He added that the "wonderful work and enthusiasm from faculty" to compete for grants has driven the increase in funds.

In a press release, Eva J. Pell, vice president for research and dean of the graduate school, said funding comes from federal, industry and foundation services and is spent mostly in Pennsylvania.

"The ability of our faculty members to propose and successfully compete for these funds in the national arena reflects the excellence of the university's basic and applied research programs," she said in the statement.

Sources of grants include National Aeronautics and Space Administration and the United States Department of Agriculture, among others, McGrath said.

He said research has a "broad" positive effect.

"Applied sciences has an economic impact across the state and beyond," he said.

"It stimulates the local economy and personnel. Faculty are partnering with a large number of companies ... who come to Penn State because they can tap into the innovation that's taking place on campus."

McGrath said some of the projects faculty members are involved with include working on parts for the automobile industry and performing research for the hydrogen economy.

"We are working quite extensively with energy companies [and] also companies for air products and chemicals," he said.

McGrath said Penn State is a "hydrogen energy center of excellence."

Bruce McPheron, associate dean for research and graduate education in the College of Agricultural Sciences, said agricultural research expenditures totaled $84,194,000 in 2003.

However, because of Penn State's foundation as a land-grant university, the College of Agricultural Sciences differs from other colleges because part of its research money comes from federal and state appropriations.

McPheron said the college has used its funding to employ specialized faculty members and create new programs.

"We have hired people like post-doctoral scientists, graduate students and technicians to do research projects," he said. "In an average year, we probably have around 700 different projects from outside funding sources, some are new ideas that faculty are trying out."

But James Adair, professor of materials science and engineering director of the NSF Particulate Materials Center, said his research has not changed due to the increase in expenditures.

"It's been pretty steady," he said. "I haven't seen a large amount of change. Funding does not have dramatic changes."

At a House of Representatives appropriations meeting in Harrisburg last Wednesday, Penn State President Graham Spanier said the university's research has a "multiplier" effect by creating jobs and making scientific advancements.

"We want to keep Penn State at the forefront of research," he said.