Tag Archives: R&D

Global R&D to Grow 3.6% – China well ahead

The global R&D outlook for 2011 is increasingly stable and positive, according to analysis performed by Battelle Memorial Institute and R&D Magazine. Having endured one of the worst recessionary periods in recent memory, R&D managers are adapting to expectations of moderate sustainable growth while competing on a global scale for market share and resources. Reflecting recent trends, prospects for R&D funding vary by region, with the United States (U.S.) expecting R&D growth to track GDP growth, Europe contemplating fiscal austerity that may restrict investment for several years, and most Asian countries maintaining strong financial commitments to R&D.

Total global spending on R&D is anticipated to increase 3.6%, to almost $1.2 trillion. With Asia’s stake continuing to increase, the geographic distribution of this investment will continue a shift begun more than five years ago. The U.S., however, still dominates absolute spending at a level well above its share of global GDP.

During the recession, the Asian R&D communities generally, and China specifically, increased their R&D investment and stature. As a Reuters headline noted, “While the world slashed R&D in a crisis, China innovated”. China entered the recession with a decade of strong economic growth. During that time, it increased R&D spending roughly 10% each year—a pace the country maintained during the 2008-2009 recession. This sustained commitment set China apart from many other nations.

In the U.S., a recession-related drop in industrial R&D spending in 2009 is expected to be recovered by increases in 2010 and 2011 at levels exceeding the rate of inflation.

Among the global research communities, the state of R&D in the European Union (EU) is the most concerning. Challenged by weak economies in Greece, Spain, and Ireland, Europe is struggling to recover from the recession and to cut deficits, which in turn affects government support of R&D.

Read the full report here.

Leave a comment

Filed under Globalization, Innovation

New Survey on Innovation from National Science Foundation

Companies located in the United States reported worldwide sales of $11 trillion in calendar year 2008 and spent $330 billion on research and development (R&D). Nearly $234 billion of the R&D expense was for R&D conducted in company facilities located in the United States. This is according to new figures from the National Science Foundation’s first ever Business R&D and Innovation Survey (BRDIS) developed jointly with the U.S. Census Bureau.

The new survey results from a 2004 recommendation to redesign NSF’s previous industry R&D audit instrument called the Survey of Industrial Research and Development. The National Academies’ Committee on National Statistics made the recommendation to cope with dramatic, fast-moving changes in the way R&D has been conducted during the last 50 years.

Conducted as a full-scale pilot, the BRDIS replaces the previous survey, which had been carried out every year since 1953. “Our world has changed a lot since 1953 and so has the way R&D is conducted,” said Arden Bement, director of the National Science Foundation. “This new survey addresses those changes.”

According to initial BRDIS survey results, companies with R&D activity reported that 68 percent of their worldwide sales came from domestic business operations. The pharmaceuticals and medicines industry reported that 67 percent of their worldwide sales came from domestic operations.

Other industries reported similarly high domestic-to-worldwide sales ratios. Data from scientific R&D services industries revealed that 85 percent of their sales came from domestic operations; computer system design and related services reported 79 percent; aerospace products and parts reported 74 percent; motor vehicles, trailers, and parts reported 62 percent; software publishers reported 58 percent and semiconductor and electronic components reported 53 percent.

In other statistics on sales, BRDIS survey results found that worldwide R&D expense and worldwide R&D costs funded by companies with 5-499 employees accounted for $1 trillion of the total worldwide sales. These companies had worldwide R&D expenses of $64 billion, or 19 percent, of the total expenses for R&D worldwide. Small businesses also performed $63 billion worth of business R&D in the United States and $5 billion abroad. They paid others $11 billion to perform R&D.

The data was taken from a representative sample of about 40,000 U.S.-owned businesses and U.S. affiliates of majority-owning companies located outside the United States that are carrying out research and development activities. Surveys were mailed to companies in January 2009.

Data from the survey can be found on NSF’s website. These data are preliminary; final statistics from the pilot will be available in early 2011. Two additional reports scheduled for release in 2010 will present preliminary 2008 statistics on worldwide and domestic employment, including R&D employment and innovation, respectively.

Leave a comment

Filed under Innovation