Houston $7,351,900 $0 $2,931,364 $0 $8,481,452 $0 Univ. of Houston-Clear Lake $146,229 $0 $17,164 $0 $110,008 $0 Univ. of Houston-Downtown $20,639 $0 $404 $0 $1,586 $0 Univ. of Houston-Victoria $0 $0 $0 $0 $0 $0 University of North Texas $4,204,240 $0 $684,557 $0 $1,956,162 $0 Totals $109,589,358 $3,402,984 $62,315,236 $80,487 $85,934,918 $333,419 Shading indicates the five highest in each category. * A&M agency and research foundation expenditures reported by individual affiliated university. (table continued on next page) 15

Institution Table 7 - continued Total Expenditures for Research and Other Research-Related Sponsored Programs by Source of Funds, Texas Public Universities, FY 2004 Total R&D Other R&D and Other Midwestern State $119,653 $0 $119,653 Stephen F. Austin State $3,639,457 $104,430 $3,743,887 Texas A&M University System* Prairie View A&M $10,697,128 $522,854 $11,219,982 Tarleton State $8,579,202 $0 $8,579,202 Texas A&M and Services $390,654,670 $3,888,208 $394,542,878 Texas A&M-Commerce $609,864 $0 $609,864 Texas A&M-Corpus Christi $13,682,911 $0 $13,682,911 Texas A&M at Galveston $4,537,645 $289,948 $4,827,593 Texas A&M International $185,137 $0 $185,137 Texas A&M-Kingsville $10,536,809 $0 $10,536,809 Texas A&M-Texarkana $188,653 $4,759 $193,412 West Texas A&M $5,503,151 $958,207 $6,461,358 Texas Southern $4,647,980 $0 $4,647,980 Texas State University System Angelo State $885,426 $0 $885,426 Lamar $3,210,250 $547,527 $3,757,777 Sam Houston State $2,858,129 $0 $2,858,129 Sul Ross State $1,058,664 $0 $1,058,664 Sul Ross - Rio Grande $3,506 $0 $3,506 Texas State - San Marcos $9,129,998 $0 $9,129,998 Texas Tech $48,142,661 $204,174 $48,346,835 Texas Woman's $2,233,085 $341,718 $2,574,803 University of Texas System UT at Arlington $22,417,130 $0 $22,417,130 UT at Austin $382,391,771 $0 $382,391,771 UT at Brownsville $3,273,326 $0 $3,273,326 UT at Dallas $31,274,590 $5,112,538 $36,387,128 UT at El Paso $32,067,735 $4,354,871 $36,422,606 UT-Pan American $4,309,262 $0 $4,309,262 UT of the Permian Basin $1,895,564 $0 $1,895,564 UT at San Antonio $16,516,457 $0 $16,516,457 UT at Tyler $894,034 $0 $894,034 University of Houston System Univ. of Houston $75,927,432 $0 $75,927,432 Univ. of Houston-Clear Lake $1,211,307 $0 $1,211,307 Univ. of Houston-Downtown $669,019 $0 $669,019 Univ. of Houston-Victoria $13,631 $0 $13,631 University of North Texas $15,636,344 $0 $15,636,344 Totals $1,109,601,581 $16,329,234 $1,125,930,815 Shading indicates the five highest in each category. * A&M agency and research foundation expenditures reported by individual affiliated university. 16

Table 8 Federal R&D Expenditures/FTE Faculty Ratio, FY 2004 Texas Public Universities Institution Federal R&D Expenditures FTE Faculty* Federal R&D Expenditures/FTE Midwestern State $77,388 160.50 $482.17 Stephen F. Austin State $1,025,461 329.74 $3,109.91 Texas A&M University System** Prairie View A&M $8,138,054 205.10 $39,678.47 Tarleton State $5,439,350 194.40 $27,980.20 Texas A&M and Services*** $174,570,204 1,543.52 $113,098.76 Texas A&M-Commerce $355,709 186.75 $1,904.73 Texas A&M-Corpus Christi $6,233,432 188.67 $33,038.81 Texas A&M at Galveston $2,757,465 43.44 $63,477.56 Texas A&M International $119,762 126.00 $950.49 Texas A&M-Kingsville $3,856,738 200.47 $19,238.48 Texas A&M-Texarkana $188,653 40.75 $4,629.52 West Texas A&M $2,580,645 169.87 $15,191.88 Texas Southern $3,969,899 180.56 $21,986.59 Texas State University System Angelo State $155,851 162.68 $958.02 Lamar $1,504,062 249.63 $6,025.17 Sam Houston State $2,175,912 323.48 $6,726.57 Sul Ross State $261,417 66.25 $3,945.92 Sul Ross - Rio Grande $0 14.83 $0.00 Texas State - San Marcos $3,536,053 521.61 $6,779.11 Texas Tech $23,393,040 867.29 $26,972.57 Texas Woman's $1,238,556 246.75 $5,019.48 University of Texas System UT at Arlington $11,093,256 491.32 $22,578.47 UT at Austin $249,014,154 1,697.71 $146,676.50 UT at Brownsville $2,889,894 109.02 $26,507.93 UT at Dallas $15,733,571 285.29 $55,149.40 UT at El Paso $22,232,318 410.97 $54,097.18 UT-Pan American $2,666,191 362.06 $7,363.95 UT of the Permian Basin $1,215,420 71.38 $17,027.46 UT at San Antonio $11,705,185 413.32 $28,319.91 UT at Tyler $585,874 142.51 $4,111.11 University of Houston System Univ. of Houston $31,682,165 836.30 $37,883.73 Univ. of Houston-Clear Lake $396,016 167.45 $2,364.98 Univ. of Houston-Downtown $490,584 184.68 $2,656.40 Univ. of Houston-Victoria $13,631 61.95 $220.03 University of North Texas $6,927,327 702.50 $9,860.96 Totals $598,223,237 11,958.75 $50,023.89 * FTE Faculty indicates number of full-time equivalents for tenured and tenure-track faculty for fall of 2003. ** A&M agency and research foundation expenditures reported by individual affiliated university. *** FTE faculty for Texas A&M and Services is based on its Legislative Appropriations Request for FY 2004 and includes 207 FTEs from Texas Agricultural Experiment Station and 16.1 from Texas Engineering Experiment Station. 17

Institution Table 9 Expenditures for Conduct of R&D by Field, FY 2004 Texas Public Universities Midwestern State $0 $42,040 $0 $0 $0 $0 Stephen F. Austin State $2,183,230 $555,806 $18,843 $0 $69,973 $0 Texas A&M University System* Prairie View A&M $5,284,633 $459,261 $1,139,386 $2,610,330 $0 $132,623 Tarleton State $3,890,477 $69,855 $0 $349 $2,306,813 $0 Texas A&M and Services $51,397,877 $69,852,416 $8,938,716 $121,707,373 $48,112,875 $8,551,033 Texas A&M-Commerce $128,113 $49,502 $3,008 $64,740 $0 $1,000 Texas A&M-Corpus Christi $7,438 $481,360 $736,686 $3,359,467 $3,401,232 $1,983,375 Texas A&M at Galveston $0 $625,052 $0 $81,713 $3,615,846 $7 Texas A&M International $0 $27,131 $0 $25,074 $736 $0 Texas A&M-Kingsville $5,502,198 $1,909,708 $0 $1,634,428 $778,831 $0 Texas A&M-Texarkana $0 $0 $0 $0 $0 $0 West Texas A&M $1,434,597 $111,392 $50,934 $1,747,862 $314,693 $12,951 Texas Southern $0 $3,804,198 $0 $97,749 $0 $15,642 Texas State University System Angelo State $411,199 $35,103 $0 $0 $0 $0 Lamar $0 $7,117 $39,174 $1,084,108 $1,566,645 $24,623 Sam Houston State $129,256 $306,267 $12,756 $0 $1,117,052 $0 Sul Ross State $236,987 $156,027 $0 $0 $0 $38,314 Sul Ross - Rio Grande $0 $0 $0 $0 $0 $0 Texas State - San Marcos $750 $149,939 $191,311 $4,425 $1,089,688 $112,059 Texas Tech $11,391,806 $3,845,672 $863,059 $12,256,615 $9,369,129 $478,675 Texas Woman's $0 $876,283 $0 $0 $0 $1,421 University of Texas System UT at Arlington $0 $720,907 $2,870,931 $9,113,443 $164,804 $391,752 UT at Austin $173,589 $36,177,292 $22,191,391 $128,816,119 $33,856,650 $14,980,087 UT at Brownsville $0 $99,598 $0 $0 $42,165 $0 UT at Dallas $0 $3,669,752 $3,813,979 $6,657,797 $1,177,724 $96,474 UT at El Paso $0 $4,085,963 $1,023,878 $4,777,170 $3,151,947 $195,265 UT-Pan American $35,211 $187,482 $467,712 $878,169 $159,293 $94,731 UT of the Permian Basin $0 $4,869 $0 $0 $5,242 $1,823 UT at San Antonio $0 $7,719,932 $777,261 $2,123,649 $494,258 $210,025 UT at Tyler $0 $66,267 $7,302 $145,233 $0 $162,336 University of Houston System Univ. of Houston $0 $6,406,164 $5,405,868 $13,605,268 $3,670,025 $1,084,405 Univ. of Houston-Clear Lake $0 $145,946 $252,606 $28,614 $133,355 $88,032 Univ. of Houston-Downtown $0 $90,538 $324,659 $3,244 $0 $0 Univ. of Houston-Victoria $0 $0 $0 $0 $0 $0 University of North Texas $95,709 $1,989,458 $388,571 $1,170,156 $948,790 $311,162 Totals $82,303,070 $144,728,297 $49,518,031 $311,993,095 $115,547,766 $28,967,815 Shading indicates the five highest in each category. Agricultural Sciences Biological and Other Life Sciences Computer Science * A&M agency and research foundation expenditures reported by individual affiliated university. Engineering Environmental Sciences Mathematical Sciences (table continued on next page) 18

Table 9 - continued Expenditures for Conduct of R&D by Field, FY 2004 Texas Public Universities Institution Medical Sciences Physical Sciences Psychology Social Sciences Other Sciences Midwestern State $0 $0 $0 $225 $0 Stephen F. Austin State $0 $109,471 $13,751 $30,847 $0 Texas A&M University System* Prairie View A&M $74,155 $733,688 $42,005 $48,360 $0 Tarleton State $1,159 $478,340 $0 $0 $0 Texas A&M and Services $22,610,534 $28,389,511 $2,539,076 $15,403,427 $2,366,405 Texas A&M-Commerce $0 $6,601 $20,042 $2,649 $0 Texas A&M-Corpus Christi $122,129 $111,122 $18,791 $63,147 $463,946 Texas A&M at Galveston $0 $172,512 $0 $42,338 $177 Texas A&M International $0 $0 $0 $0 $12,983 Texas A&M-Kingsville $0 $174,009 $0 $0 $214,956 Texas A&M-Texarkana $0 $0 $0 $0 $0 West Texas A&M $37,841 $67,674 $0 $100,694 $398 Texas Southern $0 $0 $0 $0 $40,624 Texas State University System Angelo State $211,768 $48,722 $100,546 $0 $0 Lamar $2,347 $121,347 $0 $26 $0 Sam Houston State $17,000 $88,738 $15,000 $30,395 $122,908 Sul Ross State $0 $45,156 $0 $571,517 $0 Sul Ross - Rio Grande $0 $0 $0 $0 $0 Texas State - San Marcos $171,171 $2,849,001 $22,126 $477,321 $1,054,365 Texas Tech $0 $5,750,723 $388,694 $3,044,101 $0 Texas Woman's $817,291 $95,131 $1,770 $21,753 $305,967 University of Texas System UT at Arlington $196,962 $4,506,437 $524,276 $683,131 $0 UT at Austin $17,889,862 $58,472,572 $7,552,487 $18,700,485 $2,048,643 UT at Brownsville $1,144,134 $1,709,449 $0 $31,791 $24,240 UT at Dallas $497,985 $9,805,689 $3,177,565 $1,563,358 $0 UT at El Paso $1,630,575 $2,415,124 $832,641 $678,240 $1,529,546 UT-Pan American $1,386,334 $196,375 $307,301 $35,396 $0 UT of the Permian Basin $12,536 $113,144 $8,795 $9,180 $69,336 UT at San Antonio $0 $876,244 $175,993 $1,816,822 $0 UT at Tyler $357,663 $0 $1,534 $51,784 $33,957 University of Houston System Univ. of Houston $6,900,280 $16,925,060 $7,792,893 $926,835 $3,056,812 Univ. of Houston-Clear Lake $0 $82,600 $4,157 $3,246 $0 Univ. of Houston-Downtown $0 $194,821 $0 $3,307 $10,322 Univ. of Houston-Victoria $0 $0 $0 $0 $13,631 University of North Texas $50,711 $4,446,949 $465,597 $1,412,843 $0 Totals $54,132,437 $138,986,210 $24,005,040 $45,753,218 $11,369,216 Shading indicates the five highest in each category. * A&M agency and research foundation expenditures reported by individual affiliated university. (table continued on next page) 19

Institution Table 9 - continued Expenditures for Conduct of R&D by Field, FY 2004 Texas Public Universities Arts and Humanities Midwestern State $0 $0 $77,388 $0 $0 $119,653 Stephen F. Austin State $49,355 $635 $346,216 $58,015 $203,315 $3,639,457 Texas A&M University System* Prairie View A&M $10,723 $0 $161,964 $0 $0 $10,697,128 Tarleton State $16,479 $0 $248,819 $0 $1,566,911 $8,579,202 Texas A&M and Services $676,711 $2,999,588 $5,851,929 $976,185 $281,014 $390,654,670 Texas A&M-Commerce $3,539 $13,949 $294,814 $0 $21,907 $609,864 Texas A&M-Corpus Christi $0 $0 $1,888,026 $0 $1,046,192 $13,682,911 Texas A&M at Galveston $0 $0 $0 $0 $0 $4,537,645 Texas A&M International $15,993 $27,832 $75,388 $0 $0 $185,137 Texas A&M-Kingsville $50 $18,815 $24,037 $0 $279,777 $10,536,809 Texas A&M-Texarkana $0 $0 $188,653 $0 $0 $188,653 West Texas A&M $132,741 $1,098,486 $382,799 $0 $10,089 $5,503,151 Texas Southern $0 $0 $130,108 $0 $559,659 $4,647,980 Texas State University System Angelo State $37,390 $9,671 $31,027 $0 $0 $885,426 Lamar $0 $87 $18,696 $0 $346,080 $3,210,250 Sam Houston State $32,343 $61,568 $35,051 $874,795 $15,000 $2,858,129 Sul Ross State $10,663 $0 $0 $0 $0 $1,058,664 Sul Ross - Rio Grande $0 $0 $3,506 $0 $0 $3,506 Texas State - San Marcos $75,579 $269,161 $830,567 $213,528 $1,619,007 $9,129,998 Texas Tech $15,152 $479,939 $238,904 $20,192 $0 $48,142,661 Texas Woman's $5,434 $756 $2,768 $0 $104,511 $2,233,085 University of Texas System UT at Arlington $74,681 $90,257 $324,767 $476,651 $2,278,131 $22,417,130 UT at Austin $3,445,100 $3,286,556 $14,401,181 $1,464,657 $18,935,100 $382,391,771 UT at Brownsville $10,917 $0 $193,615 $0 $17,417 $3,273,326 UT at Dallas $283,136 $488,712 $9,928 $0 $32,491 $31,274,590 UT at El Paso $83,141 $56,077 $6,846,537 $536,308 $4,225,323 $32,067,735 UT-Pan American $237,432 $25,481 $298,345 $0 $0 $4,309,262 UT of the Permian Basin $13,425 $392,562 $1,125,048 $468 $139,136 $1,895,564 UT at San Antonio $78,665 $1,727,261 $512,715 $3,632 $0 $16,516,457 UT at Tyler $5,980 $27,924 $25,054 $0 $9,000 $894,034 University of Houston System Univ. of Houston $1,306,368 $307,584 $5,280,254 $328,667 $2,930,949 $75,927,432 Univ. of Houston-Clear Lake $3,004 $159,366 $7,153 $0 $303,228 $1,211,307 Univ. of Houston-Downtown $1,026 $0 $41,102 $0 $0 $669,019 Univ. of Houston-Victoria $0 $0 $0 $0 $0 $13,631 University of North Texas $492,553 $2,131,162 $1,640,051 $92,632 $0 $15,636,344 Totals $7,117,580 $13,673,429 $41,536,410 $5,045,730 $34,924,237 $1,109,601,581 Shading indicates the five highest in each category. Business Administration Education * A&M agency and research foundation expenditures reported by individual affiliated university. Law and Public Administration Other Non- Sciences Total 20

Table 10 Expenditures for Conduct of R&D by Area of Special Interest, FY 2004 Texas Public Universities Institution Aerospace Technology Biotechnology Energy Environmental Sciences Food, Fiber, Agricultural Products Midwestern State $0 $0 $0 $0 $0 Stephen F. Austin State $0 $1,266,432 $0 $3,183,426 $2,884,303 Texas A&M University System* Prairie View A&M $42,008 $0 $38,620 $0 $232,855 Tarleton State $0 $2,856 $0 $13,351 $3,357,032 Texas A&M and Services $52,681,091 $307,535 $6,605,357 $55,394,242 $4,371,635 Texas A&M-Commerce $0 $0 $0 $0 $128,113 Texas A&M-Corpus Christi $0 $75,751 $0 $2,056,729 $7,310 Texas A&M at Galveston $0 $0 $97,259 $473,361 $0 Texas A&M International $0 $0 $0 $0 $0 Texas A&M-Kingsville $7,909 $1,915,776 $0 $2,091,342 $4,369,884 Texas A&M-Texarkana $0 $0 $0 $0 $0 West Texas A&M $0 $0 $318,562 $277,184 $1,139,895 Texas Southern $0 $1,144,089 $9,177 $0 $0 Texas State University System Angelo State $0 $0 $0 $0 $411,199 Lamar $12,124 $0 $39,764 $2,260,040 $0 Sam Houston State $0 $0 $0 $31,908 $14,600 Sul Ross State $0 $0 $0 $31,500 $0 Sul Ross - Rio Grande $0 $0 $0 $0 $0 Texas State - San Marcos $48,142 $116,054 $18,370 $729,266 $128,746 Texas Tech $2,469,674 $4,124,492 $3,443,137 $12,298,135 $12,675,081 Texas Woman's $0 $0 $0 $0 $304,370 University of Texas System UT at Arlington $242,315 $2,249,550 $3,219,434 $1,080,632 $0 UT at Austin $9,914,543 $20,925,833 $30,199,047 $34,570,829 $355,443 UT at Brownsville $1,495,635 $1,161,261 $42,165 $0 $61,336 UT at Dallas $1,220,436 $1,036,062 $1,186,108 $418,023 $0 UT at El Paso $19,363 $0 $0 $570,345 $0 UT-Pan American $0 $7,775 $0 $157,956 $35,211 UT of the Permian Basin $0 $0 $96,253 $19,093 $0 UT at San Antonio $148,411 $0 $0 $223,273 $0 UT at Tyler $3,058 $0 $0 $15,939 $0 University of Houston System Univ. of Houston $2,152,969 $3,727,334 $4,396,332 $3,427,987 $230,140 Univ. of Houston-Clear Lake $176,219 $307 $0 $133,356 $0 Univ. of Houston-Downtown $283 $0 $0 $8,100 $0 Univ. of Houston-Victoria $0 $0 $0 $0 $0 University of North Texas $30,395 $558,288 $255,957 $954,619 $216,994 Totals $70,664,575 $38,619,395 $49,965,542 $120,420,636 $30,924,147 Shading indicates the five highest in each category. * A&M agency and research foundation expenditures reported by individual affiliated university. (table continued on next page) 21

Table 10 - continued Expenditures for Conduct of R&D by Area of Special Interest, FY 2004 Texas Public Universities Institution Manufacturing Technology Materials Science Microelectronics and Computer Technology Water Resources Total Midwestern State $0 $0 $0 $0 $0 Stephen F. Austin State $122,072 $0 $0 $2,092,086 $9,548,319 Texas A&M University System* Prairie View A&M $0 $17,673 $0 $0 $331,156 Tarleton State $0 $0 $0 $1,288,702 $4,661,941 Texas A&M and Services $6,456,816 $7,461,350 $4,810,658 $638,817 $138,727,501 Texas A&M-Commerce $0 $0 $3,008 $0 $131,121 Texas A&M-Corpus Christi $0 $1,040 $548,019 $1,434,449 $4,123,298 Texas A&M at Galveston $0 $0 $0 $0 $570,620 Texas A&M International $0 $0 $0 $0 $0 Texas A&M-Kingsville $0 $123,817 $33,994 $90,406 $8,633,128 Texas A&M-Texarkana $0 $0 $0 $0 $0 West Texas A&M $0 $55,514 $0 $58,429 $1,849,584 Texas Southern $0 $0 $0 $0 $1,153,266 Texas State University System Angelo State $0 $19,516 $0 $15,920 $446,635 Lamar $100,026 $5,381 $54,485 $10,911 $2,482,731 Sam Houston State $0 $0 $12,756 $346,861 $406,125 Sul Ross State $0 $0 $0 $0 $31,500 Sul Ross - Rio Grande $0 $0 $0 $0 $0 Texas State - San Marcos $6,702 $97,761 $65,526 $918,305 $2,128,872 Texas Tech $2,478,651 $5,005,080 $3,248,366 $3,380,259 $49,122,875 Texas Woman's $0 $0 $0 $0 $304,370 University of Texas System UT at Arlington $2,428,487 $4,644,250 $4,942,111 $277,038 $19,083,817 UT at Austin $1,083,627 $17,045,929 $33,225,421 $1,653,118 $148,973,790 UT at Brownsville $0 $0 $0 $0 $2,760,397 UT at Dallas $318,697 $912,234 $1,203,798 $0 $6,295,358 UT at El Paso $0 $1,020,120 $45,235 $178,230 $1,833,293 UT-Pan American $527,693 $0 $467,712 $0 $1,196,347 UT of the Permian Basin $0 $0 $0 $0 $115,346 UT at San Antonio $0 $0 $674,579 $270,984 $1,317,247 UT at Tyler $0 $0 $0 $0 $18,997 University of Houston System Univ. of Houston $309,536 $5,492,517 $5,749,014 $15,583 $25,501,412 Univ. of Houston-Clear Lake $0 $0 $252,606 $0 $562,488 Univ. of Houston-Downtown $0 $0 $808 $0 $9,191 Univ. of Houston-Victoria $0 $0 $0 $0 $0 University of North Texas $296,440 $2,200,134 $655,129 $83,396 $5,251,352 Totals $14,128,747 $44,102,316 $55,993,225 $12,753,494 $437,572,077 Shading indicates the five highest in each category. * A&M agency and research foundation expenditures reported by individual affiliated university. 22

INSTITUTIONAL DATA HEALTH-RELATED INSTITUTIONS This section of the report contains detailed information on research expenses reported by individual health-related institutions. Statements related to data quality and applicability found on page 1 of this report also apply to the data shown in this section of the report. Figure 7 Expenditures for Research and Development at Texas Public Health-Related Institutions, FY 2004 (Millions of Dollars) 0 50 100 150 200 250 300 350 UT Health Center at Tyler 10.2 Univ North Texas HSC 18.5 Texas Tech Univ HSC 19.8 Texas A&M HSC 58.5 UTHSC at San Antonio 124.9 UTMB at Galveston 132.8 UTHSC at Houston 150.2 UT M.D. Anderson Cancer 313.9 UT Southwestern Medical Center 314.4 *Baylor College of Medicine (BCM), requested to be included in this report and provided data summarizing its FY2004 research expenditures to the Coordinating Board. BCM expended $390 million for research of which $237 million was provided by federal sources. Most of its research expenditures were made for biological sciences ($158 million) and medicine ($209 million). None of the independent institutions were asked to complete the research expenditures survey. The Coordinating Board is not able to verify financial data for independent institutions that do not provide annual financial reports. 23

Table 11 Total Expenditures for Research and Other Research-Related Sponsored Programs by Source of Funds, Texas Public Health-Related Institutions, FY 2004 Institution State Federal Appropriated Contracts and Grants R&D Other R&D Other R&D Other Texas A&M HSC $30,283,043 $0 $9,485,566 $0 $1,056,727 $0 Texas Tech Univ HSC $7,603,557 $0 $4,605,184 $0 $115,746 $0 Univ North Texas HSC $13,258,816 $408,045 $0 $0 $607,580 $0 UT M.D. Anderson Cancer $150,528,694 $0 $89,186,816 $0 $715,404 $0 UTMB at Galveston $102,490,775 $0 $10,244,236 $5,200,999 $737,774 $0 UTHSC at Houston $110,438,174 $0 $8,252,449 $807,955 $5,647,699 $0 UT Health Center at Tyler $4,659,021 $0 $2,208,368 $0 $0 $0 UTHSC at San Antonio $89,661,741 $0 $4,563,075 $0 $361,766 $0 UT Southwestern Medical Center $200,887,545 $0 $21,014,865 $0 $2,282,644 $0 Totals $709,811,366 $408,045 $149,560,559 $6,008,954 $11,525,340 $0 Shading indicates the five highest in each category. Table 11 - continued Total Expenditures for Research and Other Research-Related Sponsored Programs by Source of Funds, Texas Public Health-Related Institutions, FY 2004 Institution R&D Other R&D Other R&D Other Texas A&M HSC $5,223,695 $0 $2,876,024 $0 $9,560,769 $0 Texas Tech Univ HSC $4,270,284 $0 $950,146 $0 $2,282,096 $16,892 Univ North Texas HSC $1,697,638 $17,232 $1,002,444 $0 $1,953,479 $0 UT M.D. Anderson Cancer $12,096,804 $0 $22,338,299 $0 $39,050,338 $0 UTMB at Galveston $1,220,636 $353,279 $5,841,986 $0 $12,233,504 $128,628 UTHSC at Houston $3,179,092 $0 $7,372,807 $0 $15,331,985 $0 UT Health Center at Tyler $2,564,985 $0 $245,439 $0 $562,577 $0 UTHSC at San Antonio $6,597,370 $0 $14,481,942 $0 $9,246,828 $0 UT Southwestern Medical Center $7,100,309 $2,288,324 $12,412,886 $0 $70,704,779 $0 Totals $43,950,813 $2,658,835 $67,521,973 $0 $160,926,355 $145,520 Shading indicates the five highest in each category. Institution Table 11 - continued 24 Private, Profit Private, Non-Profit Total Expenditures for Research and Other Research-Related Sponsored Programs by Source of Funds, Texas Public Health-Related Institutions, FY 2004 Institution R&D Other Total Texas A&M HSC $58,485,824 $0 $58,485,824 Texas Tech Univ HSC $19,827,013 $16,892 $19,843,905 Univ North Texas HSC $18,519,957 $425,277 $18,945,234 UT M.D. Anderson Cancer $313,916,355 $0 $313,916,355 UTMB at Galveston $132,768,911 $5,682,906 $138,451,817 UTHSC at Houston $150,222,206 $807,955 $151,030,161 UT Health Center at Tyler $10,240,390 $0 $10,240,390 UTHSC at San Antonio $124,912,722 $0 $124,912,722 UT Southwestern Medical Center $314,403,028 $2,288,324 $316,691,352 Totals $1,143,296,406 $9,221,354 $1,152,517,760 Shading indicates the five highest in each category. Total

Institution Table 12 Expenditures for Conduct of R&D by Field, FY 2004 Texas Public Health-Related Institutions Texas A&M HSC $115,619 $1,800,725 $727,975 $14,989 $55,718,453 Texas Tech Univ HSC $5,671,725 $0 $0 $0 $14,155,288 Univ North Texas HSC $14,726,812 $0 $0 $0 $3,793,145 UT M.D. Anderson Cancer $126,555,771 $3,181,591 $0 $13,293,930 $155,863,911 UTMB at Galveston $68,936,643 $2,130,701 $0 $0 $61,701,567 UTHSC at Houston $25,452,593 $0 $0 $0 $124,769,613 UT Health Center at Tyler $0 $0 $7,800 $0 $10,232,590 UTHSC at San Antonio $0 $0 $0 $0 $124,912,722 UT Southwestern Medical Center $148,728,832 $0 $0 $0 $164,294,896 Totals $390,187,995 $7,113,017 $735,775 $13,308,919 $715,442,185 Shading indicates the five highest in each category. Biological and Other Life Sciences Engineering Environmental Sciences Mathematical Sciences Medical Sciences Table 12 - continued Expenditures for Conduct of R&D by Field, FY 2004 Texas Public Health-Related Institutions Institution Physical Sciences Psychology Social Sciences Other Sciences Total Texas A&M HSC $0 $108,063 $0 $0 $58,485,824 Texas Tech Univ HSC $0 $0 $0 $0 $19,827,013 Univ North Texas HSC $0 $0 $0 $0 $18,519,957 UT M.D. Anderson Cancer $7,526,798 $7,082,830 $411,524 $0 $313,916,355 UTMB at Galveston $0 $0 $0 $0 $132,768,911 UTHSC at Houston $0 $0 $0 $0 $150,222,206 UT Health Center at Tyler $0 $0 $0 $0 $10,240,390 UTHSC at San Antonio $0 $0 $0 $0 $124,912,722 UT Southwestern Medical Center $0 $0 $0 $1,379,300 $314,403,028 Totals $7,526,798 $7,190,893 $411,524 $1,379,300 $1,143,296,406 Shading indicates the five highest in each category. 25

Table 13 Expenditures for Research and Development by Area of Special Interest, FY 2004 Texas Public Health-Related Institutions Institution Texas A&M HSC $811,203 $3,132,801 $5,448,229 $6,018,875 Texas Tech Univ HSC $1,043,789 $1,659,525 $303,253 $0 Univ North Texas HSC $2,914,314 $662,065 $3,317,478 $0 UT M.D. Anderson Cancer $0 $313,916,355 $0 $0 UTMB at Galveston $13,938,750 $6,132,959 $6,698,683 $12,589,635 UTHSC at Houston $3,523,342 $3,381,083 $13,226,891 $11,848,651 UT Health Center at Tyler $0 $37,275 $0 $0 UTHSC at San Antonio $14,164,476 $15,520,401 $15,623,988 $6,744,903 UT Southwestern Medical Center $7,465,924 $30,332,142 $41,877,584 $6,369,607 Totals $43,861,798 $374,774,606 $86,496,106 $43,571,671 Shading indicates the five highest in each category. Aging Cancer Research Cardiovascular Research Child Health and Human Development Table 13 - continued Expenditures for Research and Development by Area of Special Interest, FY 2004 Texas Public Health-Related Institutions Institution Mental Health Substance Abuse Total Texas A&M HSC $796,069 $1,299,671 $17,506,848 Texas Tech Univ HSC $1,027,994 $0 $4,034,561 Univ North Texas HSC $1,093,525 $472,065 $8,459,447 UT M.D. Anderson Cancer $0 $0 $313,916,355 UTMB at Galveston $8,820,512 $7,074,545 $55,255,084 UTHSC at Houston $6,119,077 $3,738,052 $41,837,096 UT Health Center at Tyler $0 $0 $37,275 UTHSC at San Antonio $6,719,439 $7,992,929 $66,766,136 UT Southwestern Medical Center $18,528,196 $4,559,589 $109,133,042 Totals $43,104,812 $25,136,851 $616,945,844 Shading indicates the five highest in each category. 26

HISTORICAL DATA Much of the data in this report does not allow accurate comparisons with data contained in reports prior to 1990. Since then, many individual data items have been more rigorously defined. Total research expenditures is the statistic allowing the most accurate long-term comparison. However, because a more precise and more conservative definition of research activity was adopted, research expenditures prior to Fiscal Year 1990 were probably overstated when compared to expenditures reported in later years. Figure 8 graphs total research and development expenditures since 1984. The recent accelerated growth in research expenditures for the public health-related institutions results primarily from the doubling of the National Institutes of Health budget, a major source of research funding, from 1999 to 2003. 2,500 Figure 8 Expenditures for Research and Development FY 1984 - FY 2004 2,250 2,000 2,050 2,174 2,253 1,750 1,603 1,770 (Millions of Dollars) 1,500 1,250 1,000 750 500 407 470 543 610 686 797 861 959 1,044 1,137 1,177 1,211 1,266 1,323 1,381 1,452 250 0 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 Fiscal Year Universities Health-Related Institutions Table 14 on the following page shows total research and development expenditures at Texas public universities over the past four years. Table 15 shows federal research and development expenditures and the ratio of federal-to-state research and development expenditures over the past four years. Tables 16 and 17 show similar data for health-related institutions. One-year and five-year changes in federal expenditures for research and development for the different disciplines are shown in Table 18. 27

Institution Table 14 Expenditures for Research and Development Texas Public Universities FY 2001 Midwestern State $93,085 $74,626 $85,760 $119,653 28.54% Stephen F. Austin State ** $4,840,607 $5,583,051 $5,491,566 $3,639,457-24.81% Texas A&M University System Prairie View A&M $9,201,307 $10,330,085 $10,682,633 $10,697,128 16.26% Tarleton State $6,495,956 $7,909,999 $8,229,694 $8,579,202 32.07% Texas A&M and Services $340,660,614 $372,828,854 $390,305,058 $390,654,670 14.68% Texas A&M-Commerce $336,803 $629,496 $520,321 $609,864 81.07% Texas A&M-Corpus Christi $6,710,930 $10,365,501 $12,110,618 $13,682,911 103.89% Texas A&M at Galveston $3,252,082 $4,010,618 $4,949,454 $4,537,645 39.53% Texas A&M International $507,806 $677,346 $570,457 $185,137-63.54% Texas A&M-Kingsville $7,144,715 $8,591,828 $10,148,177 $10,536,809 47.48% Texas A&M-Texarkana $0 $212,252 $116,913 $188,653 NA West Texas A&M $4,744,757 $6,036,713 $6,221,085 $5,503,151 15.98% Texas Southern $3,048,521 $4,930,117 $3,872,628 $4,647,980 52.47% Texas State University System Angelo State $643,460 $800,044 $699,836 $885,426 37.60% Lamar $3,441,465 $4,237,915 $3,958,697 $3,210,250-6.72% Sam Houston State $2,281,435 $1,931,014 $1,829,162 $2,858,129 25.28% Sul Ross State $773,021 $841,426 $816,917 $1,058,664 36.95% Sul Ross - Rio Grande $6,277 $10,464 $21,610 $3,506-44.15% Texas State - San Marcos $11,652,513 $10,400,827 $9,112,931 $9,129,998-21.65% Texas Tech $43,373,437 $51,701,449 $56,147,235 $48,142,661 11.00% Texas Woman's $3,023,439 $2,960,015 $2,998,340 $2,233,085-26.14% University of Texas System UT at Arlington $19,966,034 $21,072,964 $23,314,938 $22,417,130 12.28% UT at Austin $321,580,736 $366,355,359 $376,403,651 $382,391,771 18.91% UT at Brownsville $635,365 $1,286,638 $1,558,306 $3,273,326 415.19% UT at Dallas $18,531,582 $27,444,057 $32,547,141 $31,274,590 68.76% UT at El Paso $29,003,608 $27,328,772 $27,847,152 $32,067,735 10.56% UT-Pan American $2,601,598 $2,605,758 $3,193,419 $4,309,262 65.64% UT of the Permian Basin $737,853 $980,905 $1,118,184 $1,895,564 156.90% UT at San Antonio $11,751,323 $12,402,017 $14,547,732 $16,516,457 40.55% UT at Tyler $342,206 $375,821 $411,275 $894,034 161.26% University of Houston System Univ. of Houston $61,332,253 $82,865,307 $88,608,021 $75,927,432 23.80% Univ. of Houston-Clear Lake $11,928,221 $8,862,208 $1,707,440 $1,211,307-89.85% Univ. of Houston-Downtown $1,016,352 $1,270,494 $678,068 $669,019-34.17% Univ. of Houston-Victoria $0 $0 $0 $13,631 NA University of North Texas $17,441,681 $18,875,396 $17,587,767 $15,636,344-10.35% Totals $948,223,316 $1,076,789,336 $1,118,412,186 $1,109,601,581 17.02% * Percent change for 2004, relative to 2001; NA indicates not applicable FY 2002 ** Stephen F. Austin State University reported corrections to FY 2001 research expenditures: total research expenditures = $4,840,607; from institutional sources = $877,726; and expenditures for agricultural sciences = $797,344; physical sciences = $162,323; biological sciences = $152,562; and arts and humanities = $117,719. FY 2003 FY 2004 Percent Change* 28

Institution Table 15 Federal Expenditures for Research and Development Texas Public Universities Federal R&D Dollars Fed/ State Ratio Federal R&D Dollars Fed/ State Ratio Federal R&D Dollars Fed/ State Ratio Federal R&D Dollars Fed/ State Ratio Midwestern State $25,500 1.12 $0 NA $20,865 0.45 $77,388 343.95 Stephen F. Austin State $959,198 2.65 $1,054,239 11.58 $1,208,382 14.51 $1,025,461 6.47 Texas A&M University System Prairie View A&M $7,247,020 4.09 $7,915,204 3.61 $8,106,963 3.53 $8,138,054 3.56 Tarleton State $4,321,656 2.22 $5,431,723 2.42 $5,856,670 2.72 $5,439,350 1.96 Texas A&M and Services $152,196,825 1.46 $166,285,925 1.41 $178,016,320 1.48 $174,570,204 1.53 Texas A&M-Commerce $114,497 1.77 $315,173 3.02 $198,275 1.17 $355,709 3.08 Texas A&M-Corpus Christi $2,805,448 0.88 $4,473,974 1.11 $5,667,854 1.27 $6,233,432 1.53 Texas A&M at Galveston $1,567,592 1.52 $2,362,832 2.24 $3,128,730 2.82 $2,757,465 4.47 Texas A&M International $376,032 8.03 $572,462 32.73 $486,102 46.53 $119,762 7.05 Texas A&M-Kingsville $1,818,310 0.62 $1,950,923 0.45 $2,766,449 0.62 $3,856,738 0.96 Texas A&M-Texarkana $0 NA $182,262 NA $113,290 NA $188,653 NA West Texas A&M $2,900,437 1.79 $3,531,219 1.67 $3,190,176 1.29 $2,580,645 0.97 Texas Southern $2,051,797 2.93 $4,147,663 6.16 $3,247,658 6.63 $3,969,899 11.20 Texas State University System Angelo State $111,424 0.24 $254,963 0.55 $131,977 0.25 $155,851 0.33 Lamar $2,216,829 2.48 $2,279,805 1.55 $1,998,033 1.26 $1,504,062 1.02 Sam Houston State $1,802,777 11.97 $1,491,475 4.51 $1,397,106 4.26 $2,175,912 7.27 Sul Ross State $95,043 0.16 $76,368 0.12 $95,580 0.19 $261,417 0.63 Sul Ross - Rio Grande $0 0.00 $0 0.00 $0 0.00 $0 0.00 Texas State - San Marcos $4,961,466 1.12 $4,769,709 1.23 $3,975,213 1.10 $3,536,053 1.29 Texas Tech $17,394,677 1.08 $20,511,493 0.96 $23,285,324 1.01 $23,393,040 1.55 Texas Woman's $1,185,256 0.76 $1,321,373 1.04 $1,493,677 1.20 $1,238,556 1.81 University of Texas System UT at Arlington $9,224,210 1.61 $7,923,657 0.83 $7,993,576 0.64 $11,093,256 1.40 UT at Austin $202,440,085 4.28 $235,436,101 4.46 $240,537,689 4.75 $249,014,154 5.69 UT at Brownsville $602,856 18.54 $896,646 430.67 $1,011,353 NA $2,889,894 NA UT at Dallas $8,781,295 2.14 $11,815,490 1.40 $14,432,841 1.37 $15,733,571 1.73 UT at El Paso $22,872,682 6.98 $19,796,441 4.65 $17,022,000 2.17 $22,232,318 3.05 UT-Pan American $1,324,426 1.33 $1,394,780 1.53 $1,895,223 1.73 $2,666,191 2.06 UT of the Permian Basin $147,629 0.34 $138,194 0.20 $166,777 0.25 $1,215,420 2.63 UT at San Antonio $8,032,790 3.11 $7,641,990 2.17 $10,049,314 3.29 $11,705,185 3.74 UT at Tyler $66,827 0.32 $67,617 0.31 $174,362 1.23 $585,874 4.71 University of Houston System Univ. of Houston $24,227,166 1.08 $33,239,410 1.16 $34,242,554 1.10 $31,682,165 1.24 Univ. of Houston-Clear Lake $10,843,892 19.72 $7,659,934 10.99 $696,239 1.32 $396,016 0.73 Univ. of Houston-Downtown $649,135 2.08 $783,394 2.00 $378,339 1.84 $490,584 3.15 Univ. of Houston-Victoria $0 NA $0 NA $0 NA $13,631 NA University of North Texas $8,284,082 1.78 $8,827,974 2.55 $8,328,900 2.33 $6,927,327 3.72 Totals $501,648,859 2.14 $564,550,413 2.03 $581,313,811 2.00 $598,223,237 2.36 NA indicates not applicable (no state research and development funds expended). FY 2001 FY 2002 FY 2003 FY 2004 29

Institution Texas A&M HSC $37,328,465 $45,066,569 $50,435,247 $58,485,824 56.68% Texas Tech Univ HSC $14,343,187 $19,279,797 $19,751,348 $19,827,013 38.23% Univ North Texas HSC $11,034,554 $12,347,141 $14,901,791 $18,519,957 67.84% UT M.D. Anderson Cancer $210,236,589 $262,144,960 $282,260,250 $313,916,355 49.32% UTMB at Galveston $91,088,019 $109,139,538 $129,860,903 $132,768,911 45.76% UTHSC at Houston $128,161,248 $140,827,726 $152,117,064 $150,222,206 17.21% UT Health Center at Tyler $9,228,568 $8,453,709 $9,217,039 $10,240,390 10.96% UTHSC at San Antonio $97,638,253 $112,232,653 $119,279,555 $124,912,722 27.93% UT Southwestern Medical Center $222,378,235 $263,958,410 $277,956,511 $314,403,028 41.38% Totals $821,437,118 $973,450,503 $1,055,779,708 $1,143,296,406 39.18% NA indicates not applicable * Percent change for 2004, relative to 2001 Table 16 Expenditures for Research and Development Texas Public Health-Related Institutions FY 2001 FY 2002 FY 2003 FY 2004 Percent Change* Institution Federal R&D Dollars Fed/ State Ratio Federal R&D Dollars Fed/ State Ratio Federal R&D Dollars Fed/ State Ratio Federal R&D Dollars Fed/ State Ratio Texas A&M HSC $18,384,358 2.34 22,417,418 1.82 26,729,107 2.32 30,283,043 2.87 Texas Tech Univ HSC $6,457,506 2.44 $8,802,283 2.67 $8,674,208 2.36 $7,603,557 1.61 Univ North Texas HSC $6,562,238 36.53 $7,224,263 15.08 $9,454,472 15.11 $13,258,816 21.82 UT M.D. Anderson Cancer $91,543,036 1.56 $117,633,074 1.65 $122,868,912 1.57 $150,528,694 1.67 UTMB at Galveston $63,274,494 5.87 $78,100,188 6.28 $93,039,583 6.75 $102,490,775 9.33 UTHSC at Houston $91,267,003 8.46 $101,738,767 8.33 $111,170,193 9.37 $110,438,174 7.95 UT Health Center at Tyler $3,063,099 3.45 $2,783,554 1.81 $3,493,251 1.45 $4,659,021 2.11 UTHSC at San Antonio $66,852,477 10.38 $83,760,708 13.50 $86,854,337 14.72 $89,661,741 18.21 UT Southwestern Medical Center $131,820,109 13.85 $155,257,992 9.09 $177,133,099 11.07 $200,887,545 8.62 Totals $479,224,320 4.44 $577,718,247 4.23 $639,417,162 4.43 $709,811,366 4.41 NA indicates not applicable Table 17 Federal Expenditures for Research and Development Texas Public Health-Related Institutions FY 2001 FY 2002 FY 2003 FY 2004 30

Field Table 18 Federal Expenditures for Research and Development by Field Texas Public Universities and Health-Related Institutions FY 1999 FY 2003 FY 2004 One-Year Change Five-Year Change Agricultural Sciences $20,834,133 $27,202,509 $29,761,742 9.41% 42.85% Biological and Other Life Sciences $175,637,665 $283,763,040 $326,338,774 15.00% 85.80% Computer Science $17,444,987 $32,749,420 $32,913,333 0.50% 88.67% Engineering $130,020,542 $154,531,991 $161,944,610 4.80% 24.55% Environmental Sciences $72,773,515 $93,228,178 $78,624,859-15.66% 8.04% Mathematical Sciences $6,130,370 $29,248,227 $27,621,316-5.56% 350.57% Medical Sciences $247,785,566 $440,091,234 $470,857,882 6.99% 90.03% Physical Sciences $74,617,855 $86,155,663 $93,589,792 8.63% 25.43% Psychology $7,799,677 $21,355,883 $22,479,729 5.26% 188.21% Social Sciences $16,464,312 $17,846,438 $17,240,621-3.39% 4.72% Other Sciences $2,466,478 $5,158,847 $4,552,802-11.75% 84.59% Arts and Humanities $977,851 $1,208,462 $778,886-35.55% -20.35% Business Administration $2,945,289 $1,272,822 $2,829,412 122.29% -3.93% Education $18,344,451 $20,077,464 $27,239,592 35.67% 48.49% Law and Public Administration $882,011 $1,077,506 $2,234,255 107.35% 153.31% Other Non-Science Activities $1,520,432 $5,763,289 $9,026,998 56.63% 493.71% Totals $796,645,135 $1,220,730,973 $1,308,034,603 7.15% 64.19% In 2001, the 77th Legislature passed the Centers for Technology Development and Transfer Act (Texas Education Code, Section 153.008), which specifies reporting requirements for intellectual property income and expenses. Intellectual property income is now reported biennially in a new report, Technology Development and Transfer. 31

NATIONAL COMPARISONS This section of the report is based on data provided by the National Science Foundation. It is not entirely consistent with data provided in earlier sections of the report because it is based on an earlier year, because reporting requirements are somewhat different, and because the federal reports do not differentiate between state-funded and independent institutions. The National Science Foundation makes three reports available, and each provides somewhat different information: Federal Obligations for Science and Engineering shows federal obligations for grants and contracts awarded to higher education science and engineering programs by federal agencies during the fiscal year. Funds obligated in any given year may be expended over a number of years, so obligations will be somewhat different from expenditures. This report includes support for a number of programs that are not necessarily research and development programs, such as science education programs and assistantship support for engineering students. The amount of support is reported by the agencies. Data from this report measures progress toward the research goal of Closing the Gaps by 2015. Federal Obligations for Research and Development in Science and Engineering includes only federal funds obligated during the year to support, directly or indirectly, basic and applied research and development in science and engineering disciplines at higher education institutions. The amount of support is again reported by the agencies. Federally Financed Research and Development Expenditures summarizes federal funds expenditures by higher education institutions to support research and development in any given year. This report is based on data reported by institutions and summarized by the National Science Foundation. Some of the highlights of the 2002 survey of federal research and development expenditures include the following: o The top five states in federal research and development expenditures were: California $2.80 billion New York $1.79 billion Texas $1.41 billion Maryland $1.41 billion Pennsylvania $1.34 billion o Texas ranked second (behind California) in state- and local government-funded Research and Development expenditures. o Texas ranked third in total research and development expenditures. o Texas ranked third in research and development expenditures from institutional sources (behind California and New York), second in research and development expenditures from industrial sources (behind California), and second in research and development expenditures from all other sources (behind California). o Texas was among the top three states for all of the different types of sources. 32

o In Texas, life sciences accounted for 66 percent of the research and development expenditures, followed by engineering (14 percent) and physical sciences (6 percent). Table 19 Top Five States in Federal R&D Expenditures Selected Science and Engineering Fields, FY 2002 Rank Life Physical Environmental $ Engineering $ $ Sciences Sciences Sciences $ 1 California 1.6B Maryland 394M California 382M California 178M 2 New York 1.2B California 379M Massachusetts 187M Massachusetts 106M 3 Texas 942M Pennsylvania 213M Maryland 178M Texas 90M 4 Pennsylvania 837M Massachusetts 190M New York 150M Colorado 85M 5 Massachusetts 637M New York 174M Texas 102M New York 74M Note: M refers to million; B refers to billion. Source: National Science Foundation, WebCASPAR Database System, 02/24/2005 Table 20 shows the ranking of all states in federal obligations for science and engineering, federal obligations for research and development in science and engineering, and federally financed research and development expenditures for 2002. Texas ranks fifth in federal obligations for science and engineering, which includes science education, and also ranks fifth in federal obligations for research and development in science and engineering, which excludes science education. Texas ranks third in research and development expenditures from federal sources. Patterns in federal research and development support over time for the top six states are shown in Figures 9 and 10. California and New York are the uncontested leaders in federal research support to the states. State Table 20 State Rank in Federal Obligations and Federally Financed R&D, FY 2002 (Dollars in Thousands) Federal Obligations for Federal Obligations for R&D Federally Financed R&D Science and Engineering to in Science and Engineering Expenditures at Colleges Colleges and Universities to Colleges and Universities and Universities FY 2002 Rank FY 2002 Rank FY 2002 California $3,263,577 1 $2,949,032 1 $2,801,529 1 New York $1,930,805 2 $1,682,187 2 $1,785,134 2 Maryland $1,513,068 3 $1,296,852 4 $1,405,242 4 Pennsylvania $1,490,181 4 $1,378,756 3 $1,344,043 5 Texas $1,438,119 5 $1,220,475 5 $1,409,858 3 Massachusetts $1,285,961 6 $1,147,690 6 $1,261,765 6 North Carolina $955,893 7 $841,951 7 $726,272 8 Illinois $832,114 8 $745,394 8 $838,614 7 Michigan $717,607 9 $636,407 9 $699,669 9 Ohio $666,568 10 $592,725 10 $642,804 10 Washington $651,085 11 $584,402 11 $548,176 12 Colorado $625,534 12 $494,898 14 $484,762 14 (table continued on next page) Rank 33

Table 20 - continued State Rank in Federal Obligations and Federally Financed R&D, FY 2002 (Dollars in Thousands) Federal Obligations for Federal Obligations for R&D in Federally Financed R&D Science and Engineering Science and Engineering Expenditures at Colleges to Colleges and Universities to Colleges and Universities and Universities State FY 2002 Rank FY 2002 Florida $603,726 13 $530,893 12 $559,327 11 Missouri $577,097 14 $509,229 13 $447,795 15 Georgia $554,402 15 $445,152 15 $534,419 13 Wisconsin $515,645 16 $432,025 16 $442,710 16 Virginia $449,661 17 $377,589 18 $405,984 17 Connecticut $442,135 18 $404,923 17 $375,054 18 Alabama $421,214 19 $359,702 19 $365,187 19 Tennessee $406,952 20 $339,492 20 $315,789 20 New Jersey $361,310 21 $319,593 21 $315,003 21 Minnesota $336,756 22 $296,241 22 $300,256 22 Indiana $329,804 23 $283,542 23 $276,401 24 Oregon $296,737 24 $260,691 24 $273,901 25 Arizona $290,230 25 $249,994 25 $287,052 23 Iowa $289,378 26 $242,077 26 $257,084 26 Utah $254,427 27 $230,906 27 $234,918 27 District of Columbia $226,688 28 $205,656 28 $206,000 28 Louisiana $214,680 29 $177,833 29 $200,891 29 Kentucky $191,179 30 $152,183 30 $150,282 33 South Carolina $189,466 31 $147,193 31 $183,701 31 Mississippi $180,751 32 $143,770 32 $178,978 32 New Mexico $179,213 33 $131,066 33 $195,383 30 Hawaii $166,109 34 $120,239 35 $119,381 36 New Hampshire $149,790 35 $125,781 34 $138,084 34 Kansas $140,425 36 $115,422 36 $134,301 35 Oklahoma $136,764 37 $102,234 38 $112,438 38 Rhode Island $121,977 38 $104,329 37 $113,841 37 Nebraska $109,244 39 $91,398 39 $89,322 39 Arkansas $99,226 40 $73,032 41 $61,765 43 Montana $87,669 41 $57,210 44 $65,575 42 Alaska $84,178 42 $66,586 42 $71,129 41 Vermont $82,737 43 $74,486 40 $59,430 44 West Virginia $73,937 44 $54,185 45 $59,002 45 Nevada $69,286 45 $59,420 43 $85,085 40 North Dakota $67,977 46 $45,015 47 $46,418 47 Delaware $64,889 47 $54,152 46 $51,002 46 Idaho $50,358 48 $35,758 48 $42,376 48 Maine $38,343 49 $25,080 49 $25,830 49 South Dakota $32,573 50 $20,898 50 $22,160 50 Wyoming $22,628 51 $18,212 51 $20,017 51 SOURCE: National Science Foundation, WebCASPAR Database System, 02/24/2005 Rank FY 2002 Rank 34

Figure 9 3,000 Federal Obligations for R&D in Science and Engineering Universities and Colleges - Selected States, 1993-2002 2,500 Millions 2,000 California Dollars in 1,500 1,000 Maryland Massachusetts New York Texas 500 Pennsylvania 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Year SOURCE: National Science Foundation WebCASPAR Database System, Constant 2000 Dollars, 02/24/2005 Figure 10 3000 Federally Financed R&D Expenditures Universities and Colleges - Selected States, 1993-2002 2500 Dollars in Millions 2000 1500 1000 Texas Massachusetts California New York Maryland Pennsylvania 500 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Year SOURCE: National Science Foundation WebCASPAR Database System, Constant 2000 Dollars, 02/24/2005 35

Table 21 shows federal obligations and federally financed R&D expenditures for Texas higher education institutions for FY 2002. The table includes public and independent institutions. In all cases, the top five institutions account for 60 to 63 percent of the total federal support. Table 21 Federal Obligations and Federally Financed R&D by Texas Institutions, FY 2002 (Dollars in Thousands) Institution Abilene Christian $160 $160 $173 Alamo Community Coll. Dist. $812 $80 --- Amarillo Coll. $300 --- --- Angelo State $318 $199 --- Austin Coll. $16 $16 --- Austin Community Coll. $13 --- --- Baylor- Coll. of Medicine $304,594 $266,786 $259,475 Baylor Univ. $1,102 $1,102 $830 Cedar Valley Coll. $399 --- --- Coll. of the Mainland $1,000 --- --- Collin County Community Coll. $322 --- --- El Paso Community Coll. $493 $493 --- Houston Community Coll. $81 --- --- Jarvis Christian Coll. $538 $38 $10 Lamar $437 $100 $2,080 Le Tourneau Univ. $93 $93 --- Lubbock Christian Univ. $15 $15 --- McMurry Univ. $56 --- --- Northeast Texas Community Coll. $264 --- --- Our Lady of the Lake $1,144 $389 --- Paul Quinn Coll. $100 --- --- Prarie View A&M $12,540 $6,968 $7,712 Rice Univ. $38,854 $34,105 $39,739 Sam Houston State $1,373 $1,373 $2,386 San Jacinto Coll. $360 --- --- San Jacinto Coll. District System $65 $65 --- South Texas Community Coll. $1,788 $38 --- Southern Methodist $5,719 $5,352 $6,026 Southwest Texas Junior Coll. $500 --- --- St Mary's Univ. $242 $25 $152 Stephen F. Austin State $3,689 $769 $1,054 Sul Ross State $60 --- $77 Shading indicates the five highest in each category. Federal Obligations for Science and Engineering Federal Obligations for R&D in Science and Engineering Federally Financed R&D Expenditures 36

Table 21 - continued Federal Obligations and Federally Financed R&D by Texas Institutions, FY 2002 (Dollars in Thousands) Institution Federal Obligations for Science and Engineering Federal Obligations for R&D in Science and Engineering Federally Financed R&D Expenditures Tarleton State $1,959 $1,828 $5,216 Tarrant County Junior Coll. $341 --- --- Temple Coll. $15 --- --- Texas A&M and Services $107,375 $60,520 $163,488 Texas A&M HSC $38,553 $38,553 $22,417 Texas A&M International $387 $119 --- Texas A&M System Office $6,535 $5,946 --- Texas A&M-Commerce --- --- $37 Texas A&M-Corpus Christi $1,173 $845 $3,127 Texas A&M-Kingsville $2,905 $1,295 $1,956 Texas Christian $2,249 $2,245 $2,492 Texas Coll. $100 --- --- Texas Southern $2,866 $2,536 $3,910 Texas State Technical Coll. $1,500 --- --- Texas State - San Marcos $3,873 $2,544 $4,144 Texas Tech $22,814 $19,716 $28,202 Texas Wesleyan Univ. $1,289 $969 --- Texas Woman's $782 $275 $1,321 Trinity Univ. $519 $315 $250 Univ. North Tx HSC --- --- $7,770 Univ. of Dallas --- --- $30 Univ. of Houston $24,480 $22,611 $31,455 Univ. of Houston System Administration $2,553 $1,133 --- Univ. of Houston-Clear Lake $4,258 $4,193 $7,460 Univ. of Houston-Downtown $976 $929 $596 Univ. of St. Thomas $30 $30 --- Univ. of the Incarnate Word $748 $179 --- University of North Texas $12,519 $11,008 $6,015 UT at Arlington $7,777 $5,203 $7,848 UT at Austin $174,418 $146,012 $219,158 UT at Brownsville $1,073 $604 --- UT at Dallas $13,148 $13,019 $11,624 UT at El Paso $24,945 $7,755 $16,457 UT at San Antonio $14,399 $6,660 $7,111 UT M.D. Anderson Cancer $134,717 $128,350 $117,633 UT Southwestern Medical Center $170,211 $162,347 $155,258 UT System Office $5,231 $4,737 --- UTHSC at Houston $101,412 $92,974 $98,676 UTHSC at San Antonio $84,319 $74,874 $83,761 UTMB at Galveston $85,246 $81,129 $78,100 UT-Pan American $1,660 $842 $1,387 West Texas A&M $1,051 $14 $3,245 Wiley Coll. $266 --- --- Texas Total $1,438,119 $1,220,475 $1,409,858 SOURCE: National Science Foundation, WebCASPAR Database System, 02/24/2005 Shading indicates the five highest in each category. 37

Figure 11 shows federal obligations to Texas higher education institutions for research and development in science and engineering by federal agency. The National Institutes of Health have a long history of providing most of the federal research support to Texas higher education institutions. The budget of this federal agency doubled from 1999 to 2003, providing more research funding for higher education institutions across the country. 800 Figure 11 Federal Obligations for R&D in Science and Engineering Texas Universities and Colleges, 1993-2002 Top Five Support Agencies 700 Dollars in Millions 600 500 400 National Institutes of Health 300 200 100 0 NASA National Science Foundation 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Year SOURCE: National Science Foundation WebCASPAR Database System, Constant 2000 Dollars, 02/24/2005 Department of Defense Department of Energy Table 22 shows federal obligations from federal agencies providing the most support to the most federal research-intensive Texas higher education institutions. The National Institutes of Health provide most of the federal support at health-related institutions. The National Institutes of Health, the Department of Defense, and the National Science Foundation provide most of the federal support for The University of Texas at Austin. The National Science Foundation and the Department of Agriculture provide most of the support for Texas A&M University. The National Institutes of Health, the Department of Defense, and the National Science Foundation provide most of the federal support for Rice University. The University of Houston receives most of its federal support from the National Institutes of Health and the National Science Foundation. Texas Tech University receives most of its support from the National Institutes of Health and the National Science Foundation. 38

Table 22 Texas Universities and Colleges with Federal Science and Engineering R&D Obligations of More Than $10 Million by Support Agency, FY 2002 (Dollars in Thousands) Institution National Institutes of Health Dept. of Defense National Science Foundation NASA Dept. of Energy Dept. of Agriculture All Other Federal Agencies Total of All Federal Agencies Baylor-Coll. of Medicine $252,873 $7,594 $1,670 $1,560 $660 $655 $1,774 $266,786 UT Southwestern Med Center $154,300 $6,357 $782 --- $485 --- $423 $162,347 UT at Austin $40,619 $49,306 $27,742 $10,366 $15,255 --- $2,724 $146,012 UT M.D. Anderson Cancer $106,652 $19,591 $503 $370 --- --- $1,234 $128,350 UTHSC at Houston $84,726 $801 $187 $1,261 $300 $45 $5,654 $92,974 UTMB at Galveston $72,217 $4,155 $534 $2,177 $505 --- $1,541 $81,129 UTHSC at San Antonio $66,301 $6,948 $1,014 --- --- --- $611 $74,874 Texas A&M --- $5,773 $17,994 $9,861 $3,139 $16,511 $7,242 $60,520 Texas A&M HSC $38,408 --- $145 --- --- --- --- $38,553 Rice $5,649 $6,918 $16,100 $2,282 $2,588 $300 $268 $34,105 Univ. of Houston $14,236 $1,103 $3,190 $2,390 $1,253 $35 $404 $22,611 Texas Tech $5,765 $3,238 $4,457 $117 $2,419 $1,544 $2,176 $19,716 UT at Dallas $2,678 $3,126 $2,692 $4,312 $211 --- --- $13,019 University of North Texas $6,060 $1,529 $2,831 $236 $7 $345 --- $11,008 SOURCE: National Science Foundation, WebCASPAR Database System, 02/25/2005 Figure 12 shows federally financed research and development expenditures at Texas public and independent higher education institutions by scientific discipline. Most of the expenditures are made in medical and biological sciences. Figure 12 Federally Financed Research Expenditures by Discipline Texas Public and Private Institutions, FY 2002 All Other Life Sciences Biological Sciences Computer Sciences Engineering Environmental Sciences R&D Discipline Mathematical Sciences Medical Sciences Other Sciences Physical Sciences Psychology Social Sciences 0 100 200 300 400 500 SOURCE: National Science Foundation WebCASPAR Database System, 02/25/2005 Dollars in Millions 39

APPENDIX A RESEARCH EXPENDITURES SURVEYS THECB - Survey of Research Expenses, FY 2004 Public Universities and Health-Related Institutions About the On-Line Form The survey should be completed by using the on-line form by December 10, 2004 The on-line form will be used to submit your institution's FY 2004 research expense data. The login page for the form has an instructions page and links to previous expenditures reports. Blank Lotus and Excel worksheets can be downloaded here, but the information still must be entered into the on-line form. The on-line form consists of five parts, easily navigated with the buttons on the bottom of each web page. The whole form is saved when clicking on the "Total" buttons, going from page to page or clicking the "Save and Logoff" buttons. Using the "Reload Last Save" button will return information changed on a particular page before any other buttons are clicked on. Clicking underlined row or column labels will open a viewable definition for that item, and full instructions and definitions are accessible from the bottom of any page. Use whole dollar amounts, as the system will truncate decimals. The system will ignore any characters (dollar signs, commas, etc.) typed into entry blocks in parts 2-5. Click on any "Total" button to calculate column and row totals which are clearly marked in yellow. The FICE code for your institution will be used to log in to the system, and please safeguard the provided password and authorization code. The password may be issued to individuals for completion of the form. When the form is ready for final submission, the final approval authority (usually the highest research executive at the institution) clicks the "Submit to THECB" button in part 5 and enters name, title and the authorization code. Using the print button before final authorization will produce a draft printout of all forms. After final authorization, your data cannot be accessed or altered, but a printout of the final version can be produced. If you have questions or need assistance, contact information is located at the bottom of each web page or you may call Dale Cherry or Linda Domelsmith at 512-427-6150. A-1

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Part 5 for Public Universities Part 5 for Public Health Institutions A-4