Manufacturing Powers the U.S. Economy

Manufacturing Is Critical to the U.S. R&D Picture

A number of manufacturing and non-manufacturing sectors have outsized R&D; intensities that are pivotal to innovation throughout the U.S. economy. During 2012, R&D investment in pharmaceuticals and medicine was 12.7% of domestic net sales, more than three times the manufacturing average. Aerospace's R&D investment was 10.1% of domestic net sales.

While non-manufacturing industries as a whole are less R&D-intensive, certain sectors exhibit strong innovation behavior. During 2012, domestic R&D was 23.2% of domestic net sales in scientific R&D services and 9.9% for software publishers. Manufacturing's transition to customer-responsive, lean supply chains and implementation of scientific advancements to change the product and process profile are undoubtedly motivators of research and development in these service sectors.