Fact of the Week: US Microbusinesses Reported $7.6 Billion in R&D Costs in 2022

Source: Audrey Kindlon, "Microbusinesses Performed $5.7 billion of R&D in the United States in 2022" (Info Brief, National Center for Science and Engineering Statistics, National Science Foundation, October 29, 2024).

Commentary: Companies with less than 9 employees, also known as microbusinesses, reported $7.6 billion in R&D investments in 2022, of which $6.7 billion was invested domestically and $5.7 billion was performed by the microbusiness itself. A total of $7.6 billion in R&D investment by microbusinesses represents 18 percent growth from 2018. According to data from the National Center for Science and Engineering Statistics, over half (55 percent) of domestic R&D costs were invested on salaries and benefits for workers, on average, with the second-greatest cost for R&D microbusinesses being materials and supplies (9 percent). Microbusiness R&D in 2022 kept with the trends of previous years and was highly concentrated within a few industries. Non-manufacturing industries, including the information sector, computer systems, and biotechnology, accounted for 88 percent of microbusiness R&D investments.