The National Science Board (NSB), as required by the National Science Foundation Act, prepares the biennial Science and Engineering Indicators report and transmits it to the President and Congress in every even-numbered year. The National Center for Science and Engineering Statistics (NCSES) within NSF produces the report under the Board’s guidance.
Indicators delivers a comprehensive, policy-neutral view of the U.S. science and engineering enterprise, tracking its condition over time and in a global context. It offers high-quality, quantitative data that illuminate the scope, quality, and vitality of the nation’s research, innovation, and STEM talent systems.
This report, The State of U.S. Science and Engineering, distills the most important findings from the full suite of thematic Indicators reports and introduces new analysis. It examines STEM education across all levels, the STEM workforce, U.S. and international research and development performance, technology transfer and innovation activity, business dynamics, and America’s competitiveness in high-technology industries.
Together with the detailed thematic reports and the interactive State Indicators data tool—which enables state-by-state comparisons—these products form the complete Indicators suite, providing policymakers, researchers, and stakeholders with a clear, evidence-based picture of the U.S. science and engineering landscape.
Below are the core high-level takeaways, organized for quick strategic understanding.
1. The Global Landscape Has Fundamentally Shifted
- China has overtaken the United States as the world’s largest R&D performer (2024 data, adjusted for comparability): ~$1.028 trillion vs. U.S. $1.009 trillion. Together they account for over half of global R&D.
- China leads in volume — most S&E doctorates awarded globally, highest research publication output, and leads high-tech manufacturing trade.
- The U.S. still leads in quality and translation:
- Disproportionately high share of highly cited articles (HCAs) across most fields.
- Dominant position in venture capital (60% of global VC in 2024).
- Strongest global producer of KTI (knowledge- and technology-intensive) services.
- Key tension: Scale vs. quality/impact. The U.S. competes on excellence and commercialization; China competes on volume and manufacturing scale.
2. U.S. R&D Is Business-Dominated and CET-Focused
- Business sector performs 77% and funds 75% of all U.S. R&D (2024).
- Heavy emphasis on experimental development (~67% of U.S. R&D).
- Business R&D is concentrated in software (very large share), biotechnology ($136B in 2023), AI ($65B), and nanotechnology.
- U.S. R&D intensity remains high at 3.4% of GDP — among the world’s highest.
- Strong, consistent federal policy focus on Critical and Emerging Technologies (CETs) across administrations: AI, quantum information science (QIST), semiconductors/microelectronics, advanced manufacturing, biotechnology/biomanufacturing, and related areas. This has been institutionalized through legislation (CHIPS and Science Act, National AI Initiative, National Quantum Initiative, etc.).
3. STEM Talent Pipeline Shows Growth but Structural Strains
- STEM workforce reached 37 million in 2024 (26% of total U.S. workforce). It grew significantly faster than non-STEM and commands a clear premium ($80k median earnings vs. $60k for non-STEM).
- Higher education is expanding S&E degrees, with especially rapid growth in computer and information sciences (more than doubled at bachelor’s, tripled at master’s since 2014).
- Heavy reliance on international talent at advanced levels:
- Temporary visa holders earned 61% of CS doctorates, 54% of engineering doctorates, and 52% of math/statistics doctorates in 2024.
- Good retention: ~75% of foreign S&E PhD recipients stay 5 years; ~67% stay 10 years.
- K-12 warning signs: Significant declines in mathematics and science performance since pre-COVID levels (NAEP data). U.S. 8th graders perform around or below international averages in science, math, and computer/information literacy. This creates long-term pipeline risk.
4. Research Output: Volume vs. Impact
- Global S&E publications: ~3.5 million in 2024. China ~31%, U.S. ~12%.
- U.S. researchers punch above their weight in highly cited articles across key fields (materials science, CS, physics, health sciences, biological/biomedical).
- Strong international collaboration (U.S. authors participate in 31% of globally co-authored articles).
- U.S. patents in CET areas remain highly impactful (top citation shares in AI, biotech, semiconductors, QIST, etc.), though competition is intensifying.
5. Strong Translation from R&D to Economic Impact
- U.S. excels at turning research into value, especially in KTI services (43% global share in 2024 — far ahead of others). Software publishing is a standout (75% global value added).
- In manufacturing, the U.S. retains leadership in high-value niches: aerospace, medical instruments, pharmaceuticals, and weapons.
- Total factor productivity (TFP) growth has been notably strong in the information sector.
- Venture capital and patent quality remain U.S. advantages, though early-stage funding has been volatile.
- Business investment in CET-supporting R&D continues to rise.
6. Cross-Cutting Strategic Implications
- Continuity in priorities: CET focus (AI, biotech, quantum, semiconductors, advanced manufacturing) has persisted across multiple administrations and is now deeply embedded in policy and funding.
- Strengths to defend: Research quality, VC ecosystem, KTI services dominance, high-impact patents in critical technologies, and ability to attract/retain global talent.
- Vulnerabilities to address: K-12 STEM performance decline, dependence on international students for advanced degrees, and maintaining edge in scale-intensive areas where China leads.
- Opportunity areas: Better translation of basic research into commercial outcomes, strengthening domestic talent pipelines, and leveraging U.S. advantages in high-value services and niche manufacturing.
Bottom Line (One-Sentence Synthesis)
The United States remains a global leader in research quality, innovation translation, and high-value services, but it now operates in a genuinely multipolar world where China leads in scale (R&D spending, publications, doctorates, and manufacturing). Success going forward will depend on protecting quality advantages while shoring up the domestic STEM talent pipeline and continuing to lead in critical and emerging technologies.
Read the full report here: https://ncses.nsf.gov/pubs/nsbsep20261
