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Chapter 8. State Indicators

Financial Research and Development Inputs


Business-Performed R&D as Share of Private-Industry Output


Quartiles

Business-performed R&D as share of private-industry output: 2007 (Percent)
 
1st quartile
(6.08% – 2.16%)
2nd quartile
(2.03% – 1.30%)
3rd quartile
(1.28% – 0.61%)
4th quartile
(0.52% – 0.14%)
 
California Arizona Alabama‡ Alaska‡
Colorado Idaho‡ District of Columbia Arkansas‡
Connecticut Illinois Florida Hawaii‡
Delaware‡ Kansas‡ Georgia Louisiana‡
Indiana Maryland Iowa Mississippi‡
Massachusetts Missouri Kentucky‡ Montana‡
Michigan North Carolina Maine‡ Nevada‡
Minnesota Ohio Nebraska‡ North Dakota‡
New Hampshire‡ Texas New Mexico‡ Oklahoma‡
New Jersey Utah New York South Dakota‡
Oregon Vermont‡ Rhode Island‡ West Virginia‡
Pennsylvania Virginia South Carolina‡ Wyoming‡
Washington Wisconsin Tennessee
 
‡ EPSCoR state

SOURCES: National Science Foundation, Division of Science Resources Statistics, Survey of Industrial Research and Development; and Bureau of Economic Analysis, Gross Domestic Product data. See Data Table.



Findings

  • The amount of R&D performed by business rose from nearly $164 billion in 1998 to about $266 billion in 2007, an increase of more than 60% (in current dollars).
  • The value of this indicator exhibited little overall change between 1998 and 2007.
  • Business R&D was concentrated in a few states—only 12 states had indicator values that met or exceeded the national average in 2007.


Description

This indicator measures the role of R&D in a state's business activity. Business R&D focuses on projects that are expected to yield new or improved products, processes, or services and to bring direct benefits to a company. A high value for this indicator shows that the businesses within a state are making a significant investment in their R&D activities.

Because industries differ in their reliance on R&D, the indicator reflects state differences in industrial structure as much as the behavior or priorities of individual businesses. Estimates for states with smaller economies are generally less precise than those for states with larger economies.

The methodology for making state-level assignments of the business R&D reported by companies with operations in multiple states changed in 1998. Therefore, pre-1998 data on the amount of R&D performed by industry in states are not comparable.

Data Table

Table 8-39
Business-performed R&D as share of private-industry output, by state: 1998, 2002, and 2007
 
  Business-performed R&D
(current $millions)
  Private-industry output
(current $millions)
  Business-performed R&D/
private-industry output (%)
State 1998 2002 2007   1998 2002 2007   1998 2002 2007
 
United States 163,658 185,505 265,919   7,652,500 9,131,170 12,064,609   2.14 2.03 2.20
Alabama 845 846 1,771   89,994 104,211 138,392   0.94 0.81 1.28
Alaska 37 51 58   18,175 23,302 36,914   0.20 0.22 0.16
Arizona 1,801 3,201 3,846   120,484 150,429 215,329   1.49 2.13 1.79
Arkansas 213 225 339   54,258 62,883 82,061   0.39 0.36 0.41
California 32,856 42,177 64,187   965,937 1,184,559 1,596,045   3.40 3.56 4.02
Colorado 3,180 2,823 5,223   126,013 160,289 207,494   2.52 1.76 2.52
Connecticut 3,346 6,077 9,444   132,955 150,755 192,695   2.52 4.03 4.90
Delaware 1,356 1,219 1,472   33,652 41,196 56,314   4.03 2.96 2.61
District of Columbia D 194 379   32,710 43,937 62,311   1.83 0.44 0.61
Florida 3,265 3,707 4,569   365,813 459,933 655,459   0.89 0.81 0.70
Georgia 1,617 2,107 2,788   224,870 267,441 339,136   0.72 0.79 0.82
Hawaii 55 103 218   29,201 33,619 47,923   0.19 0.31 0.45
Idaho 1,103 992 726   25,510 31,197 45,004   4.32 3.18 1.61
Illinois 7,318 7,616 11,362   384,342 438,363 558,823   1.90 1.74 2.03
Indiana 2,922 3,572 4,939   161,797 184,923 224,499   1.81 1.93 2.20
Iowa 750 753 1,202   73,908 85,652 114,859   1.01 0.88 1.05
Kansas 1,384 1,427 1,304   65,697 77,183 100,600   2.11 1.85 1.30
Kentucky 606 656 890   94,081 103,514 128,916   0.64 0.63 0.69
Louisiana 377 248 373   103,343 116,505 184,848   0.36 0.21 0.20
Maine 137 250 265   27,363 33,121 41,206   0.50 0.75 0.64
Maryland 1,905 3,800 3,665   133,482 168,770 216,069   1.43 2.25 1.70
Massachusetts 10,367 10,609 19,488   214,890 258,688 320,565   4.82 4.10 6.08
Michigan 12,554 13,565 15,736   278,874 313,384 337,072   4.50 4.33 4.67
Minnesota 3,367 4,460 6,636   148,057 177,427 226,097   2.27 2.51 2.94
Mississippi 183 224 279   50,894 56,215 72,521   0.36 0.40 0.38
Missouri 1,505 1,592 2,736   146,453 166,436 200,977   1.03 0.96 1.36
Montana 63 66 134   16,607 19,565 28,927   0.38 0.34 0.46
Nebraska 195 342 489   44,485 50,901 69,174   0.44 0.67 0.71
Nevada 476 339 567   56,995 72,826 116,816   0.84 0.47 0.49
New Hampshire 1,138 1,153 1,814   35,812 41,991 52,268   3.18 2.75 3.47
New Jersey 11,107 11,566 17,892   282,938 335,111 413,706   3.93 3.45 4.32
New Mexico 1,450 331 568   37,455 41,702 62,107   3.87 0.79 0.91
New York 10,283 9,234 10,916   614,396 736,066 993,104   1.67 1.25 1.10
North Carolina 3,483 3,704 6,829   212,790 259,825 338,159   1.64 1.43 2.02
North Dakota 46 154 126   14,277 16,671 24,359   0.32 0.92 0.52
Ohio 5,742 6,230 7,265   312,647 346,524 410,857   1.84 1.80 1.77
Oklahoma 369 412 527   65,997 80,492 114,350   0.56 0.51 0.46
Oregon 1,345 2,320 3,629   88,532 100,222 138,781   1.52 2.31 2.61
Pennsylvania 7,393 7,064 10,387   324,847 381,405 480,942   2.28 1.85 2.16
Rhode Island 1,332 1,121 411   25,892 32,294 40,846   5.14 3.47 1.01
South Carolina 996 1,054 1,426   87,771 102,565 126,253   1.13 1.03 1.13
South Dakota 40 53 132   17,932 23,084 30,910   0.22 0.23 0.43
Tennessee 2,440 1,289 1,638   142,438 169,564 218,172   1.71 0.76 0.75
Texas 8,984 10,744 13,889   558,165 691,968 1,026,886   1.61 1.55 1.35
Utah 1,119 1,116 1,764   51,610 61,934 91,319   2.17 1.80 1.93
Vermont 114 286 413   13,976 16,974 21,249   0.82 1.68 1.94
Virginia 2,540 2,920 4,840   186,444 235,685 314,689   1.36 1.24 1.54
Washington 7,072 8,579 12,687   168,427 198,461 266,138   4.20 4.32 4.77
West Virginia D 264 233   33,440 37,308 47,466   1.00 0.71 0.49
Wisconsin 1,929 2,649 3,411   143,368 167,489 207,614   1.35 1.58 1.64
Wyoming 20 21 37   12,506 16,611 27,388   0.16 0.13 0.14
                       
Puerto Rico NA NA NA   NA NA NA   NA NA NA
 

D = suppressed to avoid disclosure of confidential information; NA = not available

SOURCES: National Science Foundation, Division of Science Resources Statistics, Survey of Industrial Research and Development (various years); and Bureau of Economic Analysis, Gross Domestic Product data.

Science and Engineering Indicators 2010

Source Data
 

Science and Engineering Indicators 2010   Arlington, VA (NSB 10-01) | January 2010