<p>They compete by paying profs less, they don't have to pay for buildings as the state pays for that (or used to anyway), they have some big classes, fewer frills, less financial aid, strong fundraising (endowments may not be as large but about half of the top annual fundraisers are publics), going like heck after research money, and other efficiencies.</p>
<p>Top institutions in total fundraising<br>
Stanford University $603,585,914
University of Wisconsin at Madison $595,215,891
Harvard University $589,861,000
University of Pennsylvania $394,249,685
Cornell University $353,931,403
Columbia University $341,140,986
University of Southern California $331,754,481
Johns Hopkins University $323,100,408
Indiana University $301,060,946
University of California at San Francisco $292,932,382
Yale University $285,706,955
University of California at Los Angeles $281,552,472
Duke University $275,815,542
University of Minnesota $265,498,507
University of Washington $259,118,639
University of Michigan $251,353,272
New York University $247,126,717
Massachusetts Institute of Technology $206,007,428
Ohio State University $204,598,172
University of California at Berkeley $198,863,654</p>
<p>Top Institutions in Total Research-and-Development Expenditures 2004
Johns Hopkins University $1,375,014,000 (includes $700 million for operations of federal research lab off campus)
University of California at Los Angeles $772,569,000
University of Michigan $769,126,000
University of Wisconsin at Madison $763,875,000
University of California at San Francisco $728,321,000
University of Washington $713,976,000
University of California at San Diego $708,690,000
Stanford University $671,046,000
Pennsylvania State University $600,139,000
University of Pennsylvania $596,756,000
Cornell University $575,554,000
Massachusetts Institute of Technology $543,448,000
University of California at Berkeley $525,598,000
Duke University $520,871,000
Ohio State University $518,088,000
University of Minnesota $515,061,000
University of California at Davis $511,757,000
University of Illinois at Urbana-Champaign $506,041,000
Washington University in St. Louis $489,565,000
University of Colorado $482,992,000
University of Arizona $478,680,000
Baylor College of Medicine $476,075,000
Columbia University $468,484,000
University of Pittsburgh $461,693,000
Texas A&M University $456,809,000
Harvard University $454,495,000
University of Florida $447,146,000
University of Southern California $426,665,000
Yale University $422,828,000
University of North Carolina at Chapel Hill $416,727,000
Georgia Institute of Technology $410,799,000
Indiana University $384,168,000
Purdue University $365,779,000
Northwestern University $358,947,000</p>