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Sector Trends

R&D intensity is the ratio of R&D expenditures to sales. Five years of R&D spending data reveal some radical fluctuations in intensity for certain industries in our list, including a nasty drop for telecommunications services and materials. The intensity increase in the pharmaceuticals and biotechnology sector far outpaces those of other sectors. "Intensity Change" is calculated by comparing an industry's R&D intensity in 2000 to its intensity in 2004.

Technology Hardware and Equipment

2004 R&D Expenditures

US $64.8 billion

R&D growth 2000-2004 -9%

Sales growth2000-2004 3%

Intensity change 2000-2004 -9%

Automobiles and Components

2004 R&D Expenditures

$61.9 billion

R&D growth 2000-2004 52%

Sales growth 2000-2004 48%

Intensity change 2000-2004 2%

Pharmaceuticals and biotechnology

2004 r&D Expenditures

$51.7 billion

R&D growth 2000-2004 24%

Sales growth2000-2004 11%

Intensity change 2000-2004 12%

Capital Goods

2004 R&D Expenditures

$25.9 billion

R&D growth 2000-2004 41%

Sales growth 2000-2004 32%

Intensity change 2000-2004 6%

Consumer Durables and Apparel

2004 R&D Expenditures

$19.8 billion

R&D growth 2000-2004 33%

Sales growth 2000-2004 33%

Intensity change 2000-2004 0%

Software and services

2004 R&D Expenditures

$8.9 billion

R&D growth 2000-2004 41%

Sales growth 2000-2004 42%

Intensity change 2000-2004 -1%

Materials

2004 r&D Expenditures

$8.4 billion

R&D growth 2000-2004 2%

Sales growth 2000-2004 29%

Intensity change 2000-2004 -21%

Telecommunications Services

2004 r&D Expenditures

$5.3 billion

R&D growth 2000-2004 16%

Sales growth 2000-2004 51%

Intensity change 2000-2004 -23%

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