Academic Quality and Workforce Division Research Expenditures Summary September 1, 2014 August 31, 2015

Academic Quality and Workforce Division Research Expenditures Summary September 1, 2014 August 31, 2015 Texas Universities and Health-Related Institutions May 2016

Texas Higher Education Coordinating Board Robert W. Jenkins, CHAIR Austin Stuart W. Stedman, VICE CHAIR Houston David D. Teuscher, MD, SECRETARY TO THE BOARD Beaumont Arcilia C. Acosta Dallas S. Javaid Anwar Midland Fred Farias, III McAllen Ricky A. Raven Sugar Land Janelle Shepard Weatherford John T. Steen, Jr. San Antonio Haley Rader DeLaGarza, STUDENT REPRESENTATIVE Lubbock Raymund A. Paredes, COMMISSIONER OF HIGHER EDUCATION Agency Mission The Texas Higher Education Coordinating Board promotes access, affordability, quality, success, and cost efficiency in the state s institutions of higher education, through Closing the Gaps and its successor plan, resulting in a globally competent workforce that positions Texas as an international leader in an increasingly complex world economy. Agency Vision The THECB will be recognized as an international leader in developing and implementing innovative higher education policy to accomplish our mission. Agency Philosophy The THECB will promote access to and success in quality higher education across the state with the conviction that access and success without quality is mediocrity and that quality without access and success is unacceptable. The Coordinating Board s core values are: Accountability: We hold ourselves responsible for our actions and welcome every opportunity to educate stakeholders about our policies, decisions, and aspirations. Efficiency: We accomplish our work using resources in the most effective manner. Collaboration: We develop partnerships that result in student success and a highly qualified, globally competent workforce. Excellence: We strive for preeminence in all our endeavors. The Texas Higher Education Coordinating Board does not discriminate on the basis of race, color, national origin, gender, religion, age or disability in employment or the provision of services. Citing this Report Please cite this report as follows: Texas Higher Education Coordinating Board. (2016). Research Expenditures Summary. September 1, 2014 August 31, 2015. Austin, TX. i

Executive Summary The Texas Higher Education Coordinating Board's annual research expenditures report summarizes data submitted to the Board as required by Section 61.0662 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." Data presented in this report were submitted by Texas public and independent universities and health-related institutions for Fiscal Year 2015 (September 1, 2014 through August 31, 2015). Highlights include: All institutions. Institutions reported research expenditures that totaled $4,768,576,354 in Fiscal Year 2015, an increase of 5.4 percent over the previous year and an increase of 58.7 percent since Fiscal Year 2005. Public institutions. Research expenditures at public universities and health-related institutions increased from $3,861,241,012 in FY 2014 to $4,062,633,646 in FY 2015 (5.2%). The expenditures increased by $167,271,041 at public universities (8.3%) and by $34,121,593 at public health-related institutions (1.8%). Independent institutions. Research expenditures at independent universities increased $23,811,645 (12.7%) and increased $20,381,214 (4.3%) at independent health-related institutions, compared to Fiscal Year 2014. Research fields. Research expenditures were greatest in the following fields for Fiscal Year 2015: o Medical Sciences - $1,535,335,432 o Biological and Other Life Sciences - $1,106,025,303 o Engineering - $765,282,949 o Physical Sciences - $302,416,757 o Environmental Sciences - $261,999,569 Funding source. The federal government, through the National Institutes of Health, the National Science Foundation, and other federal agencies, provided $2,039,485,695 (42.8%) of the research funds expended. Expenditures from federal sources decreased by $13 million (-0.64%) compared to Fiscal Year 2014. According to data provided by the National Science Foundation for Fiscal Year 2013: Texas ranked third among all states in total research expenditures in all fields. Life sciences accounted for 60 percent of the research expenditures in Texas, followed by engineering (16%), geosciences (5%), and math and computer sciences (5%). The National Institutes of Health provided 60 percent, the National Science Foundation provided 13 percent, and the Department of Defense provided 12 percent of the federal research support to Texas higher education institutions that are counted under the federal measure for science and engineering obligations. Texas institutions of higher education ranked sixth in federal obligations for research and development in science and engineering, after California, New York, Maryland, Pennsylvania, and Massachusetts. The data presented in this report are available in the Online Report System: http://www.thecb.state.tx.us/researchexpenditures. ii

Table of Contents Overview... 1 Major Findings... 2 Statewide Summary Data... 5 Institutional Data... 8 Historical Data for Public Institutions...12 National Indicators...13 Appendix Instructions and Definitions for Survey...15 iii

Tables Tables and Figures Table 1. Research and Development Expenditures Rankings, FY 2015 Table 2. Federal/State Research and Development Expenditures Ratio Rankings, FY 2015 Table 3. Sources of Funds for Research and Development, FY 2015 Table 4. Expenditures for Conduct of R&D by Field, FY 2015 Texas Public and Independent Universities and Health-Related Institutions Table 5. Expenditures for Conduct of R&D in Areas of Special Interest, FY 2015 Texas Public and Independent Universities Table 6. Expenditures for Conduct of R&D in Areas of Special Interest, FY 2015 Texas Public and Independent Health-Related Institutions Table 7. Expenditures for Stem Cell Research by Source of Funds, Texas Public Universities and Health-Related Institutions, FY 2015 Table 8. Total Expenditures for Research by Source of Funds, Texas Public and Independent Universities and Health-Related Institutions, FY 2015 Table 9. Federal R&D Expenditures/FTE Faculty Ration, FY 2015 Texas Public Universities Table 10. Top 10 States in Federal Research and Development Expenditures Selected Science and Engineering Fields, FY 2013 Table 11. State Rank in Federal Obligations and Federally Financed Research & Development, FY 2013 Figures Figure 1. Expenditures for Research and Development at Texas Universities, FY 2015 Figure 2. Expenditures for Research and Development at Texas Health-Related Institutions, FY 2015 Figure 3. Growth Rates in Research and Development Expenditures at Texas Public and Independent University and Health-Related Institutions FY 2011 FY 2015 Figure 4. Expenditures for Research and Development Texas Public Institutions of Higher Education FY 2000 FY 2015 iv

Overview The Texas Higher Education Coordinating Board s annual research expenditures report summarizes data submitted to the Board as required by Section 61.0662 of the Texas Education Code: The board shall maintain an inventory of all institutional and programmatic research activities being conducted by the various institutions of higher education, whether statefinanced or not. 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 preceding year. Each institution's report must include the amounts spent by the institution on human embryonic stem cell research and adult stem cell research during the year covered by the report and the source of the funding for that research. All reports required by this section shall be made subject to the limitations imposed by security regulations governing defense contracts for research. This report presents expenditure information rather than award information since expenditures more accurately reflect the current level of research activities. Research awards tend to fluctuate from year to year, which make them a less stable indicator for year-to-year comparisons. Institutions submit certified data reported in their Annual Financial Reports. Definitions are provided in the research expenditures survey sent to the institutions. This approach ensures consistent reporting by institutions. However, even with these safeguards, institutions have some latitude in how they break out discipline-level expenditures. Collection of research expenditure data is a challenging task for institutions. Administrators face many difficulties as they detail research expenditures at their institutions. For that reason, information reported by the institutions and the Coordinating Board s research expenditures report should be considered indicative rather than definitive. A copy of the survey form completed by each institution is provided in the Appendix. The data presented in this report are available in the Online Report System: http://www.thecb.state.tx.us/researchexpenditures. 1

Major Findings Total research expenditures at Texas public and independent universities and health-related institutions increased 5.4 percent from $4,552,990,861 in FY 2014 to $4,768,576,354 in FY 2015. Expenditures at public and independent universities and health-related institutions increased $191,082,686 (8.7%) and $54,502,807 (2.3%), respectively, compared to Fiscal Year 2014. The 10 top-ranked institutions are listed in Table 1, based on the total amount of research and development from all sources of funding. Figures 1 and 2 (following page) provide separate summaries of total research expenditures for public and private institutions and for healthrelated institutions. A complete list of funding by institution is provided in Table 7. Collectively, the top five institutions in research spending accounted for 64.1 percent of total research expenditures. The top 10 institutions accounted for 80.9 percent of the total. Six of the state's health-related institutions ranked among the top 10 Texas public institutions in research expenditures. The first six institutions in Table 1 also appear in the top 100 rankings of National Science Foundation s list of institutions reporting the largest Fiscal Year 2014 research and development expenditures in all fields. 1 Table 1. Research and Development Expenditures Rankings, FY 2015 Research and development expenditures at institutions are ranked on the total amount of research from all sources of funding to include federal, state appropriations, state and local contracts and grants, institution sources, and private funds. Institution 2011 2012 2013 2014 2015 The University of Texas M.D. Anderson Cancer Center 2 1 1 1 1 Texas A&M University (including Texas A&M Services) 1 2 2 2 2 The University of Texas at Austin 3 3 3 3 3 Baylor College of Medicine 4 4 4 4 4 The University of Texas Southwestern Medical Center 5 5 5 5 5 The University of Texas Health Science Center at Houston 6 6 6 6 6 Texas Tech University 9 9 9 7 7 Rice University 10 10 10 10 8 The University of Texas Health Science Center at San Antonio 7 7 7 8 9 The University of Texas Medical Branch at Galveston 8 8 8 9 10 Source: Texas Higher Education Coordinating Board 1 National Science Foundation, National Center for Science and Engineering Statistics, Higher Education Research and Development Survey, Fiscal Year 2014, Table 17. Higher education Research and Development (R&D) expenditures, ranked by FY 2014 R&D expenditures: FYs 2005-2014, http://ncsesdata.nsf.gov/herd/2014/html/herd2014_dst_17.html 2

Figure 1. Expenditures for Research and Development at Texas Universities, FY 2015 All Others Texas A&M University-Kingsville Texas A&M University-Corpus Christi Baylor University University of North Texas Southern Methodist University Texas State University The University of Texas at San Antonio The University of Texas at Arlington The University of Texas at El Paso The University of Texas at Dallas University of Houston Rice University Texas Tech University The University of Texas at Austin Texas A&M University 99.5 19.1 23.2 23.9 29.2 29.3 47.7 51.1 77.0 85.3 98.6 124.1 143.6 157.7 615.8 764.0 Source: Texas Higher Education Coordinating Board Dollars in Millions 0 200 400 600 800 Figure 2. Expenditures for Research and Development at Texas Health-Related Institutions, FY 2015 The University of Texas Health Science Center at Tyler University of North Texas Health Science Center Texas Tech University Health Sciences Center Texas A&M University System Health Science Center The University of Texas Medical Branch at Galveston The University of Texas Health Science Center at San Antonio The University of Texas Health Science Center at Houston 12.2 39.2 58.9 91.3 137.9 141.3 220.4 The University of Texas Southwestern Medical Center 402.7 Baylor College of Medicine The University of Texas M.D. Anderson Cancer Center 495.1 780.6 0 200 400 600 800 Source: Texas Higher Education Coordinating Board Dollars in Millions 3

Table 2. Federal/State Research and Development Expenditures Ratio Rankings, FY 2015 The ratio of federal funds to state-appropriated funds for each of the top 10 Texas institutions reporting the greatest research expenditures. Institution R&D Fed/State Ratio Rank Ratio Rank The University of Texas Medical Branch at Galveston 10 34.9 1 Baylor College of Medicine 4 10.9 2 Rice University 8 8.9 3 The University of Texas Health Science Center at San Antonio 9 7.9 4 The University of Texas at Austin 3 7.1 5 The University of Texas Health Science Center at Houston 6 3.4 6 The University of Texas Southwestern Medical Center 5 2.3 7 Texas A&M University (including Texas A&M Services) 2 1.7 8 The University of Texas M.D. Anderson Cancer Center 1 0.7 9 Texas Tech University 7 0.5 10 Source: Texas Higher Education Coordinating Board Figure 3 shows growth rates in research and development expenditures for public and independent universities and health-related institutions. Expenditures were $245.6 million more in Fiscal Year 2015, than in Fiscal Year 2014, with increases of $191.1 million at universities and $54.5 million at health-related institutions. Figure 3. Growth Rates in Research and Development Expenditures at Texas Public and Independent University and Health-Related Institutions FY 2011 FY 2015 FY 2015 FY 2014 FY 2013 1.9% 3.1% 5.4% FY 2012 FY 2011-0.8% 5.5% Increase over previous year FY 2010 6.7% 0 1,000 2,000 3,000 4,000 5,000 Universities Health-Related Institutions Source: Texas Higher Education Coordinating Board Dollars in Millions Single digit growth occurred in recent fiscal years, with FY 2010 showing the greatest growth and FY 2012 showing the first decrease since 1971. 4

Statewide Summary Data Table 3 presents total expenditures and sources of funds for research and development at Texas public and independent universities and healthrelated institutions. Expenditures from federal sources decreased overall by $13.1 million (-0.6%) compared to Fiscal Year 2014; federal funds increased by 21.3 million (2.1%) for Texas public and independent universities, but declined by -34.5 million (-3.4%) for health-related institutions. Table 3. Sources of Funds for Research and Development, FY 2015 Federal State and Local Contracts Appropriated and Grants Private Institution Profit Non-Profit Total Public Health-Related Institutions $734,471,848 $338,820,146 $103,128,702 $221,292,131 $138,878,294 $347,874,938 $1,884,466,059 Universities 950,339,682 321,009,258 119,258,919 425,318,081 202,165,658 160,075,989 2,178,167,587 Total Public 1,684,811,530 659,829,404 222,387,621 646,610,212 341,043,952 507,950,927 4,062,633,646 Independent Health-Related Institutions 256,895,032 3,338,998 20,146,593 158,942,338 16,082,557 39,732,293 495,137,811 Universities 97,779,133 0 11,368,854 63,824,078 15,819,185 22,013,647 210,804,897 Total Independent 354,674,165 3,338,998 31,515,447 222,766,416 31,901,742 61,745,940 705,942,708 All Institutions Health-Related Institutions 991,366,880 342,159,144 123,275,295 380,234,469 154,960,851 387,607,231 2,379,603,870 Universities 1,048,118,815 321,009,258 130,627,773 489,142,159 217,984,843 182,089,636 2,388,972,484 Total All Institutions $2,039,485,695 $663,168,402 $253,903,068 $869,376,628 $372,945,694 $569,696,867 $4,768,576,354 Federal State and Local Institution Private 42.8% 19.2% 18.2% 19.8% Source: Texas Higher Education Coordinating Board 5

Table 4 presents expenditures in the 16 different fields as defined in the Instructions and Definitions for Survey (see Appendix). The Coordinating Board s instructions directed institutions to assign project expenditures to only one field to avoid duplication. Medical sciences led all other disciplines and accounted for 32.2 percent of the total research and development expenditures. The top five disciplines medical sciences, biological and other life sciences, engineering, physical sciences, and environmental sciences collectively accounted for 83.3 percent of all reported research expenditures. For the most part, research fields in Table 4 reflect expenditures in particular academic disciplines. Some deviation may result, as institutions categorize all research as belonging to 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. Table 4. Expenditures for Conduct of R&D by Field, FY 2015 Texas Public and Independent Universities and Health-Related Institutions Field Total % Total Medical Sciences $1,535,335,432 32.2% Biological and Other Life Sciences 1,106,025,303 23.2% Engineering 765,282,949 16.0% Physical Sciences 302,416,757 6.3% Environmental Sciences 261,999,569 5.5% Agricultural Sciences 178,616,961 3.7% Computer Science 117,921,835 2.5% Social Sciences 84,365,235 1.8% Education 78,949,523 1.7% Other Science Activities 69,336,173 1.5% Psychology 61,134,890 1.3% Other Non-Science Activities 62,966,991 1.3% Mathematical Sciences 55,660,165 1.2% Business Administration 37,762,069 0.8% Arts and Humanities 32,678,106 0.7% Law 18,124,396 0.4% Total All Institutions $4,768,576,354 Source: Texas Higher Education Coordinating Board 6

Tables 5 and 6 show research expenditures in the 10 areas of special interest at universities and in the seven areas at health-related institutions. Table 5. Expenditures for Conduct of R&D in Areas of Special Interest, FY 2015 Texas Public and Independent Universities Field Total Microelectronics and Computer Technology $123,187,380 Energy 117,480,014 Biotechnology 86,689,893 Materials Science 85,639,852 Cancer Research 49,640,260 Aerospace Technology 37,370,712 Manufacturing Technology 24,904,949 Water Resources 21,254,414 Human Stem Cells - Adult 0 Human Stem Cells - Embryonic 0 Total Texas Public and Independent Universities $546,167,474 Source: Texas Higher Education Coordinating Board Table 6. Expenditures for Conduct of R&D in Areas of Special Interest, FY 2015 Texas Public and Independent Health-Related Institutions Field Total Cancer Research $1,111,038,555 Child Health and Human Development 150,458,820 Cardiovascular Research 97,544,838 Mental Health 82,541,318 Aging 49,670,083 Human Stem Cells - Adult 9,700,529 Human Stem Cells - Embryonic 2,433,119 Total Health-Related Institutions $ 1,503,387,262 Source: Texas Higher Education Coordinating Board 7

Table 7 shows the research expenditures in the area of Stem Cell Research, as required by Texas Education Code, Section 61.662(d). Table 7. Expenditures for Stem Cell Research by Source of Funds, Texas Public Universities and Health-Related Institutions, FY 2015 State and Local Private Federal Appropriated Contracts &Grants Institution Profit Non-Profit Total Human Stem Cells - Adult Public - Health-Related The University of Texas Health Science Center at Houston $3,810,836 $2,500,000 $0 $136,580 $324,221 $718,837 $7,490,474 The University of Texas Health Science Center at San Antonio 504,687 0 456,474 6,888 3,144 220,896 1,192,089 The University of Texas M.D. Anderson Cancer Center 531,852 0 0 0 14,834 471,280 1,017,966 Total for Public - Health-Related $4,847,375 $2,500,000 $456,474 $143,468 $342,199 $1,411,013 $9,700,529 Total for Human Stem Cells - Adult $4,847,375 $2,500,000 $456,474 $143,468 $342,199 $1,411,013 $9,700,529 Human Stem Cells - Embryonic Public - Health-Related Texas Tech University Health Sciences Center $281,467 $0 $0 $0 $0 $0 $281,467 The University of Texas Health Science Center at Houston 194,340 0 0 0 0 1,518,689 1,713,029 The University of Texas Health Science Center at San Antonio 223,493 0 0 0 75,955 104,244 403,692 Total for Public - Health-Related $699,300 $0 $0 $0 $75,955 $1,622,933 $2,398,188 Independent - Health Related Baylor College of Medicine $0 $0 $0 $0 $0 $34,931 $34,931 Total for Independent - Health-Related $0 $0 $0 $0 $0 $34,931 $34,931 Total for Human Stem Cells - Embryonic $699,300 $0 $0 $0 $75,955 $1,657,864 $2,433,119 Source: Texas Higher Education Coordinating Board 8

Institutional Data This section of the report presents detailed information on research expenditures reported by institution. Definitions for sources of funds and research fields are found in the Appendix. Table 8. Total Expenditures for Research by Source of Funds, Texas Public and Independent Universities and Health-Related Institutions, FY 2015 State and Local Private Federal Appropriated Contracts & Grants Institution Profit Non-Profit Total Independent - Universities Abilene Christian University $493,668 $0 $0 $128,686 0 $25,177 $647,531 Baylor University 3,877,605 0 1,164,872 14,755,589 1,719,390 2,379,924 23,897,380 Rice University 74,265,991 0 8,367,464 35,717,687 10,930,441 14,269,873 143,551,456 Southern Methodist University 14,324,156 0 1,178,368 9,778,087 3,092,186 908,711 29,281,508 St. Mary's University 16,154 0 0 698,451 0 0 714,605 Texas Christian University 3,883,349 0 650,179 2,044,285 0 3,842,667 10,420,480 Trinity University 918,210 0 7,971 701,293 77,168 587,295 2,291,937 Total for Independent - Universities $97,779,133 $0 $11,368,854 $63,824,078 $15,819,185 $22,013,647 $210,804,897 Public - Universities Angelo State University $137,207 $535,032 $58,861 $3,072 $67,748 $128,780 $930,700 Lamar University 384,234 133,616 187,234 53,786 282,617 470,914 1,512,401 Midwestern State University 0 0 0 0 0 359,579 359,579 Prairie View A&M University 7,993,525 2,864,951 72,754 1,475,851 167,267 66,721 12,641,069 Sam Houston State University 1,352,585 0 157,915 2,367,875 61,605 151,499 4,091,479 Stephen F. Austin State University 2,151,297 1,626,111 83,755 748,496 106,770 209,009 4,925,438 Sul Ross State University 333,132 395,797 0 499,578 16,612 687,905 1,933,024 Tarleton State University 4,863,120 2,008,103 892,754 1,278,902 17,189 211,779 9,271,847 Texas A&M International University 658,115 769,446 0 501,793 49,080 938,145 2,916,579 Texas A&M University 305,767,727 126,600,234 53,058,349 151,804,947 71,925,216 54,814,169 763,970,642 Texas A&M University at Galveston 2,291,544 1,198,753 937,519 715,932 380,282 1,755,980 7,280,010 Texas A&M University-Central Texas 0 0 0 301,262 4,316 21,387 326,965 Texas A&M University-Commerce 1,797,603 398,206 0 877,772 127,571 229,676 3,430,828 Texas A&M University-Corpus Christi 3,636,139 2,432,053 7,200,536 3,543,263 1,724,407 4,669,831 23,206,229 Texas A&M University-Kingsville 7,080,310 3,412,361 879,888 1,655,630 604,140 5,420,221 19,052,550 Texas A&M University-San Antonio 18,500 0-7 0 62,141 12,299 92,933 Texas A&M University-Texarkana 0 213,376 0 24,865 0 0 238,241 Texas Southern University 3,502,231 161,414 122,610 926,435 84,271 252,854 5,049,815 9

State and Local Private Federal Appropriated Contracts & Grants Institution Profit Non-Profit Total Texas State University 18,700,771 7,593,048 7,229,197 8,709,310 1,868,679 3,593,251 47,694,256 Texas Tech University 32,986,539 68,335,981 5,580,295 31,597,260 11,033,132 8,212,361 157,745,568 Texas Woman's University 722,307 403,227 0 452,523 28,967 592,923 2,199,947 The University of Texas at Arlington 25,948,595 12,639,453 3,499,422 23,589,324 6,371,164 4,961,554 77,009,512 The University of Texas at Austin 346,214,668 25,185,006 23,254,310 107,034,452 85,491,510 28,656,917 615,836,863 The University of Texas at Brownsville 3,992,492 558,182 1,088,406 79,614 0 108,095 5,826,789 The University of Texas at Dallas 31,067,708 9,009,164 1,743,345 33,424,228 6,356,909 16,949,228 98,550,582 The University of Texas at El Paso 42,573,353 14,151,316 4,081,861 12,427,778 1,358,654 10,675,137 85,268,099 The University of Texas at San Antonio 23,065,317 13,752,924 1,099,038 6,232,549 1,344,699 5,617,602 51,112,129 The University of Texas at Tyler 283,740 262,470 353,669 430,693 108,284 204,168 1,643,024 The University of Texas of the Permian Basin 594,221 385,873 573,112 51,158 135,102 217,957 1,957,423 The University of Texas-Pan American 6,054,393 1,376,807 45,298 1,895,778 494,761 752,000 10,619,037 University of Houston 56,306,473 20,104,842 5,440,230 25,661,317 9,340,491 7,222,758 124,076,111 University of Houston-Clear Lake 540,433 454,354 114,067 343,020 34,494 48,278 1,534,646 University of Houston-Downtown 1,741,847 185,911 0 429,019 0 0 2,356,777 University of Houston-Victoria 194,000 0 0 0 0 20,317 214,317 University of North Texas 15,470,368 2,171,655 1,388,441 6,088,356 2,305,997 1,757,094 29,181,911 University of North Texas at Dallas 1,189 0 0 2,941 0 0 4,130 West Texas A&M University 1,913,999 1,689,592 116,060 89,302 211,583 85,601 4,106,137 Total for Public - Universities $950,339,682 $321,009,258 $119,258,919 $425,318,081 $202,165,658 $160,075,989 $2,178,167,587 Total for All Universities $1,048,118,815 $321,009,258 $130,627,773 $489,142,159 $217,984,843 $182,089,636 $2,388,972,484 Independent - Health-Related Baylor College of Medicine $256,895,032 $3,338,998 $20,146,593 $158,942,338 $16,082,557 $39,732,293 $495,137,811 Public - Health-Related Texas A&M University System Health Science Center $41,481,094 $19,484,175 $6,182,258 $19,012,628 $370,116 $4,754,156 $91,284,427 Texas Tech University Health Sciences Center 13,144,057 25,749,144 2,907,144 10,040,052 553,904 6,544,832 58,939,133 The University of Texas Health Science Center at Houston 125,889,594 25,428,375 11,380,557 13,613,902 10,000,405 34,094,034 220,406,867 The University of Texas Health Science Center at San Antonio 85,939,917 7,021,927 3,794,954 16,228,011 14,921,519 13,348,670 141,254,998 The University of Texas Health Science Center at Tyler 3,712,783 4,190,702 194,609 2,318,343 595,258 1,180,367 12,192,062 The University of Texas M.D. Anderson Cancer Center 161,170,909 212,265,681 32,050,146 121,601,653 81,076,352 172,412,726 780,577,467 The University of Texas Medical Branch at Galveston 98,050,186 666,698 2,139,735 15,237,522 3,378,470 18,408,631 137,881,242 The University of Texas Southwestern Medical Center 183,787,496 36,667,266 42,092,144 18,661,222 25,605,823 95,880,122 402,694,073 University of North Texas Health Science Center 21,295,812 7,346,178 2,387,155 4,578,798 2,376,447 1,251,400 39,235,790 Total for Public - Health-Related $734,471,848 $338,820,146 $103,128,702 $221,292,131 $138,878,294 $347,874,938 $1,884,466,059 Total for All Health-Related Institutions $991,366,880 $342,159,144 $123,275,295 $380,234,469 $154,960,851 $387,607,231 $2,379,603,870 Total $2,039,485,695 $663,168,402 $253,903,068 $869,376,628 $372,945,694 $569,696,867 $4,768,576,354 Source: Texas Higher Education Coordinating Board 10

Table 9. Federal R&D Expenditures/FTE Faculty Ratio, FY 2015 Texas Public Universities Federal R&D Expenditures FTE Faculty* Federal R&D Expenditures/FTE Angelo State University $137,207 182.6 $751 Lamar University 384,234 282.3 1,361 Midwestern State University 0 175.0 0 Prairie View A&M University 7,993,525 184.6 43,311 Sam Houston State University 1,352,585 391.7 3,453 Stephen F. Austin State University 2,151,297 379.0 5,676 Sul Ross State University 333,132 83.2 4,003 Tarleton State University 4,863,120 235.3 20,664 Texas A&M International University 658,115 125.8 5,230 Texas A&M University** 305,767,727 2,035.2 150,243 Texas A&M University at Galveston 2,291,544 51.5 44,539 Texas A&M University-Central Texas 0 54.4 0 Texas A&M University-Commerce 1,797,603 237.3 7,576 Texas A&M University-Corpus Christi 3,636,139 193.1 18,832 Texas A&M University-Kingsville 7,080,310 233.7 30,303 Texas A&M University-San Antonio 18,500 75.0 247 Texas A&M University-Texarkana 0 58.8 0 Texas Southern University 3,502,231 253.8 13,800 Texas State University 18,700,771 485.2 38,542 Texas Tech University 32,986,539 986.1 33,453 Texas Woman's University 722,307 298.4 2,421 The University of Texas at Arlington 25,948,595 515.2 50,367 The University of Texas at Austin 346,214,668 1,723.9 200,828 The University of Texas at Brownsville 3,992,492 187.6 21,285 The University of Texas at Dallas 31,067,708 454.7 68,323 The University of Texas at El Paso 42,573,353 457.7 93,022 The University of Texas at San Antonio 23,065,317 563.8 40,913 The University of Texas at Tyler 283,740 202.3 1,403 The University of Texas of the Permian Basin 594,221 83.5 7,116 The University of Texas-Pan American 6,054,393 326.6 18,538 University of Houston 56,306,473 886.5 63,513 University of Houston-Clear Lake 540,433 226.8 2,383 University of Houston-Downtown 1,741,847 210.2 8,287 University of Houston-Victoria 194,000 78.4 2,474 University of North Texas 15,470,368 559.2 27,667 University of North Texas at Dallas 1,189 31.8 37 West Texas A&M University 1,913,999 157.8 12,126 Totals $950,339,682 13,125.4 $72,405 * FTE Faculty indicates number of full-time equivalents (FTE) for tenured and tenure-track faculty with teaching responsibilities based on Fall 2014 Coordinating Board reports. ** FTE faculty for Texas A&M University is based on its FTE faculty plus faculty from Texas AgriLife and the Texas Engineering Experiment Station. Service agency counts come from Legislative Appropriations Requests for FY 2016 and 2017 include 232.3 FTEs from Texas AgriLife and 310.0 from Texas Engineering Experiment Station. Source: Texas Higher Education Coordinating Board 11

Millions of Dollars 1,266 1,323 1,381 1,452 1,603 1,770 2,050 2,174 2,253 2,469 2,642 2,800 3,088 3,313 3,546 3,747 3,697 3,787 3,861 4,063 Historical Data for Public Institutions Figure 4 presents total research development expenditures since 1996. The accelerated growth in research expenditures for the public health-related institutions from 1999 to 2003 was likely due to the doubling of the National Institutes of Health budget, a major source of research funding. Research expenditures declined in Fiscal Year 2012, but increased 2.4 percent in Fiscal Year 2013, and 2.0 percent in Fiscal Year 2014. In Fiscal Year 2015, research expenditures increased $201 million (5.2 percent) overall. By source of funds, the large percentage increase in Fiscal Year 2015 was due to a $33 million increase in State and Local Contracts & Grants (17.5 percent) and a $109 million increase in Institution funds (20.3 percent) overall. Health-related institutions increased by $34 million and universities increased by $167 million. The majority of the growth in research expenditures for the public universities (71 percent) from Fiscal Year 2014 to Fiscal Year 2015 was due to an increase of $53 million at Texas A&M University and $66 million at The University of Texas at Austin. Figure 4. Expenditures for Research and Development Texas Public Institutions of Higher Education FY 1994 FY 2015 4500 4000 3500 3000 2500 2000 1500 1000 500 0 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Fiscal Year Health-Related Institutions Universities Source: Texas Higher Education Coordinating Board 12

National Indicators National indicators are based on data provided by the National Science Foundation (NSF). Figures are not entirely consistent with data provided in earlier sections of this report because these statistics are based on a previous year and reporting requirements are somewhat different. One difference in the reporting requirements is the way the NSF survey allows institutions to calculate unreimbursed indirect costs. The Coordinating Board s survey allows only tracked indirect costs as reported in the institution s annual financial report. Thus, the NSF calculation will have a considerably higher total in the Institution source of funding (see http://www.nsf.gov/statistics/profiles to compare individual institutions) in comparison with the Coordinating Board reports. NSF may impute data for institutions that do not respond to or fully complete the survey, which is another difference in the reporting requirements. In data collected by the NSF s Higher Education Research and Development Survey for Fiscal Year 2013, Texas ($4.81 billion) ranked third among the states in total research expenditures in all fields, behind California ($8.35 billion) and New York ($5.51 billion). The NSF publishes several reports on research obligations and research expenditures. Two common approaches look at somewhat different information: Federally Financed Research and Development Expenditures in all Fields summarizes federal funds expenditures by higher education institutions that support research and development in any given year. This report is based on data reported by institutions and summarized by the NSF. The top six states for Federally Financed Research and Development Expenditures in all Fields in Fiscal Year 2013 were: o California $4.89 billion o New York $3.12 billion o Maryland $2.70 billion o Pennsylvania $2.35 billion o Massachusetts $2.18 billion o Texas $2.17 billion Federal Obligations for Research and Development in Science and Engineering includes only federal funds obligated during a year to support, directly or indirectly, basic and applied research and development in science and engineering disciplines at higher education institutions. Funds obligated in any given year may be expended over a number of years, so obligations differ from expenditures. The amount of support is reported by federal agencies. The top six states for Federal Obligations for Research and Development in Science and Engineering in Fiscal Year 2013 were: o California $3.75 billion o New York $2.10 billion o Maryland $1.67 billion o Pennsylvania $1.62 billion o Massachusetts $1.47 billion o Texas $1.27 billion 13

Table 10 shows the ranking of the top 10 states in federal research and development expenditures in selected science and engineering fields for 2013. Texas ranked fourth in life sciences, seventh in engineering, fifth in physical sciences, and fourth in environmental sciences. Table 10. Top 10 States in Federal Research and Development Expenditures Selected Science and Engineering Fields, FY 2013 Rank Life Sciences $ Engineering $ Physical Environmental $ Sciences Sciences $ 1 California $2,910 Maryland $942 California $571 California $235 2 New York 2,090 California 559 Maryland 253 Massachusetts 188 3 Pennsylvania 1,380 Massachusetts 443 Massachusetts 239 Colorado 176 4 Texas 1,270 Pennsylvania 432 New York 233 Texas 134 5 North Carolina 1,150 Georgia 389 Texas 154 New York 122 6 Maryland 1,080 New York 383 Arizona 145 Maryland 111 7 Massachusetts 984 Texas 321 Illinois 144 Washington 105 8 Ohio 891 Ohio 240 Michigan 112 Florida 93 9 Illinois 870 Michigan 235 Pennsylvania 110 Hawaii 73 10 Michigan 700 Illinois 187 Colorado 104 Oregon 58 Source: National Science Foundation, WebCASPAR Database System, 3/11/2016. Dollars in Millions Table 11 shows the ranking of the top 10 states in federal obligations for research and development in science and engineering, and federally financed research and development expenditures for all fields for 2013. Texas ranks sixth in federal obligations for research and development in science and engineering, and ranks sixth in research and development expenditures in all fields from federal sources as well. Table 11. State Rank in Federal Obligations and Federally Financed Research & Development, FY 2013 Federal Obligations for R&D in Science and Engineering to Colleges and Universities Federally Financed R&D Expenditures in All Fields at Colleges and Universities State FY 2013 Rank FY 2013 Rank California $3,755 1 $4,893 1 New York 2,105 2 3,129 2 Maryland 1,677 3 2,707 3 Pennsylvania 1,622 4 2,351 4 Massachusetts 1,473 5 2,181 5 Texas 1,272 6 2,174 6 North Carolina 1,122 7 1,653 7 Illinois 1,033 8 1,566 8 Michigan 857 9 1,265 10 Georgia 773 10 1,194 11 Source: National Science Foundation, WebCASPAR Database System, 3/11/2016. Dollars in Millions 14

Appendix Instructions and Definitions for Survey Texas Higher Education Coordinating Board Survey of Research Expenditures, FY 2015 Universities and Health-Related Institutions Instructions and Definitions for Survey About This Survey The Texas Higher Education Coordinating Board collects data from Texas higher education institutions annually through the Survey of Research Expenditures. Beginning in Fiscal Year 2010, the survey was issued as part of the Academic Sources and Uses Template. The collection of these data is mandated by the Texas Legislature. The data collected are published and accessible in an online report system (http://www.thecb.state.tx.us/aar/researchexpenditure). The figures from this survey are used by institutions of higher education and other state agencies. In addition, the data provides the basis for public policy and management decisions. Therefore, it is critical that the data reported are accurate and complete. The information provided in the report should be consistent with the Annual Financial Report (AFR) of the institution. For additional information, please refer to College and University Business Administration, NACUBO. The data collection form and definitions are modeled after similar forms used by the National Science Foundation. This approach is an effort to provide comparability of data with national data and reduce the data collection efforts of the institutions. General Concepts and Definitions A. Research and Development (R&D) activities are defined as follows: 1. Research is systematic study directed toward fuller scientific knowledge or understanding of the subject studied (reference OMB Circular A-110, subpart A, definition A.2dd). 2. Development is systematic use of knowledge or understanding gained from research, directed toward the production of useful materials, devices, systems, or methods including design and development of prototypes and processes (reference OMB Circular A-110, subpart A, definition A.2dd). Research and Development (R&D) also includes activities involving the training of individuals in research techniques where such activities utilize the same facilities as other research and development activities and where such activities are not included in the instruction function (reference OMB Circular A-21, B.1.b). Exclusions from research and development: 15

- Training of scientific manpower - Mapping and surveys - Routine product testing - Quality Control - Experimental production - Collection of general purpose statistics (statistics not collected as part of a specific R&D project) NOTE: Certain activities may or may not be classified as research and development depending upon circumstances. Examples of such activities are given below in section B, Reporting Guidelines for R&D versus Non-R&D Activities. B. Selected financial terms Fiscal Year - The 12-month accounting period ending August 31 of each year. Expenditures - All amounts of money paid out by your institution to support R&D activities. Include funds "passed through" to other institutions of higher education. Include earned indirect costs and fringe benefits. Do not include non-monetary awards. Federal Funds - All Federal monies used in support of the R&D activities of your institution. These include reimbursements, contracts, grants, and any identifiable amounts spent from Federal programs including Federal monies passed through state agencies. State Sources - Include all expenditures of funds appropriated by the State of Texas not included in institutionally controlled funds listed in paragraph 5 below. Included in this category are state appropriated "Special Items" and state contracts and grants such as NHARP and ATP funds, interagency contracts, contracts with Texas local governments, etc. Institution Resources - Include expenditures of funds that are locally controlled. This would include PUF and AUF funds, other local funds, etc. Private - Include expenditures of funds from both for-profit and non-profit corporations and individuals. Also, include in this category funds from agencies from other states. Definitions for Specific Items Total R&D Expenditures - Defined For Survey - All expenditures except those for R&D plant. Capital outlay for research equipment As a result of recent changes adopted by the Government Accounting Standards Board, annual financial reports will report expenses rather than expenditures. The major difference 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 the annual financial reports. 16

This line allows inclusion of expenditures for equipment that are not included in research expenses. The research definition used for this report does not allow inclusion of expenses for R&D plant or construction. R&D Expenses not meeting the narrow definition of R&D used in the Research Expenditure Survey. Externally-funded activities that cannot be classified as R&D using the definitions appearing in A, above, are included. Do not include projects funded with "development" funds unless they are related to research activities. Notes: Reporting Guidelines for R&D versus Non-R&D Activities: Economic studies - To be classified as research, the activities under this heading should be systematic and intensive. They should not include program planning, implementation, and evaluation unless these activities are designed as a fairly rigorous research effort. For example, a study to determine the impact of proposed tax changes on State revenues, or on Statewide employment, consumption, or industrial output could be reported as economic research. But the collection of economic data on tax revenues, personal income, or industrial output would be reported as economic research only if collected as part of the research project. Evaluation - Evaluation qualifies as research when it is part of a specific research undertaking. Evaluation conducted separately from a research project is considered research when it involves scientific method and hypothesis testing procedures with fairly rigorous standards. Evaluation activities that do not involve systematic design and testing should not be included. Demonstration - Demonstration activities that are part of research or development (i.e., that are intended to prove or to test whether a technology or method does, in fact, work) should be included. Demonstration intended to make available information about new technologies or methods should not be included. For example, an educational demonstration on new teaching methods should be reported as an R&D activity if the demonstration is established as an experiment to produce new information, is accomplished within a definite time period, and is accompanied by a thorough evaluation. An educational demonstration to apply or exhibit new teaching methods, or a demonstration without a scheduled termination or a thorough evaluation, should not be reported as an R&D activity. Collection of statistical data - The collection of statistics is an R&D activity only if conducted as part of a specific research or development program. For example, the regular collection and publication of statistics on the incidence of various diseases within a State by a State health department is general purpose data collection and not research or development. The data gathering is not part of a research program and is designed for use by a range of persons, such as practicing physicians, public health officials, and school officials. If the data on incidence of diseases are gathered as part of a project on the origin and nature of particular diseases, however, or to establish generalizations on why certain individuals or groups contract certain diseases, this would be research. Satellite information - Photographs and tapes purchased from Federal agencies (or 17

others) sponsoring satellite operations are not considered research and development unless they are used primarily in support of a research or development program. Tapes and photographs that are stored in documentation centers or used primarily for the formulation of regulations are excluded from this survey. Technology transfer - Technology transfer involves the adoption, and perhaps adaptation, of new techniques or products that have already been brought to a usable condition. The adoption and use of a technology is not research and development, but the adaptation of a technology to meet unique regional or local needs could involve R&D activities. For example, a new method of treating water to make it potable is developed in one State. If another State adopts the same treatment process, the adoption costs for facilities, equipment, personnel, etc., are not R&D expenditures. However, if further systematic, intensive study is required by the second State to modify the treatment process to adapt it to unique local conditions, the costs of modification and adaptation could be R&D expenditures. Agricultural sciences deal with the production of food and fiber. They include work in plant sciences, animal sciences, aquaculture, agricultural economics, and other topics related to the agricultural enterprise. Biological sciences are those life sciences (apart from medical sciences and agricultural sciences described above) that deal with the origin, development, structure, function, and interaction of living things. Examples of biological sciences are as follows: anatomy; animal sciences; bacteriology; biochemistry; biogeography; biophysics; ecology; embryology; entomology; evolutionary biology; genetics; immunology; microbiology; molecular biology; nutrition and metabolism; parasitology; pathology; pharmacology; physical anthropology; physiology; plant sciences; radiobiology; systematics. Computer science is concerned with the application of mathematical methods to automated information systems, the development of computer technology, and advanced applications of computers. Engineering is concerned with studies directed toward developing engineering principles or toward making specific principles usable in engineering practice. Engineering fields include aeronautical, astronautical, chemical, civil, electrical, mechanical, metallurgy and materials, and engineering not elsewhere classified, such as agricultural, bioengineering, biomedical, industrial, nuclear, ocean and systems. Environmental sciences (terrestrial and extraterrestrial) are concerned with the gross, non-biological properties (with one exception) of the areas of the solar system that directly or indirectly affect man s survival and welfare. They comprise the fields of atmospheric sciences, geological sciences, and oceanography. The one exception is that expenditures for studies pertaining to life in the sea or other bodies of water are to be reported as support of oceanography and not biology. Mathematical sciences employ logical reasoning with the aid of symbols and are concerned with the development of methods of operation employing such symbols. 18

Medical sciences are concerned with the causes, effects, prevention, or control of abnormal conditions in man or his environment as they relate to health. Included are the clinical medical sciences, which are concerned with the study of the origins, diagnosis, or treatment of a particular disease in living human subjects under controlled conditions, and other medical sciences. Examples of the medical sciences are as follows: internal medicine; neurology; ophthalmology; preventive medicine and public health; psychiatry; radiology; surgery; veterinary medicine; dentistry; physical medicine and rehabilitation; podiatry. Physical sciences are concerned with the understanding of the material universe and its phenomena. They comprise the fields of astronomy, chemistry; physics, and physical sciences not elsewhere classified. Psychology deals with behavior, mental processes, and individual and group characteristics and abilities. Examples of disciplines within psychology are as follows: experimental psychology; animal behavior; clinical psychology; comparative psychology; ethnology; social psychology; educational personnel, vocational psychology and testing; industrial and engineering psychology; development and personality. Social sciences are directed toward an understanding of the behavior of social institutions and groups and of individuals as members of a group. These include anthropology, economics, history, linguistics, political sciences, and sociology. Other sciences not elsewhere classified is a category to be used for multidisciplinary and interdisciplinary projects and cannot be classified within one of the broad fields of science listed above. Arts and humanities include topics such as art, music, history, languages, religion, and other aspects of man s culture and heritage. Business administration deals with the management and operation of business enterprises. It includes work in management, marketing, accounting, and related topics. Education includes research related to any aspect of education. This includes elementary, secondary, and higher education; educational policy; education administration; etc. Law and public administration includes research related to legal systems and to public policy at the federal, state, or local levels. Other non-science activities should include all non-science disciplines not appropriately categorized above. Areas of Special Interest - This section is intended to provide information on expenditures in areas of special interest to the public. The list is not all-inclusive. The totals of the Areas of Special Interest will not normally be equal to the "Total Expenditures for Conduct of R&D". Further, expenditures may overlap two or more categories (e.g., a given project may be reported both as materials science and 19