"Expenditures for U.S. Industrial R&D Continue to Increase in 2005; R&D Performance Geographically Concentrated"

Read the full InfoBrief from the National Science Foundation.

Points that caught my attention:

• Companies spent $226 billion in current-year dollars on research and development (R&D) performed in the United States during 2005 compared with $208 billion in 2004.
• During 2005, the top 10 states accounted for two-thirds of the industrial R&D performed in the United States. Companies in California, Michigan, Massachusetts, New Jersey, Texas, Washington, Illinois, New York, Pennsylvania, and Connecticut (listed by decreasing level) reported aggregate R&D expenditures of $152 billion.
• The types of companies that carry out R&D vary considerably among the top 10 states, reflecting regional specialization or clusters of industrial activity. For example, the motor vehicles industry accounted for 74% of Michigan's industrial R&D in 2005, whereas it accounted for only 5% of the nation's total industrial R&D.
• The computer and electronic products manufacturing industries accounted for 19% of the nation's total industrial R&D, but they accounted for a larger share of the industrial R&D in Massachusetts (41%), Texas (38%), Illinois (38%), and California (33%) in 2005. These states have clearly defined regional centers of high-technology research and manufacturing: Route 128 and Cambridge in Massachusetts; the Silicon Hills of Austin, Texas; Champaign County in Illinois; and Silicon Valley in California. Over 70% of R&D performed in the United States by computer and electronic products companies in 2005 was located in these four states, representing 14% of all industrial R&D nationwide.
• The R&D of chemicals manufacturing companies is particularly prominent in New Jersey, Pennsylvania, and Connecticut, all of which host robust pharmaceutical and chemical industries. Together these three states represented over 40% of the nation's R&D in this sector in 2005.
• The R&D services sector is even more concentrated geographically, with California and Massachusetts accounting for over 40% of R&D in this sector. This sector consists largely of biotechnology companies, contract research organizations, and early-stage technology firms. These companies maintain strong ties to the academic sector and often are located near large research universities.