Among Microbusinesses, Domestic R&D Performance Increased by 24% from 2018 to 2020

In 2020, microbusinesses (businesses with one to nine employees) performed $5.6 billion of research and development (R&D). These businesses funded an additional $1.1 billion in domestic R&D performed by other institutions (see NSF 23-305). During the 2018–20 period, microbusiness R&D performance increased by 24%, from $4.5 billion to $5.6 billion. Microbusiness R&D performance in manufacturing industries between 2018 and 2020 increased by 13%, from $556 million to $627 million, while nonmanufacturing industries increased by 25%, from $4.0 billion to $5.0 billion. Between 2018 and 2020, microbusinesses with one to four employees increased their expenditures on domestic R&D performance by 33%, from $1.9 billion to $2.5 billion, and microbusinesses with five to nine employees increased R&D performance by 17%, from $2.6 billion to $3.1 billion.

Note: All amounts and calculations are reported in current dollars unless otherwise noted. Selected nonmanufacturing industries include the following 2017 North American Industry Classification System codes: 42 (wholesale trade), 51 (information), 5413 (architectural, engineering, and related services), 5415 (computer systems design and related services), and 5417 (scientific research and development services).

Suggested citation: Kindlon A; National Center for Science and Engineering Statistics (NCSES). 2023. Among Microbusinesses, Domestic R&D Performance Increased by 24% from 2018 to 2020. NSF 23-335. Alexandria, VA: National Science Foundation. Available at https://ncses.nsf.gov/pubs/nsf23335/.