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Business R&D Performed in the United States Cost $291 Billion in 2008 and $282 Billion in 2009

NSF 12-309 | March 2012 | PDF format. PDF  
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by Raymond M. Wolfe[1]

Companies spent $282 billion on research and development performed in the United States during 2009 and $291 billion during 2008 (table 1), according to estimates from the Business R&D and Innovation Survey (BRDIS).[2] Funding from the companies' own sources declined from $233 billion to $225 billion during this period; funding from other sources remained about the same during the 2 years, $58 billion in 2008 and $57 billion in 2009 (table 2).

TABLE 1. Funds spent for business R&D performed in the United States, by source of funds and size of company: 2008 and 2009
(Millions of U.S. dollars)
Selected characteristic 2008 2009
Domestic R&D performancea 290,680 282,393
Source of funds
Paid for by the company 232,505 224,920
Paid for by others 58,176 57,473
Federal 36,360 39,573
Otherb 21,816 17,900
Size of company (number of domestic employees)
5–24c 14,280 11,794
25–49 9,626 9,692
50–99 9,351 13,282
100–249 14,662 12,747
250–499 10,219 11,204
500–999 11,886 10,119
1,000–4,999 46,336 44,008
5,000–9,999 24,764 21,864
10,000–24,999 48,737 51,037
25,000 or more 100,820 96,645

a For companies that reported worldwide R&D expense or worldwide R&D costs funded by others; see "Survey Information and Data Availability" for more information.

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.

c After the 2008 BRDIS sample was selected and surveyed, an error was identified that resulted in the exclusion of 226,884 single-establishment companies with 5 paid employees from the sample frame. Most of the excluded establishments were classified in industries with low R&D intensities, such as construction, retail trade, and the service sectors. Based on the available information for these small single-establishment companies, their contribution to the 2008 R&D estimates is estimated to be negligible.

NOTES:  Detail may not add to total 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: 2008 and 2009.

  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: 2008 and 2009
(Millions of U.S. dollars)
Industry and NAICS code Paid for by
the company
Paid for by others
All R&D Companies All other organizationsa
Total Federal Domestic Foreign
2008
All industries, 21–33, 42–81b 290,680 232,505   58,176 36,360 12,181 8,877 758
Manufacturing industries, 31–33 203,755 164,386 39,368 31,102 3,444 4,712 D
Chemicals, 325 58,250 55,042 3,207 197 814 2,182 15
Pharmaceuticals/medicines, 3254 48,131 45,169 2,962 137 796 2,017 11
Other 325 10,119 9,873 245 60 18 165 4
Machinery, 333 10,104 9,846 258 62 95 97 3
Computer/electronic products, 334 60,464 42,912 7,551 4,646 1,520 1,338 47
Electrical equipment/appliance/components, 335 3,143 2,947 196 91 34 66 5 i
Transportation equipment, 336 50,552 23,039 27,513 25,941 774 768 D
Motor vehicles/parts, 3361–3363 13,140 12,234 906 D D D D
Aerospace products/parts, 3364 36,941 10,371 26,570 25,805 i 649 D D
Other 336 471 434 37 D D D D
Manufacturing nec, other 31–33 21,242 30,600 643 165 0 207 261   D
Nonmanufacturing industries, 21–23, 42–81 86,926 68,118 18,807 5,258 8,737 4,166 D
Information, 51 37,695 36,922 772 229 217 D D
Software publishers, 5112 28,221 27,665 556 176 117 D D
Other 51 9,473 9,257 216 53 100 D D
Finance/insurance, 52 1,092 1,084 8 0 7 * i 0
Professional/scientific/technical services, 54 37,954 20,539 17,415 4,844 8,221 3,753 D
Computer systems design/related services, 5415 12,146 8,569 3,577 784 1,183 1,490 120
Scientific R&D services, 5417 17,913 8,708 9,205 2,115 4,726 2,008 D
Other 54 7,895 3,262 4,633 1,945 2,312 255 D
Nonmanufacturing nec, other 21–23, 42–81 10,185 9,573 612 185 292 D D
2009
All industries, 21–33, 42–81b 282,393 224,920 57,473 39,573 9,567 7,647 685
Manufacturing industries, 31–33 195,144 158,225 36,920 28,825 3,345 4,532 218
Chemicals, 325 53,328 49,876 3,452 207 1,263 1,961 D
Pharmaceuticals/medicines, 3254 44,936 41,751 3,185 113 1,247 1,813 11
Other 325 8,392 8,125 267 94   16 148   D
Machinery, 333 9,138 8,782 356 150 133 67 D
Computer/electronic products, 334 60,464 48,865 7,571 5,210 i 738 1,578 D
Electrical equipment/appliance/components, 335 3,334 3,105 228 70 55 66 D i
Transportation equipment, 336 48,337 24,223 24,114 i 23,023 i 757 251 D
Motor vehicles/trailers/parts, 3361–3363 D 10,853 D D D D D
Aerospace products/parts, 3364 34,554 12,384 22,170 i 21,524 i 596 D D
Other 336 D 986 D D   D D   D
Manufacturing nec, other 31–33 20,543 23,374 1,199 165   399 609   D
Nonmanufacturing industries, 21–23, 42–81 87,248 66,695 20,553 10,749 6,223 3,115 467
Information, 51 33,806 32,995 811 194 349 233 34
Software publishers, 5112 26,395 25,729 666 176 267 191 32
Other 51 7,411 7,266 145 18   82 42   2
Finance/insurance, 52 1,912 1,904 8 1 i 6 0 0
Professional/scientific/technical services, 54 44,946 26,031 18,915 10,461 5,531 2,505 168
Computer systems design/related services, 5415 12,560 10,742 1,818 1,240 449 122 7
Scientific R&D services, 5417 17,270 7,981 9,289 2,657 4,397 2,110 125
Other 54 15,116 7,308 7,808 6,564   685 273   36
Nonmanufacturing nec, other 21–23, 42–81 6,584 5,765 819 93   337 377   265

D = suppressed to avoid disclosure of confidential information; i = >50% of value imputed; * = < $500,000.  

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

a Includes U.S. state government agencies and laboratories, foreign government agencies and laboratories, and all other organizations located inside and outside the United States.

b Includes companies that reported worldwide R&D expense or worldwide R&D costs funded by others; see "Survey Information and Data Availability" for more information.

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: 2008 and 2009.

  Table 2 Source Data: Excel file

The 2008 figures in this InfoBrief update preliminary estimates released earlier. The 2009 figures are the initial release of the final statistics from the new BRDIS and are the focus of the remainder of this InfoBrief.[3]

R&D Performance by Industrial Sector and Source of Funding

During 2009, companies in manufacturing industries performed $195 billion of domestic R&D (69%) (table 2).[4] Eighty-one percent of funding was from companies' own funds, and the remaining 19% was from sources outside of the company. Companies in nonmanufacturing industries performed $87 billion of domestic R&D (31%), 76% paid for from companies' own funds and 24% funded from sources outside of the company. Chief among the sources of outside funding for R&D across all industries (also referred to as R&D paid for by others) was the U.S. federal government. Of the $57 billion paid for by others, the federal government contributed $40 billion. Most of the funds came from the Department of Defense; aerospace products and parts (NAICS 3364) and professional, scientific, and technical services (NAICS 54) received the lion's share of government R&D funding. Next among contributors were other U.S. companies ($10 billion) and foreign companies ($8 billion), including foreign parents of U.S. subsidiaries. Detail for these aggregates and other R&D costs paid for by sources outside of the company by selected industry is given in table 2 (see "Survey Information and Data Availability" for information on industry classification).

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

Domestic net sales for companies that performed domestic R&D were $7.4 trillion in 2009 (table 3).[5] For all industries, the R&D intensity ratio was 3.8%; for manufacturers, the ratio was 4.5%; and for nonmanufacturers, the ratio was 2.8%.[6] Two manufacturing industries with high R&D intensity ratios in 2009 were pharmaceuticals and medicines (NAICS 3254), 13.2%, and aerospace products and parts (NAICS 3364), 10.4%.[7] Among the nonmanufacturing industries, two with high ratios were scientific R&D services (NAICS 5417), 18.1%, and software publishers (NAICS 5112), 10.1%.

 

TABLE 3. Sales and employment for companies that performed or funded business R&D, by selected industry: 2008 and 2009
Industry and NAICS code Domestic
net salesa
(US$millions)
R&D
intensityb
(%)
Domestic employmentc
(thousands)
   
Total R&Dd
2008
All industries, 21–33, 42–81e 7,796,340 3.73 18,515 1,425
Manufacturing industries, 31–33 4,681,443 4.35 10,173 850
Chemicals, 325 902,410 6.45 1,396 175
Pharmaceuticals/medicines, 3254 371,760 12.95 654 123
Other 325 530,650 1.91 742 52
Machinery, 333 278,700 3.63 831 60
Computer/electronic products, 334 522,717 11.57 1,292 276
Electrical equipment/appliance/components, 335 108,730 2.89 282 20
Transportation equipment, 336 888,777 5.69 1,807 165
Motor vehicles/parts, 3361–3363 491,483 2.67 757 57
Aerospace products/parts, 3364 372,438 9.92 984 103
Other 336 24,856 1.89 66 5
Manufacturing nec, other 31–33 1,980,109 1.07 4,565 154
Nonmanufacturing industries, 21–23, 42–81 3,114,898 2.79 8,342 575
Information, 51 776,062 4.86 2,662 224
Software publishers, 5112 261,451 10.79 1,317 151
Other 51 514,611 1.84 1,345 73
Finance/insurance, 52 377,279 0.29 497 7
Professional/scientific/technical services, 54 453,444 8.37 1,177 267
Computer systems design/related services, 5415 204,868 5.93 457 100
Scientific R&D services, 5417 136,105 13.16 259 94
Other 54 112,471 7.02 461 73
Nonmanufacturing nec, other 21–23, 42–81 1,508,113 0.68 4,006 77
2009
All industries, 21–33, 42–81e 7,407,583 3.81 17,788 1,424
Manufacturing industries, 31–33 4,295,464 4.54 9,882 850
Chemicals, 325 812,609 6.56 1,287 157
Pharmaceuticals/medicines, 3254 339,730 13.23 538 110
Other 325 472,879 1.77 749 47
Machinery, 333 226,828 4.03 799 65
Computer/electronic products, 334 531,674 11.37 1,268 260
Electrical equipment/appliance/components, 335 98,048 3.4 320 25
Transportation equipment, 336 813,827 5.94 1,748 167
Motor vehicles/trailers/parts, 3361–3363 442,988 D 753 55
Aerospace products/parts, 3364 331,630 10.42 862 89
Other 336 39,209 D 133 23
Manufacturing nec, other 31–33 1,812,478 1.13 4,460 176
Nonmanufacturing industries, 21–23, 42–81 3,112,119 2.8 7,906 574
Information, 51 742,392 4.55 1,795 206
Software publishers, 5112 262,131 10.07 493 137
Other 51 480,261 1.54 1,302 69
Finance/insurance, 52 746,432 0.26 1,115 22
Professional/scientific/technical services, 54 455,129 9.88 1,721 307
Computer systems design/related services, 5415 185,287 i 6.78 i 756 117
Scientific R&D services, 5417 95,430 18.1 234 85
Other 54 174,412 8.67 731 105
Nonmanufacturing nec, other 21–23, 42–81 1,168,166 0.56 3,275 39

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

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

a Dollar values for goods sold or services rendered by companies to customers outside the company, including the federal government, less such items as returns, allowances, freight charges, and excise taxes. Excludes intracompany transfers and sales by foreign subsidiaries, but includes transfers to foreign subsidiaries and export sales to foreign companies.

b R&D intensity = domestic R&D/domestic net sales.

c Data recorded on March 12 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 that reported worldwide R&D expense or worldwide R&D costs funded by others; see "Survey Information and Data Availability" for more information.

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: 2008 and 2009.

  Table 3 Source Data: Excel file

Domestic employment for R&D-performing companies was 17.8 million during 2009. Of these employees, 1.4 million (8.0%) worked on R&D.[8] Not surprisingly, two manufacturing industries with high numbers of R&D workers in 2009 were pharmaceuticals and medicines (110,000 R&D workers) and aerospace products and parts (89,000 R&D workers), and two nonmanufacturing industries with high numbers of R&D workers were software publishers (137,000) and computer systems design and related services (117,000). Other sales and employment estimates by selected industry are given in table 3.

R&D Performance by State

During 2009, companies reported $225 billion of aggregate domestic R&D paid for by the company. Businesses in California alone accounted for over 23% of the nation's business R&D in both 2008 (table 4) and 2009 (table 5). Other states with large amounts of company-funded business R&D and the percentages they accounted for in 2009 were New Jersey (7.1%), Washington (7.1%), Massachusetts (5.4%), Texas (5.3%), Michigan (4.7%), Connecticut (4.1%), Pennsylvania (4.0%), Illinois (3.7%), and New York (3.6%). When domestic R&D paid for by others is added to the analysis, the total R&D increases by $57 billion and the state distribution becomes California (23.0%), New Jersey (6.5%), Washington (5.8%), Massachusetts (5.1%), Texas (5.4%), Michigan (4.2%), Connecticut (3.8%), Pennsylvania (3.5%), Illinois (3.3%), and New York (3.9%).

TABLE 4. Funds spent for business R&D performed in the United States, by source of funds and state: 2008
(Millions of U.S. dollars)
All R&D Paid for
by the
company
  Paid for by
others
  State All R&D Paid for
by the
company
Paid for by
others
 
State  
United Statesa 290,680 232,505 58,176   Montana 148 125 23 e
 
Alabama 3,099 922 2,177   Nebraska 561 464 97
Alaska 69 52 e 17 Nevada 677 612 65 e
Arizona 5,232 3,268 1,964 New Hampshire 2,169 876 1,293
Arkansas 443 399 44 New Jersey 19,054 17,331 1,723
California 67,532 54,231 13,301   New Mexico 735 326 409
 
Colorado 4,019 3,396 623   New York 11,455 9,061 2,394 i
Connecticut 10,518 8,938 1,580   North Carolina 6,246 4,903 1,343
Delaware D 1,441 D   North Dakota 303 218 85
District of Columbia 571 155 416 Ohio 7,405 5,367 2,038
Florida 4,178 3,009 1,169   Oklahoma 595 521 74 e
 
Georgia 3,344 2,501 843 Oregon 4,074 3,913 161 e
Hawaii 269 176 93   Pennsylvania 9,735 8,783 952
Idaho 961 786 175   Rhode Island 538 489 49
Illinois 8,900 7,984 916   South Carolina 1,221 1,125 96 e
Indiana 4,991 4,375 616   South Dakota 133 98 35
 
Iowa 1,509 1,041 468   Tennessee 1,608 1,451 157 e
Kansas 1,600 1,111 489   Texas 16,166 12,830 3,336
Kentucky 933 879 54 Utah 1,945 1,326 619
Louisiana 411 303 e 108 Vermont 422 380 42
Maine 308 253 55   Virginia 6,142 2,856 3,286 i
 
Maryland 4,333 2,327 2,006   Washington 13,876 12,724 1,152
Massachusetts 15,028 12,625 2,403   West Virginia 334 272 62
Michigan 13,742 12,105 1,637   Wisconsin 3,798 3,277 521
Minnesota 5,728 5,327 401   Wyoming 63 52 e 11 e
Mississippi 252 179 73  
Missouri D 2,857 D   Undistributed fundsb 15,349 12,482 2,867 i

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

a Includes companies that reported worldwide R&D expense or worldwide R&D costs funded by others; see "Survey Information and Data Availability" for more information.

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: 2008.

  Table 4 Source Data: Excel file

TABLE 5. Funds spent for business R&D performed in the United States, by source of funds and state: 2009
(Millions of U.S. dollars)
State All R&D   Paid for
by the
company
  Paid for by
others
    State All R&D   Paid for
by the
company
  Paid for by
others
United Statesa 282,393 224,920 57,473   Montana 144 123 21 e
 
Alabama 1,562 609 953 e Nebraska 602 493 109
Alaska 71 47 24   Nevada 619 510 109 e
Arizona 4,682 2,830 1,852 i New Hampshire D 772 D
Arkansas 709 217 492   New Jersey 18,404 16,069 2,335
California 64,939 53,569 11,370   New Mexico 623 257 366 i
 
Colorado 3,960 3,370 590   New York 10,919 8,036 2,883
Connecticut 10,638 9,128 1,510   North Carolina 5,531 4,672 859
Delaware 2,046 1,343 703   North Dakota 231 216 15 e
District of Columbia 672 207 e 465 e Ohio 6,811 5,215 1,596
Florida 4,329 2,923 1,406   Oklahoma 509 429 80 e
 
Georgia 3,905 3,065 840 i Oregon 4,080 3,890 190
Hawaii 240 180 60   Pennsylvania 9,989 8,951 1,038
Idaho 1,015 746 269   Rhode Island 460 397 63
Illinois 9,188 8,363 825 e South Carolina 1,254 1,075 179
Indiana 5,220 4,449 771   South Dakota 143 104 39
 
Iowa 1,943 1,525 418   Tennessee 1,487 1,274 213
Kansas 1,616 1,258 358   Texas 15,307 12,020 3,287
Kentucky 986 886 100 e Utah 2,083 1,250 833
Louisiana 416 291 125 e Vermont 418 391 27 e
Maine 530 494 36 e Virginia 6,159 3,093 3,066 i
 
Maryland 4,492 2,488 2,004   Washington 16,471 15,968 503
Massachusetts 14,422 12,215 2,207   West Virginia 349 247 102
Michigan 11,999 10,607 1,392   Wisconsin 3,616 3,063 553
Minnesota 6,880 6,133 747 i Wyoming 47 35 e 12 e
Mississippi 260 180 80  
Missouri D 3,136 D   Undistributed fundsb 7,970 6,111 1,859 i

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

a Includes companies that reported worldwide R&D expense or worldwide R&D costs funded by others; see "Survey Information and Data Availability" for more information.

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: 2009.

  Table 5 Source Data: Excel file

R&D Performance by Size of Company

R&D performance, sales, and employment statistics by size of company are given in table 6. Small companies (5 to 499 employees[9]) performed about one-fifth (21%) of the nation's total business R&D in 2009, accounted for 12% of sales, and employed 17% of those who worked for R&D-performing or R&D-funding companies. Of the 1.4 million scientists and engineers and their managers, technicians, technologists, and support staff members who worked on business R&D in the United States, about one-third (32%) worked for small companies.

TABLE 6. Funds spent for R&D performed in the United States, sales, and employment, by company size: 2008 and 2009
Company size (domestic employees) US$millions Domestic employmentc
(thousands)
All R&D Source of funds Domestic
net salesb
Paid for by the
company
Federal Othera Total R&D
   
2008
All companiesd 290,680 232,505 36,360 21,815 7,796,340 18,515 1,425
5–24e 14,280 10,333 1,086 2,861 73,151 354 109
25–49 9,626 7,309 886 1,431 74,442 299 64
50–99 9,351 7,248 695 1,408 122,414 462 70
100–249 14,662 12,933 718 1,011 242,803 1,039 106
250–499 10,219 8,572 732 915 225,081 710 61
500–999 11,886 9,673 747 1,466 328,990 669 63
1,000–4,999 46,336 39,010 2,162 i 5,164 1,076,460 2,587 224
5,000–9,999 24,764 20,358 1,168 3,238 902,756 1,464 125
10,000–24,999 48,737 43,049 3,024 2,664 1,542,122 3,903 191
25,000 or more 100,820 74,020 25,142 i 1,658 3,208,120 7,029 411
2009
All companiesd 282,393 224,920 39,573 i 17,900 7,407,583 17,788 1,424
5–24 11,794 9,257 1,281 1,256 114,141 429 116
25–49 9,692 7,877 1,032 783 121,182 440 81
50–99 13,282 8,292 4,155 835 138,641 602 99
100–249 12,747 10,459 691 1,597 230,213 853 91
250–499 11,204 8,372 1,677 i 1,155 264,054 721 72
500–999 10,119 8,577 473 1,069 266,201 795 64
1,000–4,999 44,008 38,383 1,612 4,013 984,010 2,349 204
5,000–9,999 21,864 17,585 1,005 i 3,274 636,559 1,603 112
10,000–24,999 51,037 42,191 5,889 i 2,957 1,637,652 2,679 212
25,000 or more 96,645 73,927 21,759 i 959 3,014,931 7,316 374

i = more than 50% of the cell value is imputed.

a Includes companies located inside and outside the United States, U.S. state government agencies or laboratories, foreign government agencies and laboratories, and all other organizations located inside and outside the United States.

b Dollar values for goods sold or services rendered by companies to customers outside the company, including the federal government, less such items as returns, allowances, freight charges, and excise taxes. Excludes intracompany transfers and sales by foreign subsidiaries but includes transfers to foreign subsidiaries and export sales to foreign companies.

c Data recorded on March 12 represent employment figures for the year.

d Includes companies that reported worldwide R&D expense or worldwide R&D costs funded by others; see "Survey Information and Data Availability" for more information.

e After the 2008 BRDIS sample was selected and surveyed, an error was identified that resulted in the exclusion of 226,884 single-establishment companies with 5 paid employees from the sample frame. Most of the excluded establishments were classified in industries with low R&D intensities, such as construction, retail trade, and the service sectors. Based on the available information for these small single-establishment companies, their contribution to the 2008 R&D estimates is estimated to be negligible.

NOTES:  Detail may not add to total 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: 2008 and 2009.

  Table 6 Source Data: Excel file

Survey Information and Data Availability

The sample for BRDIS was selected to represent all for-profit, nonfarm companies that have 5 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.

For 2008, a total of 39,553 companies, representing 1,926,012 companies in the population, were selected for the sample; for 2009, a total of 43,002 companies were sampled, representing 2,090,181 companies. The actual numbers of companies that remained within the scope of the survey between sample selection and tabulation were 38,551 for 2008 and 40,300 for 2009. 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 these counts were lower than those originally selected for the sample include mergers, acquisitions, and instances where companies have gone out of business in the interim. Of these in-scope companies, 74.0% were considered to have met the criteria for a complete response to the 2008 survey; 73.1% met the 2009 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.

In addition to the information and statistics on domestic R&D performance presented herein, BRDIS offers a wealth of data on other aspects of R&D performance and funding, intellectual property (IP), and innovation. Indicated in table 7 are the areas covered by the 2008 and 2009 cycles of BRDIS.

TABLE 7. Areas covered by the 2008 and 2009 cycles of the Business R&D and Innovation Survey
  • Company information
    • Ownership
    • Business activities
  • Measures of R&D activity paid for by the company
    • Domestic and worldwide sales, revenue, and R&D activity
    • Company-funded R&D by business activity, type of costs, and location
    • Projected R&D costs
    • Capital expenditures for R&D (buildings, software, and equipment)
  • Measures related to R&D management and strategy
    • Character of work (basic research, applied research, and development)
    • R&D applications and R&D in new business areas
    • R&D relationships with others outside the company
  • Measures of company R&D activity funded by others
    • Funds for worldwide and domestic R&D activity
    • R&D funded by others by business activity, type of organization, type of cost, state, and location (domestic vs. foreign)
  • Measures of R&D employment
    • R&D headcount (domestic and worldwide) by occupation and sex
    • Number of U.S. R&D employees working under a visa (H-1B, L-1, etc.)
    • R&D full-time equivalent counts
  • Measures of intellectual property (IP), technology transfer, and innovation
    • Participation in activities to introduce new or significantly improve existing goods, services, methods of production and distribution, or support systems
    • Selected patenting and licensing information
    • Participation in specific technology transfer activities, and importance of types of IP protection

SOURCE:  National Science Foundation/National Center for Science and Engineering Statistics, Business R&D and Innovation Survey: 2008 and 2009.

  Table 7 Source Data: Word file

Detailed information about the BRDIS samples and methodology will be available in the forthcoming survey description at http://www.nsf.gov/statistics/survey.cfm. Copies of the BRDIS questionnaires and comparisons of BRDIS with its predecessor, the Survey of Industrial Research and Development, are available at http://www.nsf.gov/statistics/srvyindustry/about/brdis/. The full set of detailed statistical tables, relative standard errors, and imputation rates from the 2008 and 2009 cycles of BRDIS will be available in the report Business R&D and Innovation: 2008–09. Individual detailed tables from these surveys may be available in advance of the full report. For further information, please 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]  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. All estimates from the survey are subject to both sampling and nonsampling errors (see technical notes in the annual reports at http://www.nsf.gov/statistics/industry/). Money amounts in this InfoBrief are expressed in current U.S. dollars and are not adjusted for inflation.

[3]  For information about BRDIS, which was developed and is co-sponsored by the National Science Foundation (NSF) and the U.S. Census Bureau, see NRC 2006, NSB 2010, and NSF 2008. For the preliminary 2008 BRDIS statistics, see NSF 2010a, 2010b, and 2010c.

[4]  Throughout the text and tables in this InfoBrief, domestic R&D refers to business R&D performed in the 50 United States and Washington, D.C.

[5]  Domestic net sales is defined as the dollar values for goods sold or services rendered by companies to customers outside the company, including the federal government, less such items as returns, allowances, freight charges, and excise taxes. These values exclude intracompany transfers and sales by foreign subsidiaries but include transfers to foreign subsidiaries and export sales to foreign companies.

[6]  R&D intensity is a measure of R&D expenditures relative to size, production, financial, or other characteristic for a given R&D-performing unit (e.g., industry, sector, state). For this InfoBrief and in the BRDIS detailed statistical tables, R&D intensity is calculated by dividing the cost of the domestic R&D performed by the company by the domestic sales of the company.

[7]  This InfoBrief focuses on selected industries. Statistics for a fuller array of 4-digit NAICS industries are available in the detailed statistical tables.

[8]  This figure includes R&D scientists and engineers and their managers, as well as technicians, technologists, and support staff. Employment statistics in this InfoBrief are head counts. Full-time equivalent statistics are available in the detailed statistical tables.

[9] BRDIS does not include companies with fewer than 5 employees.

References

National Research Council (NRC). 2006. Measuring Research and Development Expenditures in the U.S. Economy. Panel on Research and Development Statistics at the National Science Foundation, Committee on National Statistics, Division of Behavioral and Social Sciences and Education. Washington, DC: The National Academies Press. Available at http://www7.nationalacademies.org/ocga/briefings/Measuring_R_D_Expenditures_in_US_Economy_Interim.asp.

National Science Board (NSB). 2010. Science and Engineering Indicators: 2010. NSB 10-01. Arlington, VA. Available at http://www.nsf.gov/statistics/seind10/.

National Science Foundation, Division of Science Resources Statistics (NSF/SRS). 2008. NSF Announces New U.S. Business R&D and Innovation Survey. InfoBrief NSF 09-304. Arlington, VA. Available at http://www.nsf.gov/statistics/infbrief/nsf09304/.

National Science Foundation, Division of Science Resources Statistics (NSF/SRS). 2010a. U.S. Businesses Report 2008 Worldwide R&D Expense of $330 Billion: Findings from New NSF Survey. InfoBrief NSF 10-322. Arlington, VA. Available at http://www.nsf.gov/statistics/infbrief/nsf10322/.

National Science Foundation, Division of Science Resources Statistics (NSF/SRS). 2010b. New Employment Statistics from the 2008 Business R&D and Innovation Survey. InfoBrief NSF 10-326. Arlington, VA. Available at http://www.nsf.gov/statistics/infbrief/nsf10326/.

National Science Foundation, Division of Science Resources Statistics (NSF/SRS). 2010c. NSF Releases New Statistics on Business Innovation. InfoBrief NSF 11-300. Arlington, VA. Available at http://www.nsf.gov/statistics/infbrief/nsf11300/.


National Science Foundation, National Center for Science and Engineering Statistics
Business R&D Performed in the United States Cost $291 Billion in 2008 and $282 Billion in 2009
Arlington, VA (NSF 12-309) [March 2012]


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