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The Role of Industry Classification in the Estimation of Research and Development Expenditures

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  • Christian Awuku-Budu
  • Carol A. Robbins

Abstract

This paper uses data from the National Science Foundation’s surveys on business research and development (R&D) expenditures that have been linked with data from the Census Bureau’s Longitudinal Business Database to produce consistent NAICS-based R&D time-series data based on the main product produced by the firm for 1976 to 2008.The results show that R&D spending has shifted away from domestic manufacturing industries in recent years. This is due in part to a shift in U.S. payrolls away from manufacturing establishments for R&D-performing firms.These findings support the notion of an increasingly fragmented production system for R&D-intensive manufacturing firms, whereby U.S. firms control output and provide intellectual property inputs in the form of R&D, but production takes place outside of the firms' U.S. establishments.

Suggested Citation

  • Christian Awuku-Budu & Carol A. Robbins, 2014. "The Role of Industry Classification in the Estimation of Research and Development Expenditures," Working Papers 14-45, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:14-45
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    File URL: https://www2.census.gov/ces/wp/2014/CES-WP-14-45.pdf
    File Function: First version, 2014
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    Cited by:

    1. Christian Awuku-Budu & Leo Sveikauskas, 2015. "Allocation of Company Research and Development Expenditures to Industries Using a Tobit Model," BEA Working Papers 0129, Bureau of Economic Analysis.
    2. Christian Awuku-Budu & Leo Sveikauskas, 2015. "Allocation of Company Research and Development Expenditures to Industries Using a Tobit Model," Working Papers 15-42, Center for Economic Studies, U.S. Census Bureau.

    More about this item

    Keywords

    Business R&D; industry classification; factoryless goods producers; U.S. manufacturing firms; establishments;
    All these keywords.

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