- The business of chemistry1 is the largest source of private-sector research and development (R&D) funding in the United States.
- America’s chemical companies spent $27.3 billion on R&D in 2007.
- Typically, basic chemical companies allocate 1-5% of their annual sales for R&D while specialty chemical companies allocate 2-8% and in other segments such as life sciences, companies may allocate as much as 25 percent.
- 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 |
| R&D Investments (in Billions) |
$13.2 |
$14.4 |
$15.1 |
$16.7 |
$16.6 |
$17.4 |
$17.7 |
$16.4 |
$18.7 |
$20.1 |
$20.8 |
$17.7 |
$20.4 |
$21.5 |
$23.4 |
$24.3 |
$26.1 |
$27.3 |
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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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