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Business R&D Performance in the United States Increased in 2011

NSF 13-335 | September 2013 | PDF format. PDF  
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by Raymond M. Wolfe[1]

Companies spent $294 billion on research and development performed in the United States during 2011, compared with $279 billion during 2010 (table 1). Funding from the companies’ own sources was $222 billion during 2010 and $239 billion during 2011; funding from other sources was $57 billion in 2010 and $55 billion in 2011 (table 2). Data for this InfoBrief are from the Business R&D and Innovation Survey (BRDIS), which was developed and cosponsored by the National Science Foundation and Census Bureau.

TABLE 1. Funds spent for business R&D performed in the United States, by source of funds and size of company: 2010–11
(Millions of U.S. dollars)
Selected characteristic 2010 2011
Domestic R&D performancea 278,977 294,093
Source of funds
Paid for by the company 221,706 238,768
Paid for by others 57,271 55,324
Federal 34,199 i 31,309 i
Otherb 23,072 24,015
Size of company (number of domestic employees)
5–24 12,573 10,981
25–49 8,625 10,861
50–99 8,855 9,468
100–249 11,866 12,528
250–499 10,283 12,955
500–999 10,117 10,027
1,000–4,999 48,228 50,485
5,000–9,999 27,463 24,951
10,000–24,999 41,835 49,214
25,000 or more 99,133 102,623

i = > 50% of value imputed.

a For companies located in the United States that performed or funded R&D.
b Includes companies located inside and outside the United States, U.S. state government agencies and laboratories, foreign government agencies and laboratories, and all other organizations located inside and outside the United States.

NOTES: Detail may not add to total because of rounding. Excludes data for federally funded research and development centers. Business R&D and Innovation Survey does not include companies with fewer than five employees.

SOURCE: National Science Foundation, National Center for Science and Engineering Statistics, Business R&D and Innovation Survey.

Table 1 Source Data: Excel file

TABLE 2. Funds spent for business R&D performed in the United States, by source of funds and selected industry: 2010 and 2011
(Millions of U.S. dollars)
Paid for by others
Industry and NAICS code All R&D Paid for
by the
company
Total Federal Companies All other organizationsb
Domestic Foreigna
2010
All industries, 21–33, 42–81c 278,977 221,706 57,271 34,199 i 11,013 11,015 1,044
Manufacturing industries, 31–33 196,712 159,579 37,133 26,739 i 3,655 6,375 364
Chemicals, 325 58,038 53,555 4,483 180 D D D
Pharmaceuticals and medicines, 3254 49,415 45,398 4,017 99 D D D
Other 325 8,623 8,157 466 81 D D D
Machinery, 333 9,955 9,384 571 98 176 282 15
Computer and electronic products, 334 59,875 51,223 8,652 5,935 i 911 1,767 39
Electrical equipment, appliance, and components, 335 3,321 3,141 180 84 D D D
Transportation equipment, 336 42,913 21,076 21,837 i 20,191 i 1,016 541 89
Motor vehicles, trailers, and parts, 3361–63 D 10,098 D D D D D
Aerospace products and parts, 3364 29,854 10,152 19,702 i 18,921 i 635 D D
Other 336 D 826 D D D D D
Manufacturing nec, other 31–33 22,610 21,200 1,410 251 D D D
Nonmanufacturing industries, 21–23, 42–81 82,265 62,127 20,138 7,460 7,358 4,532 788
Information, 51 36,853 36,085 768 152 244 D D
Software publishers, 5112 26,982 26,387 595 140 134 D D
Other 51 9,871 9,698 173 12 110 D D
Finance and insurance, 52 2,109 2,109 0 0 0 0 0
Professional, scientific, and technical services, 54 33,690 15,438 18,252 6,829 6,906 3,801 716
Computer systems design and related services, 5415 11,050 9,416 1,634 712 397 348 177
Scientific R&D services, 5417 12,140 2,851 11,968 3,279 5,344 3,144 201
Other 54 10,500 3,171 4,650 2,838 1,165 309 338
Nonmanufacturing nec, other 21–23, 42–81 9,613 8,495 1,118 479 208 D D
2011
All industries, 21–33, 42–81c 294,093 238,768 55,324 31,309 i 11,124 12,007 884
Manufacturing industries, 31–33 201,361 163,340 38,021 24,698 i 4,196 8,870 257
Chemicals, 325 55,324 49,988 5,337 110 1,320 3,867 40
Pharmaceuticals and medicines, 3254 45,949 41,111 4,838 52 1,285 3,474 27
Other 325 9,375 8,877 499 58 35 393 13
Machinery, 333 14,709 13,578 1,131 522 423 D D
Computer and electronic products, 334 62,704 53,664 9,040 5,161 1,087 2,726 66
Electrical equipment, appliance, and components, 335 3,595 3,417 178 76 24 74 4
Transportation equipment, 336 40,880 20,275 20,605 i D 1,086 D D
Motor vehicles, trailers, and parts, 3361–63 D 11,737 D D D D D
Aerospace products and parts, 3364 26,054 7,585 18,469 i 17,806 i 592 D D
Other 336 D D D D D D D
Manufacturing nec, other 31–33 24,149 22,418 1,730 D 256 D D
Nonmanufacturing industries, 21–23, 42–81 92,731 75,428 17,303 6,611 6,928 3,138 626
Information, 51 41,865 41,014 851 D 321 D D
Software publishers, 5112 27,965 27,280 685 136 D D D
Other 51 13,900 13,734 166 D D D D
Finance and insurance, 52 3,457 3,310 146 0 145 1 0
Professional, scientific, and technical services, 54 38,219 23,368 14,851 5,848 6,227 2,213 563
Computer systems design and related services, 5415 13,259 11,706 1,553 598 626 209 120
Scientific R&D services, 5417 15,301 6,170 9,131 3,226 3,834 1,833 238
Other 54 9,659 5,492 4,167 2,024 1,767 171 205
Nonmanufacturing nec, other 21–23, 42–81 9,190 7,736 1,455 D 235 D D

D = suppressed to avoid disclosure of confidential information; i = > 50% of value imputed.

NAICS = North American Industry Classification System; nec = not elsewhere classified.

a Includes foreign parent companies of U.S. subsidiaries.
b Includes U.S. state government agencies and laboratories, foreign government agencies and laboratories, and all other organizations located inside and outside the United States.
c Includes companies located in the United States that performed or funded R&D.

NOTES: Detail may not add to total because of rounding. Industry classification was based on dominant business code for domestic R&D performance where available. For companies that did not report business codes, classification used for sampling was assigned. Excludes data for federally funded research and development centers.

SOURCE: National Science Foundation, National Center for Science and Engineering Statistics, Business R&D and Innovation Survey.

Table 2 Source Data: Excel file

R&D Performance by Industrial Sector and Source of Funding

During 2011, companies in manufacturing industries performed $201 billion (68%) of domestic R&D, defined as R&D performed in the 50 states and the District of Columbia (table 2). Most of the funding was from companies’ own funds (81%). Companies in nonmanufacturing industries performed $93 billion of domestic R&D (32% of total domestic R&D performance), 81% of which was paid for from companies’ own funds. The U.S. federal government was the chief source of outside funding (also referred to as R&D paid for by others) for R&D across all industries. Of the $55 billion paid for by others, the federal government contributed $31 billion, most of which came from the Department of Defense ($26 billion) (data not shown). Aerospace products and parts (North American Industry Classification System [NAICS] 3364), professional, scientific, and technical services (NAICS 54), and computer and electronic products (NAICS 334) received 92% of federal government R&D funding. Next among funders were foreign companies, including foreign parent companies of U.S. subsidiaries ($12 billion) and other U.S. companies ($11 billion) (table 2) (see “Survey Information and Data Availability” for information on industry classification).

Sales, R&D Intensity, and Employment of R&D Performers

U.S. companies that performed or funded R&D reported domestic net sales of $9 trillion in 2011 (table 3).[2] For all industries, the R&D intensity (ratio of domestic R&D performance to domestic net sales) was 3.2%; for manufacturers, 3.9%; and for nonmanufacturers, 2.3%. Manufacturing industries with high levels of R&D intensity in 2011 were pharmaceuticals and medicines (NAICS 3254) (11.8%), aerospace products and parts (NAICS 3364) (11.3%), and computer and electronic products (NAICS 334) (9.9%). Among the nonmanufacturing industries, industries with high levels of R&D intensity were scientific R&D services (NAICS 5417) (24.4%), software publishers (NAICS 5112) (9.5%), and computer system design and related services (NAICS 5415) (7.8%).

TABLE 3. Sales and employment for companies that performed or funded business R&D, by selected industry and company size: 2011
Industry and NAICS code Domestic net salesa (US$millions) R&D intensityb (%) Domestic employmentc (thousands)
Total R&Dd
All industries, 21–33, 42–81e 9,107,507 3.2 19,285 1,471
Manufacturing industries, 31–33 5,135,539 3.9 9,998 865
Chemicals, 325 1,157,864 4.8 1,479 160
Pharmaceuticals and medicines, 3254 388,664 11.8 549 107
Other 325 769,200 1.2 930 53
Machinery, 333 392,078 3.8 1,029 88
Computer and electronic products, 334 633,006 9.9 1,408 258
Electrical equipment, appliance, and components, 335 107,583 3.3 347 29
Transportation equipment, 336 850,469 4.8 1,521 145
Motor vehicles, trailers, and parts, 3361–63 562,786 D 738 61
Aerospace products and parts, 3364 231,137 11.3 635 72
Other 336 56,546 D 148 12
Manufacturing nec, other 31–33 1,994,539 1.2 4,214 185
Nonmanufacturing industries, 21–23, 42–81 3,971,968 2.3 9,287 606
Information, 51 916,379 4.6 1,876 232
Software publishers, 5112 293,407 9.5 511 143
Other 51 622,972 2.2 1,365 89
Finance and insurance, 52 942,891 0.4 1,499 26
Professional, scientific, and technical services, 54 443,343 8.6 1,977 270
Computer systems design and related services, 5415 169,229 i 7.8 i 597 103
Scientific R&D services, 5417 62,620 24.4 196 73
Other 54 211,494 4.6 1,184 94
Nonmanufacturing nec, other 21–23, 42–81 1,669,355 0.6 3,935 78
Size of company (number of domestic employees)
5–24 139,361 7.9 457 111
25–49 145,329 7.5 470 77
50–99 169,250 5.6 543 86
100–249 297,813 4.2 1,057 113
250–499 389,954 3.3 1,109 94
500–999 384,006 2.6 750 61
1,000–4,999 1,188,739 4.3 3,064 233
5,000–9,999 1,032,304 2.4 1,916 113
10,000–24,999 1,934,059 2.5 2,689 204
25,000 or more 3,426,693 3.0 7,231 379

D = suppressed to avoid disclosure of confidential information; i = > 50% of value imputed.

NAICS = North American Industry Classification System; nec = not elsewhere classified.

a Includes domestic net sales of companies that perform or fund R&D, transfers to foreign subsidiaries, and export sales to foreign companies; excludes intracompany transfers and sales by foreign subsidiaries.
b R&D intensity = domestic R&D performance/domestic net sales.
c Data recorded on 12 March represent employment figures for the year.
d Includes scientists and engineers and their managers, as well as technicians, technologists, and support staff.
e Includes companies located in the United States that performed or funded R&D.

NOTES: Detail may not add to total because of rounding. Industry classification was based on dominant business code for domestic R&D performance where available. For companies that did not report business codes, classification used for sampling was assigned. Excludes data for federally funded research and development centers. Business R&D and Innovation Survey does not include companies with fewer than five employees.

SOURCE: National Science Foundation, National Center for Science and Engineering Statistics, Business R&D and Innovation Survey, 2011.

Table 3 Source Data: Excel file

Businesses that performed or funded R&D employed 19.3 million people in the United States during 2011. Some 1.5 million (7.6%) were R&D employees.[3] Not surprisingly, manufacturing industries with high numbers of R&D employees in 2011 were computer and electronic products (NAICS 334) (258,000 R&D employees), pharmaceuticals and medicines (NAICS 3254) (107,000), and aerospace products and parts (NAICS 3364) (72,000). Nonmanufacturing industries with high numbers of R&D employees were software publishers (NAICS 5112) (143,000), computer systems design and related services (NAICS 5415) (103,000), and scientific R&D services (NAICS 5417) (73,000) (table 3).

R&D Performance by State

During 2011, companies reported $239 billion of domestic R&D paid for by the company. Businesses in California alone accounted for 26.8% of this amount in 2011 (table 4). Other states with large amounts of company-funded business R&D, as reflected by the percentages of the national total they accounted for in 2011, were Connecticut (2.6%), Illinois (4.5%), Massachusetts (5.3%), Michigan (5.1%), New Jersey (5.0%), New York (3.8%), Pennsylvania (3.8%), Texas (5.4%), and Washington (5.7%).

TABLE 4. Funds spent for business R&D performed in the United States, by source of funds and state: 2011
(Millions of U.S. dollars)
State All R&D Paid for by the company Paid for by others
United Statesa 294,093 238,768 55,324
Alabama 1,879 835 1,045
Alaska 84 e 52 e 33
Arizona 4,931 3,776 1,155
Arkansas 344 307 38
California 75,035 64,104 10,931
Colorado 4,310 3,642 668
Connecticut 7,504 6,272 1,232
Delaware 2,097 1,453 643
District of Columbia 415 162 e 253 i
Florida 5,988 3,855 2,133 i
Georgia 3,839 3,303 536
Hawaii 252 183 69
Idaho 1,171 871 301
Illinois 12,038 10,764 1,275
Indiana 6,158 5,484 674 i
Iowa 2,314 1,736 578
Kansas 1,509 1,037 472
Kentucky 1,278 1,017 261
Louisiana 459 382 77 i
Maine 295 264 31
Maryland 5,101 2,867 2,235
Massachusetts 15,722 12,712 3,010
Michigan 13,660 12,156 1,504
Minnesota 6,174 5,592 582
Mississippi 235 189 46
Missouri D 2,818 D
Montana 136 118 18 e
Nebraska 636 601 35
Nevada 638 554 85
New Hampshire 2,069 943 1,126
New Jersey 13,930 11,977 1,952
New Mexico 472 250 223
New York 12,072 9,141 2,931
North Carolina 6,193 5,157 1,036
North Dakota 261 236 25
Ohio 6,993 5,403 1,590
Oklahoma 604 507 97 i
Oregon 4,631 4,415 216
Pennsylvania 9,718 9,018 700
Rhode Island 542 451 91
South Carolina 1,399 949 450 i
South Dakota 136 112 24
Tennessee 1,434 1,279 155
Texas 15,309 12,920 2,388
Utah 2,438 1,874 565
Vermont 374 i 329 i 44
Virginia 5,562 3,138 2,424 i
Washington 14,558 13,659 899 i
West Virginia 247 213 35
Wisconsin 4,053 3,548 505 i
Wyoming 46 e 33 e 13
Undistributed fundsb D 6,111 D

D = data withheld to avoid disclosing operations of individual companies; e = > 50% of the cell value is imputed due to raking of state data; i = > 50% of the cell value is imputed due to reasons other than raking of state data.

a Includes companies located in the United States that performed or funded R&D.
b Includes data reported on Form BRDI-1 not allocated to a specific state. Data reported on Form BRDI-1A, the questionnaire sent to small companies or companies new to the survey, were allocated to the state in the address on the company's survey form, which is usually the company's headquarters.

NOTES: Detail may not add to totals because of rounding. Excludes data for federally funded research and development centers.

SOURCE: National Science Foundation, National Center for Science and Engineering Statistics, Business R&D and Innovation Survey, 2011.

Table 4 Source Data: Excel file

R&D Performance by Company Size

Small companies (5 to 499 domestic employees) performed 19% of the nation’s total business R&D in 2011. In these companies, the R&D intensity was 5.0%, compared with 3.0% for all other companies (tables 1 and 3). Small companies accounted for 13% of sales and employed 19% of those who worked for R&D-performing or R&D-funding companies. Of the 1.5 million R&D employees engaged in business R&D in the United States, 33% worked for small companies. By contrast, mid-size companies (those with 500 to 24,999 domestic employees) performed 46% of the nation’s total business R&D in 2011, and their R&D intensity was 3.0%. They accounted for 50% of sales and employed 44% of those who worked for R&D-performing or R&D-funding companies, including 42% of R&D employees in the United States. The largest companies (25,000 or more domestic employees) performed 35% of the nation’s total business R&D in 2011, and their R&D intensity was 3.0%. The largest companies employed 37% of those who worked for R&D-performing or R&D-funding companies, including 26% of R&D employees in the United States.

Survey Information and Data Availability

The sample for BRDIS was selected to represent all for-profit, nonfarm companies that have five or more domestic employees, that are publicly or privately held, and that perform or fund R&D or engage in innovative activities in the United States. Because the statistics from the survey are based on a sample, they are subject to both sampling and nonsampling errors (see technical notes in the annual reports at http://www.nsf.gov/statistics/industry/).

In this InfoBrief, money amounts are expressed in current U.S. dollars and are not adjusted for inflation. Company is defined as a business organization located in the United States, either U.S.-owned or a U.S. affiliate of a foreign parent, of one or more establishments under common ownership or control that performs or funds R&D.

For 2010, a total of 42,965 companies were sampled, representing 2,013,448 companies; for 2011, a total of 43,108 companies were sampled, representing 1,964,799 companies. The actual numbers of companies in the sample that remained within the scope of the survey between sample selection and tabulation were 39,968 for 2010 and 39,624 for 2011. These lower counts represent the number of companies that were determined to be within the scope of the survey after all data collected were processed. Reasons for the reduced counts include mergers, acquisitions, and instances where companies had gone out of business in the interim. Of these in-scope companies, 71.4% were considered to have met the criteria for a complete response to the 2010 survey; 69.2% met the 2011 survey response criteria. Industry classification was based on the dominant business activity for domestic R&D performance where available. For reporting units that did not report business activity codes for R&D, the classification used for sampling was assigned.

The full set of detailed tables from this survey will be available in the report Business R&D and Innovation: 2011, at http://www.nsf.gov/statistics/industry/. Individual detailed tables and tables with relative standard errors and imputation rates from the 2011 survey may be available in advance of the full report. For further information, contact the author.

Notes

[1] Raymond M. Wolfe, Research and Development Statistics Program, National Center for Science and Engineering Statistics, National Science Foundation, 4201 Wilson Boulevard, Suite 965, Arlington, VA 22230 (rwolfe@nsf.gov; 703-292-7789).

[2] Determining the amount of domestic net sales and operating revenues was left to the reporting company, however guidance was given to exclude intracompany transfers and sales by foreign subsidiaries but include transfers to foreign subsidiaries and export sales to foreign companies.

[3] Employment statistics in this InfoBrief are head counts. Full-time equivalent statistics are available in the detailed statistical tables. R&D employees include scientists and engineers and their managers, technicians, technologists, and support staff members who work on R&D or who provide direct support to R&D activities.


National Science Foundation, National Center for Science and Engineering Statistics
Business R&D Performance in the United States Increased in 2011
Arlington, VA (NSF 13-335) [September 2013]


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