Expenses for Research and Development In The Physical, Engineering, and Life Sciences, All Establishments, Employer Firms

RADITPEALSE3154171 • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

280,903.00

Year-over-Year Change

173.63%

Date Range

1/1/2003 - 1/1/2022

Summary

This economic trend measures research and development (R&D) expenses by U.S. employer firms in physical, engineering, and life sciences. It provides insight into the innovation and technological capabilities of the private sector.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The R&D Expenses in Physical, Engineering, and Life Sciences metric tracks the investment in scientific research and development activities by private companies across diverse industries. This data point is a key indicator of a nation's technological progress and innovative capacity.

Methodology

This data is collected through surveys of U.S. employer firms by the U.S. Census Bureau.

Historical Context

Policymakers and economists closely monitor this trend to assess the private sector's commitment to technological advancement and scientific discovery.

Key Facts

  • R&D expenses by U.S. employer firms reached $401 billion in 2018.
  • The pharmaceutical industry accounts for the largest share of private R&D investment.
  • R&D spending as a percentage of GDP has remained around 2-3% in the U.S. since the 1980s.

FAQs

Q: What does this economic trend measure?

A: This trend measures the total research and development (R&D) expenses incurred by U.S. employer firms in the physical, engineering, and life sciences industries.

Q: Why is this trend relevant for users or analysts?

A: This metric provides insight into the private sector's commitment to technological innovation and scientific discovery, which are key drivers of economic growth and competitiveness.

Q: How is this data collected or calculated?

A: The data is collected through surveys of U.S. employer firms conducted by the U.S. Census Bureau.

Q: How is this trend used in economic policy?

A: Policymakers and economists closely monitor this trend to assess the private sector's investment in R&D, which informs decisions around research funding, tax incentives, and policies to promote innovation.

Q: Are there update delays or limitations?

A: The data is released annually with a lag of approximately one year, and may not capture all R&D activities by smaller or private firms.

Related Trends

Citation

U.S. Federal Reserve, Expenses for Research and Development In The Physical, Engineering, and Life Sciences, All Establishments, Employer Firms (RADITPEALSE3154171), retrieved from FRED.