U.S. R&D Companies Employed 27 Million Workers Worldwide in 2008

National Science Foundation - U.S. R&D companies--companies located in the United States that performed or funded research and development (R&D) domestically or in their overseas locations--employed 27.1 million workers worldwide in 2008, according to a new National Science Foundation report.

The figures are the first employment statistics from the new Business R&D and Innovation Survey (BRDIS), developed jointly by NSF and the U.S. Census Bureau. Earlier this year, this same survey yielded information for the first time about worldwide sales and monetary amounts spent on R&D by U.S.-based companies. Data from that report can be found in an NSF press release and in an InfoBrief published in May.

Employment data from the BRDIS released today in a new NSF InfoBrief titled "New Employment Statistics from the 2008 Business R&D and Innovation Survey" show that R&D employees (those who perform or directly support R&D activities) accounted for 1.9 million jobs, or 7.1 percent of jobs at U.S. R&D companies worldwide. The domestic portion of total employment was 18.5 million workers, including 1.5 million R&D employees. Thus, domestic R&D employment accounted for 7.9 percent of companies' total domestic employment and for 77 percent of their worldwide R&D employment.

Policymakers and industry officials consider these numbers important because workers engaged in R&D activities directly influence the creation and diffusion of knowledge, and in turn contribute to innovation and economic growth. The proportion of R&D employment relative to total employment, or R&D employment intensity, is one indicator of a company's involvement in R&D activity.

Worldwide R&D employment intensity in some industries is much higher than the 7.1 percent figure for the aggregate of all industries; notably, R&D employment in scientific R&D services is at 31 percent; R&D employment associated with communications equipment is at 27 percent, and R&D employment associated with computer systems design and related services is at 25 percent.