Breaking Down the Latest 2021 Business Enterprise Research and Development Survey
Business Enterprise Research and Development (BERD) is an essential measure for assessing the innovation-driven growth of a business. According to the National Science Foundation (NSF), BERD encompasses the total non-federal funds that businesses invest in research and development (R&D) activities.
In 2021, the latest released data on the BERD survey by NSF has presented several fascinating insights that can be helpful for businesses aiming to enhance their R&D activities. This article will break down the key highlights of the survey, providing an in-depth analysis of the current trends and patterns of business R&D in the US.
Investment in Business R&D Continues to Grow
According to the latest BERD survey data, US businesses invested approximately $462 billion in R&D activities in 2018, which is a 3.9% increase from the previous year’s figures. This steady growth in R&D investment highlights the importance of innovation and research for businesses to maintain a competitive edge in the market.
Business Enterprise Funding for R&D is Growing Faster than GDP
The BERD survey data has also revealed that business R&D funding is increasing at a much faster rate than the Gross Domestic Product (GDP). During the period from 2008 to 2018, business R&D grew at a compound annual growth rate of 5.5%, which is more than double the compound annual growth rate of GDP (2.3%).
Large Businesses Dominate Business R&D Landscape
While smaller businesses contribute significantly to the US economy, the data from the latest BERD survey highlights the impact of large businesses on the overall business R&D landscape. In 2018, large businesses with more than 500 employees accounted for approximately 79% of the total business R&D expenditure.
Manufacturing Dominates Business R&D Expenditure
The manufacturing sector remains the largest contributor to business R&D expenditure, accounting for 60% of the total business R&D expenditure in 2018. This is not surprising since the manufacturing sector has always focused on product innovation and technological advancements to stay ahead in the market.
Conclusion
The latest data from the BERD survey provides insightful information that can benefit businesses looking to invest in research and development activities. The steady growth in business R&D investment highlights the importance of innovation for businesses to stay competitive in the market. Additionally, the fact that large businesses are dominating the overall landscape of business R&D expenditure and the manufacturing sector is leading the way in terms of expenditure presents an opportunity for smaller businesses to explore new areas of R&D innovation. Overall, the latest BERD survey data reveals that businesses recognize the significance of R&D activities for growth and sustainability, which is a positive signal for the US economy in the long term.
