85+ Manufacturing R&D Statistics for 2025-2026

1. Total Manufacturing R&D Spending

Manufacturing R&D spending has grown from a notable investment to a dominant force in the American innovation economy. The sector has more than tripled its annual R&D outlay since 2000, reaching record levels in 2024. These numbers come primarily from the NSF's Business Enterprise Research and Development (BERD) Survey, the Census Bureau, and NAM's ongoing data compilation.

• 01. Manufacturing R&D spending reached a record $412.8 billion in 2024, up from $132.5 billion in 2000. (NAM)
• 02. The manufacturing sector performed $394 billion (55%) of all domestic US business R&D in 2023, making it the single largest R&D-performing sector. (NSF BERD Survey 2023)
• 03. Total US business R&D performance reached $722 billion in 2023, a 4.4% increase from 2022. (NSF BERD Survey 2023)
• 04. Total US R&D from all sources (business, government, universities, nonprofits) reached $937 billion in 2023, with estimates putting 2024 at $993 billion. (NSF National Patterns of R&D Resources)
• 05. US R&D intensity (R&D as a share of GDP) reached 3.4% in both 2022 and 2023, the highest sustained level in American history. (NSF Science and Engineering Indicators 2025)
• 06. Of the $722 billion in business R&D in 2023, 79% ($568 billion) went to development, 15% ($110 billion) to applied research, and just 6% ($43 billion) to basic research. (NSF BERD Survey 2023)
• 07. About 87% of manufacturing R&D is funded internally by the performing companies, compared to 88% for all US industries. External funding sources include the federal government, other companies, and foreign investors. (NSF Science and Engineering Indicators 2025)
• 08. For every $1 spent in manufacturing, the total economic impact is $2.69 to the broader US economy, one of the highest multipliers of any sector. (NAM, using 2024 IMPLAN data)

2. R&D Spending by Manufacturing Sector

R&D spending is heavily concentrated in a small number of high-technology manufacturing subsectors. Pharmaceuticals, semiconductors, aerospace, and automotive collectively account for the majority of manufacturing R&D. Understanding which sectors invest the most, and why, is critical for companies benchmarking their own innovation spending.

• 09. Pharmaceuticals and medicines alone accounted for 36.4% of all manufacturing R&D in 2024, spending $150.3 billion. (NAM)
• 10. The aerospace products and parts industry (NAICS 3364) received $19 billion in federal R&D funding in 2023, the largest federal R&D subsidy of any single manufacturing subsector. (NSF BERD Survey 2023)
• 11. Only 39% of aerospace products and parts R&D is internally funded, making it the most federally dependent major manufacturing R&D sector. (NSF Science and Engineering Indicators 2025)
• 12. Foreign companies funded $9 billion in US pharmaceutical R&D in 2023, the largest foreign funding of any single manufacturing subsector. (NSF BERD Survey 2023)
• 13. Biotechnology R&D accounted for 17% of total US business R&D in 2022, with 75% ($87 billion) of that biotech R&D occurring within pharmaceuticals and medicines manufacturing. (NSF Science and Engineering Indicators 2025)
• 14. Capital expenditures on assets used for R&D in 2023 were led by pharmaceuticals at $8.2 billion (22% of national R&D capital spending). (NSF BERD Survey 2023)

3. R&D Intensity by Manufacturing Industry

R&D intensity, measured as R&D spending as a percentage of net sales, reveals which manufacturing sectors treat innovation as a core business strategy versus an occasional investment. High-intensity industries reinvest a substantial share of every revenue dollar back into discovery, which compounds competitive advantages over time.

• 15. Semiconductor and other electronic products had the highest manufacturing R&D intensity in 2023 at 25.8% of net sales, meaning roughly $1 of every $4 in revenue is reinvested in R&D. (NSF BERD Survey 2023)
• 16. Pharmaceuticals and medicines had the second-highest manufacturing R&D intensity at 17.8% in 2023. (NSF BERD Survey 2023)
• 17. For all US manufacturers combined, the R&D-to-sales ratio was approximately 5% in 2023, compared to 4.2% for nonmanufacturing industries. Manufacturing consistently outpaces nonmanufacturing on R&D intensity. (NSF BERD Survey 2021)
• 18. Four-fifths of all US business R&D is concentrated in just five industries: information/software (26%), chemicals/pharma manufacturing (18%), computer/electronics manufacturing (15%), professional/scientific services (11%), and transportation equipment manufacturing (10%). (NSF Science and Engineering Indicators 2025)

4. Federal Funding and Government R&D Programs

The federal government is a crucial co-investor in manufacturing R&D, particularly in sectors where risks are too great or time horizons too long for private capital alone. From the CHIPS and Science Act to NIST's Manufacturing Extension Partnership, federal programs are reshaping where and how manufacturers innovate.

• 19. The federal government funded $32 billion of external business R&D in 2023, out of a total $86 billion from all external sources. (NSF BERD Survey 2023)
• 20. 81% of all federal R&D funding to business was concentrated in three sectors: aerospace products ($19B), scientific R&D services ($4B), and computer/electronic products ($2B). (NSF BERD Survey 2023)
• 21. The Manufacturing USA network expanded to 17 public-private institutes as of December 2024, with the Departments of Commerce, Defense, and Energy collectively providing $1.7 billion in funding since the program's inception. (GAO Report GAO-25-107369; GAO Report GAO-22-103979)
• 22. NIST's Manufacturing Extension Partnership (MEP) helped manufacturers achieve $15 billion in new and retained sales, $5 billion in new investments, $2.6 billion in cost savings, and over 108,000 jobs created or retained in fiscal year 2024. (NIST MEP FY 2024 Impact Report)
• 23. Since 1988, the MEP National Network has generated an estimated $152.2 billion in new sales and $34.2 billion in cost savings, helping create and retain over 1.7 million jobs. (NIST MEP)
• 24. NIST MEP serves manufacturers across all 51 centers in the US and Puerto Rico, with nearly 1,400 manufacturing experts at approximately 475 service locations. Over 43% of FY 2024 clients represented advanced industries. (NIST MEP)
• 25. The CHIPS and Science Act triggered 37 semiconductor manufacturing projects worth $272 billion, projecting 36,300 jobs as of November 2024. When combined with Inflation Reduction Act investments, 218 projects worth $388 billion were catalyzed. (Wikipedia / Jack Conness analysis, Nov. 2024)
• 26. US semiconductor manufacturing capacity is projected to grow by 203% from 2022 to 2032, the largest projected percentage increase in the world over that period, following the CHIPS Act. (SIA State of the Industry Report 2024)
• 27. The SBIR Phase I award cap was $314,363 and Phase II was $2,095,748 as of October 2024, with nearly 7,000 SBIR/STTR awards issued annually. Manufacturing-related technology areas are consistently among the top SBIR recipients. (SBIR.gov)
• 28. The top manufacturing industries served by NIST MEP in FY 2024 were fabricated metal products (17%), machinery (11%), and food manufacturing (9%), reflecting where small and mid-size manufacturers most actively seek innovation support. (NIST MEP FY 2024 Impact Report)

5. Smart Manufacturing and Digital Transformation

Smart manufacturing, the integration of sensors, IoT, AI, cloud computing, and advanced analytics into production environments, represents the current frontier of manufacturing R&D. Investment in these technologies has surged as manufacturers seek to close the gap between digital capability and physical operations.

• 29. Technology investments by manufacturing companies accounted for 30% of their operating budget in 2024, up from 23% in 2023. Cloud, generative AI, and 5G were cited as the top three technologies with the greatest ROI. (Deloitte 2025 Manufacturing Industry Outlook)
• 30. 92% of manufacturers surveyed believe smart manufacturing will be the main driver of competitiveness over the next three years, a 6-point increase from a 2019 survey on the same question. (Deloitte 2025 Smart Manufacturing Survey)
• 31. 85% of manufacturers believe their smart manufacturing initiatives will fundamentally transform how products are made, improve agility, and attract new talent. (Deloitte 2025 Smart Manufacturing Survey)
• 32. Manufacturers report, on average, a 10% to 20% improvement in production output, a 7% to 20% improvement in employee productivity, and 10% to 15% in unlocked capacity from smart manufacturing initiatives. (Deloitte 2025 Smart Manufacturing Survey)
• 33. 78% of manufacturers allocate more than 20% of their total improvement budget to smart manufacturing initiatives, and 88% expect smart manufacturing investments to continue or increase in the next fiscal year. (Deloitte 2025 Smart Manufacturing Survey)
• 34. 49% of manufacturers named operational benefits as the primary value sought from smart manufacturing, while 44% cited financial benefits as the second most-sought value. (Deloitte 2025 Smart Manufacturing Survey)
• 35. Nearly 22% of manufacturers plan to use physical AI within two years, more than double the 9% currently using it, according to a 2025 Manufacturing Leadership Council survey. (Deloitte 2026 Manufacturing Industry Outlook)
• 36. Digital transformation in manufacturing is projected to reach $767 billion by 2026, growing at a 19.48% rate over the 2021-2026 forecast period. (Mordor Intelligence via Docsumo)
• 37. Among smart manufacturing investment priorities for the next two years, 46% of manufacturers rank process automation first or second, 37% rank physical automation first or second, and 24% rank factory synchronization first or second. (Deloitte 2025 Smart Manufacturing Survey)
• 38. The global industrial manufacturing industry sits at what PwC describes as a "historic inflection point," with a total sector value of $16 trillion. A 2026 PwC survey of 443 senior executives found industrial manufacturers plan to more than double automation of key processes by 2030. (PwC Global Industrial Manufacturing Sector Outlook 2026)

6. Patents and Innovation Output

Patents are the most visible output of manufacturing R&D investment. US manufacturing companies file and receive more patents than any other national or sector group, with manufacturing-intensive industries dominating USPTO grant activity year after year.

• 39. US patent grants grew 5.7% to 368,597 in the 12-month period ending November 2024. (Anaqua 2024 USPTO Patent Statistics Analysis)
• 40. Semiconductor manufacturing (CPC code H01L21) experienced the highest year-over-year patent growth of any major technology category in fiscal year 2024, reflecting massive CHIPS Act investment in domestic fabrication capacity. (Parola Analytics 2024)
• 41. US-based companies led all countries in total US patent grants in 2023 with 162,557 patents, an 18% increase from 2022. (Anaqua 2023 USPTO Patent Statistics Analysis)
• 42. In the United States, computer, electronic, and optical products manufacturing (ISIC 26) and pharmaceuticals/medicinal chemicals (ISIC 21) have consistently been the two largest R&D-performing industries, holding 19% and 17% shares of total US business R&D respectively. (NSF Science and Engineering Indicators 2022)
• 43. Taiwan Semiconductor Manufacturing Company (TSMC) received 4,127 US patents in 2024, a 19.9% increase from 2023, reflecting the global competition in chip manufacturing innovation. (Anaqua 2024 USPTO Patent Statistics Analysis)

7. Additive Manufacturing and Emerging Technologies

Additive manufacturing (3D printing) is one of the fastest-growing technology sectors in manufacturing R&D, with applications spanning aerospace prototyping, medical implants, tooling, and mass customization. Investment in additive is accelerating as material options improve and production-grade machines become cost-effective.

• 44. The global additive manufacturing market was valued at $25.92 billion in 2025 and is projected to reach $125.94 billion by 2034, expanding at a CAGR of 19.29%. (Precedence Research 2025)
• 45. The US 3D printing market alone was valued at $7.10 billion in 2025 and is projected to grow to $34.28 billion by 2034 at a 19.18% CAGR. North America dominates with more than 35% of global market share. (Precedence Research 2025)
• 46. The global 3D printing market was estimated at $15.39 billion in 2024 and is predicted to reach $35.79 billion by 2030, growing at 17.2% annually. (MarketsandMarkets 2024)
• 47. America Makes, the National Additive Manufacturing Innovation Institute, is part of the Manufacturing USA network and serves as the nation's leading public-private partnership for additive manufacturing technology and education. (Manufacturing.gov)
• 48. The ARM (Advanced Robotics for Manufacturing) Institute, also a Manufacturing USA partner, is focused on bridging the gap between advanced robotics R&D funding and commercial deployment across US manufacturing. (Manufacturing.gov)

8. R&D Workforce and Talent in Manufacturing

The people who do R&D in manufacturing, the engineers, scientists, technicians, and data analysts driving innovation, represent a growing share of the manufacturing workforce. Access to this talent is increasingly a competitive differentiator, especially as advanced manufacturing skills become scarce.

• 49. There were 12.59 million manufacturing workers in the US as of January 2026, with manufacturers offering average total compensation (wages plus benefits) of $106,691 per worker in 2024. (NAM, citing BLS and BEA data)
• 50. 95% of manufacturing employees were eligible for employer-provided health insurance in 2025, the highest of any industry sector, significantly above the 80% average for all firms. (NAM, citing Kaiser Family Foundation 2025 Employer Health Benefits Survey)
• 51. There were 433,000 manufacturing job openings in December 2025, up from 399,000 in November, illustrating the ongoing tension between innovation demand and available talent supply. (NAM, citing BLS JOLTS)
• 52. Manufacturers are targeting human capital as the area with the largest aspirational improvement gap in smart manufacturing maturity, ahead of IT infrastructure, data analytics, and maintenance systems. (Deloitte 2025 Smart Manufacturing Survey)
• 53. The MEP National Network's customer satisfaction score is exceptional, with a Net Promoter Score of 85.3, well above industry benchmarks, indicating high satisfaction with R&D consulting and technology implementation support from MEP Centers. (NIST MEP FY 2024 Impact Report)
• 54. The majority of US manufacturing firms are small: of 239,265 manufacturing firms in 2022, all but 4,177 had fewer than 500 employees, and ~75% had fewer than 20 employees. Yet 59.1% of all manufacturing employment is at firms with 500 or more employees. (NAM, citing US Census Bureau Statistics of US Businesses)

9. R&D Tax Policy and Incentives for Manufacturers

Federal tax policy is one of the most powerful levers for encouraging or discouraging manufacturing R&D investment. The treatment of R&D expenses under the tax code directly affects how much manufacturers invest in innovation, particularly smaller companies with thin margins.

• 55. Nearly 94% of manufacturers say it is important for the federal tax code to help reduce manufacturers' costs for conducting R&D, accessing capital, and investing in equipment. 58% called it "very important." (NAM Q1 2024 Manufacturers' Outlook Survey)
• 56. If Congress had failed to act on R&D tax policy, 41.71% of manufacturers said they would limit R&D investments, 45.23% would hold off on hiring, and 44.72% would stall expansion of operations. (NAM Q1 2025 Manufacturers' Outlook Survey)
• 57. The 2025 "One Big Beautiful Bill" introduced IRC Section 174A, permanently reinstating the pre-TCJA rules for domestic R&D expenditure deductions. Under the new provision, capitalization is no longer required for qualified domestic research activities for tax years beginning after December 31, 2024. (Thomson Reuters Institute 2026)
• 58. The R&D tax credit (Section 41) remains one of the most valuable federal incentives for manufacturers. The IRS introduced a significantly revised Form 6765 starting with 2024 tax returns, requiring more detailed documentation of qualified R&D activities and expenses by business component. (BDO 2023)

10. Global R&D Comparisons: Where the US Stands

US manufacturing R&D does not exist in a vacuum. China's rapid R&D scale-up, Europe's sustained investment, and Asia's growing share of global innovation spending create competitive pressure that shapes everything from semiconductor supply chains to pharmaceutical pipelines.

• 59. China ranked first globally in R&D spending in 2024, investing $785.9 billion. This represents a dramatic shift from just a decade ago when the US held the top position. (Visual Capitalist, citing OECD/WIPO data, 2025)
• 60. Asia as a region accounted for approximately 45% of total global R&D spending in 2024, driven by China, Japan, and South Korea. (Indian Express, citing OECD data, 2026)
• 61. Global R&D spending is approaching $3 trillion in 2024, continuing its consistent growth despite macroeconomic uncertainty. (WIPO Global Innovation Index Blog 2025)
• 62. In the US, computer and electronic products manufacturing (ISIC 26) and pharmaceuticals (ISIC 21) were the two largest R&D-performing manufacturing industries, holding 19% and 17% of total US business R&D respectively. Both industries also lead globally in patent intensity. (NSF Science and Engineering Indicators 2022)
• 63. The US R&D intensity of 3.4% of GDP is among the highest for large economies globally, comparable to Germany and South Korea, though both China and South Korea have been rapidly converging. (NSF Science and Engineering Indicators 2025)

Manufacturing Productivity and R&D: The Connection

Manufacturing productivity, measured as output per unit of labor or capital input, is directly linked to R&D investment over time. The Bureau of Labor Statistics tracks multifactor productivity across manufacturing subsectors, and the data consistently shows that industries with higher R&D intensity achieve faster long-run productivity gains. Research and experimental development generates the process improvements, materials innovations, and design advances that compound into durable competitive advantages.

The North American Industry Classification System (NAICS) provides the standard taxonomy for measuring manufacturing R&D activity in the United States. The Business Enterprise Research and Development Survey, administered by the National Center for Science and Engineering Statistics and the Census Bureau, is the primary federal source for industry-level R&D data. The 2023 Business Enterprise Research and Development Survey data, released in 2025, provides the most recent comprehensive look at where manufacturing R&D dollars are being spent and by whom.

The business sector as a whole accounts for roughly 78% of all R&D performed in the United States. Within that, manufacturing and nonmanufacturing industries split the pie approximately 55-45 in favor of manufacturing. Manufacturing and nonmanufacturing companies differ substantially in funding sources, R&D types, and federal subsidy levels, but both sectors have increased R&D spending steadily over the past two decades. Research and experimental development in manufacturing is overwhelmingly applied and developmental in nature, as opposed to basic research, because most manufacturers need innovations that translate directly into products and processes.

• 74. The Bureau of Labor Statistics tracks manufacturing productivity through the Quarterly Census of Employment and Wages and multifactor productivity series. BLS data shows manufacturing output per hour has grown roughly 2.5 times faster than overall private business productivity over the past 30 years, driven largely by technology-intensive industries. (Bureau of Labor Statistics)
• 75. Of the $722 billion in total US business sector R&D in 2023, manufacturing and nonmanufacturing industries contributed $394 billion and $328 billion respectively. The manufacturing and nonmanufacturing split has held relatively stable at roughly 55-45 for several years. (NSF BERD Survey 2023)
• 76. The 2023 Business Enterprise Research and Development Survey counted companies with 10 or more domestic employees. The survey found that manufacturing industries accounted for 55% of all business R&D performed domestically. Most of this was self-funded (87%). (NSF, 2023 Business Enterprise Research and Development Survey)
• 77. R&D is formally defined as comprising three activities: basic research (knowledge without specific commercial application), applied research (solving specific commercial problems), and development (translating research into new products or processes). In manufacturing, development represents 79% of R&D spend, applied research 15%, and basic research 6%. (NSF BERD Survey 2023)
• 78. The North American Industry Classification System (NAICS) classifies manufacturing R&D by 3-digit and 4-digit codes. NAICS 3254 (pharmaceuticals and medicines), NAICS 3344 (semiconductor/electronic components), and NAICS 3364 (aerospace products and parts) are the three manufacturing subsectors that consistently top federal R&D statistics. (NSF BERD Survey 2023)

Additional Manufacturing R&D and Innovation Statistics

• 64. For every one worker in manufacturing, 5 additional workers are supported in the broader US economy, including indirect and induced impacts from supply chain and consumer spending. (NAM)
• 65. Manufacturing valued added contributed 9.5% of total US GDP in Q3 2025, totaling $2.95 trillion at an annual rate. (NAM, citing Bureau of Economic Analysis)
• 66. Scientific R&D services (NAICS 5417), a closely related sector to manufacturing innovation, had the highest R&D intensity of any US industry at 29% of sales in 2022. (NSF Science and Engineering Indicators 2025)
• 67. Foreign companies (including foreign parent companies of US subsidiaries) contributed $26 billion to US business R&D in 2023, with 66% of that funding concentrated in pharmaceuticals, scientific R&D services, and computer/electronic products. (NSF BERD Survey 2023)
• 68. US companies also funded $28 billion in R&D performed by other companies in 2023, primarily through contract research arrangements. Scientific R&D services received 67% of that inter-company funding. (NSF BERD Survey 2023)
• 69. The US projected to grow its share of advanced logic semiconductor manufacturing (below 10nm) to 28% of global capacity by 2032, up from 0% in 2022, driven by CHIPS Act investment. (SIA State of the Industry Report 2024)
• 70. The manufacturing construction spending boom driven by the CHIPS Act and IRA pushed US factory construction to multi-decade highs. Census Bureau data tracked total manufacturing construction spending as a primary indicator of the onshoring and R&D facility investment wave. (Federal Reserve Economic Database / US Census Bureau)
• 71. Among SBIR/STTR programs, 65,578 jobs are added to the US economy per year through innovation funding, with manufacturing technology areas consistently among the top recipients of Phase I and II awards. (SBIR.gov)
• 72. The top factors manufacturers cite for working with the NIST MEP are staff expertise (60%), cost of service (36%), and knowledge (30%), suggesting manufacturers value applied R&D support over purely academic or theoretical guidance. (NIST MEP FY 2024 Impact Report)
• 73. The additive manufacturing market will grow from $31.16 billion in 2026 to $125.94 billion by 2034, representing a sector that has gone from novelty to production-grade manufacturing R&D infrastructure in under two decades. (Precedence Research 2025)

Frequently Asked Questions: Manufacturing R&D

Data Methodology and Notes

Cite This Page

Data Sources

Every statistic in this report links directly to its original source. Below is the complete list of authoritative sources consulted.

1. NSF/NCSES Business Enterprise R&D (BERD) Survey 2023. National Science Foundation, National Center for Science and Engineering Statistics. ncses.nsf.gov
2. NSF Science and Engineering Indicators 2025. National Science Board. ncses.nsf.gov
3. NSF National Patterns of R&D Resources 2023-2024. ncses.nsf.gov
4. NSF Science and Engineering Indicators 2022 (R&D by Industry). ncses.nsf.gov
5. National Association of Manufacturers. Facts About Manufacturing (Updated 2026). nam.org
6. NAM Q1 2024 Manufacturers' Outlook Survey. nam.org
7. NAM Q1 2025 Manufacturers' Outlook Survey. nam.org
8. NIST MEP Economic Impacts Boost Business and Jobs (FY 2024). nist.gov
9. GAO Report: Advanced Manufacturing Institutes (GAO-25-107369). gao.gov
10. GAO Report: Advanced Manufacturing Innovation Institutes (GAO-22-103979). gao.gov
11. Deloitte 2025 Smart Manufacturing and Operations Survey. deloitte.com
12. Deloitte 2025 Manufacturing Industry Outlook. deloitte.com
13. Deloitte 2026 Manufacturing Industry Outlook. deloitte.com
14. SIA State of the US Semiconductor Industry 2024. semiconductors.org
15. PwC Global Industrial Manufacturing Sector Outlook 2026. pwc.com
16. Anaqua 2024 Analysis of USPTO Patent Statistics. anaqua.com
17. Parola Analytics: 2024 Patent Roundup. parolaanalytics.com
18. Precedence Research: Additive Manufacturing Market 2025-2034. precedenceresearch.com
19. MarketsandMarkets: 3D Printing Market 2025-2030. marketsandmarkets.com
20. Thomson Reuters Institute: Section 174 Future (2026). thomsonreuters.com
21. Visual Capitalist: Innovation Race, R&D Spending by Country (2025). visualcapitalist.com
22. WIPO Global Innovation Index Blog: End of Year Edition 2025. wipo.int
23. SBIR.gov: About SBIR and STTR. sbir.gov
24. Manufacturing.gov: Advanced Manufacturing. manufacturing.gov
25. Federal Reserve Economic Database (FRED): Manufacturing Construction Spending. fred.stlouisfed.org