An annual study, mandated by the Texas State Legislature, was done of research expenditures at Texas public institutions of higher education for the fiscal year 1990-1991. The year's report contains, for the first time, data on intellectual property patents, copyrights, and licensing agreements. Findings indicate the following: (1) total research expenditures increased 11.3 percent over fiscal year 1990, continuing a long-term growth trend with expenditures increasing by 10.1 percent at public universities and by 13.5 percent at public health institutions; (2) among public academic institutions, Texas A&M (Agricultural and Mechanical) University reported the most research expenditures and, among public health institutions, M. D. Anderson Cancer Center reported the most research expenditures; (3) the Federal Government provided 48.8 percent of research funds and continued to provide the largest amount of research support; (4) institutions of higher education reported that 73 percent of their research is basic research (as opposed to applied research); (5) research expenditures in some areas of special interst were: cancer ($132,751,024), biotechnology ($52,655,724), energy ($49,159,724), food/fiber/agricultural products ($43,570,091), and aerospace technology ($20,992,651); (6) the top 10 research institutions together account for more than 90.4 percent of all research expenditures in the state; and (7) institutions received $3,159,293 from royalties, licensing, or other transactions related to intellectual property. (Author/JB)