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

State Indicator S-45

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. The overwhelming majority of business R&D performance is self-funded. A high value for this indicator indicates that the businesses within a state are making a large investment in their R&D activities in that state. Values for this indicator vary greatly across the nation, and business-performed R&D is often concentrated in a handful of states.

The methodology for data collection, assignment to individual states, and developing estimates of R&D funding and performance has changed during the last decade as the transition was made from the National Center for Science and Engineering Statistics’ Survey of Industrial R&D to the Business R&D and Innovation Survey. The U.S. total for industrial R&D spending is consistent between these two surveys. 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 for private-industry output come from the Bureau of Economic Analysis.

Data sources: National Science Foundation, National Center for Science and Engineering Statistics, Survey of Industrial Research and Development and Business R&D and Innovation Survey; U.S. Bureau of Economic Analysis, Gross Domestic Product data.

  • 1st Quartile

    2.32%4.94%
  • 2nd Quartile

    1.2%2.19%
  • 3rd Quartile

    0.56%1.2%
  • 4th Quartile

    0.15%0.53%
  • No data

Footnote

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

NOTES: The national total for business-performed R&D in the United States includes undistributed business-performed R&D and states with suppressed data. Please see source for information on estimation techniques; The national private industry output value for the United States does not include territories.

SOURCE: National Science Foundation, National Center for Science and Engineering Statistics, Survey of Industrial Research and Development and Business R&D and Innovation Survey (various years), data as of July 2017; U.S. Bureau of Economic Analysis, Gross Domestic Product data (various years), data as of May 2017.

Recommended Citation: National Science Board. 2018. “Business-Performed R&D as a Percentage of Private-Industry Output.” Science and Engineering Indicators 2018, State Indicators. Alexandria, VA: National Science Foundation (NSB-2018-1). https://www.nsf.gov/statistics/state-indicators/indicator/business-performed-rd-to-private-industry-output

Last updated: January 18, 2018