|Last Quarterly Update:||2/20/2017|
|SIC Codes:||8731, 8732, 8733|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry conduct research or apply research findings to develop new products or processes in a variety of fields, including life sciences, physical sciences, engineering, social sciences, and the humanities. Major companies include Argonne National Laboratory, Battelle Memorial Institute, and Quintiles (all based in the US), as well as AKKA Technologies (France), Korea Institute of Ocean Science and Technology, and Qinetiq Group (UK).
Global spending on research & development, a demand driver for scientific research services, is about $1.9 trillion. Global R&D investment has been growing steadily over the last several years, with China leading the charge with double-digit increases in spending. The US accounts for about 26% of the world’s total R&D spending, Europe for about 21%, and China for about 20%, according to the Industrial Research Institute (IRI) and R&D Magazine.
The US scientific research and development services industry includes about 18,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $130 billion.
Demand is driven by government and commercial investment in science and technology. The profitability of individual companies depends on the discovery of potentially useful or marketable new products. Large companies can compete by employing scientists across several disciplines and taking advantage of economies of scale; they can also compete by managing government research operations. Small companies can compete by focusing on their expertise in a single specialty. The ...
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