SIC 8733
NONCOMMERCIAL RESEARCH ORGANIZATIONS



This category includes establishments primarily engaged in performing noncommercial research into and dissemination of information for public health, education, or general welfare. Establishments included here operate primarily on funds from endowments, contributions, and grants. The research is frequently contracted out and funded by these establishments. Establishments primarily engaged in commercial physical and biological research are classified in SIC 8731: Commercial Physical and Biological Research, and those engaged in commercial economic, sociological, and educational research are classified in SIC 8732: Commercial Economic, Sociological, and Educational Research.

NAICS Code(s)

541710 (Research and Development in the Physical Sciences and Engineering Sciences)

541720 (Research and Development in the Life Sciences)

541730 (Research and Development in the Social Sciences and Humanities)

Colleges and universities are leaders in noncommercial research, with Stanford University, the University of Texas at Austin, Harvard University, the University of Arizona, Ohio State University, and the University of Chicago topping the list. These universities provide research on a variety of subjects, and the knowledge they gain benefits the whole of society. They specialize in technical research, such as engineering, physics, bio-chemistry, and biology. Academic aspects of universities are discussed in greater detail under SIC 8221: Colleges, Universities, and Professional Schools. Academic research in the United States is funded largely through taxpayer dollars in the form of government grants and occurs at the individual level rather than at the organizational level. Although federal funds are dispensed largely to individual researchers, educational institutions classified under the "Research I" category receive tens of millions of dollars annually in federal support. Additionally, "Research II" institutions receive between $15 million and $40 million every year.

Government Funding Sources. The National Institutes of Health (NIH) dispenses billions of research dollars each year in the form of grants. Twenty-two organizations, including the National Library of Medicine and the John F. Fogarty International Center, fall under the budgetary control of the National Institutes of Health. Most prominent among the research institutes are the National Cancer Institute, the National Heart, Lung, and Blood Institute, and the National Institute of Diabetes and Digestive and Kidney Research. According to U.S. budget estimates for the year 2001, NIH funds for research purposes total $18.172 billion, from a projected NIH budget of $20.068 billion. Of the total research funds, the top three research institutes will receive $3.25 billion, $2.070 billion, and $1.21 billion, respectively.

The U.S. National Science Foundation (NSF) controls an additional $3.641 billion in research funds. NSF research dollars go largely to the National Research Center. Research projects funded by NSF extend to biological sciences ($511 million), computer sciences ($529 million), polar programs ($223 million), geoscience ($583 million), and engineering, math, and physical sciences ($1.338 billion). In addition to NIH and NSF, the U.S. government provides funding to research efforts under the auspices of other departments including the Department of Energy, the Department of Agriculture, and the National Aeronautics and Space Administration.

One of the leading non-profit research organizations in the United States, the Smithsonian Institution receives approximately $200 million in U.S. taxpayer dollars annually for research and collections management purposes. Overall, the research budget of the Smithsonian comprises approximately one-third of the total budget of the Institute.

Private Sector Non-commercial Research. Silicon Valley in California is well known for its economic development in the high-tech industry. The community began as a collaborative effort between educational institutions and small businesses, in response to mutual concerns for technological innovation. State-of-the art technologies developed in the Valley afford nonprofit research researchers with online access to news and developments through the Internet. The American Association for the Advancement of Science's EurekAlert! is a World Wide Web site that provides research news from all over the world. This site was created with the intention of providing a bulletin for universities, nonprofit organizations, and corporations to post new discoveries and advancements in science. Researchers, journalists, and the public at large access information disseminated through this and other Internet-based sites.

The Better Business Bureau (BBB) is a nonprofit organization that provides reports and information that safeguard consumers against unscrupulous businesses. Another consumer information provider is the Consumers Union, established in 1936 "to provide consumers with information and advice on goods, services, health and personal finance."

Further Reading

"AAAS Launches On-line Service for Research News." Science, 31 May 1996.

Atkinson, Richard C. "Universities: at the center of U.S. Research." Science, 6 June 1997.

Hoover's Handbook 1996. Austin, TX: Hoover's, Inc., 1996.

Kaiser, Jocelyn. "New Law Could Open up Lab Books." Science, 6 November 1998.

Kornburg, Arthur. "The NIH did it." Science, 12 December 1997.

Mervis, Jeffrey. "NFS spells out an electronic future: grants management." Science, 9 October 1998.

Moy, Ernest; Anthony J. Mazzaschi, Rebecca J. Levin, David A. Blake, Paul F. Griner, "Relationship between National Institutes of Health research awards to US medical schools and managed care market penetration." JAMA, 16 July 1997.

U.S. Department of Education. National Center for Educational Statistics. Integrated Postsecondary Education Data System. Washington, 1997.

Appendix, Budget of the United States Government, Fiscal Year 1002. Government Printing Office, 2000.

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