Innovation
Industry Research and Development
Description: This indicator measures private-sector investment in research and development (R&D) in Arizona. Industrial R&D expenditures are reported to the National Science Foundation through its annual survey of industrial R&D. Only a sample of companies is surveyed. The latest data are for 2005.
R&D expenditures by for-profit companies nationally and in Arizona from 1991 through 2005 are presented on the dashboard. Data are not available for Arizona in 1992, 1994 or 1996. The data are inflation adjusted using the gross domestic product (GDP) implicit price deflator. The inflation-adjusted dollars are expressed in terms of the latest year of data available.
Rationale: A central theme of the economic literature on economic growth is the importance of R&D investments. Economic analysis suggests that R&D investment is crucial for attaining increases in labor productivity that ultimately translate into improvements in prosperity. A successful innovation strategy must have some level of R&D activity in the private sector.
Data Sources: National Science Foundation, Division of Science Resources Statistics, Industrial R&D Series http://www.nsf.gov/statistics/showpub.cfm?TopID=5&SubID=36. The GDP implicit price deflator is available from the U.S. Department of Commerce, Bureau of Economic Analysis http://www.bea.gov/national/nipaweb/SelectTable.asp?Selected=Y (Table 1.1.9).
Comments on the Quality of the Data: The data are subject to survey error. Companies may be reluctant to disclose the amount of R&D that takes place at any particular facility.
