The Economics of University Research

Abstract

Alaska ranks near the bottom among the states in the total amount of R&D activity. Most research in Alaska is conducted by the University of Alaska and directly by the federal government, and very little is done by industry. Alaska ranks 47th among the states in total research, 50th in industry research, and 42nd in University research (Table 2). Alaska’s performance is better in per capita terms, but spending on R&D per person is only half the U.S. average. Only federal R&D is above the per capita U.S. average. In terms of the “intensity” of R&D spending (R&D/Gross Product), Alaska is ranked number 41. About 1 percent of Alaska Gross State Product is devoted to R&D spending. The small amount of private industry spending on R&D in Alaska is due to several factors. The first is the absence of manufacturing industry within the state, except for seafood processing. Second is the dominance of the public sector within the economy both in terms of jobs and resource ownership. Third is the absence of Alaska based resource businesses large enough to financially support investments in R&D. Finally, Alaska has not been an attractive location for private research facilities due to cost and distance from clients and customers. "