International Investment and R&D Data Link: 2004–07
This report summarizes newly developed data from the R&D Data Link Project, a project matching research and development and international investment data sets from several federal agencies. The combined data sets provide information on the R&D activities of U.S. multinational companies (MNCs) and foreign MNCs with U.S. activities that was previously unavailable from the original surveys. The project also produced benefits for the participating agencies through improvements in survey frame, sampling, and data quality. This report covers four separate years of the project: 2004, 2005, 2006, and 2007.
Data presented in this report were obtained by linking company-specific information from the National Science Foundation (NSF)/U.S. Census Bureau (Census) Survey of Industrial Research and Development (SIRD) with information from two surveys from the Bureau of Economic Analysis (BEA): the survey of Foreign Direct Investment in the United States (FDIUS) and the survey of U.S. Direct Investment Abroad (USDIA). The link consisted of matching data across surveys for a given year. No linking was performed across years.
SIRD provided details on R&D activities by U.S.-located nonfarm, for-profit companies with five or more employees, including character of work of R&D and the U.S. state location of R&D performance, but it collected no information on foreign ownership or overseas investments. The BEA FDIUS survey provides information on U.S. affiliates of foreign MNCs; the USDIA survey covers domestic activities of parents of U.S. MNCs and their affiliates abroad. See "Scope of Linked Surveys" in the appendix for detailed information on individual surveys.
Data from matched companies presented here are based on the subset of companies in SIRD that are part of a multinational corporation and are not equivalent to estimates presented in SIRD. SIRD estimates for total U.S. industrial R&D activity are computed by weighting sample data to universe totals. Data from the link project are not weighted and are obtained from simple aggregations of sample microdata.
Companies in the SIRD-FDIUS match are the subset of SIRD companies that are also U.S. affiliates of foreign MNCs. Companies in the SIRD-USDIA match are the subset of SIRD companies that are parent companies of U.S. MNCs. Data from the link project cover only matched companies and account for over 90% but not the entire U.S. R&D performance by MNCs measured in the BEA surveys. Thus the linked companies are not the complete universe of all R&D-performing U.S. MNC parent companies or U.S. affiliates.
Matched data for U.S. affiliates and for parent companies of U.S. MNCs include R&D by industry, character of work, and source of funds. Matched data for U.S. affiliates of foreign MNCs include data by selected technology area, state, and selected investing country. Matched data for U.S. MNCs include data for selected host country and their overseas affiliates. This report also includes domestic net sales, employment, and R&D employment.
Data for matched parent companies of U.S. MNCs and matched U.S. affiliates (U.S.-located foreign owned companies) should not be summed to attempt a U.S. R&D aggregate related to MNCs because some companies both are parent companies of overseas affiliates and are themselves owned by a foreign parent company.
The link largely follows methodology developed in a feasibility matching project that was conducted (1) to determine the comparability of the data files, including comparability of the definition of respondents and data items; (2) to study the quality of the resulting matches; (3) to assess tabulations that could be supported by future links; and (4) to produce a limited set of linked data. The feasibility matching project was compliant with the regulations listed under the Confidential Information Protection and Statistical Efficiency Act. The release presented here is the first since the earlier feasibility effort (see "Data Availability" in the appendix). The NSF Division of Science Resources Statistics (SRS) proposed and funded this project. SRS, renamed the National Center for Science and Engineering Statistics (NCSES) by the America COMPETES Reauthorization Act of 2010 (Section 505), serves "as a central Federal clearinghouse for the collection, interpretation, analysis, and dissemination of objective data on science, engineering, technology, and research and development." Census conducted the SIRD under an interagency agreement with NSF. Responses to the BEA surveys are mandatory under the International Investment and Trade in Services Survey Act (P.L. 94-472, 90 Stat. 2059, 22 U.S.C. 3101-3108). See "Link Methodology" in the appendix for more information about the methods used.
Description of Linked Data
Through 2007, NSF and Census jointly collected detailed information on the U.S. business R&D activities through SIRD (http://www.nsf.gov/statistics/industry/). Information from SIRD includes sales, employment, R&D by character of work (basic research, applied research, and development), the technology areas supported by R&D, and the U.S. state location of R&D performance. SIRD has no information on foreign ownership or the multinational status of companies.
In contrast, BEA collects data on parent companies of U.S. MNCs, detailing their U.S. and overseas activities through the survey of U.S. Direct Investment Abroad (USDIA). BEA also collects information from U.S. affiliates of foreign MNCs through the survey of Foreign Direct Investment in the United States (FDIUS). The BEA surveys provide extensive financial and operating statistics, including sales, balance sheets, income statements, trade in goods, employment, and R&D expenditures, but they do not collect certain R&D details, such as character of work or technology areas supported.
Tables 1–13 (year 2004), 26–38 (2005), 51–63 (2006), and 76–88 (2007) of this report show data that resulted from matching SIRD companies to majority-owned U.S. affiliates of foreign MNCs from the FDIUS survey. Majority-owned U.S. affiliates are those whose combined ownership interests by foreign parent companies exceed 50%.
Tables 14–25 (2004), 39–50 (2005), 64–75 (2006), and 89–100 (2007) show data that resulted from matching SIRD companies to parent companies of U.S. MNCs from the USDIA survey. Selected tables also present USDIA survey data for majority-owned foreign affiliates of matched U.S. parent companies. Majority-owned foreign affiliates are overseas companies whose combined ownership interests by U.S. parent companies exceed 50%.
 SIRD collected data through 2007. Its successor survey, the Business R&D and Innovation Survey (BRDIS), launched with the 2008 data collection. BRDIS is also conducted jointly by NSF and the Census Bureau. For data and other information see http://www.nsf.gov/statistics/srvyindustry/about/brdis/.