[Image above] New data from the National Science Foundation shows that the $239 billion of R&D performed by U.S. businesses is highly concentrated by state and metropolitan area. Credit: Tax Credits; Flickr CC BY 2.0
Work in R&D in the private sector and looking for a change of scenery?
If so, you might want to head to California, Washington, Texas, Massachusetts, or Michigan.
Those five U.S. states equated for half of all the research and development paid for and performed by companies in 2011, according to new data from the National Science Foundation.
The foundation’s National Center for Science and Engineering Statistics 2011 Business R&D Survey (BRDIS) gives insights into worldwide R&D, but also lets us know how industry is investing in research and development here at home.
The survey shows that overall, in 2011, U.S. businesses devoted $239 billion of their own expenses to R&D—$233 billion of which was spent in the 50 states and the District of Columbia.
It further finds that business R&D is highly concentrated by state and metropolitan region. The 10 states with the highest levels of R&D performance account for 70 percent—or $163 billion—of the $233 billion spent in the U.S.
Credit: NSF
The largest expenses came from the San Jose-San Francisco-Oakland, Seattle-Tacoma-Olympia, and Los Angeles-Long Beach combined statistical areas. Companies from the San Jose-San Francisco-Oakland and Seattle-Tacoma-Olympia regions are often focused on computer and electronic products, and information technology and aerospace, respectively, while companies in the Los Angeles-Long Beach area, where many large R&D firms are located, perform research and development that spans all industries.
Here’s how the top 10 business R&D-performing states break down:
California
Business R&D performed: $64.1 million (28 percent of all business R&D in the U.S.)
Largest industry: Semiconductor and other electronic components
Washington
Business R&D performed: $13.7 million
Largest industry: Software publishers
Texas
Business R&D performed: $12.9 million
Largest industry: Semiconductor and other electronic components
Massachusetts
Business R&D performed: $12.7 million
Largest industry: Pharmaceuticals and medicines
Michigan
Business R&D performed: $12.2 million
Largest industry: Automobiles, bodies, trailers, and parts
New Jersey
Business R&D performed: $12 million
Largest industry: Pharmaceuticals and medicines
Illinois
Business R&D performed: $10.8 million
Largest industry: Pharmaceuticals and medicines
New York
Business R&D performed: $9.1 million
Largest industry: Software publishers
Pennsylvania
Business R&D performed: $9 million
Largest industry: Pharmaceuticals and medicines
Connecticut
Business R&D performed: $6.3 million
Largest industry: Pharmaceuticals and medicines
These figures do not include business R&D that is performed by—but not paid for—the company itself.
R&D paid by others (customers, partners, grant-givers) also is concentrated by geographic region. The BRDIS stats show that $31 billion of federally-funded R&D was performed in 2011, and $24 billion is allocated to a particular state through the survey.
The five largest states—California, New York, Virginia, Florida, and Maryland—equate to 60 percent of all government-funded R&D in the U.S.
To read the report in full, or to dig deeper into the R&D data, click here.
