Research & Development
In 2022, R&D spending as a share of GDP rose 24% but remained far below national levels.
Favorable movement since the last available data
Benchmark: Maine’s research and development spending as a proportion of the economy will reach the U.S average by 2030.
Overview
Research and development (R&D) spending is an indicator of the level of innovation in an economy, an important driver of economic growth. In 2022, Maine’s total R&D spending was $1.2 billion, up 36% from the previous year. This growth was distributed across industry (+31% growth), higher education (+16%), and non-profit organizations (+73%). In all, Maine’s R&D spending equaled 1.4% of total gross domestic product (GDP), compared to 4.1% nationwide. This ranks Maine 42nd of the 50 states and is about three-fourths of the 1.8% average among EPSCoR states. Maine lags other states in private sector and university R&D investments relative to GDP, while our non-profit sector contributes a relatively high proportion of spending.
The University of Maine System Board of Trustees has prioritized the expansion of R&D across the system. In 2022 the University of Maine earned an R1* top-tier research designation, and in 2024, its R&D expenditures reached $249 million, a record high.
*R1 refers to doctoral universities with “very high research activity,” as defined by the Carnegie Classification of Institutions of Higher Education.
Fig. A
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Percent of GDP to R&D by Sector in 2022
Source: Camoin Associates
Fig. B
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Total R&D Spending as Percent of Gross Domestic Product
Source: Camoin Associates