- The business of chemistry1in the United States has consistently been one of the largest private-sector investors in Research and Development (R&D).
- America’s chemical companies spent $48.2 billion dollars on R&D in 2008.
- Today, most chemical companies typically allocate 1-3% of their annual sales toward R&D. In segments such as pharmaceuticals, for example, companies may allocate as much as 25% towards R&D.
- Moreover, unlike many other manufacturing industries, the U.S. business of chemistry pays for virtually all of its R&D. Government funding of chemistry research is minimal (generally less than 2 percent) compared with the typical 15 percent allocated for government funding of research for all manufacturing.
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Research and Development Investments and the Business of Chemistry1
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 |
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1990 |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
| R&D Investments (in Billions) |
$16.3 |
$17.6 |
$18.7 |
$19.8 |
$14.1 |
$20.4 |
$21.9 |
$25.1 |
$28.0 |
$28.7 |
$31.5 |
$32.8 |
$34.0 |
$37.3 |
$39.4 |
$42.7 |
$48.0 |
$47.4 |
$48.2 |
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About These Data
Source: American Chemistry Council
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Notes
1The Business of Chemistry: Based on the U.S. government’s North American Industry Classification System (NAICS) 325. Includes inorganic and organic chemicals, synthetic materials, specialties, agricultural chemicals, pharmaceuticals, soaps and detergents, and other chemical products. Where company-specific data are not available, particularly in the area of economics, business of chemistry data are used to approximate Responsible Care companies. Responsible Care companies represent a sub-segment of the business of chemistry.
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