Fact Check: "American companies reported about $500 billion in R&D expenditures in 2019."
What We Know
In 2019, American companies reported approximately $493 billion in research and development (R&D) expenditures. This figure reflects an 11.8% increase from the previous year, 2018, where R&D expenditures were about $441 billion (National Science Foundation). The funding for R&D came primarily from the companies' own sources, amounting to $429 billion, while external funding accounted for $64 billion (National Center for Science and Engineering Statistics).
Analysis
The claim that American companies reported about $500 billion in R&D expenditures in 2019 is accurate but slightly understated. The reported figure of $493 billion is very close to the $500 billion mark, which could be considered a reasonable approximation in casual discussions. The data from the National Center for Science and Engineering Statistics (NCSES) is derived from comprehensive surveys that have been conducted annually since 1953, ensuring a high level of reliability (source-1, source-2).
Moreover, the distinction between the total R&D expenditures reported by companies and the overall U.S. R&D expenditures—which include contributions from federal, state, and higher education sectors—further contextualizes the claim. The total U.S. R&D spending in 2019 was approximately $667 billion, which includes all sectors (source-2).
The reliability of the sources is strong, as they come from government agencies that specialize in statistical data collection and analysis. The National Science Foundation and its associated bodies are recognized for their rigorous methodologies and comprehensive data collection efforts.
Conclusion
Verdict: True
The claim that American companies reported about $500 billion in R&D expenditures in 2019 is true, as the reported figure of $493 billion is very close to the $500 billion threshold. This figure is supported by credible data from the National Science Foundation, which indicates a robust and growing investment in R&D by American businesses.
Sources
- Businesses Reported an 11.8% Increase to Nearly a Half Trillion Dollars ... NSF 22-303
- U.S. R&D increased by $62 billion in 2019, to $667 billion; estimate ... NSF 22-330
