Provides results of an analysis based on RAND Corporation’s RaDiUS (Research and Development in the United States) database that shows state-by-state trends in federal R&D funding of U.S. universities and colleges from FY 1996 through FY 2002 and the amounts of federal R&D funding going to individual universities and colleges in FY 2002. The federal government’s investment in research and development (R&D) at the nation’s universities which is pivotal to the U.S. innovation system has grown considerably. This report assesses that investment and presents a detailed analysis of the federal funds received for the conduct of R&D by state and by individual universities and colleges.