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NSF's Experimental Program to Stimulate Competitive Research (EPSCoR): Subsidizing academic research or state budgets?

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  • Yonghong Wu

    (Assistant Professor, Department of Public Administration, College of Urban Planning and Public Affairs, University of Illinois, Chicago)

Abstract

This cross-state empirical study focuses on the National Science Foundation's (NSF) Experimental Program to Stimulate Competitive Research (EPSCoR) and examines its impact on the academic research and development (R&D) expenditures financed by state governments. Based on a panel of 50 states during 1979-2006, the empirical results indicate that EPSCoR, while increasing federal R&D support to EPSCoR states, crowded out financial support for academic research from the governments of EPSCoR states. About one-third of EPSCoR funds went to subsidize state budgets. The crowd-out effect calls for some reconsideration of EPSCoR program design in order to maintain or even increase the state government financial support for academic research activities deemed critical to academic competitiveness and economic prospects. © 2009 by the Association for Public Policy Analysis and Management.

Suggested Citation

  • Yonghong Wu, 2009. "NSF's Experimental Program to Stimulate Competitive Research (EPSCoR): Subsidizing academic research or state budgets?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 28(3), pages 479-495.
    • Handle: RePEc:wly:jpamgt:v:28:y:2009:i:3:p:479-495
    DOI: 10.1002/pam.20442
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    References listed on IDEAS

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    1. Fisher, Ronald C. & Papke, Leslie E., 2000. "Local Government Responses to Education Grants," National Tax Journal, National Tax Association;National Tax Journal, vol. 53(1), pages 153-168, March.
    2. Steven Craig & Robert P. Inman, 1986. "Education, Welfare and the "New" Federalism: State Budgeting in a Federalist Public Economy," NBER Chapters, in: Studies in State and Local Public Finance, pages 187-228, National Bureau of Economic Research, Inc.
    3. Fisher, Ronald C. & Papke, Leslie E., 2000. "Local Government Responses to Education Grants," National Tax Journal, National Tax Association, vol. 53(n. 1), pages 153-68, March.
    4. Brian Knight, 2002. "Endogenous Federal Grants and Crowd-out of State Government Spending: Theory and Evidence from the Federal Highway Aid Program," American Economic Review, American Economic Association, vol. 92(1), pages 71-92, March.
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    Cited by:

    1. Bozeman, Barry & Youtie, Jan, 2017. "Socio-economic impacts and public value of government-funded research: Lessons from four US National Science Foundation initiatives," Research Policy, Elsevier, vol. 46(8), pages 1387-1398.
    2. Jeffrey M. Keisler & Christy M. Foran & Maija M. Kuklja & Igor Linkov, 2017. "Undue concentration of research and education: multi-criteria decision approach to assess jurisdiction eligibility for NSF funding," Environment Systems and Decisions, Springer, vol. 37(3), pages 367-378, September.
    3. Heike Mayer, 2010. "Catching Up: The Role of State Science and Technology Policy in Open Innovation," Economic Development Quarterly, , vol. 24(3), pages 195-209, August.
    4. Wu, Yonghong, 2010. "Tackling undue concentration of federal research funding: An empirical assessment on NSF's Experimental Program to Stimulate Competitive Research (EPSCoR)," Research Policy, Elsevier, vol. 39(6), pages 835-841, July.

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