Editing Economy of the United States (section)

==Research and development==
{{See also|Science and technology in the United States}}
[[File:GERD GDP ratio in the USA, 2002–2013.svg|thumb|Gross domestic expenditure on R&D in the U.S. as a percentage of GDP, 2002–2013. Other countries are given for comparison. Source: UNESCO Science Report: towards 2030]]
The U.S. invests more funds in research and development (R&D) in absolute terms than the other G7 nations combined: 17.2% more in 2012. Since 2000, gross domestic expenditure on R&D (GERD) in the U.S. has increased by 31.2%, enabling it to maintain its share of GERD among the G7 nations at 54.0% (54.2% in 2000).<ref name=":0" />
[[File:R&D by country.webp|thumb|center|{{center|R&D by country]]}}

===Impact of recession on research spending===
Generally speaking, U.S. investment in R&D rose with the economy in the first years of the century before receding slightly during the economic recession then rising again as growth resumed. At its peak in 2009, GERD amounted to US$406{{spaces}}billion (2.82% of GDP). Despite the recession, it was still at 2.79% in 2012 and will slide only marginally to 2.73% in 2013, according to provisional data, and should remain at a similar level in 2014.<ref name=":0" />

The federal government is the primary funder of basic research, at 52.6% in 2012; state governments, universities and other non-profits funded 26%. Experimental development, on the other hand, is primarily funded by industry: 76.4% to the federal government's 22.1% in 2012.<ref name=":0" />
[[File:World shares of GDP, GERD, researchers and publications for the G20, 2009 and 2013.svg|thumb|World shares of GDP, research spending, researchers and scientific publications, 2009 and 2013. Source: UNESCO Science Report: towards 2030, Figure 1.7]]
While U.S. investment in R&D is high, it failed to reach President Obama's target of 3% of GDP by the end of his presidency in 2016. Between 2009 and 2012, the United States' world share of research expenditure receded slightly from 30.5% to 28.1%. Several countries now devote more than 4% of GDP to R&D (Israel, Japan and the Republic of Korea) and others plan to raise their own GERD/GDP ratio to 4% by 2020 (Finland and Sweden).<ref name=":0" />

===Business spending on research===
Business enterprises contributed 59.1 % of U.S. GERD in 2012, down from 69.0 % in 2000. Private non-profits and foreign entities each contribute a small fraction of total R&D, 3.3% and 3.8%, respectively.<ref name=":0" /> [[File:R&D budget by US agency, 1994–2014.svg|thumb|US research and development budget by government agency, 1994–2014. Source: UNESCO Science Report: towards 2030, Figure 5.4, based on data from American Association for the Advancement of Science]]The United States has historically been a leader in business R&D and innovation. The economic recession of 2008–2009 has had a lasting impact, however. While the major performers of R&D largely maintained their commitments, the pain of the U.S. recession was felt mainly by small businesses and start-ups. Statistics released by the U.S. Census Bureau showed that, in 2008, the number of business 'deaths' began overtaking the number of business 'births' and that the trend continued at least through 2012. From 2003 to 2008, business research spending had followed a generally upward trajectory. In 2009, the curve inverted, as expenditure fell by 4% over the previous year then again in 2010, albeit by 1–2% this time. Companies in high-opportunity industries like health care cut back less than those in more mature industries, such as fossil fuels. The largest cutbacks in R&D spending were in agriculture production: −3.5% compared to the average R&D to net sales ratio. The chemicals and allied products industry and electronic equipment industry, on the other hand, showed R&D to net sales ratios that were 3.8% and 4.8% higher than average. Although the amount of R&D spending increased in 2011, it was still below the level of 2008 expenditure. By 2012, the growth rate of business-funded R&D had recovered. Whether this continues will be contingent on the pursuit of economic recovery and growth, levels of federal research funding and the general business climate.<ref name=":0" />

===Research spending at the state level===
{{See also|List of U.S. states by research and development spending}}
The level of research spending varies considerably from one state to another. Six states (New Mexico, Maryland, Massachusetts, Washington, California and Michigan) each devoted 3.9% or more of their GDP to R&D in 2010, together contributing 42% of national research expenditure. In 2010, more than one quarter of R&D was concentrated in California (28.1%), ahead of Massachusetts (5.7%), New Jersey (5.6%), Washington State (5.5%), Michigan (5.4%), Texas (5.2%), Illinois (4.8%), New York (3.6%) and Pennsylvania (3.5%). Seven states (Arkansas, Nevada, Oklahoma, Louisiana, South Dakota and Wyoming) devoted less than 0.8% of GDP to R&D.<ref name=":0" />
[[File:Science and engineering in the USA by state, 2010.svg|thumb|Science and engineering in the U.S. by state. Source: UNESCO Science Report: towards 2030, Figure 5.6, based on data from American Association for the Advancement of Science]]
[[File:San Francisco from the Marin Headlands in August 2022 (cropped2).jpg|thumb|265px|[[San Francisco]] is one of the world's largest [[financial center]]s.<ref>{{Cite web |title=The Global Financial Centres Index 31|url=https://www.longfinance.net/programmes/financial-centre-futures/global-financial-centres-index/gfci-31-explore-data/gfci-31-rank/|access-date=August 14, 2022 |website=Longfinance.net}}</ref>]]
California is home to Silicon Valley, the name given to the area hosting the leading corporations and start-ups in information technology. This state also hosts dynamic biotechnology clusters in the San Francisco Bay Area, Los Angeles and San Diego. The main biotechnology clusters outside California are the cities of Boston/Cambridge, Massachusetts, Maryland, suburban Washington, DC, New York, Seattle, Philadelphia, and Chicago. California supplies 13.7% of all jobs in science and engineering across the country, more than any other state. Some 5.7% of Californians are employed in these fields. This high share reflects a potent combination of academic excellence and a strong business focus on R&D: the prestigious Stanford University and University of California rub shoulders with Silicon Valley, for instance. In much the same way, Route 128 around Boston in the state of Massachusetts is not only home to numerous high-tech firms and corporations but also hosts the renowned Harvard University and Massachusetts Institute of Technology.<ref name=":0" />

New Mexico's high research intensity can be explained by the fact that it hosts the Los Alamos National Laboratory. Maryland's position may reflect the concentration of federally funded research institutions there. Washington State has a high concentration of high-tech firms like [[Microsoft]], [[Amazon (company)|Amazon]] and Boeing and the engineering functions of most automobile manufacturers are located in the state of Michigan.<ref name=":0" />

===Research spending by multinational corporations===
The federal government and most of the 50 states that make up the United States offer tax credits to particular industries and companies to encourage them to engage in research and development (R&D). Congress usually renews a tax credit every few years. According to a survey by ''[[The Wall Street Journal]]'' in 2012, companies do not factor in these credits when making decisions about investing in R&D, since they cannot rely on these credits being renewed.<ref name=":0" />

In 2014, four U.S. multinational corporations figured in the Top 50 for the volume of expenditure on R&D: Microsoft, Intel, Johnson & Johnson and Google. Several have figured in the Top 20 for at least ten years: Intel, Microsoft, Johnson & Johnson, Pfizer and IBM. Google was included in this table for the first time in 2013.<ref name=":0" />

'''Global top 50 companies by R&D volume and intensity, 2014'''
<nowiki>*</nowiki> R&D intensity is defined as R&D expenditure divided by net sales.
<nowiki>**</nowiki> Although incorporated in the Netherlands, Airbus's principal manufacturing facilities are located in France, Germany, Spain and the UK.
Source: ''UNESCO Science Report: towards 2030'' (2015), Table 9.3, based on Hernández ''et al.'' (2014) ''EU R&D Scoreboard: the 2014 EU Industrial R&D Investment Scoreboard''. [[European Commission]]: Brussels, Table 2.2.

===Exports of high-tech goods and patents===
[[File:High-tech exports from the USA as a world share, 2008–2013.svg|thumb|High-tech exports from the U.S. as a percentage of the world share, 2008–2013. Source: UNESCO Science Report: towards 2030, Figure 5.10, based on Comtrade database]]
Until 2010, the United States was a net exporter of pharmaceuticals but, since 2011, it has become a net importer of these goods.

The United States is a post-industrial country. Imports of high-tech products far exceed exports. However, the United States' technologically skilled workforce produces a large volume of patents and can still profit from the license or sale of these patents. Within the United States' scientific industries active in research, 9.1% of products and services are concerned with the licensing of intellectual property rights.<ref name=":0" />

When it comes to trade in intellectual property, the United States remains unrivalled. Income from royalties and licensing amounted to $129.2{{spaces}}billion in 2013, the highest in the world. Japan comes a distant second, with receipts of $31.6{{spaces}}billion in 2013. The United States' payments for use of intellectual property amounted to $39.0{{spaces}}billion in 2013, exceeded only by Ireland ($46.4{{spaces}}billion).<ref name=":0" />