Use of accounting concepts to study research: return on investment in XSEDE, a US cyberinfrastructure service

Craig A. Stewart (), Claudia M. Costa (), Julie A. Wernert (), Winona Snapp-Childs (), Marques Bland (), Philip Blood (), Terry Campbell (), Peter Couvares (), Jeremy Fischer (), David Y. Hancock (), David L. Hart (), Harmony Jankowski (), Richard Knepper (), Donald F. McMullen (), Susan Mehringer (), Marlon Pierce (), Gary Rogers (), Robert S. Sinkovits () and John Towns ()
Additional contact information
Craig A. Stewart: University of Illinois at Urbana-Champaign
Claudia M. Costa: Indiana University
Julie A. Wernert: Indiana University
Winona Snapp-Childs: Indiana University
Marques Bland: University of Texas at Austin
Philip Blood: Carnegie Mellon University
Terry Campbell: Indiana University
Peter Couvares: California Institute of Technology
Jeremy Fischer: Indiana University
David Y. Hancock: Indiana University
David L. Hart: University Corporation for Atmospheric Research
Harmony Jankowski: Indiana University
Richard Knepper: Cornell University
Donald F. McMullen: Indiana University
Susan Mehringer: Cornell University
Marlon Pierce: Indiana University
Gary Rogers: University of Tennessee at Knoxville
Robert S. Sinkovits: University of California San Diego
John Towns: University of Illinois at Urbana-Champaign

Scientometrics, 2023, vol. 128, issue 6, No 1, 3225-3255

Abstract: Abstract This paper uses accounting concepts—particularly the concept of Return on Investment (ROI)—to reveal the quantitative value of scientific research pertaining to a major US cyberinfrastructure project (XSEDE—the eXtreme Science and Engineering Discovery Environment). XSEDE provides operational and support services for advanced information technology systems, cloud systems, and supercomputers supporting non-classified US research, with an average budget for XSEDE of US$20M+ per year over the period studied (2014–2021). To assess the financial effectiveness of these services, we calculated a proxy for ROI, and converted quantitative measures of XSEDE service delivery into financial values using costs for service from the US marketplace. We calculated two estimates of ROI: a Conservative Estimate, functioning as a lower bound and using publicly available data for a lower valuation of XSEDE services; and a Best Available Estimate, functioning as a more accurate estimate, but using some unpublished valuation data. Using the largest dataset assembled for analysis of ROI for a cyberinfrastructure project, we found a Conservative Estimate of ROI of 1.87, and a Best Available Estimate of ROI of 3.24. Through accounting methods, we show that XSEDE services offer excellent value to the US government, that the services offered uniquely by XSEDE (that is, not otherwise available for purchase) were the most valuable to the facilitation of US research activities, and that accounting-based concepts hold great value for understanding the mechanisms of scientific research generally.

Keywords: XSEDE; TeraGrid; Cyberinfrastructure; Supercomputing; HPC; eScience; Return on Investment; Cost efficiency; Cloud computing in research; COVID-19; 68U99; 91B44; 91B18 (search for similar items in EconPapers)
JEL-codes: I23 M15 O31 O32 O38 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11192-022-04539-8

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