Chapter 4 | Research and Development: U.S. Trends and International Comparisons
European Union (EU): The EU comprises 28 member nations: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. Unless otherwise noted, data on the EU include all 28 nations.
G20: Group of Twenty brings together finance ministers and central bank governors from Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the United States, and the European Union.
Gross domestic product (GDP): The market value of goods and services produced within a country. It is one of the main measures in a country’s national income and product accounts, which record the value and composition of national output and the distribution of the incomes generated in this production (BEA 2015).
Multinational enterprise (MNE): A parent company and its foreign affiliates. An affiliate is a company or business enterprise (incorporated or unincorporated) located in one country but owned or controlled (10% or more of voting securities or the equivalent) by a parent company in another country. A majority-owned affiliate is a company owned or controlled by more than 50% of the voting securities (or equivalent) by its parent company.
Organisation for Economic Co-operation and Development (OECD): An international organization of 35 countries, headquartered in Paris, France. The member countries are Australia, Austria, Belgium, Canada, Chile, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Latvia, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Slovakia, Slovenia, South Korea, Spain, Sweden, Switzerland, Turkey, the United Kingdom, and the United States. Among its many activities, the OECD compiles social, economic, and science and technology statistics for all member and selected nonmember countries.
R&D: Research and experimental development comprise creative and systematic work undertaken in order to increase the stock of knowledge—including knowledge of humankind, culture, and society—and its use to devise new applications of available knowledge.
Basic research: Experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any particular application or use in view.
Applied research: Original investigation undertaken in order to acquire new knowledge; directed primarily, however, toward a specific, practical aim or objective.
Experimental development: Systematic work, drawing on knowledge gained from research and practical experience and producing additional knowledge, which is directed to producing new products or processes or to improving existing products or processes (OECD 2015).
R&D intensity: A measure of R&D expenditures relative to size, production, financial, or other characteristics for a given R&D-performing unit (e.g., country, sector, company). Examples include R&D-to-GDP ratio and R&D value-added ratio.
Key to Acronyms and Abbreviations
ANBERD: Analytical Business Enterprise R&D
ARRA: American Recovery and Reinvestment Act
BEA: Bureau of Economic Analysis
BRDIS: Business R&D and Innovation Survey
CAGR: compound average annual growth rate
DOC: Department of Commerce
DOD: Department of Defense
DOE: Department of Energy
EU: European Union
FFRDC: federally funded research and development center
FY: fiscal year
G20: Group of Twenty
GBARD: government budget appropriations for R&D
GDP: gross domestic product
GERD: gross domestic expenditures on R&D
GUF: general university fund
HE: higher education
HERD: Higher Education Research and Development Survey
HHS: Department of Health and Human Services
IRC: Internal Revenue Code
IRS: Internal Revenue Service
ISIC: International Standard Industrial Classification of All Economic Activities
MER: market exchange rate
MNE: multinational enterprise
NAICS: North American Industry Classification System
NASA: National Aeronautics and Space Administration
NCSES: National Center for Science and Engineering Statistics
nec: not elsewhere classified
NIH: National Institutes of Health
NIPA: national income and product accounts
NSF: National Science Foundation
OECD: Organisation for Economic Co-operation and Development
ONP: other nonprofit organization
OPEC: Organization of the Petroleum Exporting Countries
OWH: other Western Hemisphere
PPP: purchasing power parity
PST: professional, scientific, and technical
R&D: research and development
R&E: research and experimentation
S&E: science and engineering
UK: United Kingdom
UNESCO: United Nations Educational, Scientific and Cultural Organization
USDA: Department of Agriculture