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          1. Scientific Research & Development Services Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 6/22/2020
            SIC Codes: 8731, 8732, 8733
            NAICS Codes: 5417
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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            Excerpt from Scientific Research & Development Services Industry Profile

            Companies in this industry conduct research or apply research findings to develop new products or processes in a variety of fields, including life sciences, physical sciences, engineering, social sciences, and the humanities. Major companies include Argonne National Laboratory, Battelle Memorial Institute, and IQVIA (all based in the US), as well as AKKA Technologies (Belgium), Qinetiq Group (UK), and WuXi Apptec (China).

            Global spending on research and development, a demand driver for scientific research services, is about $2.3 trillion. Global R&D investment has been growing steadily over the last several years, with China leading the charge. The US accounts for about 25% of the world’s total R&D spending, China for 22%, and Europe for about 20%, according to R&D Magazine.

            The US scientific research and development services industry includes about 19,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $175 billion.

            COMPETITIVE LANDSCAPE

            Demand is driven by government and commercial investment in science and technology. The profitability of individual companies depends on the discovery of potentially useful or marketable new products. Large companies can compete by employing scientists across several disciplines and taking advantage of economies of scale; they can also compete by managing government research operations. Small companies can compete by focusing on their expertise in a single specialty. The US industry is fragmented: the top 50 companies account for about 40% of revenue.

            The prospect ...

             
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