California Accounted for a Quarter of U.S. Value-Added Production by R&D-Intensive Industries in 2020
State share of total U.S. value-added production by R&D-intensive industries: 2020
* = value < 0.05%.
R&D-intensive industries include high R&D-intensive and medium-high R&D-intensive industries based on a classification by the Organisation for Economic Co-operation and Development. High R&D-intensive industries include air and spacecraft and related machinery; pharmaceuticals; computer, electronic, and optical products; scientific research and development; and software publishing. Medium-high R&D-intensive industries include motor vehicles, trailers, and semi-trailers; medical and dental instruments; machinery and equipment not elsewhere classified (nec); chemicals and chemical products; electrical equipment; railroad, military vehicles, and transport nec; and information technology and other information services. The underlying industry data are based on the International Standard Industrial Classification, Revision 4.
Bureau of Economic Analysis, Annual Gross Domestic Product by State, special tabulations, October 2021.
California led the United States in 2020 value-added production from research and development (R&D)–intensive industries (which make large investments in R&D relative to their output), accounting for nearly 25% of the $2.4 trillion in value-added production from these industries. (Value added is the difference between the sale of an industry’s goods and services and the cost of inputs that were used in production.) R&D-intensive industries (also referred to as knowledge- and technology-intensive industries) include such industries as information technology services, software, pharmaceuticals, and air and spacecraft (see NSB-2022-6 for a full list of industries and definitions). The states with the next largest shares were Texas (8.0%), Washington (6.2%), New York (5.2%), and Massachusetts (4.5%). California and these four states together amount to nearly half of U.S. value-added production from R&D-intensive industries in 2020. The eight states with the next largest shares (2.6%–3.6% each) collectively accounted for nearly a quarter of U.S. value-added production.
Suggested citation: Hill D, Muche M; National Center for Science and Engineering Statistics (NCSES). 2023. California Accounted for a Quarter of U.S. Value-Added Production by R&D-Intensive Industries in 2020. NSF 23-332. Alexandria, VA: National Science Foundation. Available at https://ncses.nsf.gov/pubs/nsf23332.
May 8, 2023