Chapter 8: State Indicators

Financial Research and Development Inputs

Select Indicator:

Quartiles | Findings | Description

Industry-performed R&D as share of private-industry output: 2003

Industry-performed R&D as share of private-industry output: 2003

Industry-Performed R&D as Share of Private-Industry Output: 2003.


Industry-performed R&D as share of private-industry output: 2003*

1st Quartile
2nd Quartile
3rd Quartile
4th Quartile
California Arizona Alabama Alaska
Connecticut Colorado Florida Arkansas
Delaware Illinois Georgia District of Columbia
Idaho Indiana Iowa Hawaii
Maryland Kansas Missouri Kentucky
Massachusetts Mississippi Nebraska Louisiana
Michigan North Carolina New Mexico Maine
Minnesota Ohio New York Montana
New Hampshire Pennsylvania North Dakota Nevada
New Jersey Texas Oklahoma South Dakota
Oregon Utah South Carolina West Virginia
Rhode Island Vermont Tennessee Wyoming
Washington Virginia Wisconsin
*States in alphabetical order, not data order.

SOURCES: National Science Foundation, Division of Science Resources Statistics, Survey of Industrial Research and Development; and U.S. Department of Commerce, Bureau of Economic Analysis, Gross State Product data. See table 8-29.

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  • The amount of R&D performed by industry rose from $164 billion in 1998 to $198 billion in 2003, an increase of 21% (unadjusted for inflation).

  • The value of this indicator for the United States has been variable over the past years; starting at 2.14% in 1998, it rose to 2.06% in 2000 before declining to 2.06% in 2003.

  • Industrial R&D is concentrated in a few states—only 15 states had indicator values exceeding the national average in 2003.

  • States with high values for this indicator were usually located on the West Coast or the northern half of the East Coast.

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This indicator measures the emphasis that private industry places on research and development. Industrial R&D focuses on projects that are expected to yield new or improved products, processes, or services and to bring direct benefits to the company. A high value for this indicator shows that the companies and industries within a state are making a significant investment in their R&D activities.

Differences among states on this indicator should be interpreted with caution. Because industries differ in their reliance on R&D, the indicator reflects state differences in industrial structure as much as the behavior of individual companies. Furthermore, industrial R&D data for states with small economies may be based on data imputed from previous years’ survey results and imprecise estimates.

The methodology for making state-level assignments of the industrial R&D reported by companies with operations in multiple states changed in 1998. Industrial R&D data from previous years are not comparable.

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National Science Board.