{"id":281,"date":"2010-07-06T04:23:30","date_gmt":"2010-07-06T12:23:30","guid":{"rendered":"http:\/\/www.woodinnovation.org\/?p=281"},"modified":"2010-07-06T04:23:30","modified_gmt":"2010-07-06T12:23:30","slug":"research-brief-growth-strategy-opportunity-for-wood-products-industry-research-and-development","status":"publish","type":"post","link":"https:\/\/sim.sbio.vt.edu\/?p=281","title":{"rendered":"RESEARCH BRIEF: Growth strategy opportunity for Wood Products Industry: Research and Development"},"content":{"rendered":"
by Johanna Madrigal<\/em><\/address>\n
Ph.D. Candidate, <\/em>Virginia Tech<\/address>\n
<\/address>\n
\u00a0<\/address>\n

The Frascati Manual indicates that Research and Development (R&D)\u00a0expenditures in The United States of America (USA)\u00a0are classified by the\u00a0North American Industry Classification System (NAICS) and under three research categories. These three categories are: (1)Basic research that covers all the experimental and theoretical work developing knowledge for the foundation of a topic but with no defined application or use; (2) Applied research which is knowledge developed through original investigation aiming an objective; and (3) Experimental development that is created under a systematic work, developing knowledge or using existing knowledge, targeting improvement of current material, products, process and services or the development new materials, products, processes and services. In 2008, R&D expenditures in the USA were approximately $397 billion. Out this total, basic research accounts for 17% ($69.15 billion), applied research for 23% ($88.59 billion), and development for about 60% ($239.89 billion)\u00a0 according to the National Science Foundation (NSF 2010).\u00a0<\/p>\n

At the industry level, these expenditures were mostly performed by the pharmaceuticals\/medicines (NAICS code 3254), the semiconductor\/other electronic components (NAICS\u00a0\u00a0 code 3344), \u00a0the communications equipment (NAICS code 3342), and Software publishers \u00a0(NAICS code 5112) sectors. This last sector has\u00a0the highest ratio of R&D as a share of sales.\u00a0\u00a0 Table 1 shows the data corresponding to R&D expenses and sales for these industries (Wolfe, 2010).\u00a0<\/p>\n

Table 1. R&D expenses as a share of sales. (Wolfe, 2010)<\/p>\n\n\n\n\n\n\n\n
Industry (NAICS code)<\/strong><\/td>\nSales worldwide <\/strong>($ million)<\/strong><\/td>\nR&D expenditure <\/strong>($ million)<\/strong><\/td>\nR&D as a share of sales<\/strong><\/td>\n<\/tr>\n
Semiconductor\/other electronic components (3344)<\/td>\n192,258<\/td>\n28,812<\/td>\n15%<\/td>\n<\/tr>\n
Pharmaceutical\/medicines (3254)<\/td>\n529,601<\/td>\n69,516<\/td>\n13%<\/td>\n<\/tr>\n
Communication equipments (3342)<\/td>\n132,307<\/td>\n14,987<\/td>\n11%<\/td>\n<\/tr>\n
Software publishers (5112)<\/td>\n317,084<\/td>\n35070<\/td>\n11%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

In the wood products industry data show that\u00a0the primary wood products (NAICS code 321) and the secondary wood products sector\u00a0(NAICS code 337) spent together $0.697 billion in 2008, which is less than 1% of total sales, similar to what happened in\u00a02006 in this industry (Wolfe 2010). As a comparison, the overall ratio of R&D expenses to sales in the manufacturing industry in US was\u00a0approximately 4% in 2006. This might be indicating\u00a0that perhaps\u00a0wood products industries need to increase their investments in R&D activities in order to increase their sales.\u00a0 Figure 1 shows a comparative chart of\u00a0R&D expenditures as a ratio of sales for some industries including wood products.<\/p>\n

\"\"<\/a>
Figure 1. R&D expenditure by selected industry (Wolfe, 2010)<\/figcaption><\/figure>\n

\u00a0This situation shown in Figure 1 might be an indication that\u00a0R&D expenditures (as a measure of Innovation) must\u00a0could be\u00a0defined as a sustainable growth strategy for the Wood Products Industry if the business wants to remain competitive and profitable.<\/p>\n

References:<\/strong><\/p>\n

National Science Board. (2010). Research and development: essential foundations for U.S. competitiveness in a global economy. A companion to Science and Engineering Indicators \u2013 2008. NSF.<\/p>\n

Wolfe, R. (2010). U.S. Businesses Report 2008 Worldwide R&D expense of $330 billion: findings from new NSF survey. NSF. 10, 322\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

by Johanna Madrigal Ph.D. Candidate, Virginia Tech \u00a0 The Frascati Manual indicates that Research and Development (R&D)\u00a0expenditures in The United States of America (USA)\u00a0are classified by the\u00a0North American Industry Classification System (NAICS) and under three research categories. These three categories are: (1)Basic research that covers all the experimental and theoretical work developing knowledge for the … Continue reading “RESEARCH BRIEF: Growth strategy opportunity for Wood Products Industry: Research and Development”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-281","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/sim.sbio.vt.edu\/index.php?rest_route=\/wp\/v2\/posts\/281","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sim.sbio.vt.edu\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sim.sbio.vt.edu\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sim.sbio.vt.edu\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sim.sbio.vt.edu\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=281"}],"version-history":[{"count":0,"href":"https:\/\/sim.sbio.vt.edu\/index.php?rest_route=\/wp\/v2\/posts\/281\/revisions"}],"wp:attachment":[{"href":"https:\/\/sim.sbio.vt.edu\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=281"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sim.sbio.vt.edu\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=281"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sim.sbio.vt.edu\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=281"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}