The Role of Industry Classification in the Estimation of Research and Development Expenditures
25 Pages Posted: 20 Nov 2014
There are 2 versions of this paper
The Role of Industry Classification in the Estimation of Research and Development Expenditures
The Role of Industry Classification in the Estimation of Research and Development Expenditures
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: Suggested Citation