[jltsiren]

I think it's actually the opposite. American universities receive less research funding from external private sources than universities in the European countries I'm familiar with. The difference is probably due to the culture of charitable donations. Europe has a tradition of private foundations funding arts and sciences, while Americans make donations to universities.

In 2021, academic R&D spending in the US was ~$90 billion (https://ncses.nsf.gov/pubs/nsb202326/funding-sources-of-acad...). Out of that, 55% came from the federal government, 25% from the institutions themselves, 6% from nonprofits, 6% from businesses, 5% from state and local governments, and 3% from other sources. The share of businesses looks normal, while the share of nonprofits seems low.

[ke88y]

You’re making a comparison then quoting only one side of that comparison, which is deeply confusing.

I’m pretty damn sure you’re wrong about Europe on a relative basis. The percentages in most of Europe are MUCH higher. Eg Germany is closer to 80% than 50% gov funded.

(Earmarked gifts to an endowment with some level of direction/advice vs a foundation is a real cultural and tax policy difference, but the end effect is what matters and that’s not as simple as you’re suggesting.)

And not to be too flippant, but the question about the world outside of America applies also to the world outside the West ;)

[jltsiren]

I didn't provide numbers for the other side, as the numbers you can easily find are almost certainly not comparable. International comparisons require a lot of work if you want to do them properly, as there are too many differences in institutions and accounting principles.

We could take the University of Helsinki (Finland) as a singular example. 56% of the external research funding comes from the national government and 14% from the EU. 16% is from private foundations, 9% from businesses, and the remaining 5% from other sources. The 16% figure from foundations is lower than it would be under the American model, as many private grants (particularly fellowships for PhD students) are awarded directly to the individual and therefore not included in the figures for the university. Overall, 70% of the external research funding is from the government, 25% from private institutions, and 5% from other sources.

I didn't include the share of research funding from the university itself, because I don't know what is included under it by American standards. If you adjust the American figures to exclude that, you get 80% from the government, 16% from private institutions, and 4% from other sources.

It's good to remember that Europe is not a continent of social democratic welfare states but a continent of warmongers and old money that happens to be quiet for the moment. A lot of that old money went into foundations that fund prestigious things such as arts and science. European private donors don't like funding education, as they consider it a government responsibility. American donors on the other hand often give money to universities, which then use it primarily for education, buildings, and infrastructure.