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Scientific Research & Development in the US Industry Market Research Report from IBISWorld has Been Updated
Date:12/11/2012

Los Angeles, CA (PRWEB) December 11, 2012

“Increased funding from the government, corporations and academia has benefited the Scientific Research and Development industry,” according to IBISWorld industry analyst Kevin Boyland. As a result, IBISWorld expects industry revenue to increase at an annualized rate of 4.1% over the five years to 2012 to total $118.4 billion. However, revenue growth is expected to slow to 1.4% in 2012 following a dip in government spending in 2011 and an ongoing budget dispute on Capitol Hill. Federal funding is expected to contribute about 61.3% of industry revenue in 2012; other government funding is expected to contribute 4.0%.

While still overwhelmingly funded by public sources, a shift toward private funding is slowly changing the focus of industry research. Historically, government money has been devoted to basic research, or research without a specific goal. However, private and corporate money is often devoted to experimental and developmental research that builds upon an existing idea often already developed by basic research. This type of research and development (R&D) is far more financially viable, and companies have been more inclined to invest in it to gain a competitive advantage over the past five years. Nonetheless, there are no major players in the Scientific Research and Development industry, and the multitude of research topics undertaken by the industry precludes any one firm from gaining a dominant position. “Although players in the industry have made some acquisitions over the five years to 2012, concentration has only slightly increased,” says Boyland.

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