The Importance of U.S. Manufacturing

14. Manufacturing Dominates U.S. Domestic Private Sector R&D Investment

While total U.S. industry domestic R&D was 3.2 percent of domestic net sales during 2011, the manufacturing ratio was 3.9 percent, well above the 2.3 percent average for nonmanufacturing industries. The well-known “spillover” impacts from productive innovation investment, where the direct and indirect benefits of new products and ideas spread from industry to industry, testify to the economy-wide benefit of the R&D-intensive manufacturing.

To Innovation

14

Manufacturing Dominates U.S. Domestic Private Sector R&D Investment

15

Both Manufacturing and Select Nonmanufacturing Sectors Are Critical to the U.S. R&D Picture

16

The U.S. Is Competitive But Not Dominant in Total R&D Investment