R1 Universities: What Does it Mean for Advanced Manufacturing?

Although Site Selection Group uses a variety of data sources, terms, and statistics when conducting workforce analyses for corporate clients, there is a single metric that can have a disproportionate impact on site selection for advanced manufacturing operations: R1 designation. 

R1 is a shorthand designation for the top research universities in the United States, as measured by the Carnegie Classification of Institutions of Higher Education. It measures doctoral degree-granting institutions that have met key thresholds of research expenditures and produced research-focused, doctorate-level graduates. While a lot more goes into the measurement, in summary, it is a highly prized designation. It helps institutions attract top-level faculty and students, as well as additional federal, state, and private research funds. Much like states vie to be named “a top state for business” from publications and site selectors alike, universities focus a lot of resources to receive and retain R1 status. 

To most manufacturing companies and corporate decision-makers who are not reading the Chronicle of Higher Education on a regular basis, this probably does not mean much. But, especially for more advanced industrial requirements, it can be an important indicator of a community and state’s ability to support a long-term pipeline of research support and target graduates. 

The 2025 rankings were just released a few weeks ago, so it is a good opportunity to summarize which states and regions have the most R1 institutions and why it is important (or not) for companies looking to establish or relocate an advanced manufacturing facility. 

2025 rankings show Texas with the most R1s

The map below shows the 187 recently designated R1 institutions across the United States.  The 2025 rankings also include more than 40 newly designated institutions (the 2025 rankings incorporated some changes in methodology, such as the inclusion of medical-focused institutions, resulting in a larger number of institutions achieving status).

With the new rankings, Texas now has the largest number of R1 institutions, followed by California, New York, and Massachusetts. It is no surprise to see major public research universities like the University of Texas at Austin on the list, but also very fast-growing institutions like UT Dallas, UT Arlington, and the University of North Texas. Southern Methodist University, a much smaller and private university in Texas, also achieved R1 status in the latest round. While states like California may not rank highly on “business-friendliness,” their investment in higher education over the decades has yielded and maintained a high number of strong research institutions. North Carolina, which has traditionally had a very strong set of R1 institutions, especially in the Research Triangle (UNC Chapel Hill, NC State, and Duke), now has other fast-growing institutions on the list: UNC-Charlotte and East Carolina University. 

R1 as a good proxy for research activity and partnership opportunities

While some manufacturing site selection projects are driven by the nuts and bolts of workforce availability, costs, logistics, utilities, and site readiness, increasingly more advanced manufacturing projects are making site selection decisions based on long-term access to highly skilled engineers, STEM workers, and other industry clusters. Quite simply, locating in a market with an R1 institution or a cluster of R1 institutions can be part of a broader strategy to develop that workforce and research pipeline long into the future. 

There is an especially attractive opportunity to find ways to partner with those “up-and-coming” R1 institutions, which have the capacity and desire to work with industry. For example, it might be challenging for a mid-size manufacturing company to partner with a very well-established research university, but aforementioned schools like UNC Charlotte or the University of North Texas may have more capacity and desire to build industry partnerships. 

Further, achieving R1 status is a good proxy for a state and institution’s long-term commitment to research and industry partnerships. As some states look to cut back on support for their higher education systems, achieving and retaining R1 status for multiple public institutions can demonstrate a state’s dedication to long-term workforce development and cutting-edge research.  

Non-R1s can be strong partners and even more valuable

While R1 can be an important designation, these rankings may not capture specific research partnerships that may be even more valuable for highly focused industry requirements. For example, if a packaging company is looking to find university partners, schools like Michigan State and Clemson might jump to the top of the list. But lesser-known schools without R1 status, like the University of Wisconsin - Stout, offer research partnership opportunities and a pipeline of graduates in that space. Site Selection Group sees highly specific programs in areas like food science, biotech, and plastics at smaller institutions across the country.

While major research universities can provide a robust pipeline of engineering and STEM graduates, it can be difficult for small- and mid-sized advanced manufacturing companies to compete for the attention of those students. Site Selection Group has seen many manufacturing companies build strong recruitment pipelines from schools that are more regionally focused. For example, engineering graduates from Western Carolina University can be a strong complement to recruiting students from NC State; Central Michigan and Western Michigan can complement recruitment efforts from Michigan State, and so on. 

Conclusion: R1 is a good indicator, but focusing on specific requirements is critical

An R1 institution, especially a newly minted R1 institution, can be a tremendous partner for advanced manufacturing companies looking to build a strong research and workforce pipeline. Just like a AAA bond rating is a good measure of a state’s overall financial and demographic health, a state with a large number of (especially public) R1 institutions signals that the state is making long-term investments. 

But each institution is different just like every advanced manufacturing project is different. Site Selection Group advises clients to define the exact type of partnership(s) they want to have with universities, whether it be a more general focus on recruitment of engineering and STEM graduates or a highly focused search for a specific research collaboration. R1 is just one indicator Site Selection Group can use to help a manufacturing client find the right partnership.