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Chapter 8. State Indicators

Financial Research and Development Outputs

Business-Performed R&D as a Percentage of Private-Industry Output



Findings

  • The amount of R&D performed by business rose from more than $202 billion in 2001 to about $294 billion in 2011, an increase of 46%.
  • The value of this indicator for the United States remained virtually unchanged between 2001
    and 2011.
  • Business-performed R&D as a share of private industry output varied greatly among states in 2011, ranging from 0.14 to 4.78.
  • Business R&D was concentrated in a few states—only 12 states had indicator values that exceeded the national average in 2011.


Description

This indicator represents the role of R&D in a state’s business activity. The business sector is the largest performer of U.S. R&D. It accounts for more than half of all U.S. applied research funding and a significant portion, over 80%, of all development funding. A high value for this indicator means that the businesses within a state are making a large investment in their R&D activities.

The methodology for data collection, assignment to individual states, and developing estimates of R&D spending has changed during the last decade as the transition was made from the Survey of Industrial R&D to the Business R&D and Innovation Survey. Estimates from the two surveys are consistent. Estimates for states with smaller economies are generally less precise than those for states with larger economies.

Private-industry output is the portion of state gross domestic product contributed by state businesses.


Data Table

 
Table 8-46
Business-performed domestic R&D as a percentage of private-industry output, by state: 2001, 2006, and 2011
 
Business-performed
domestic R&D ($millions)
Private-industry
output ($millions)
Business-performed
domestic R&D/private-industry
output (%)
State 2001 2006 2011 2001 2006 2011 2001 2006 2011
 
United States 202,017 247,669 294,093 9,010,778 11,709,405 13,081,829 2.24 2.12 2.25
Alabama 905 1,835 1,879 101,748 134,131 148,510 0.89 1.37 1.27
Alaska 68 49e 84e 22,208 34,059 41,756 0.31 0.14 0.20
Arizona 2,707 3,590 4,931 148,971 215,927 222,442 1.82 1.66 2.22
Arkansas 254e 285 344 62,027 80,964 91,227 0.41 0.35 0.38
California 44,628 58,424 75,035 1,190,581 1,603,109 1,687,543 3.75 3.64 4.45
Colorado 3,082 4,657 4,310 160,347 202,993 230,650 1.92 2.29 1.87
Connecticut 4,686 8,273 7,504 152,898 190,578 204,211 3.06 4.34 3.67
Delaware 1,232 1,446 2,097 40,005 51,333 58,313 3.08 2.82 3.60
District of Columbia 242 276 415 41,378 57,397 69,787 0.58 0.48 0.59
Florida 3,755 4,139 5,988 445,856 654,411 650,652 0.84 0.63 0.92
Georgia 1,912 2,786 3,839 267,990 330,692 358,180 0.71 0.84 1.07
Hawaii 93 155 252 33,397 47,688 52,975 0.28 0.33 0.48
Idaho 884 625 1,171 31,084 43,450 49,304 2.84 1.44 2.38
Illinois 8,232 10,765 12,038 440,581 544,055 601,979 1.87 1.98 2.00
Indiana 3,583 4,858 6,158 180,282 220,584 256,124 1.99 2.20 2.40
Iowa 817 1,055 2,314 83,002 109,971 129,407 0.98 0.96 1.79
Kansas 1,299i 2,064i 1,509 77,240 95,821 114,751 1.68 2.15 1.32
Kentucky 636 839 1,278 100,203 124,402 140,036 0.63 0.67 0.91
Louisiana 316e 367 459 120,435 182,648 211,357 0.26 0.20 0.22
Maine 249 253 295 32,916 41,042 45,163 0.76 0.62 0.65
Maryland 3,682 3,421 5,101 162,500 215,095 248,615 2.27 1.59 2.05
Massachusetts 11,756 15,562 15,722 257,702 307,528 352,398 4.56 5.06 4.46
Michigan 14,283 16,477 13,660 301,664 333,606 339,886 4.73 4.94 4.02
Minnesota 4,355 6,296 6,174 173,971 219,748 251,930 2.50 2.87 2.45
Mississippi 219e 231 235 56,068 71,207 79,490 0.39 0.32 0.30
Missouri 1,792 2,675 NA 163,803 196,615 217,573 1.09 1.36 NA
Montana 70e 103i 136 19,184 27,064 32,709 0.36 0.38 0.42
Nebraska 306 447 636 51,532 66,099 83,460 0.59 0.68 0.76
Nevada 290 535 638 71,072 112,123 115,577 0.41 0.48 0.55
New Hampshire 1,339 1,774i 2,069 40,680 50,826 56,693 3.29 3.49 3.65
New Jersey 10,164 14,606 13,930 329,143 408,330 439,353 3.09 3.58 3.17
New Mexico 231 676 472 41,609 57,760 64,097 0.56 1.17 0.74
New York 10,884 9,518 12,072 726,643 923,574 1,045,302 1.50 1.03 1.15
North Carolina 4,437 5,486 6,193 256,039 328,722 371,955 1.73 1.67 1.66
North Dakota 347 120 261 16,005 21,956 34,991 2.17 0.55 0.75
Ohio 6,694 6,852 6,993 341,402 403,379 434,407 1.96 1.70 1.61
Oklahoma 543e 474 604 80,579 109,859 129,709 0.67 0.43 0.47
Oregon 2,677 3,419 4,631 97,526 141,073 166,817 2.74 2.42 2.78
Pennsylvania 8,967 9,819 9,718 367,480 457,197 524,349 2.44 2.15 1.85
Rhode Island 1,134i 1,330i 542 31,263 40,777 42,800 3.63 3.26 1.27
South Carolina 921 1,396 1,399 101,790 124,815 139,836 0.90 1.12 1.00
South Dakota 87e 95 136 21,906 28,132 36,560 0.40 0.34 0.37
Tennessee 1,503 1,428 1,434 163,834 208,571 232,226 0.92 0.68 0.62
Texas 9,839 13,334 15,309 677,945 940,631 1,174,548 1.45 1.42 1.30
Utah 1,173 1,274 2,438 62,231 86,675 108,306 1.88 1.47 2.25
Vermont 339 360 374i 16,466 20,432 22,821 2.06 1.76 1.64
Virginia 2,957 4,816 5,562 232,954 308,886 353,751 1.27 1.56 1.57
Washington 8,933i 11,320 14,558 199,011 257,173 304,420 4.49 4.40 4.78
West Virginia 211 221 247 35,755 44,991 54,212 0.59 0.49 0.46
Wisconsin 2,469i 3,020 4,053 163,999 204,541 225,709 1.51 1.48 1.80
Wyoming 28e 27e 46e 15,873 26,765 32,962 0.18 0.10 0.14
 
Puerto Rico NA NA NA NA NA NA NA NA NA
 

e = estimated; more than 50% of value is imputed due to raking of state data. i = more than 50% of value is imputed. NA = not available.

NOTE: The national totals for business-performed R&D in the United States, from the National Science Foundation/National Center for Science and
Engineering Statistics, and Census Bureau Business R&D and Innovation Survey, include undistributed business performed R&D and states with suppressed data.

SOURCES: National Science Foundation, National Center for Science and Engineering Statistics, Survey of Industrial Research and Development (various years) and Business R&D and Innovation Survey; Bureau of Economic Analysis, Gross Domestic Product data (June 2013).

Science and Engineering Indicators 2014


State Data Tool

The state data tool allows interactive exploration of the 58 indicators in this chapter. Users have the ability to choose and explore a single indicator in-depth, compare multiple indicators for preselected groups, customize their own graphics, or download data tables. Click the button below to get started.

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