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

25 Pages Posted: 20 Nov 2014

See all articles by Christian Awuku-Budu

Christian Awuku-Budu

Government of the United States of America - Bureau of Economic Analysis (BEA)

Carol A Robbins

National Science Foundation

Multiple version iconThere are 2 versions of this paper

Date Written: August 26, 2014

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 the for 1976 to 2008. The results show that R&D spending has shifted away from 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. Our findings provide support to the notion of an increasing 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.

Keywords: National Science Foundation R&D, Industry Classification Systems, Factoryless Goods Producers, Firms, Establishments

JEL Classification: C80,O32

Suggested Citation

Awuku-Budu, Christian and Robbins, Carol A, The Role of Industry Classification in the Estimation of Research and Development Expenditures (August 26, 2014). Available at SSRN: https://ssrn.com/abstract=2527174 or http://dx.doi.org/10.2139/ssrn.2527174

Christian Awuku-Budu (Contact Author)

Government of the United States of America - Bureau of Economic Analysis (BEA) ( email )

1441 L Street NW
Washington, DC 20910
United States

Carol A Robbins

National Science Foundation ( email )

4201 Wilson Boulevard
Arlington, VA 22230
United States

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