US companies performed 18 percent of R&D outside the United States in 2013

U.S. companies spent $73 billion on research and development (RD) performed outside the United States in 2013, according to a new report by the National Science Foundation’s National Center for Science and Engineering Statistics.

The total represented 18 percent of U.S. companies’ total RD performance. These same companies spent $323 billion on RD performed within the United States in 2013.

Almost 50 percent of the foreign RD performance by U.S. companies was in Europe, largely in the United Kingdom and Germany. The Asia-Pacific region accounted for 31 percent of foreign RD, with India and China making up the largest share. Outside of Europe and the Asia-Pacific region, foreign RD performance was highest in Canada, Israel and Brazil.

Four industries accounted for 52 percent of foreign RD performance by U.S. companies:

• Software publishing, which was concentrated in the United Kingdom, India, Israel and Canada.
• Pharmaceuticals and medicines, which had higher concentrations of foreign RD in Japan and Switzerland.
• Semiconductor and other electronic components, which had high concentrations of foreign RD in Singapore, Israel, India and China.
• Automobiles, bodies, trailers and parts, which had a high concentration of foreign RD in Germany.

U.S. companies with 500 or more domestic employees performed most foreign RD.

On the basis of cost per RD employee, U.S. companies spent 77 percent more on RD performed domestically than on RD performed outside the United States.

Differences in spending per RD employee between domestic and foreign RD performance were most pronounced in the information and communications technologies industries, which includes manufacturing of computer and electronics products, software publishing and computer systems design.

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For more information, including detailed breakdowns of locations, industries and company size, read the full report.