This paper investigates factors that lead state governments in the United States to spend on research and development and research and development plant. Data come from a national survey of such spending. Regression analysis is used. Findings include the following: the relative wealth of a state, as measured by its tax capacity, predicts some of such spending; the level of a state's taxation, as measured by its tax effort, predicts some of such spending; and the political party composition of a state predicts some of such spending. By contrast, a state's economic difficulty, as measured by its unemployment rate, has almost no relationship to such spending.