Critical and Emerging Technologies by U.S. Businesses: Use and R&D Funding and Performance
Critical and emerging technologies (CETs) are “novel, advanced technologies with the potential to chart new pathways in American innovation and strengthen our national security.” In October 2020, the White House Office of Science and Technology Policy (OSTP) released the National Strategy for Critical and Emerging Technologies, which contained an initial list of priority CETs. To build on this work, the Fast Track Action Subcommittee of the National Science and Technology Council was formed in 2022 and identified the potential of CETs to “inform a forthcoming strategy on U.S. technological competitiveness and national security.”
The Annual Business Survey (ABS) 2022 (reference year 2021) included questions on 14 of the CETs from OSTP’s initial priority list. The ABS included questions on both the usage of CETs and research and development (R&D) performance or funding within the area of each CET. The ABS collects data related to innovation, intellectual property, technology, company information, and business owner demographics from businesses with one or more employees. The ABS also collects R&D data from microbusinesses (businesses with one to nine employees). This is the sixth year of the ABS, which was developed and is cosponsored by the National Center for Science and Engineering Statistics within the U.S. National Science Foundation and by the Census Bureau.
Use of Critical and Emerging Technologies
The CETs in the ABS 2022 include the following:
|
Advanced computing Advanced sensing Artificial intelligence Autonomous systems and robotics Additive manufacturing Biotechnology Human-machine interfaces |
Communication and networking technologies Advanced financial technologies Advanced semiconductors and microelectronics Advanced engineering materials Renewable energy generation and storage Advanced gas turbine engine technologies Advanced nuclear energy technologies |
For each CET, respondents were asked if they used each technology “a lot,” “somewhat,” “a little,” or “not at all.” Figure 1 presents the percentage of businesses that used each technology “a little” or more.
Companies using critical and emerging technologies: 2021
| Critical and emerging technology | Percentage of companies using critical and emerging technology at least "a little" |
|---|---|
| Advanced computing | 25 |
| Advanced sensing | 5 |
| Artificial intelligence | 5 |
| Autonomous systems and robotics | 2 |
| Additive manufacturing | 3 |
| Biotechnology | 1 |
| Human machine interfaces | 2 |
| Communication and networking | 9 |
| Advanced financial technologies | 3 |
| Advanced semiconductors and microelectronics | 2 |
| Advanced engineering materials | 2 |
| Renewable energy generation and storage | 3 |
| Advanced gas turbine engine technologies | 1 |
| Advanced nuclear energy technologies | 1 |
Note(s):
Use is defined as "a lot," "somewhat," and "a little."
Source(s):
National Center for Science and Engineering Statistics and Census Bureau, 2022 Annual Business Survey: Data Year 2021.
The 2022 ABS found that 25% of businesses used advanced computing (figure 1). Advanced computing was defined in the questionnaire as “supercomputing, edge computing, cloud computing, data storage, advanced computing architectures.” Advanced computing was followed by communication and networking technologies at 9%. Each of the other 12 CETs included in the ABS was used by 5% or less of the businesses surveyed.
By Industry
Overall, businesses had low incidence rates of using most of the CETs included in the survey. However, when examined at the subsector and industry group level, there are some important differences (table 1). Information and communications technology (ICT) CETs are widely used. Nearly all subsectors have at least 5% usage rates (based on point estimates) of ICT CETs, such as advanced computing (32 subsectors) and communication and networking (31 subsectors). A higher percentage of companies reported using advanced computing (25%) than using any other CET. The following industry groups all had use rates of advanced computing that were significantly greater than 50%: software publishers (North American Industry Classification System [NAICS] code 5112), data processing, hosting, and related services (NAICS 518), and computer systems design and related systems (NAICS 5415). With respect to communication and networking technologies, the following industry groups had high use rates: communications equipment (NAICS 3342) at 56% and telecommunications (NAICS 517) at 42%. Advanced manufacturing CETs—such as advanced sensing, autonomous systems and robotics, and additive manufacturing—are used throughout the 18 manufacturing subsectors. Point estimates indicate at least 5% usage rates of advanced sensing in 13 subsectors, autonomous systems and robotics in 13 subsectors, and additive manufacturing in 14 subsectors.
Companies using critical and emerging technologies, by industry: 2021
NAICS = 2017 North American Industry Classification System.
Note(s):
Detail across rows may not add to total because of rounding or unavailable NAICS detail for select records beyond the 4-digit industry classification. Detail across columns have been adjusted to add to total. Industry classification is based on dominant establishment payroll. Statistics are representative of companies located in the United States. Use is defined as "a lot," "somewhat," and "a little."
Source(s):
National Center for Science and Engineering Statistics and Census Bureau, 2022 Annual Business Survey: Data Year 2021.
For businesses with 10 or more employees, pharmaceutical and medicine (NAICS 3254), computer and electronic products (NAICS 334), software publishing (NAICS 5112), computer systems design and related services (NAICS 5415), and scientific research and development services (NAICS 5417) are among the highest in R&D intensities, measured as the ratio of R&D to sales within the industry. Figure 2 presents ABS data on the use of CETs by these industries. Over half (55%) of the computer systems design and related services industry (NAICS 5415) used advanced computing at least “a little,” and 27% of companies in this industry used the communication and networking CET. Forty percent of the scientific research and development services industry (NAICS 5417) used the advanced computing CET at least “a little,” and 32% of companies in this industry used the biotechnology CET.
Companies using critical and emerging technologies, by industry: 2021
| Critical and emerging technology | All industries (NAICS 11, 21–23, 31–33, 42–81) | Pharmaceuticals and medicines (NAICS 3254) | Computer and electronic products (NAICS 334) | Software publishers (NAICS 5112) | Computer systems design and related services (NAICS 5415) | Scientific research and development services (NAICS 5417) |
|---|---|---|---|---|---|---|
| Advanced computing | 25.3 | 31.5 | 37.7 | 63.2 | 54.8 | 39.9 |
| Advanced sensing | 5.2 | 12.0 | 22.4 | 13.8 | 12.1 | 16.9 |
| Artificial intelligence | 4.8 | 7.7 | 12.0 | 33.3 | 22.9 | 18.9 |
| Autonomous systems and robotics | 2.4 | 8.6 | 13.7 | 3.2 | 5.1 | 10.7 |
| Additive manufacturing | 3.0 | 11.3 | 26.2 | 3.4 | 4.7 | 15.9 |
| Biotechnology | 1.4 | 20.4 | 2.9 | 1.5 | 2.0 | 32.3 |
| Human machine interfaces | 2.0 | 4.1 | 6.5 | 9.9 | 7.0 | 5.9 |
| Communication and networking | 8.9 | 12.4 | 30.4 | 19.6 | 26.6 | 16.5 |
| Advanced financial technologies | 3.2 | 6.8 | 4.2 | 8.4 | 7.9 | 3.9 |
| Advanced semiconductors and microelectronics | 1.7 | 3.8 | 20.0 | 1.4 | 3.0 | 8.2 |
| Advanced engineering materials | 2.0 | 4.9 | 15.3 | 1.9 | 1.9 | 14.2 |
| Renewable energy generation and storage | 2.6 | 5.6 | 7.4 | 1.9 | 2.7 | 5.3 |
| Advanced gas turbine engine technologies | 1.0 | 2.2 | 2.8 | 0.7 | 1.1 | 1.8 |
| Advanced nuclear energy technologies | 0.8 | 2.1 | 1.3 | 0.5 | 0.7 | 1.6 |
NAICS = 2017 North American Industry Classification System.
Note(s):
Detail across rows may not add to total because of rounding or unavailable NAICS detail for select records beyond the 4-digit industry classification. Detail across columns have been adjusted to add to total. Industry classification is based on dominant establishment payroll. Statistics are representative of companies located in the United States. Use is defined as "a lot," "somewhat," and "a little."
Source(s):
National Center for Science and Engineering Statistics and Census Bureau, 2022 Annual Business Survey: Data Year 2021.
The recent CHIPS and Science Act (H.R. 4346) focused attention on key manufacturing industries such as the computer and electronic products industry (NAICS 334). Within this industry, advanced computing, communication and networking, and additive manufacturing had usage rates of more than 20% (figure 2). Figure 3 shows the usage of CETs in the semiconductor and other electronic components industry (NAICS 3344), which shows that CETs such as advanced computing, communication and networking, and advanced semiconductors and microelectronics all had usage rates of more than 20%.
Use of critical and emerging technologies in the semiconductor and other electronic components industry (NAICS 3344): 2021
| Critical and emerging technology | Percent |
|---|---|
| Advanced computing | 34.2 |
| Advanced sensing | 22.0 |
| Artificial intelligence | 11.0 |
| Autonomous systems and robotics | 18.0 |
| Additive manufacturing | 24.0 |
| Biotechnology | 1.7 |
| Human machine interfaces | 7.7 |
| Communication and networking | 27.8 |
| Advanced financial technologies | 4.1 |
| Advanced semiconductors and microelectronics | 25.2 |
| Advanced engineering materials | 17.1 |
| Renewable energy generation and storage | 10.2 |
| Advanced gas turbine engine technologies | 3.4 |
| Advanced nuclear energy technologies | 2.0 |
NAICS = 2017 North American Industry Classification System.
Note(s):
Industry classification is based on dominant establishment payroll. Statistics are representative of companies located in the United States. Use is defined as "a lot," "somewhat," and "a little."
Source(s):
National Center for Science and Engineering Statistics and Census Bureau, 2022 Annual Business Survey: Data Year 2021.
By Company Size
Across the CETs included in the 2022 ABS questionnaire, large companies (250 or more employees) had a higher percentage of CET usage, compared with the other sizes of companies. Thirty-three percent of companies with 25,000 or more employees and 4% of microbusinesses (companies with one to nine employees) used the autonomous systems and robotics CET (table 2). Nineteen percent of companies with 25,000 or more employees used the human machine interfaces CET, whereas only 4% of microbusinesses used these CETs.
Companies using critical and emerging technologies, by company size: 2021
Note(s):
Detail across rows may not add to total because of rounding. Detail across columns have been adjusted to add to total. Industry classification is based on dominant establishment payroll. Statistics are representative of companies located in the United States. Use is defined as "a lot," "somewhat," and "a little."
Source(s):
National Center for Science and Engineering Statistics and Census Bureau, 2022 Annual Business Survey: Data Year 2021.
Funding or Performing R&D in CETs by Industry
For each of the CETs, respondents were asked if their business performed or funded R&D in that area. Very few companies fund R&D or perform R&D in the 14 CETs included on the ABS. The percentages range from 0% for advanced nuclear energy technologies to 3% in advanced computing for all industries (table 3). However, there are some industries where the percentages are higher for certain CETs. Over one-quarter (28%) of software publishers (NAICS 5112) and 15% of companies classified as the computer systems design and related services industry (NAICS 5415) funded or performed R&D in the advanced computing CET. Fifteen percent of companies in the computer and electronic products industry (NAICS 334) funded or performed R&D in the communication and networking CET. The computer and electronic products industry is made up of the businesses in communications equipment (NAICS 3342), semiconductor and other electronic components (NAICS 3344), and navigational, measuring, electromedical, and control instruments (NAICS 3345). These industries had 44%, 12%, and 12%, respectively, of their businesses funding or performing R&D in the communication and networking CET.
Companies funding or performing critical and emerging technologies, by industry: 2021
NAICS = 2017 North American Industry Classification System.
Note(s):
Detail across rows may not add to total because of rounding or unavailable NAICS detail for select records beyond the 4-digit industry classification. Detail across columns have been adjusted to add to total. Industry classification is based on dominant establishment payroll. Statistics are representative of companies located in the United States.
Source(s):
National Center for Science and Engineering Statistics and Census Bureau, 2022 Annual Business Survey: Data Year 2021.
Funding or Performing R&D in CETs by Company Size
A higher proportion of larger companies than smaller companies performed or funded R&D in most CETs, although the differences between size categories are not uniform. For example, 2% of microbusinesses fund or perform R&D in advanced sensing, but 20% of businesses with 25,000 or more employees fund or perform R&D in that technology area (table 4). Less than 1% of microbusinesses fund or perform R&D in advanced gas turbine engine technologies or biotechnology, but for companies with 25,000 or more employees, 3% fund or perform R&D in advanced gas turbine engine technologies and 5% fund or perform R&D in biotechnology.
Companies funding or performing critical and emerging technologies, by company size: 2021
Note(s):
Detail across rows may not add to total because of rounding. Detail across columns have been adjusted to add to total. Industry classification is based on dominant establishment payroll. Statistics are representative of companies located in the United States.
Source(s):
National Center for Science and Engineering Statistics and Census Bureau, 2022 Annual Business Survey: Data Year 2021.
Survey Information and Data Availability
The statistics from the ABS are based on a sample; as such, they are subject to both sampling and nonsampling errors (see “Technical Notes” in the data tables report at https://ncses.nsf.gov/surveys/annual-business-survey/2022#technical-notes).
For the full ABS 2022 (reference year 2021), 300,000 employer companies were sampled to represent the population of 4.9 million employer companies, and the unit response rate was 67.0%.
The full set of data tables on R&D, company demographics, innovation, technology, and patent and intellectual property protection from this survey are available in the report Annual Business Survey: 2022 (Data Year 2021). Individual data tables and tables with relative standard errors and imputation rates from the ABS 2022 are available upon request from the Survey Manager.
NCSES has reviewed this product for unauthorized disclosure of confidential information and approved its release (NCSES-DRN24-049).
Notes
1Available at https://www.whitehouse.gov/wp-content/uploads/2022/02/02-2022-Critical-and-Emerging-Technologies-List-Update.pdf.
2Available at https://trumpwhitehouse.archives.gov/wp-content/uploads/2020/10/National-Strategy-for-CET.pdf.
3Not all CETs were included in the ABS 2022 questionnaire to limit length of the questionnaire and burden on respondents.
4Examples of communication and networking technologies include radiofrequency and mixed signal circuits, antennas and components, spectrum management technologies, communications and network security, and mesh networks/infrastructure independent communication technologies.
5Due to data availability, this InfoBrief will discuss 2-digit nonmanufacturing and 3-digit manufacturing as subsectors. All 4-digit codes are industry groups. For more information on NAICS codes, see https://www.census.gov/programs-surveys/economic-census/year/2022/guidance/understanding-naics.html.
6See https://www.whitehouse.gov/wp-content/uploads/2022/10/National-Strategy-for-Advanced-Manufacturing-10072022.pdf and https://trumpwhitehouse.archives.gov/wp-content/uploads/2018/10/Advanced-Manufacturing-Strategic-Plan-2018.pdf.
7See Business R&D Performance in the United States Tops $600 Billion in 2021: table 3 at https://ncses.nsf.gov/pubs/nsf23350.
8The questions on the ABS went to businesses with one or more employees.
Suggested Citation
Kindlon A, Anderson G, Rhodes A; National Center for Science and Engineering Statistics (NCSES). 2024. Critical and Emerging Technologies by U.S. Businesses: Use and R&D Funding and Performance. NSF 25-307. Alexandria, VA: U.S. National Science Foundation. Available at https://ncses.nsf.gov/pubs/nsf25307.
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NSF 25-307
|November 12, 2024