U.S. Corporate R&D Investment, 1994 – 1999 with Advance Estimates for 2000

Published by The Office of Technology Policy 

 October 15, 2001

Despite a slowing economy, public corporations headquartered in the U.S. almost doubled 

the growth rate of their investment in research and development (R&D) in 20001

. 

According to advance estimates from the Office of Technology Policy’s U.S. Corporate 

R&D data series, R&D investment rose sharply by 9.3 percent in inflation-adjusted terms,2

increasing from $145.6 billion in 1999 to an estimated $162.7 billion in 2000.3 The 

increase reverses a 5-year trend of slowing annual percentage increases in corporate R&D 

investment, and approaches the recent high of a 10.2 percent annual increase set in 1995. 

Data Background 

The U.S. Corporate R&D data series is derived, in part, from Standard and Poor's

Compustat database, which in turn is based on financial statements filed with the Securities 

and Exchange Commission (SEC). Compustat includes 10,000 actively-traded U.S. 

corporations (and 11,000 no longer active corporations) of which approximately one-third 

report R&D in a given year. Based on analysis of SEC filings and other sources, the Office 

of Technology Policy (OTP) substantially adjusts raw Compustat data to remove R&D 

double counts and write-offs of “acquired in-process R&D”4

 that are largely associated 

with firm acquisitions and mergers. 

To more accurately depict levels of corporate R&D, this is the first OTP report to be based 

on the North American Industry Classification System (NAICS) rather than the decades-old 

Standard Industrial Classification (SIC). The U.S. Corporate R&D data series now includes 

nine “major sectors” that conduct R&D, which are subdivided into 63 “detailed” sectors. 

This advance estimate brief includes data for all nine major sectors, and for certain selected 

industries within three of these sectors. Future updates will include all 63 detailed 

industries. A final report to be published in 2002 will finalize 2000 estimates and will 

include additional economic indicators such as sales, capital expenditures, and 

employment. 

U.S. Corporate R&D data has a number of characteristics and limitations that should be 

considered in using the data and in comparing it to data available from other sources such 

as the National Science Foundation. For example, these data represent the total R&D 

conducted by U.S.-headquartered corporations in the United States and abroad. Therefore, 

these data do not represent total R&D performed only in the United States by both U.S. and 

foreign corporations. Year to year changes in total R&D in U.S. Corporate R&D tables 

will be lowered by foreign acquisitions of U.S. corporations doing R&D here and abroad 

and will be raised when U.S. corporations acquire foreign-owned businesses engaged in 

R&D. This report does not include estimates of the effects of such acquisition activity. 

Please refer to this footnote5 for a more complete understanding of U.S. Corporate R&D

data series characteristics and comparisons to NSF’s Division of Science Resources Statistics

(SRS) data series, which is based on data collected by the Bureau of Census. 
Year 2000 Highlights 

While the year 2000 increase in corporate R&D investment suggests a growing belief by 

many firms in the importance of technology competitiveness, the nine major sectors have 

significantly divergent R&D investment patterns (see attached figures and tables). 

• Information and electronics manufacture and services (I&E), a sector that 

accounts for more than two-thirds of total corporate R&D growth, doubled its 

R&D growth rate in 2000. The largest R&D-investing sector, I&E invested $76.8 

billion in 2000, an annual increase of 16.3 percent. Within this sector (see figure 

8 and table 4): 

o Software publishers is the largest industry in terms of R&D investment at 

$15.5 billion in current dollars with a year 2000 annual increase of 20.8 

percent over 1999.

o The next two largest industries, which include semiconductor and 

computer peripheral equipment manufacture, are also important drivers of 

I&E sector R&D in 2000, experiencing 31.7 and 22.1 percent growth 

respectively. (Caution should be exercised in considering industry data in 

this and other highly turbulent sectors since some industry R&D annual 

percentage changes between 1994 and 2000 are due in part or substantially 

to acquisitions that reclassify certain R&D amounts from one industry to 

another.6

)

o Reaching $1.9 billion in 2000, R&D in the on-line information services

industry grew 88.5 percent over the 1999 level. This trend continues 

strong growth rates of between 39.5 and 76.1 percent from 1995 through 

1999.

• The second largest R&D sector, medical substances and devices increased its 

investment by 4.8 percent to $32.2 billion in 2000. This rate of growth is lower 

than the previous two years, reflecting a considerable decline from the 1998 level 

of 10.8 percent. As figure 8 and table 4 show, the medical substances portion of 

this sector is substantially larger and faster growing than is the medical devices 

portion. 

• With R&D investment reaching $9.0 billion in 2000, the chemical manufacture

sector grew 6.3 percent, continuing a 3-year trend of improving growth rates. 

• For the second consecutive year, the surface transport equipment manufacture

sector maintained a positive, but modest R&D growth rate in 2000 at 1.1 percent, 

avoiding the declines of 1997 and 1998. Firms in this sector invested $19.6 

billion in 2000. 
• For the third year in a row R&D investment by the basic industries and materials

sector declined. The sector’s $7.5 billion investment in 2000 represents a 6.0 

annual percent decline from the 1999 level. 

• Similarly, for the second consecutive year, aerospace R&D investment declined. 

The sector’s $4.7 billion investment in 2000 represents a 5.5 annual percent 

decline. 

• The smallest sector, various services, was the fastest growing sector for R&D 

investment during the past three years. In 2000 it experienced a 32.4 percent 

annual growth rate, increasing to $2.8 billion. As figure 8 and table 4 show, the 

sub-sector electronic shopping reported very significant R&D growth over the 

past 5 years. 

• R&D investment by the sector unclassifiable and conglomerates, which is 

dominated by two large R&D-intensive firms, increased by 11.1 percent in 2000 

to $3.7 billion. 

1994-2000 Highlights

• As shown in figure 5, the I&E sector invested nearly half of all U.S. corporate 

R&D in 2000, up from a little more than a third in 1994. Three other major 

sectors increased their share of corporate R&D: medical substances and devices, 

machinery manufacture, and various services. The remaining five sectors lost 

shares, particularly basic industries and materials, which lost nearly half its share. 

• As shown in figure 6 and table 3, after rising to a peak of more than 3,600 in 

1998, the estimated number of R&D-investing corporations declined to just above 

3000, not too far above the number registered in 1994. Not surprisingly, this 

recent falloff is concentrated in the turbulent I&E sector, which experienced large 

numbers of firm acquisitions and closings within the past two years. The 2000 

firm count for medical substances and devices is also down significantly in 2000. 

When the data is finalized, the 2000 firm count may increase somewhat. 

• Interestingly, the previously very high overall R&D annual increase of 10.2 

percent in 1995 is associated with considerable growth in the number of R&Dinvesting corporations, whereas the strong 2000 R&D growth rate of 9.3 percent 

is accompanied by an estimated decline in the number of such corporations. It is 

unclear to what extent the 2000 R&D increase is due to the acquisition of any 

private or foreign firms that would not have been included in the 1999 R&D total. 

 

1

 Year 2000 data includes R&D reported by corporations with fiscal years ending between June 1, 2000 and 

May 31, 2001. The majority of corporations reported in December of 2000. 

2

 All annual percent changes are expressed in 1996 dollars that are adjusted for inflation. 1996 dollars are 

calculated using the "implicit price deflator" published August 29, 2001 by the U.S. Department of 

Commerce, Bureau of Economic Analysis. 

3

 All dollar amounts are expressed in current, or “nominal” dollars that are not adjusted for inflation. 
 4

 In reviewing this data and comparing it to R&D data available from other sources it is important to take 

into account that the U.S. Corporate R&D data series excludes billions of dollars of acquired in-process 

R&D (IPR&D) write-offs that are reported by Compustat for numerous corporations. According to 

generally accepted accounting practices, corporations can write-off IPR&D when they acquire another 

company. However, current Compustat “standardization” practice usually combines corporate internal 

R&D expenditures with write-offs of acquired IPR&D and reports these as a single R&D expense. This 

practice mixes together IPR&D write-offs, which are estimates of future value, with real-time R&D 

expenses, which are current expenditures. Reported IPR&D valuation often significantly exceeds the 

amount an acquired firm previously spent on R&D. As a consequence, users of Compustat -derived data 

may draw inaccurate conclusions regarding the R&D activity of certain companies. To avoid this problem 

these IPR&D amounts are excluded to ensure aggregate corporate R&D investment amounts are not 

overstated. While Compustat provides certain supplemental data on IPR&D write-offs that are helpful, the 

coverage is incomplete. 

5

 The following is a list of some U.S. Corporate R&D data series structural characteristics and differences 

between it and NSF’s SRS data series: 

• U.S. Corporate R&D includes only publicly held firms, whereas the SRS data series includes both 

publicly and privately held firms. 

• U.S. R&D-investing firms that switch from private to public ownership enter the U.S. Corporate 

R&D data series. Conversely publicly held firms that revert to private ownership exit the data 

series. Switches in ownership status do not influence the SRS data series. 

• In contrast to the SRS data series, U.S. Corporate R&D generally attributes R&D investment to 

the firm that is the source of the R&D funds, not the performer of the R&D (i.e., not contractors). 

This fact, for example, explains why the SRS data series attributes a much larger amount of R&D 

performance to R&D service firms than does U.S. Corporate R&D. 

• U.S. Corporate R&D includes U.S. firm R&D conducted abroad, while the SRS data series 

excludes it. 

• U.S. Corporate R&D excludes R&D conducted in the United States by firms headquartered 

outside the United States, whereas the SRS data series includes such R&D. 

• The R&D investments of foreign firms that are acquired by U.S.-headquartered firms may be 

added to the U.S. Corporate R&D total. Conversely, U.S.-headquartered firms that are acquired by 

foreign-headquartered firms are no longer included in the data series after the date of acquisition. 

The SRS data series is unaffected by change in national affiliation of a given firm or subsidiary 

conducting R&D in the United States. 

• U.S. Corporate R&D does not include the R&D expenditures of banks, utilities, and property and 

casualty companies, while the SRS data series includes the R&D of such companies. 6

 This subject will be discussed in a later update. 
*Data represent publicly-held R&D-investing corporations that are headquartered in the United States.

Figure 1. Corporate R&D investment total and by major sectors,* 1994-1999 and 2000 estimated, billions 

of current dollars

SOURCE: Standard & Poor's Compustat, Englewood, CO and corporate financial statements submitted to the 

Securities and Exchange Commission.

0 10 20 30 40 50 60 70 80

Various services

Unclassifiable &

conglomerates

Surface transport equipment

manufacture

Medical substances &

devices

Machinery manufacture

Information & electronics

manufacture & services

Chemical manufacture

Basic industries & materials

Aerospace

Billions of current dollars

2000 est.

1999

1997

1994

Corporate R&D Total

70

80

90

100

110

120

130

140

150

160

170

1994 1995 1996 1997 1998 1999 2000

Billions of current dollars
*Data represent publicly-held R&D-investing corporations that are headquartered in the United States.

Figure 2. Annual percent change in corporate R&D investment by total and four largest major sectors,* 

1994-1999 and 2000 estimated, 1996 dollars^

SOURCE: Standard & Poor's Compustat, Englewood, CO and corporate financial statements submitted to the 

Securities and Exchange Commission.

^1996 dollars are calculated using the "implicit price deflator" published August 29, 2001 by the U.S. Department 

of Commerce, Bureau of Economic Analysis.

-10%

-5%

0%

5%

10%

15%

20%

1995 1996 1997 1998 1999 2000 est.

Annual percent change

Chemical manufacture

Information & electronics

manufacture & services

Medical substances &

devices

Surface transport equipment

manufacture

Total Industry
*Data represent publicly-held R&D-investing corporations that are headquartered in the United States.

Figure 3. Annual percent change in corporate R&D investment by five smaller major sectors,* 1994-1999 

and 2000 estimated, 1996 dollars^

SOURCE: Standard & Poor's Compustat, Englewood, CO and corporate financial statements submitted to the 

Securities and Exchange Commission.

^1996 dollars are calculated using the "implicit price deflator" published August 29, 2001 by the U.S. Department 

of Commerce, Bureau of Economic Analysis.

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

1995 1996 1997 1998 1999 2000 est.

Annual percent change

Aerospace

Basic industries &

materials

Machinery manufacture

Unclassifiable &

conglomerates

Various services
*Data represent publicly-held R&D-investing corporations that are headquartered in the United States.

Figure 4. Three-year average annual parcent change in corporate R&D investment by major sectors,* 

1994-1999 and 2000 estimated, 1996 dollars^

SOURCE: Standard & Poor's Compustat, Englewood, CO and corporate financial statements submitted to the 

Securities and Exchange Commission.

^1996 dollars are calculated using the "implicit price deflator" published August 29, 2001 by the U.S. Department 

of Commerce, Bureau of Economic Analysis.

8.4%

14.0%

2.2%

4.9%

11.4%

16.1%

12.1%

-1.8%

1.4%

1.6%

6.9%

28.6%

2.7%

0.0%

8.0%

4.0%

11.4%

3.6%

-5.4%

-2.5%

-10% -5% 0% 5% 10% 15% 20% 25% 30%

TOTAL, all sectors

Various services

Unclassifiable &

conglomerates

Surface transport

equipment manufacture

Medical substances &

devices

Machinery manufacture

Information & electronics

manufacture & services

Chemical manufacture

Basic industries &

materials

Aircraft, guided missiles &

space vehicles

Three-year average annual percent change

1997-2000

1994-1997
*Data represent publicly-held R&D-investing corporations that are headquartered in the United States.

Figure 5. Share of total corporate R&D investment by major sectors,* 1994 and 2000 estimated, billions 

of current dollars

States.SOURCE: Standard & Poor's Compustat, Englewood, CO and corporate financial statements submitted to 

the Securities and Exchange Commission.

1994, Total industry R&D $93.768 billion

Aerospace

4.6%

Unclassifiable & 

conglomerates

3.1%

Medical substances & 

devices

17.7%

Machinery manufacture

3.5%

Basic industries & 

materials

8.2%

Chemical manufacture

8.2%

Information & electronics 

manufacture & services

37.7%

Various services

0.9%

Surface transport 

equipment manufacture

16.2%

2000 Estimate, total industry R&D $162.722

 billion

Medical substances & 

devices

19.8%

Machinery manufacture

4.0%

Aerospace

2.9%

Unclassifiable & 

conglomerates

2.3% Basic industries & 

materials

4.6%

Chemical manufacture

5.5%

Information & electronics 

manufacture & services

47.2%

Surface transport 

equipment manufacture

12.0%

Various services

1.7%
*Data applies to publicly-held R&D-investing corporations that are headquartered in the United States.

Figure 6. Number of corporations reporting R&D~ by major sectors,* 1994-1999 and 2000 estimated

SOURCE: Standard & Poor's Compustat, Englewood, CO and corporate financial statements submitted to the 

Securities and Exchange Commission.

~For any given year, the firm count includes extant firms that report $0 R&D if such firms report an R&D amount that is 

greater than $0 R&D in at least one year during the 1994-2000 time period.

Various services

Unclassifiable & 

conglomerates

Surface transport 

equipment manufacture

Medical substances & 

devices

Machinery manufacture

Information & electronics 

manufacture & services

Chemical manufacture

Basic industries & 

materials

Aerospace

0

250

500

750

1,000

1,250

1,500

1,750

2,000

2,250

2,500

2,750

3,000

3,250

3,500

3,750

1994 1995 1996 1997 1998 1999 2000 est.

Number of corporations
*Data represent publicly-held R&D-investing corporations that are headquartered in the United States.

Figure 7. Average and median corporation R&D investment by major sectors,* 1994 and 2000 

estimated, millions of 1996 dollars^

SOURCE: Standard & Poor's Compustat, Englewood, CO and corporate financial statements submitted to the 

Securities and Exchange Commission.

^1996 dollars are calculated using the "implicit price deflator" published August 29, 2001 by the U.S. Department 

of Commerce, Bureau of Economic Analysis.

Average firm R&D

33.6

3.9

198.1

33.4

13.5

29.7

59.4

18.9

224.9

50.1

10.3

29.9

47.3

74.3

21.9

257.2

299.7

56.4

0 50 100 150 200 250 300

TOTAL, all sectors

Various services

Surface transport

equipment

manufacture

Medical substances

& devices

Machinery

manufacture

Information &

electronics

manufacture &

services

Chemical

manufacture

Basic industries &

materials

Aerospace

Millions of 1996 dollars

2000

1994

Median firm R&D

3.1

0.6

3.5

3.7

2.7

3.3

6.9

2.4

16.4

6.3

2.8

6.3

6.0

5.4

7.8

11.2

3.9

20.7

0 5 10 15 20 25

Millions of 1996 dollars

2000

1994
*Data represent publicly-held R&D-investing corporations that are headquartered in the United States.

Figure 8. Corporate R&D investment by selected industries and subsectors of three major sectors,* 

1995-1999, 2000 estimated, billions of current dollars

SOURCE: Standard & Poor's Compustat, Englewood, CO and corporate financial statements submitted to the 

Securities and Exchange Commission.

17.5

26.7

28.7

0 2 4 6 8 10 12 14 16

Wholesale trade

Electronic shopping and mail-order

Professional, scientific, and technical services except

computer

Medical devices

Medical substances

Data processing and miscel. info. services

Broadcasting and telecommunications

Other electronic components manufacture

Instrument manufacture for laboratory analysis

Instrument manufacture for other measure and control

functions

On-line information services

Instrument manufacture for electrical analysis

Electrical equip., appliance and component manufacture

Computer storage device manufacture

Electronic computer manufacture

Computer systems design and related services

Telephone apparatus manufacture

Radio, TV broadcasting and wireless commun. equip.

manufacture

Computer peripheral equip. and terminal manufacture

Semiconductor and related device manufacture

Software publishers

Billions of current dollars

2000 est.

1999

1995

Information & electronics 

manufacture & services

Medical substances & devices

Various services
1994 1995 1996 1997 1998 1999 2000

Aerospace 4.319 3.948 4.383 4.803 4.972 4.839 4.679

Basic industries & materials 7.663 7.804 8.162 8.477 8.477 7.838 7.537

Chemical manufacture 7.645 7.569 7.750 7.696 7.924 8.265 8.988

Information & electronics manufacture & services 35.382 40.188 45.065 52.942 59.080 64.590 76.814

Machinery manufacture 3.279 4.045 4.851 5.448 6.152 5.763 6.438

Medical substances & devices 16.599 20.102 22.481 24.370 27.336 30.054 32.203

Surface transport equipment manufacture 15.216 18.230 19.376 18.628 18.420 18.924 19.558

Unclassifiable & conglomerates 2.861 2.836 3.136 3.245 3.071 3.245 3.686

Various services 0.804 0.901 1.091 1.263 1.588 2.082 2.819

 Total 93.768 105.623 116.295 126.872 137.019 145.600 162.722

1994 1995 1996 1997 1998 1999 2000

Aerospace 4.498 4.024 4.383 4.713 4.819 4.625 4.373

Basic industries & materials 7.981 7.954 8.162 8.317 8.217 7.492 7.045

Chemical manufacture 7.962 7.715 7.750 7.550 7.681 7.900 8.401

Information & electronics manufacture & services 36.849 40.962 45.065 51.939 57.264 61.738 71.795

Machinery manufacture 3.414 4.123 4.851 5.344 5.963 5.509 6.018

Medical substances & devices 17.287 20.490 22.481 23.909 26.496 28.727 30.099

Surface transport equipment manufacture 15.847 18.581 19.376 18.275 17.854 18.088 18.280

Unclassifiable & conglomerates 2.980 2.891 3.136 3.184 2.977 3.102 3.445

Various services 0.837 0.919 1.091 1.239 1.539 1.990 2.635

 Total 97.654 107.657 116.295 124.470 132.809 139.170 152.091

1995 1996 1997 1998 1999 2000

Aerospace -10.5% 8.9% 7.5% 2.3% -4.0% -5.5%

Basic industries & materials -0.3% 2.6% 1.9% -1.2% -8.8% -6.0%

Chemical manufacture -3.1% 0.5% -2.6% 1.7% 2.9% 6.3%

Information & electronics manufacture & services 11.2% 10.0% 15.3% 10.3% 7.8% 16.3%

Machinery manufacture 20.8% 17.6% 10.2% 11.6% -7.6% 9.2%

Medical substances & devices 18.5% 9.7% 6.3% 10.8% 8.4% 4.8%

Surface transport equipment manufacture 17.3% 4.3% -5.7% -2.3% 1.3% 1.1%

Unclassifiable & conglomerates -3.0% 8.5% 1.5% -6.5% 4.2% 11.1%

Various services 9.8% 18.7% 13.6% 24.2% 29.3% 32.4%

 Total 10.2% 8.0% 7.0% 6.7% 4.8% 9.3%

*Data represent publicly-held R&D-investing corporations that are headquartered in the United States.

SOURCE: Standard & Poor's Compustat, Englewood, CO and corporate financial statements submitted to the U.S. Securities and 

Exchange Commission.

^1996 dollars are calculated using the "implicit price deflator" published August 29, 2001 by the U.S. Department of Commerce, 

Bureau of Economic Analysis.

Table 1. Corporate R&D investment by major industrial sectors,* 1994-1999, 2000 estimated

Billions of 1996 dollars^ Major Sectors

Major Sectors Annual percent change, 1996 dollars^

R&D investment

Major sectors Billions of current dollars












































































































































































































































































































































































































Six-year 

average

1994-1997 1997-2000 1994-2000

Aerospace 1.6% -2.5% -0.5%

Basic industries & materials 1.4% -5.4% -2.1%

Chemical manufacture -1.8% 3.6% 0.9%

Information & electronics manufacture & services 12.1% 11.4% 11.8%

Machinery manufacture 16.1% 4.0% 9.9%

Medical substances & devices 11.4% 8.0% 9.7%

Surface transport equipment manufacture 4.9% 0.0% 2.4%

Unclassifiable & conglomerates 2.2% 2.7% 2.4%

Various services 14.0% 28.6% 21.1%

 Total 8.4% 6.9% 7.7%

^1996 dollars are calculated using the "implicit price deflator" published August 29, 

2001 by the U.S. Department of Commerce, Bureau of Economic Analysis.

SOURCE: Standard & Poor's Compustat, Englewood, CO and corporate financial 

statements submitted to the U.S. Securities and Exchange Commission.

Table 2. Three-year and six-year average annual parcent change in corporate 

R&D investment by major sectors,* 1994-1999 and 2000 estimated, 1996 

dollars^

*Data represent publicly-held R&D-investing corporations that are headquartered in 

the United States.

Major Sectors Three-year average

Annual percent change
1994 1995 1996 1997 1998 1999 2000

Aerospace 20 21 23 22 21 19 17

Basic industries & materials 422 432 427 408 387 359 321

Chemical manufacture 134 142 134 133 131 130 113

Information & electronics manufacture & services 1,240 1,474 1,566 1,602 1,812 1,700 1,518

Machinery manufacture 252 274 275 258 243 222 201

Medical substances & devices 517 609 627 610 637 594 534

Surface transport equipment manufacture 80 85 83 81 78 71 61

Unclassifiable & conglomerates 26 24 25 23 21 21 18

Various services 214 248 251 259 295 293 255

 Total 2,905 3,309 3,411 3,396 3,625 3,409 3,038

1

SOURCE: Standard & Poor's Compustat, Englewood, CO and corporate financial statements submitted to 

the Securities and Exchange Commission.

Table 3. Number of corporations reporting R&D~ by major sectors,* 1994-1999 and 2000 estimated

Major Sectors Billions of 1996 dollars^

*Data applies to publicly-held R&D-investing corporations that are headquartered in the United States.

~For any given year, the firm count includes extant firms that report $0 R&D if such firms report an R&D 

amount that is greater than $0 R&D in at least one year during the 1994-2000 time period.
















































































































































1995 1996 1997 1998 1999 2000

Information & electronics manufacture & services

Software publishers 5.311 6.968 8.369 10.716 12.522 15.464

Semiconductor and related device manufacture 4.621 5.703 7.045 8.218 9.353 12.595

Computer peripheral equip. and terminal manufacture 6.840 7.872 8.756 8.212 7.478 9.335

Radio, TV broadcasting and wireless commun. equip. manufacture 3.177 3.546 4.200 4.728 5.048 6.856

Telephone apparatus manufacture 3.752 3.147 4.405 5.171 6.284 6.427

Computer systems design and related services 4.799 5.183 6.318 6.619 6.774 6.333

Electronic computer manufacture 2.887 2.834 3.039 3.380 4.090 4.419

Computer storage device manufacture 1.597 1.841 2.057 2.455 2.777 2.966

Electrical equip., appliance and component manufacture 1.971 2.086 2.302 2.198 2.212 2.685

Instrument manufacture for electrical analysis 0.644 0.783 0.790 0.864 1.777 2.283

On-line information services 0.173 0.286 0.407 0.565 1.009 1.944

Instrument manufacture for other measure and control functions 1.037 1.195 1.496 1.841 1.217 1.223

Instrument manufacture for laboratory analysis 0.509 0.651 0.795 0.932 1.060 1.196

Other electronic components manufacture 0.933 0.882 0.910 1.073 0.695 0.911

Broadcasting and telecommunications 1.363 1.335 1.136 1.063 0.964 0.744

Data processing and miscel. info. services 0.292 0.353 0.427 0.558 0.669 0.713

Motion picture and sound recording industries 0.018 0.066 0.072 0.109 0.304 0.332

Other communications equip. manufacture 0.071 0.094 0.119 0.143 0.147 0.195

Audio and video equip. manufacture 0.105 0.139 0.151 0.149 0.149 0.137

All other publishing industries 0.088 0.100 0.147 0.085 0.061 0.057

Medical substances & devices

Medical substances 17.523 19.511 21.051 23.931 26.683 28.701

Medical devices 2.579 2.971 3.319 3.405 3.371 3.503

Various services

Professional, scientific, and technical services except computer 0.325 0.344 0.342 0.535 0.665 1.007

Electronic shopping and mail-order 0.004 0.015 0.023 0.087 0.350 0.493

Wholesale trade 0.159 0.181 0.220 0.327 0.394 0.471

Admin., support, waste management and remediation services 0.082 0.160 0.181 0.231 0.207 0.314

Finance, insurance, real estate and leasing 0.143 0.214 0.316 0.210 0.219 0.200

All other retail trade 0.021 0.023 0.029 0.035 0.070 0.122

Education, arts, entertainment, recreation and other services 0.080 0.064 0.046 0.063 0.083 0.105

Transportation and warehousing 0.052 0.056 0.068 0.077 0.067 0.067

Health care and social assistance 0.037 0.034 0.038 0.022 0.026 0.041

*Data represent publicly-held R&D-investing corporations that are headquartered in the United States.

^1996 dollars are calculated using the "implicit price deflator" published August 29, 2001 by the U.S. Department of Commerce, Bureau 

of Economic Analysis.

SOURCE: Standard & Poor's Compustat, Englewood, CO and corporate financial statements submitted to the U.S. Securities and 

Exchange Commission.

Table 4A. Corporate R&D investment by selected industries of three major sectors,* 1995-1999, 2000 estimated, current dollars

Major 

sector

Detailed industry

R&D investment

Billions of current dollars
























































































































































































































































































































































































































































































































1995 1996 1997 1998 1999 2000

Information & electronics manufacture & services

Software publishers 5.414 6.968 8.211 10.387 11.969 14.454

Semiconductor and related device manufacture 4.710 5.703 6.912 7.965 8.940 11.772

Computer peripheral equip. and terminal manufacture 6.972 7.872 8.590 7.960 7.148 8.725

Radio, TV broadcasting and wireless commun. equip. manufacture 3.238 3.546 4.121 4.583 4.825 6.408

Telephone apparatus manufacture 3.824 3.147 4.322 5.012 6.006 6.007

Computer systems design and related services 4.891 5.183 6.198 6.416 6.475 5.919

Electronic computer manufacture 2.943 2.834 2.982 3.276 3.910 4.131

Computer storage device manufacture 1.627 1.841 2.018 2.379 2.655 2.772

Electrical equip., appliance and component manufacture 2.009 2.086 2.259 2.130 2.114 2.509

Instrument manufacture for electrical analysis 0.657 0.783 0.775 0.838 1.699 2.134

On-line information services 0.176 0.286 0.399 0.548 0.964 1.817

Instrument manufacture for other measure and control functions 1.057 1.195 1.468 1.784 1.163 1.143

Instrument manufacture for laboratory analysis 0.519 0.651 0.780 0.903 1.013 1.118

Other electronic components manufacture 0.951 0.882 0.892 1.040 0.664 0.852

Broadcasting and telecommunications 1.389 1.335 1.114 1.031 0.922 0.695

Data processing and miscel. info. services 0.297 0.353 0.419 0.541 0.640 0.667

Motion picture and sound recording industries 0.018 0.066 0.070 0.106 0.291 0.310

Other communications equip. manufacture 0.073 0.094 0.117 0.139 0.141 0.182

Audio and video equip. manufacture 0.107 0.139 0.148 0.144 0.142 0.128

All other publishing industries 0.089 0.100 0.144 0.082 0.058 0.053

Medical substances & devices

Medical substances 17.861 19.511 20.653 23.195 25.505 26.826

Medical devices 2.629 2.971 3.256 3.300 3.222 3.274

Various services

Professional, scientific, and technical services except computer 0.331 0.344 0.335 0.518 0.636 0.941

Electronic shopping and mail-order 0.004 0.015 0.022 0.085 0.334 0.460

Wholesale trade 0.162 0.181 0.216 0.317 0.377 0.440

Admin., support, waste management and remediation services 0.083 0.160 0.178 0.224 0.198 0.294

Finance, insurance, real estate and leasing 0.145 0.214 0.310 0.204 0.209 0.187

All other retail trade 0.021 0.023 0.028 0.034 0.067 0.114

Education, arts, entertainment, recreation and other services 0.082 0.064 0.045 0.061 0.080 0.099

Transportation and warehousing 0.053 0.056 0.067 0.075 0.064 0.063

Health care and social assistance 0.038 0.034 0.037 0.022 0.025 0.038

*Data represent publicly-held R&D-investing corporations that are headquartered in the United States.

^1996 dollars are calculated using the "implicit price deflator" published August 29, 2001 by the U.S. Department of Commerce, Bureau 

of Economic Analysis.

SOURCE: Standard & Poor's Compustat, Englewood, CO and corporate financial statements submitted to the U.S. Securities and 

Exchange Commission.

Table 4B. Corporate R&D investment by selected industries of three major sectors,* 1995-1999, 2000 estimated, 1996 dollars

Major 

sector

Detailed industry

R&D investment

Billions of 1996 dollars




































































































































































































































































































































































































































1996 1997 1998 1999 2000

Information & electronics manufacture & services

Software publishers 28.7% 17.8% 26.5% 15.2% 20.8%

Semiconductor and related device manufacture 21.1% 21.2% 15.2% 12.2% 31.7%

Computer peripheral equip. and terminal manufacture 12.9% 9.1% -7.3% -10.2% 22.1%

Radio, TV broadcasting and wireless commun. equip. manufacture 9.5% 16.2% 11.2% 5.3% 32.8%

Telephone apparatus manufacture -17.7% 37.3% 16.0% 19.8% 0.0%

Computer systems design and related services 6.0% 19.6% 3.5% 0.9% -8.6%

Electronic computer manufacture -3.7% 5.2% 9.9% 19.3% 5.7%

Computer storage device manufacture 13.1% 9.6% 17.9% 11.6% 4.4%

Electrical equip., appliance and component manufacture 3.9% 8.3% -5.7% -0.7% 18.7%

Instrument manufacture for electrical analysis 19.3% -1.0% 8.1% 102.7% 25.6%

On-line information services 62.3% 39.5% 37.2% 76.1% 88.5%

Instrument manufacture for other measure and control functions 13.1% 22.8% 21.5% -34.8% -1.7%

Instrument manufacture for laboratory analysis 25.3% 19.8% 15.8% 12.2% 10.4%

Other electronic components manufacture -7.3% 1.2% 16.5% -36.2% 28.3%

Broadcasting and telecommunications -3.9% -16.5% -7.5% -10.6% -24.6%

Data processing and miscel. info. services 18.7% 18.8% 29.1% 18.2% 4.2%

Motion picture and sound recording industries 262.7% 6.0% 50.6% 174.3% 6.8%

Other communications equip. manufacture 29.5% 24.2% 18.7% 1.4% 29.3%

Audio and video equip. manufacture 30.0% 6.3% -2.4% -1.4% -10.4%

All other publishing industries 12.3% 44.0% -43.0% -29.5% -8.7%

Medical substances & devices

Medical substances 9.2% 5.9% 12.3% 10.0% 5.2%

Medical devices 13.0% 9.6% 1.4% -2.4% 1.6%

Various services

Professional, scientific, and technical services except computer 3.9% -2.5% 54.5% 22.7% 48.0%

Electronic shopping and mail-order 307.1% 48.2% 282.2% 294.9% 37.7%

Wholesale trade 11.6% 19.2% 46.9% 18.8% 16.8%

Admin., support, waste management and remediation services 92.0% 11.2% 26.2% -11.8% 48.5%

Finance, insurance, real estate and leasing 47.3% 44.9% -34.4% 2.9% -10.9%

All other retail trade 10.8% 21.1% 20.4% 97.9% 71.0%

Education, arts, entertainment, recreation and other services -21.3% -29.3% 33.7% 31.3% 23.8%

Transportation and warehousing 4.6% 20.1% 11.7% -14.0% -2.6%

Health care and social assistance -9.5% 9.6% -41.6% 14.3% 53.5%

*Data represent publicly-held R&D-investing corporations that are headquartered in the United States.

^1996 dollars are calculated using the "implicit price deflator" published August 29, 2001 by the U.S. Department of Commerce, Bureau 

of Economic Analysis.

SOURCE: Standard & Poor's Compustat, Englewood, CO and corporate financial statements submitted to the U.S. Securities and 

Exchange Commission.

Table 4C. Annual percent change in corporate R&D investment by selected industries of three major sectors,* 1995-1999, 2000 

estimated, 1996 dollars

Major 

sector

Detailed industry

Annual percent change in R&D investment

Billions of 1996 dollars