Research shown separately in the NHEA is that of non-profit or government entities. Research and development expenditures by drug and medical supply and equipment manufacturers are not shown in this line, as those expenditures are treated as intermediate purchases under the definitions of national income accounting; that is, the value of that research is deemed to be recouped through product sales.
Through 1991, estimates of noncommercial research in the NHEA are based on data provided by the National Institutes for Health (NIH), the Federal agency that funds a significant portion of research (National Institutes of Health, 1993). Training and capital acquisition are excluded, but general support is included. Figures are reported by source of funds and by performer, although the latter disaggregation is not shown here. The data are reported by NIH on a variety of timeframes (Federal fiscal years, June fiscal years, and calendar years) and are converted to calendar years where necessary.
After 1991, actual outlay data for NIH (net of capital-related expenditures) that are published annually in the Federal Budget (Appendix, Budget of the United States Government) were used. Outlays for research by other federal agencies were calculated as a percentage of NIH outlays based on their relationship in expenditures for total research (both health-related and non-health-related). The latter data are published annually by the National Science Foundation (NSF).
Beginning with 1992, state/local funded research performed by non-academic non-profits was also calculated from special surveys conducted by the NSF. Private funding data for years starting with 1992 are now also obtained from the same NSF sources used for state and local funding.
For state research funding until 1991 NSF data on nonfederal spending in academic institutions was used. For private funds until 1991, data comes from the H. Hughes Medical Institute, National Health Council information on voluntary health agencies' support of medical research,4 and the Foundation CenterReturn to Healthcare Research Expenditures