research and development report

Building an R&D strategy for modern times

The global investment in research and development (R&D) is staggering. In 2019 alone, organizations around the world spent $2.3 trillion on R&D—the equivalent of roughly 2 percent of global GDP—about half of which came from industry and the remainder from governments and academic institutions. What’s more, that annual investment has been growing at approximately 4 percent per year over the past decade. 1 2.3 trillion on purchasing-power-parity basis; 2019 global R&D funding forecast , Supplement, R&D Magazine, March 2019, rdworldonline.com.

While the pharmaceutical sector garners much attention due to its high R&D spending as a percentage of revenues, a comparison based on industry profits shows that several industries, ranging from high tech to automotive to consumer, are putting more than 20 percent of earnings before interest, taxes, depreciation, and amortization (EBITDA) back into innovation research (Exhibit 1).

What do organizations expect to get in return? At the core, they hope their R&D investments yield the critical technology from which they can develop new products, services, and business models. But for R&D to deliver genuine value, its role must be woven centrally into the organization’s mission. R&D should help to both deliver and shape corporate strategy, so that it develops differentiated offerings for the company’s priority markets and reveals strategic options, highlighting promising ways to reposition the business through new platforms and disruptive breakthroughs.

Yet many enterprises lack an R&D strategy that has the necessary clarity, agility, and conviction to realize the organization’s aspirations. Instead of serving as the company’s innovation engine, R&D ends up isolated from corporate priorities, disconnected from market developments, and out of sync with the speed of business. Amid a growing gap in performance  between those that innovate successfully and those that do not, companies wishing to get ahead and stay ahead of competitors need a robust R&D strategy that makes the most of their innovation investments. Building such a strategy takes three steps: understanding the challenges that often work as barriers to R&D success, choosing the right ingredients for your strategy, and then pressure testing it before enacting it.

Overcoming the barriers to successful R&D

The first step to building an R&D strategy is to understand the four main challenges that modern R&D organizations face:

Innovation cycles are accelerating. The growing reliance on software and the availability of simulation and automation technologies have caused the cost of experimentation to plummet while raising R&D throughput. The pace of corporate innovation is further spurred by the increasing emergence of broadly applicable technologies, such as digital and biotech, from outside the walls of leading industry players.

But incumbent corporations are only one part of the equation. The trillion dollars a year that companies spend on R&D is matched by the public sector. Well-funded start-ups, meanwhile, are developing and rapidly scaling innovations that often threaten to upset established business models or steer industry growth into new areas. Add increasing investor scrutiny of research spending, and the result is rising pressure on R&D leaders to quickly show results for their efforts.

R&D lacks connection to the customer. The R&D group tends to be isolated from the rest of the organization. The complexity of its activities and its specialized lexicon make it difficult for others to understand what the R&D function really does. That sense of working inside a “black box” often exists even within the R&D organization. During a meeting of one large company’s R&D leaders, a significant portion of the discussion focused on simply getting everyone up to speed on what the various divisions were doing, let alone connecting those efforts to the company’s broader goals.

Given the challenges R&D faces in collaborating with other functions, going one step further and connecting with customers becomes all the more difficult. While many organizations pay lip service to customer-centric development, their R&D groups rarely get the opportunity to test products directly with end users. This frequently results in market-back product development that relies on a game of telephone via many intermediaries about what the customers want and need.

Projects have few accountability metrics. R&D groups in most sectors lack effective mechanisms to measure and communicate progress; the pharmaceutical industry, with its standard pipeline for new therapeutics that provides well-understood metrics of progress and valuation implications, is the exception, not the rule. When failure is explained away as experimentation and success is described in terms of patents, rather than profits, corporate leaders find it hard to quantify R&D’s contribution.

Yet proven metrics exist  to effectively measure progress and outcomes. A common challenge we observe at R&D organizations, ranging from automotive to chemical companies, is how to value the contribution of a single component that is a building block of multiple products. One specialty-chemicals company faced this challenge in determining the value of an ingredient it used in its complex formulations. It created categorizations to help develop initial business cases and enable long-term tracking. This allowed pragmatic investment decisions at the start of projects and helped determine the value created after their completion.

Even with outcomes clearly measured, the often-lengthy period between initial investment and finished product can obscure the R&D organization’s performance. Yet, this too can be effectively managed by tracking the overall value and development progress of the pipeline so that the organization can react and, potentially, promptly reorient both the portfolio and individual projects within it.

Incremental projects get priority. Our research indicates that incremental projects account for more than half of an average company’s R&D investment, even though bold bets and aggressive reallocation  of the innovation portfolio deliver higher rates of success. Organizations tend to favor “safe” projects with near-term returns—such as those emerging out of customer requests—that in many cases do little more than maintain existing market share. One consumer-goods company, for example, divided the R&D budget among its business units, whose leaders then used the money to meet their short-term targets rather than the company’s longer-term differentiation and growth objectives.

Focusing innovation solely around the core business may enable a company to coast for a while—until the industry suddenly passes it by. A mindset that views risk as something to be avoided rather than managed can be unwittingly reinforced by how the business case is measured. Transformational projects at one company faced a higher internal-rate-of-return hurdle than incremental R&D, even after the probability of success had been factored into their valuation, reducing their chances of securing funding and tilting the pipeline toward initiatives close to the core.

As organizations mature, innovation-driven growth becomes increasingly important, as their traditional means of organic growth, such as geographic expansion and entry into untapped market segments, diminish. To succeed, they need to develop R&D strategies equipped for the modern era that treat R&D not as a cost center but as the growth engine it can become.

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Choosing the ingredients of a winning r&d strategy.

Given R&D’s role as the innovation driver that advances the corporate agenda, its guiding strategy needs to link board-level priorities with the technologies that are the organization’s focus (Exhibit 2). The R&D strategy must provide clarity and commitment to three central elements: what we want to deliver, what we need to deliver it, and how we will deliver it.

What we want to deliver. To understand what a company wants to and can deliver, the R&D, commercial, and corporate-strategy functions need to collaborate closely, with commercial and corporate-strategy teams anchoring the R&D team on the company’s priorities and the R&D team revealing what is possible. The R&D strategy and the corporate strategy must be in sync while answering questions such as the following: At the highest level, what are the company’s goals? Which of these will require R&D in order to be realized? In short, what is the R&D organization’s purpose?

Bringing the two strategies into alignment is not as easy as it may seem. In some companies, what passes for corporate strategy is merely a five-year business plan. In others, the corporate strategy is detailed but covers only three to five years—too short a time horizon to guide R&D, especially in industries such as pharma or semiconductors where the product-development cycle is much longer than that. To get this first step right, corporate-strategy leaders should actively engage with R&D. That means providing clarity where it is lacking and incorporating R&D feedback that may illuminate opportunities, such as new technologies that unlock growth adjacencies for the company or enable completely new business models.

Secondly, the R&D and commercial functions need to align on core battlegrounds and solutions. Chief technology officers want to be close to and shape the market by delivering innovative solutions that define new levels of customer expectations. Aligning R&D strategy provides a powerful forum for identifying those opportunities by forcing conversations about customer needs and possible solutions that, in many companies, occur only rarely. Just as with the corporate strategy alignment, the commercial and R&D teams need to clearly articulate their aspirations by asking questions such as the following: Which markets will make or break us as a company? What does a winning product or service look like for customers?

When defining these essential battlegrounds, companies should not feel bound by conventional market definitions based on product groups, geographies, or customer segments. One agricultural player instead defined its markets by the challenges customers faced that its solutions could address. For example, drought resistance was a key battleground no matter where in the world it occurred. That framing clarified the R&D–commercial strategy link: if an R&D project could improve drought resistance, it was aligned to the strategy.

The dialogue between the R&D, commercial, and strategy functions cannot stop once the R&D strategy is set. Over time, leaders of all three groups should reexamine the strategic direction and continuously refine target product profiles as customer needs and the competitive landscape evolve.

What we need to deliver it. This part of the R&D strategy determines what capabilities and technologies the R&D organization must have in place to bring the desired solutions to market. The distinction between the two is subtle but important. Simply put, R&D capabilities are the technical abilities to discover, develop, or scale marketable solutions. Capabilities are unlocked by a combination of technologies and assets, and focus on the outcomes. Technologies, however, focus on the inputs—for example, CRISPR is a technology that enables the genome-editing capability.

This delineation protects against the common pitfall of the R&D organization fixating on components of a capability instead of the capability itself—potentially missing the fact that the capability itself has evolved. Consider the dawn of the digital age: in many engineering fields, a historical reliance on talent (human number crunchers) was suddenly replaced by the need for assets (computers). Those who focused on hiring the fastest mathematicians were soon overtaken by rivals who recognized the capability provided by emerging technologies.

The simplest way to identify the needed capabilities is to go through the development processes of priority solutions step by step—what will it take to produce a new product or feature? Being exhaustive is not the point; the goal is to identify high-priority capabilities, not to log standard operating procedures.

Prioritizing capabilities is a critical but often contentious aspect of developing an R&D strategy. For some capabilities, being good is sufficient. For others, being best in class is vital because it enables a faster path to market or the development of a better product than those of competitors. Take computer-aided design (CAD), which is used to design and prototype engineering components in numerous industries, such as aerospace or automotive. While companies in those sectors need that capability, it is unlikely that being the best at it will deliver a meaningful advantage. Furthermore, organizations should strive to anticipate which capabilities will be most important in the future, not what has mattered most to the business historically.

Once capabilities are prioritized, the R&D organization needs to define what being “good” and “the best” at them will mean over the course of the strategy. The bar rises rapidly in many fields. Between 2009 and 2019, the cost of sequencing a genome dropped 150-fold, for example. 2 Kris A. Wetterstrand, “DNA sequencing costs: Data,” NHGRI Genome Sequencing Program (GSP), August 25, 2020, genome.gov. Next, the organization needs to determine how to develop, acquire, or access the needed capabilities. The decision of whether to look internally or externally is crucial. An automatic “we can build it better” mindset diminishes the benefits of specialization and dilutes focus. Additionally, the bias to building everything in-house can cut off or delay access to the best the world has to offer—something that may be essential for high-priority capabilities. At Procter & Gamble, it famously took the clearly articulated aspiration of former CEO A. G. Lafley to break the company’s focus on in-house R&D and set targets for sourcing innovation externally. As R&D organizations increasingly source capabilities externally, finding partners and collaborating with them effectively is becoming a critical capability in its own right.

How we will do it. The choices of operating model and organizational design will ultimately determine how well the R&D strategy is executed. During the strategy’s development, however, the focus should be on enablers that represent cross-cutting skills and ways of working. A strategy for attracting, developing, and retaining talent is one common example.

Another is digital enablement, which today touches nearly every aspect of what the R&D function does. Artificial intelligence can be used at the discovery phase to identify emerging market needs or new uses of existing technology. Automation and advanced analytics approaches to experimentation can enable high throughput screening at a small scale and distinguish the signal from the noise. Digital (“in silico”) simulations are particularly valuable when physical experiments are expensive or dangerous. Collaboration tools are addressing the connectivity challenges common among geographically dispersed project teams. They have become indispensable in bringing together existing collaborators, but the next horizon is to generate the serendipity of chance encounters that are the hallmark of so many innovations.

Testing your R&D strategy

Developing a strategy for the R&D organization entails some unique challenges that other functions do not face. For one, scientists and engineers have to weigh considerations beyond their core expertise, such as customer, market, and economic factors. Stakeholders outside R&D labs, meanwhile, need to understand complex technologies and development processes and think along much longer time horizons than those to which they are accustomed.

For an R&D strategy to be robust and comprehensive enough to serve as a blueprint to guide the organization, it needs to involve stakeholders both inside and outside the R&D group, from leading scientists to chief commercial officers. What’s more, its definition of capabilities, technologies, talent, and assets should become progressively more granular as the strategy is brought to life at deeper levels of the R&D organization. So how can an organization tell if its new strategy passes muster? In our experience, McKinsey’s ten timeless tests of strategy  apply just as well to R&D strategy as to corporate and business-unit strategies. The following two tests are the most important in the R&D context:

• Does the organization’s strategy tap the true source of advantage? Too often, R&D organizations conflate technical necessity (what is needed to develop a solution) with strategic importance (distinctive capabilities that allow an organization to develop a meaningfully better solution than those of their competitors). It is also vital for organizations to regularly review their answers to this question, as capabilities that once provided differentiation can become commoditized and no longer serve as sources of advantage.
• Does the organization’s strategy balance commitment-rich choices with flexibility and learning? R&D strategies may have relatively long time horizons but that does not mean they should be insulated from changes in the outside world and never revisited. Companies should establish technical, regulatory, or other milestones that serve as clear decision points for shifting resources to or away from certain research areas. Such milestones can also help mark progress and gauge whether strategy execution is on track.

Additionally, the R&D strategy should be simply and clearly communicated to other functions within the company and to external stakeholders. To boost its clarity, organizations might try this exercise: distill the strategy into a set of fill-in-the-blank components that define, first, how the world will evolve and how the company plans to refocus accordingly (for example, industry trends that may lead the organization to pursue new target markets or segments); next, the choices the R&D function will make in order to support the company’s new focus (which capabilities will be prioritized and which de-emphasized); and finally, how the R&D team will execute the strategy in terms of concrete actions and milestones. If a company cannot fit the exercise on a single page, it has not sufficiently synthesized the strategy—as the famed physicist Richard Feynman observed, the ultimate test of comprehension is the ability to convey something to others in a simple manner.

Cascading the strategy down through the R&D organization will further reinforce its impact. For example, asking managers to communicate the strategy to their subordinates will deepen their own understanding. A useful corollary is that those hearing the strategy for the first time are introduced to it by their immediate supervisors rather than more distant R&D leaders. One R&D group demonstrated the broad benefits of this communication model: involving employees in developing and communicating the R&D strategy helped it double its Organizational Health Index  strategic clarity score, which measures one of the four “power practices”  highly connected to organizational performance.

R&D represents a massive innovation investment, but as companies confront globalized competition, rapidly changing customer needs, and technological shifts coming from an ever-wider range of fields, they are struggling to deliver on R&D’s full potential. A clearly articulated R&D strategy that supports and informs the corporate strategy is necessary to maximize the innovation investment and long-term company value.

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What Is Research and Development?

• Understanding R&D
• Types of R&D
• Pros and Cons
• Considerations
• R&D vs. Applied Research
• R&D Tax Credits

The Bottom Line

• Business Essentials

What Is Research and Development (R&D)?

Investopedia / Ellen Lindner

Research and development (R&D) is the series of activities that companies undertake to innovate. R&D is often the first stage in the development process that results in market research product development, and product testing.

Key Takeaways

• Research and development represents the activities companies undertake to innovate and introduce new products and services or to improve their existing offerings.
• R&D allows a company to stay ahead of its competition by catering to new wants or needs in the market.
• Companies in different sectors and industries conduct R&D—pharmaceuticals, semiconductors, and technology companies generally spend the most.
• R&D is often a broad approach to exploratory advancement, while applied research is more geared towards researching a more narrow scope.
• The accounting for treatment for R&D costs can materially impact a company's income statement and balance sheet.

Understanding Research and Development (R&D)

The concept of research and development is widely linked to innovation both in the corporate and government sectors. R&D allows a company to stay ahead of its competition. Without an R&D program, a company may not survive on its own and may have to rely on other ways to innovate such as engaging in mergers and acquisitions (M&A) or partnerships. Through R&D, companies can design new products and improve their existing offerings.

R&D is distinct from most operational activities performed by a corporation. The research and/or development is typically not performed with the expectation of immediate profit. Instead, it is expected to contribute to the long-term profitability of a company. R&D may often allow companies to secure intellectual property, including patents , copyrights, and trademarks as discoveries are made and products created.

Companies that set up and employ departments dedicated entirely to R&D commit substantial capital to the effort. They must estimate the risk-adjusted return on their R&D expenditures, which inevitably involves risk of capital. That's because there is no immediate payoff, and the return on investment (ROI) is uncertain. As more money is invested in R&D, the level of capital risk increases. Other companies may choose to outsource their R&D for a variety of reasons including size and cost.

Companies across all sectors and industries undergo R&D activities. Corporations experience growth through these improvements and the development of new goods and services. Pharmaceuticals, semiconductors , and software/technology companies tend to spend the most on R&D. In Europe, R&D is known as research and technical or technological development.

Many small and mid-sized businesses may choose to outsource their R&D efforts because they don't have the right staff in-house to meet their needs.

Types of Research and Development (R&D)

There are several different types of R&D that exist in the corporate world and within government. The type used depends entirely on the entity undertaking it and the results can differ.

Basic Research

There are business incubators and accelerators, where corporations invest in startups and provide funding assistance and guidance to entrepreneurs in the hope that innovations will result that they can use to their benefit.

M&As and partnerships are also forms of R&D as companies join forces to take advantage of other companies' institutional knowledge and talent.

Applied Research

One R&D model is a department staffed primarily by engineers who develop new products —a task that typically involves extensive research. There is no specific goal or application in mind with this model. Instead, the research is done for the sake of research.

Development Research

This model involves a department composed of industrial scientists or researchers, all of who are tasked with applied research in technical, scientific, or industrial fields. This model facilitates the development of future products or the improvement of current products and/or operating procedures.

The largest companies may also be the ones that drive the most R&D spend. For example, Amazon has reported $1.147 billion of research and development value on its 2023 annual report.

Advantages and Disadvantages of R&D

There are several key benefits to research and development. It facilitates innovation, allowing companies to improve existing products and services or by letting them develop new ones to bring to the market.

Because R&D also is a key component of innovation, it requires a greater degree of skill from employees who take part. This allows companies to expand their talent pool, which often comes with special skill sets.

The advantages go beyond corporations. Consumers stand to benefit from R&D because it gives them better, high-quality products and services as well as a wider range of options. Corporations can, therefore, rely on consumers to remain loyal to their brands. It also helps drive productivity and economic growth.

Disadvantages

One of the major drawbacks to R&D is the cost. First, there is the financial expense as it requires a significant investment of cash upfront. This can include setting up a separate R&D department, hiring talent, and product and service testing, among others.

Innovation doesn't happen overnight so there is also a time factor to consider. This means that it takes a lot of time to bring products and services to market from conception to production to delivery.

Because it does take time to go from concept to product, companies stand the risk of being at the mercy of changing market trends . So what they thought may be a great seller at one time may reach the market too late and not fly off the shelves once it's ready.

Facilitates innovation

Improved or new products and services

Expands knowledge and talent pool

Increased consumer choice and brand loyalty

Economic driver

Financial investment

Shifting market trends

R&D Accounting

R&D may be beneficial to a company's bottom line, but it is considered an expense . After all, companies spend substantial amounts on research and trying to develop new products and services. As such, these expenses are often reported for accounting purposes on the income statement and do not carry long-term value.

There are certain situations where R&D costs are capitalized and reported on the balance sheet. Some examples include but are not limited to:

• Materials, fixed assets, or other assets have alternative future uses with an estimable value and useful life.
• Software that can be converted or applied elsewhere in the company to have a useful life beyond a specific single R&D project.
• Indirect costs or overhead expenses allocated between projects.
• R&D purchased from a third party that is accompanied by intangible value. That intangible asset may be recorded as a separate balance sheet asset.

R&D Considerations

Before taking on the task of research and development, it's important for companies and governments to consider some of the key factors associated with it. Some of the most notable considerations are:

• Objectives and Outcome: One of the most important factors to consider is the intended goals of the R&D project. Is it to innovate and fill a need for certain products that aren't being sold? Or is it to make improvements on existing ones? Whatever the reason, it's always important to note that there should be some flexibility as things can change over time.
• Timing: R&D requires a lot of time. This involves reviewing the market to see where there may be a lack of certain products and services or finding ways to improve on those that are already on the shelves.
• Cost: R&D costs a great deal of money, especially when it comes to the upfront costs. And there may be higher costs associated with the conception and production of new products rather than updating existing ones.
• Risks: As with any venture, R&D does come with risks. R&D doesn't come with any guarantees, no matter the time and money that goes into it. This means that companies and governments may sacrifice their ROI if the end product isn't successful.

Research and Development vs. Applied Research

Basic research is aimed at a fuller, more complete understanding of the fundamental aspects of a concept or phenomenon. This understanding is generally the first step in R&D. These activities provide a basis of information without directed applications toward products, policies, or operational processes .

Applied research entails the activities used to gain knowledge with a specific goal in mind. The activities may be to determine and develop new products, policies, or operational processes. While basic research is time-consuming, applied research is painstaking and more costly because of its detailed and complex nature.

R&D Tax Credits

The IRS offers a R&D tax credit to encourage innovation and significantly reduction their tax liability. The credit calls for specific types of spend such as product development, process improvement, and software creation.

Enacted under Section 41 of the Internal Revenue Code, this credit encourages innovation by providing a dollar-for-dollar reduction in tax obligations. The eligibility criteria, expanded by the Protecting Americans from Tax Hikes (PATH) Act of 2015, now encompass a broader spectrum of businesses. The credit tens to benefit small-to-midsize enterprises.

To claim R&D tax credits, businesses must document their qualifying expenses and complete IRS Form 6765 (Credit for Increasing Research Activities). The credit, typically ranging from 6% to 8% of annual qualifying expenses, offers businesses a direct offset against federal income tax liabilities. Additionally, businesses can claim up to $250,000 per year against their payroll taxes.

Example of Research and Development (R&D)

One of the more innovative companies of this millennium is Apple Inc. As part of its annual reporting, it has the following to say about its research and development spend:

In 2023, Apple reported having spent $29.915 billion. This is 8% of their annual total net sales. Note that Apple's R&D spend was reported to be higher than the company's selling, general and administrative costs (of $24.932 billion).

Note that the company doesn't go into length about what exactly the R&D spend is for. According to the notes, the company's year-over-year growth was "driven primarily by increases in headcount-related expenses". However, this does not explain the underlying basis carried from prior years (i.e. materials, patents, etc.).

Research and development refers to the systematic process of investigating, experimenting, and innovating to create new products, processes, or technologies. It encompasses activities such as scientific research, technological development, and experimentation conducted to achieve specific objectives to bring new items to market.

What Types of Activities Can Be Found in Research and Development?

Research and development activities focus on the innovation of new products or services in a company. Among the primary purposes of R&D activities is for a company to remain competitive as it produces products that advance and elevate its current product line. Since R&D typically operates on a longer-term horizon, its activities are not anticipated to generate immediate returns. However, in time, R&D projects may lead to patents, trademarks, or breakthrough discoveries with lasting benefits to the company. 

Why Is Research and Development Important?

Given the rapid rate of technological advancement, R&D is important for companies to stay competitive. Specifically, R&D allows companies to create products that are difficult for their competitors to replicate. Meanwhile, R&D efforts can lead to improved productivity that helps increase margins, further creating an edge in outpacing competitors. From a broader perspective, R&D can allow a company to stay ahead of the curve, anticipating customer demands or trends.

There are many things companies can do in order to advance in their industries and the overall market. Research and development is just one way they can set themselves apart from their competition. It opens up the potential for innovation and increasing sales. However, it does come with some drawbacks—the most obvious being the financial cost and the time it takes to innovate.

Amazon. " 2023 Annual Report ."

Internal Revenue Service. " Research Credit ."

Internal Revenue Service. " About Form 6765, Credit for Increasing Research Activities ."

Apple. " 2023 Annual Report ."

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Home » Research Report – Example, Writing Guide and Types

Research Report – Example, Writing Guide and Types

Table of Contents

Research Report

Definition:

Research Report is a written document that presents the results of a research project or study, including the research question, methodology, results, and conclusions, in a clear and objective manner.

The purpose of a research report is to communicate the findings of the research to the intended audience, which could be other researchers, stakeholders, or the general public.

Components of Research Report

Components of Research Report are as follows:

Introduction

The introduction sets the stage for the research report and provides a brief overview of the research question or problem being investigated. It should include a clear statement of the purpose of the study and its significance or relevance to the field of research. It may also provide background information or a literature review to help contextualize the research.

Literature Review

The literature review provides a critical analysis and synthesis of the existing research and scholarship relevant to the research question or problem. It should identify the gaps, inconsistencies, and contradictions in the literature and show how the current study addresses these issues. The literature review also establishes the theoretical framework or conceptual model that guides the research.

Methodology

The methodology section describes the research design, methods, and procedures used to collect and analyze data. It should include information on the sample or participants, data collection instruments, data collection procedures, and data analysis techniques. The methodology should be clear and detailed enough to allow other researchers to replicate the study.

The results section presents the findings of the study in a clear and objective manner. It should provide a detailed description of the data and statistics used to answer the research question or test the hypothesis. Tables, graphs, and figures may be included to help visualize the data and illustrate the key findings.

The discussion section interprets the results of the study and explains their significance or relevance to the research question or problem. It should also compare the current findings with those of previous studies and identify the implications for future research or practice. The discussion should be based on the results presented in the previous section and should avoid speculation or unfounded conclusions.

The conclusion summarizes the key findings of the study and restates the main argument or thesis presented in the introduction. It should also provide a brief overview of the contributions of the study to the field of research and the implications for practice or policy.

The references section lists all the sources cited in the research report, following a specific citation style, such as APA or MLA.

The appendices section includes any additional material, such as data tables, figures, or instruments used in the study, that could not be included in the main text due to space limitations.

Types of Research Report

Types of Research Report are as follows:

Thesis is a type of research report. A thesis is a long-form research document that presents the findings and conclusions of an original research study conducted by a student as part of a graduate or postgraduate program. It is typically written by a student pursuing a higher degree, such as a Master’s or Doctoral degree, although it can also be written by researchers or scholars in other fields.

Research Paper

Research paper is a type of research report. A research paper is a document that presents the results of a research study or investigation. Research papers can be written in a variety of fields, including science, social science, humanities, and business. They typically follow a standard format that includes an introduction, literature review, methodology, results, discussion, and conclusion sections.

Technical Report

A technical report is a detailed report that provides information about a specific technical or scientific problem or project. Technical reports are often used in engineering, science, and other technical fields to document research and development work.

Progress Report

A progress report provides an update on the progress of a research project or program over a specific period of time. Progress reports are typically used to communicate the status of a project to stakeholders, funders, or project managers.

Feasibility Report

A feasibility report assesses the feasibility of a proposed project or plan, providing an analysis of the potential risks, benefits, and costs associated with the project. Feasibility reports are often used in business, engineering, and other fields to determine the viability of a project before it is undertaken.

Field Report

A field report documents observations and findings from fieldwork, which is research conducted in the natural environment or setting. Field reports are often used in anthropology, ecology, and other social and natural sciences.

Experimental Report

An experimental report documents the results of a scientific experiment, including the hypothesis, methods, results, and conclusions. Experimental reports are often used in biology, chemistry, and other sciences to communicate the results of laboratory experiments.

Case Study Report

A case study report provides an in-depth analysis of a specific case or situation, often used in psychology, social work, and other fields to document and understand complex cases or phenomena.

Literature Review Report

A literature review report synthesizes and summarizes existing research on a specific topic, providing an overview of the current state of knowledge on the subject. Literature review reports are often used in social sciences, education, and other fields to identify gaps in the literature and guide future research.

Research Report Example

Following is a Research Report Example sample for Students:

Title: The Impact of Social Media on Academic Performance among High School Students

This study aims to investigate the relationship between social media use and academic performance among high school students. The study utilized a quantitative research design, which involved a survey questionnaire administered to a sample of 200 high school students. The findings indicate that there is a negative correlation between social media use and academic performance, suggesting that excessive social media use can lead to poor academic performance among high school students. The results of this study have important implications for educators, parents, and policymakers, as they highlight the need for strategies that can help students balance their social media use and academic responsibilities.

Introduction:

Social media has become an integral part of the lives of high school students. With the widespread use of social media platforms such as Facebook, Twitter, Instagram, and Snapchat, students can connect with friends, share photos and videos, and engage in discussions on a range of topics. While social media offers many benefits, concerns have been raised about its impact on academic performance. Many studies have found a negative correlation between social media use and academic performance among high school students (Kirschner & Karpinski, 2010; Paul, Baker, & Cochran, 2012).

Given the growing importance of social media in the lives of high school students, it is important to investigate its impact on academic performance. This study aims to address this gap by examining the relationship between social media use and academic performance among high school students.

Methodology:

The study utilized a quantitative research design, which involved a survey questionnaire administered to a sample of 200 high school students. The questionnaire was developed based on previous studies and was designed to measure the frequency and duration of social media use, as well as academic performance.

The participants were selected using a convenience sampling technique, and the survey questionnaire was distributed in the classroom during regular school hours. The data collected were analyzed using descriptive statistics and correlation analysis.

The findings indicate that the majority of high school students use social media platforms on a daily basis, with Facebook being the most popular platform. The results also show a negative correlation between social media use and academic performance, suggesting that excessive social media use can lead to poor academic performance among high school students.

Discussion:

The results of this study have important implications for educators, parents, and policymakers. The negative correlation between social media use and academic performance suggests that strategies should be put in place to help students balance their social media use and academic responsibilities. For example, educators could incorporate social media into their teaching strategies to engage students and enhance learning. Parents could limit their children’s social media use and encourage them to prioritize their academic responsibilities. Policymakers could develop guidelines and policies to regulate social media use among high school students.

Conclusion:

In conclusion, this study provides evidence of the negative impact of social media on academic performance among high school students. The findings highlight the need for strategies that can help students balance their social media use and academic responsibilities. Further research is needed to explore the specific mechanisms by which social media use affects academic performance and to develop effective strategies for addressing this issue.

Limitations:

One limitation of this study is the use of convenience sampling, which limits the generalizability of the findings to other populations. Future studies should use random sampling techniques to increase the representativeness of the sample. Another limitation is the use of self-reported measures, which may be subject to social desirability bias. Future studies could use objective measures of social media use and academic performance, such as tracking software and school records.

Implications:

The findings of this study have important implications for educators, parents, and policymakers. Educators could incorporate social media into their teaching strategies to engage students and enhance learning. For example, teachers could use social media platforms to share relevant educational resources and facilitate online discussions. Parents could limit their children’s social media use and encourage them to prioritize their academic responsibilities. They could also engage in open communication with their children to understand their social media use and its impact on their academic performance. Policymakers could develop guidelines and policies to regulate social media use among high school students. For example, schools could implement social media policies that restrict access during class time and encourage responsible use.

References:

• Kirschner, P. A., & Karpinski, A. C. (2010). Facebook® and academic performance. Computers in Human Behavior, 26(6), 1237-1245.
• Paul, J. A., Baker, H. M., & Cochran, J. D. (2012). Effect of online social networking on student academic performance. Journal of the Research Center for Educational Technology, 8(1), 1-19.
• Pantic, I. (2014). Online social networking and mental health. Cyberpsychology, Behavior, and Social Networking, 17(10), 652-657.
• Rosen, L. D., Carrier, L. M., & Cheever, N. A. (2013). Facebook and texting made me do it: Media-induced task-switching while studying. Computers in Human Behavior, 29(3), 948-958.

Note*: Above mention, Example is just a sample for the students’ guide. Do not directly copy and paste as your College or University assignment. Kindly do some research and Write your own.

Applications of Research Report

Research reports have many applications, including:

• Communicating research findings: The primary application of a research report is to communicate the results of a study to other researchers, stakeholders, or the general public. The report serves as a way to share new knowledge, insights, and discoveries with others in the field.
• Informing policy and practice : Research reports can inform policy and practice by providing evidence-based recommendations for decision-makers. For example, a research report on the effectiveness of a new drug could inform regulatory agencies in their decision-making process.
• Supporting further research: Research reports can provide a foundation for further research in a particular area. Other researchers may use the findings and methodology of a report to develop new research questions or to build on existing research.
• Evaluating programs and interventions : Research reports can be used to evaluate the effectiveness of programs and interventions in achieving their intended outcomes. For example, a research report on a new educational program could provide evidence of its impact on student performance.
• Demonstrating impact : Research reports can be used to demonstrate the impact of research funding or to evaluate the success of research projects. By presenting the findings and outcomes of a study, research reports can show the value of research to funders and stakeholders.
• Enhancing professional development : Research reports can be used to enhance professional development by providing a source of information and learning for researchers and practitioners in a particular field. For example, a research report on a new teaching methodology could provide insights and ideas for educators to incorporate into their own practice.

How to write Research Report

Here are some steps you can follow to write a research report:

• Identify the research question: The first step in writing a research report is to identify your research question. This will help you focus your research and organize your findings.
• Conduct research : Once you have identified your research question, you will need to conduct research to gather relevant data and information. This can involve conducting experiments, reviewing literature, or analyzing data.
• Organize your findings: Once you have gathered all of your data, you will need to organize your findings in a way that is clear and understandable. This can involve creating tables, graphs, or charts to illustrate your results.
• Write the report: Once you have organized your findings, you can begin writing the report. Start with an introduction that provides background information and explains the purpose of your research. Next, provide a detailed description of your research methods and findings. Finally, summarize your results and draw conclusions based on your findings.
• Proofread and edit: After you have written your report, be sure to proofread and edit it carefully. Check for grammar and spelling errors, and make sure that your report is well-organized and easy to read.
• Include a reference list: Be sure to include a list of references that you used in your research. This will give credit to your sources and allow readers to further explore the topic if they choose.
• Format your report: Finally, format your report according to the guidelines provided by your instructor or organization. This may include formatting requirements for headings, margins, fonts, and spacing.

Purpose of Research Report

The purpose of a research report is to communicate the results of a research study to a specific audience, such as peers in the same field, stakeholders, or the general public. The report provides a detailed description of the research methods, findings, and conclusions.

Some common purposes of a research report include:

• Sharing knowledge: A research report allows researchers to share their findings and knowledge with others in their field. This helps to advance the field and improve the understanding of a particular topic.
• Identifying trends: A research report can identify trends and patterns in data, which can help guide future research and inform decision-making.
• Addressing problems: A research report can provide insights into problems or issues and suggest solutions or recommendations for addressing them.
• Evaluating programs or interventions : A research report can evaluate the effectiveness of programs or interventions, which can inform decision-making about whether to continue, modify, or discontinue them.
• Meeting regulatory requirements: In some fields, research reports are required to meet regulatory requirements, such as in the case of drug trials or environmental impact studies.

When to Write Research Report

A research report should be written after completing the research study. This includes collecting data, analyzing the results, and drawing conclusions based on the findings. Once the research is complete, the report should be written in a timely manner while the information is still fresh in the researcher’s mind.

In academic settings, research reports are often required as part of coursework or as part of a thesis or dissertation. In this case, the report should be written according to the guidelines provided by the instructor or institution.

In other settings, such as in industry or government, research reports may be required to inform decision-making or to comply with regulatory requirements. In these cases, the report should be written as soon as possible after the research is completed in order to inform decision-making in a timely manner.

Overall, the timing of when to write a research report depends on the purpose of the research, the expectations of the audience, and any regulatory requirements that need to be met. However, it is important to complete the report in a timely manner while the information is still fresh in the researcher’s mind.

Characteristics of Research Report

There are several characteristics of a research report that distinguish it from other types of writing. These characteristics include:

• Objective: A research report should be written in an objective and unbiased manner. It should present the facts and findings of the research study without any personal opinions or biases.
• Systematic: A research report should be written in a systematic manner. It should follow a clear and logical structure, and the information should be presented in a way that is easy to understand and follow.
• Detailed: A research report should be detailed and comprehensive. It should provide a thorough description of the research methods, results, and conclusions.
• Accurate : A research report should be accurate and based on sound research methods. The findings and conclusions should be supported by data and evidence.
• Organized: A research report should be well-organized. It should include headings and subheadings to help the reader navigate the report and understand the main points.
• Clear and concise: A research report should be written in clear and concise language. The information should be presented in a way that is easy to understand, and unnecessary jargon should be avoided.
• Citations and references: A research report should include citations and references to support the findings and conclusions. This helps to give credit to other researchers and to provide readers with the opportunity to further explore the topic.

Advantages of Research Report

Research reports have several advantages, including:

• Communicating research findings: Research reports allow researchers to communicate their findings to a wider audience, including other researchers, stakeholders, and the general public. This helps to disseminate knowledge and advance the understanding of a particular topic.
• Providing evidence for decision-making : Research reports can provide evidence to inform decision-making, such as in the case of policy-making, program planning, or product development. The findings and conclusions can help guide decisions and improve outcomes.
• Supporting further research: Research reports can provide a foundation for further research on a particular topic. Other researchers can build on the findings and conclusions of the report, which can lead to further discoveries and advancements in the field.
• Demonstrating expertise: Research reports can demonstrate the expertise of the researchers and their ability to conduct rigorous and high-quality research. This can be important for securing funding, promotions, and other professional opportunities.
• Meeting regulatory requirements: In some fields, research reports are required to meet regulatory requirements, such as in the case of drug trials or environmental impact studies. Producing a high-quality research report can help ensure compliance with these requirements.

Limitations of Research Report

Despite their advantages, research reports also have some limitations, including:

• Time-consuming: Conducting research and writing a report can be a time-consuming process, particularly for large-scale studies. This can limit the frequency and speed of producing research reports.
• Expensive: Conducting research and producing a report can be expensive, particularly for studies that require specialized equipment, personnel, or data. This can limit the scope and feasibility of some research studies.
• Limited generalizability: Research studies often focus on a specific population or context, which can limit the generalizability of the findings to other populations or contexts.
• Potential bias : Researchers may have biases or conflicts of interest that can influence the findings and conclusions of the research study. Additionally, participants may also have biases or may not be representative of the larger population, which can limit the validity and reliability of the findings.
• Accessibility: Research reports may be written in technical or academic language, which can limit their accessibility to a wider audience. Additionally, some research may be behind paywalls or require specialized access, which can limit the ability of others to read and use the findings.

About the author

Muhammad Hassan

Researcher, Academic Writer, Web developer

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What Is an R&D Report?

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Elements of a Business Report

What is the purpose of company annual reports, when to use a business report to communicate instead of a business letter.

• What Are the Main Topics in an Annual Business Report?
• Steps to Take to Design a Budget Report Prototype

Research and development enable small businesses to launch new products, carve out market niches, and compete effectively against bigger companies. Technology, manufacturing and health care are among the industry sectors that benefit from research and development investments. The purpose of research and development reports is to provide funding organizations with regular updates on ongoing research projects and plans for future research.

Research and development reports are prepared by organizations or departments engaged in investigating new approaches to solving existing problems, such as start-up technology companies and research department of large corporations . The consumers of these reports include government funding agencies and venture capital organizations, which may use the information to determine future funding decisions. Companies prepare these reports to meet regular reporting requirements or to generate interest among the scientific and investment communities.

The main sections of a research and development report should list the project objectives, describe the progress since the last report, identify risk factors that could affect the project schedule, list areas of future research, and outline changes in key project personnel. Reports usually come with a cover letter, table of contents and appendices. Companies that wish to publicize the content can issue a press release highlighting the main points. Some might post the reports online, as well as archived versions of related senior management audio and video presentations.

Preparation

Research and development reports should first list the original project objectives. For example, the objectives of a start-up biotechnology company's research project might be to determine the effects of a novel compound on lab animals and its possible efficacy in humans. The next few sections should describe the baseline, milestones, and the progress of the research projects up to the date of the report. Baseline is the state of the technology at the start of the project, or since the last report. Milestones refer to specific tasks and objectives that must be completed by certain dates. Continuing with the example of a biotechnology company, the milestones may include the completion of specific laboratory tests and the publication of results in peer-reviewed journals. The next section should describe the progress since the last report, outline cost and schedule variances, and indicate the management steps necessary to bring the project back on track, if applicable.

Considerations

Research and development reports and presentations should not contain promotional material or marketing hype. Fact-based documents do not require flashy packaging or spin because facts stand on their own merits. Companies with global research and development operations or partnerships should integrate the information from all of its research projects into one concise report instead of submitting several reports.

• Inc.: How to Benefit From R&D
• Inc.: Small Companies Spend More on R&D

Based in Ottawa, Canada, Chirantan Basu has been writing since 1995. His work has appeared in various publications and he has performed financial editing at a Wall Street firm. Basu holds a Bachelor of Engineering from Memorial University of Newfoundland, a Master of Business Administration from the University of Ottawa and holds the Canadian Investment Manager designation from the Canadian Securities Institute.

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Research and Development Statistics

OECD Research and Development Statistics (RDS) provide a wide range of recent data on the resources devoted to R&D in all OECD countries and selected non-member economies.

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Research and development statistics (rds) data.

RDS is based on the data reported to OECD and Eurostat in the framework of the joint OECD/Eurostat international data collection on resources devoted to R&D.

The OECD's R&D statistical series cover four main areas. R&D data are collected at national level through surveys and other sources following the recommendations of the OECD Frascati Manual, which is the internationally recognised standard in this area.

Gross domestic expenditure on research and experimental development (GERD)

These tables cover all R&D carried out on a national territory in the year concerned using various breakdowns. R&D expenditure data are expressed in million national currency, million current PPP USD, and million constant USD (2015 prices and PPPs).

• Gross domestic expenditure on R&D by sector of performance and source of funds
• Gross domestic expenditure on R&D by sector of performance and type of expenditure
• Gross domestic expenditure on R&D expenditure by sector of performance and type of R&D
• Gross domestic expenditure on R&D by sector of performance and field of R&D
• Gross domestic expenditure on R&D by sector of performance and socio-economic objective

R&D personnel

This set of tables covers resources devoted to R&D measured in labour terms, i.e. R&D personnel by sector of employment and various breakdowns. R&D personnel data are expressed in full time equivalents on R&D (FTE) and in head counts.

• R&D personnel by sector of employment and function
• R&D personnel by sector of employment and qualification
• R&D personnel by sector of employment and R&D field

Business enterprise R&D

Datasets on R&D expenditure and personnel are also provided for R&D carried out in the business enterprise sector with detailed data by industry or size class. Additionally R&D in the higher education and private non-profit sectors are also available with detailed data by field of research and development or type of costs.

• Business enterprise R&D expenditure by industry
• Business enterprise R&D expenditure by main activity (focussed) and source of funds
• Business enterprise R&D expenditure by main activity (focussed) and type of expenditure
• Business enterprise R&D expenditure by source and funds and number of person employed
• R&D personnel in the business entreprise sector by main activity

Government budgets on R&D

The R&D expenditure and personnel tables are based on surveys of the units carrying out the R&D and national estimates and provisional data have been included when available. More up-to-date information on government intentions or objectives when committing money to R&D can be derived from budgets. These data are shown in the  government budget allocations for R&D (GBARD) table, which includes the breakdown of government R&D budgets by socio-economic objective (SEO).

Historical R&D expenditure series

In addition to these tables updated once a year, a subset of (discontinued)  historical series  are available:

• Gross domestic expenditure on R-D by sector of performance and source of funds (1963-1980)
• R-D expenditure by sector of performance and type of R-D (1963-1980)
• R-D personnel by sector of employment and occupation (1963-1980)

These data were collected by the OECD following the publication of the OECD Frascati Manual in 1963 and its two subsequent revisions in 1970 and 1974. Due to discontinuities in the data, these historical series are presented separately from the OECD Research and Development Statistics publication. Researchers and the public in general with an interest in this subject are invited to investigate the features of these historical data. Independent efforts to attempt to construct consistent series and derive long-term historical indicators are encouraged for research purposes, subject to appropriate attribution and description of sources.

To complement these historical series, a few datasets reflecting the former data collection based on the 2002 version of the Frascati Manual are also available:

• Business entrerprise R&D expenditure by industry (ISIC rev. 3)
• Business entrerpsie R&D expenditure by industry and source of funds (ISIC rev. 3)
• Business entreprise R&D expenditure by industry and type of cost (ISIC rev. 3)
• Business entreprise R&D personnel by industry (ISIC rev. 3)
• Other national R&D expenditure on R&D by field of science and source of funds
• Other national R&D expenditure on R&D by field of science and type of costs

Related data

• Dataset Analytical Business Enterprise Research and Development The OECD's Analytical Business Enterprise Research and Development (ANBERD) database informs the international monitoring of R&D expenditures across industries.
• Dataset Main Science and Technology Indicators The OECD Main Science and Technology Indicators (MSTI) provide a set of indicators that draw principally on data on financial and human resources devoted to research and experimental development, complemented by patent data and international trade in R&D-intensive industries.
• Dataset Science, Technology and Innovation Scoreboard The STI.Scoreboard provides science and innovation policy makers, analysts and the public at large with a resource to retrieve, visualise and compare statistical indicators of science, technology and innovation (STI) systems across OECD countries and several other economies.

Please contact us directly by e-mail if you have any questions regarding this dataset.

Research and Development (R&D)

The process of obtaining new knowledge and using it to improve existing products and introduce new ones

What is Research and Development (R&D)?

Research and Development (R&D) is a process by which a company obtains new knowledge and uses it to improve existing products and introduce new ones to its operations. R&D is a systematic investigation with the objective of introducing innovations to the company’s current product offerings. It achieves this by adding improvements to the current goods and services or introducing a new product offering.

Research and development are applied across different industries and sectors. Generally, pharmaceuticals, software, technology, and semiconductor companies incur the highest R&D spending. Industries with companies with a large number of intangible assets  generally report high spending in research and development efforts.

Basic vs. Applied R&D

There are two major types of research and development: Basic and Applied .

Basic research is concerned with the acquisition of new knowledge. It is a systematic study that intends to gain a deeper understanding of the fundamental elements of a concept or phenomenon. Basic research is an initial stage of the R&D process. However, it does not provide the possible applications of concepts or phenomena in production. Also, basic research is the most time-consuming part of R&D.

On the other hand, applied research is a systematic study of application knowledge in the development of products or operations. Relative to basic research, applied research is more complex in nature. Thus, it requires higher spending than basic research.

Accounting for R&D

The general problem for companies is that future benefits from research and development are uncertain to be realized, and therefore R&D expenditures cannot be capitalized. Accounting standards require companies to expense all research and development expenditures as incurred. However, in the case of an M&A transaction , the R&D expenses of the target company may sometimes be capitalized as part of goodwill, because the acquirer can recognize the fair value of the R&D assets. The R&D costs are included in the company’s operating expenses and are usually reflected in its income statement .

There are also some accounting standards related to booking research and development expenditures:

• Assets/materials: Purchased assets and materials that have alternative future use are recorded as assets. However, if assets and materials do not have an alternative future use, the costs should be expensed.
• Computer software: If computer software is purchased for R&D purposes and it does not have any alternative future applications, the cost of purchase is immediately expensed. However, if the computer software has an alternative future use, the cost should be capitalized.
• Indirect costs: Overhead costs are expensed as incurred.
• Intangible assets: If intangible assets are purchased for R&D purposes and these assets do not have an alternative future use, the costs are expensed as incurred. If the assets have some future alternative use, the costs are capitalized.
• Software development: Software development expenditures associated with R&D are always expensed as incurred.

List of Research and Development Spending by Company

Below is a list of examples of prominent companies that have very large research and development budgets:

• Amazon $22.6 billion : In 2017, Amazon spent $22.6 billion, pouring this capital into Amazon Web Services (AWS), Alexa, and new technologies.
• Alphabet (Google) $16.6 billion : In 2017, Alphabet invested $16.6 billion in researching new projects, businesses, and technologies to drive the company forward.
• Apple $11.6 billion : In 2017, Apple spent $11.6 billion on research and innovation to create new cutting-edge products for the business.
• Facebook $7.8 billion : In 2017, Facebook spent approximately $7.8 billion advancing its technological capabilities.
• Pfizer $7.7 billion : In 2017, Pfizer invested $7.7 billion in researching new drugs.
• Tesla $0,8 billion : In 2017, Tesla spent approximately $0.8 billion on designing new cars and new technologies.

Read more from Yahoo Finance about how much Amazon outpaced other tech companies in innovation spending .

Additional Resources

Thank you for reading CFI’s guide to Research and Development. To help you advance your career, check out the additional CFI resources below:

• Capitalizing Research and Development Expenses
• Fixed and Variable Costs
• Depreciation Expense
• Tangible Assets
• See all accounting resources
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Start » strategy, what is research and development .

Research and development provides businesses with the information they need to successfully bring their products or services to market.

In any industry, even the most revolutionary products and services are rarely fully conceptualized on day 1. Most often, success in the market stems from extensive, effective research and development (R&D). This is especially true for small businesses, which contribute a significantly higher percentage of sales to R&D work than larger businesses.

Here’s everything you need to know about R&D and why it’s well worth the investment.

What is research and development?

R&D refers to the various activities businesses conduct to prepare new products or services for the marketplace. Businesses of all sizes and sectors can partake in R&D activities, though the amount of investment can vary. For example, technology and health care companies tend to have higher R&D expenses , as do enterprises with larger budgets.

Typically the first step in the development process, R&D is not expected to yield immediate profits. Rather, it focuses on innovation and setting up a company for long-term profitability. During this process, businesses may secure patents, copyrights, and other intellectual property associated with their products and services.

At larger companies, R&D activities are often handled in-house by a designated R&D department. However, some smaller companies may opt to outsource R&D to a third-party research firm, a specialist, or an educational institution.

[Read more: 7 Ways to Find Small Business Grant Opportunities ]

Types of research and development

R&D activities typically fall into one of three main categories:

• Basic research: Basic research, sometimes called fundamental research, aims to provide theoretical insight into specific problems or phenomena. For example, a company looking to develop a new toy for children might conduct basic research into child play development.
• Applied research: This type of research is practical and conducted with a specific goal in mind, most often discovering new solutions for existing problems. The children’s toy company from the previous example might conduct applied research into developing a toy that facilitates play development in a new or improved way.
• Development research: In development research, researchers focus exclusively on applied research to develop new products and improve existing ones. For example, a team of development researchers may test the hypothetical company’s new toy or implement feedback obtained from customers.

Small businesses have limited resources. They don’t have that endless budget that the Fortune 500 company has, which means the small business will have to get creative to conduct worthwhile research and development.

Becca Hoeft, CEO and Founder of Morris Hoeft Group

Why invest in research and development?

While R&D can require a significant investment, it also yields several advantages. Below are four specific areas where your business can benefit by conducting R&D.

New products

R&D supports businesses in developing new offerings or improving existing ones based on market demand. By conducting research and applying your findings to your final product, companies are more likely to develop something that meets customers’ needs and performs well in the marketplace.

R&D can help businesses understand their place in the market as well as identify inefficiencies in their workflows. Insights from R&D activities can illuminate ways to improve operations as well as where to most effectively allocate resources, increasing overall efficiency.

Cost reductions

While developing a well-researched product or service that performs well is likely to maximize profit, R&D aimed at improving internal processes and technologies can reduce the cost of bringing products and services to market.

Businesses that invest in R&D may be eligible for specific tax incentives. For one, the federal R&D tax credit offers a dollar-for-dollar reduction in tax liability for businesses that partake in various research-based activities. Eligible companies can apply for this credit by submitting Form 6765 with their business taxes.

[Read more: How to Seek Funding for Your Invention ]

Overcoming the challenges of small business R&D

According to Becca Hoeft, CEO and Founder of Morris Hoeft Group , small businesses may face numerous challenges related to R&D that their larger counterparts might not experience.

“Small businesses have limited resources,” said Hoeft. “They don’t have that endless budget that the Fortune 500 company has, which means the small business will have to get creative to conduct worthwhile research and development.”

While R&D funding is available through various government grants, university programs, and research institutions, Hoeft noted that it may take some time and strategic planning to obtain it. She recommended that small business owners start talking publicly about what kind of research they are doing and what they need to conduct it.

“Don’t hide under a rock and expect money to magically appear,” Hoeft told CO—. “Get on a stage at a relevant conference [or] start a blog series about your idea.”

Keep in mind that once you start sharing your ideas and what you want to research, “it’s out there in the universe,” said Hoeft. Therefore, protecting your intellectual property before you begin and during the research process is extremely important.

“Ensure your trademarks, patents, and copyrights are in place to protect you and your small business,” Hoeft added.

[Read more: How to Qualify for and Claim the R&D Tax Credit ]

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Research and development is generally referred to as R&D. It refers to innovative activities performed by companies or governments to create new products or services, or to improve existing services or products. Research and development allow small firms to announce new goods, carve out niches on the market, and remain competitive against larger businesses. The intent of a research and development report is to provide regular updates to funding organizations on ongoing research projects and future research plans.

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Handbook: Research and development

Handbooks | August 2023

Latest edition: Our in-depth guide to accounting for R&D costs and R&D funding arrangements.

Using Q&As and examples, KPMG provides interpretive guidance on research and development costs and funding arrangements.

Applicability

• All companies engaged in R&D activities

Relevant dates

• Effective immediately

The many connections of R&D accounting

US GAAP covers two distinct areas of accounting related to R&D: how to account for costs an entity incurs in its R&D activities, and how parties to an R&D funding arrangement account for that arrangement.

The FASB’s guidance has been around a long time – the guidance on R&D costs dates back to 1974 and FASB Statement No. 2, while the guidance on R&D funding arrangements dates back to 1982. Since then, the guidance has remained largely – although not entirely – unchanged.

As businesses look for new ways to innovate and finance their R&D activities, application questions continue to emerge. Our objective with this publication is to help you make the judgments associated with these application issues. We start with the basics of R&D accounting and expand to provide insights, examples and perspectives based on our years of experience in this area.

There are many connections to other accounting topics, and we identify common issues that will require you to consult our handbooks on other Topics, such as business combinations, consolidation, software and website costs, debt and equity financing, and derivatives and hedging.

Viewed from that angle, this one resource provides you with a roadmap to resolving the many varied issues that can arise with R&D activities.

Report contents

• R&D costs
• R&D funding arrangements

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Research and development

Executive Summary

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• Research and Development (R&D) | Overview & Process

Featured in:

Companies often spend resources on certain investigative undertakings in an effort to make discoveries that can help develop new products or way of doing things or work towards enhancing pre-existing products or processes. These activities come under the Research and Development (R&D) umbrella.

R&D is an important means for achieving future growth and maintaining a relevant product in the market . There is a misconception that R&D is the domain of high tech technology firms or the big pharmaceutical companies. In fact, most established consumer goods companies dedicate a significant part of their resources towards developing new versions of products or improving existing designs . However, where most other firms may only spend less than 5 percent of their revenue on research, industries such as pharmaceutical, software or high technology products need to spend significantly given the nature of their products.

© Shutterstock.com | Alexander Raths

In this article, we look at 1) types of R&D , 2) understanding similar terminology , 3) making the R&D decision , 4) basic R&D process , 5) creating an effective R&D process , 6) advantages of R&D , and 7) R&D challenges .

TYPES OF R&D

A US government agency, the National Science Foundation defines three types of R&D .

Basic Research

When research aims to understand a subject matter more completely and build on the body of knowledge relating to it, then it falls in the basic research category. This research does not have much practical or commercial application. The findings of such research may often be of potential interest to a company

Applied Research

Applied research has more specific and directed objectives. This type of research aims to determine methods to address a specific customer/industry need or requirement. These investigations are all focused on specific commercial objectives regarding products or processes.

Development

Development is when findings of a research are utilized for the production of specific products including materials, systems and methods. Design and development of prototypes and processes are also part of this area. A vital differentiation at this point is between development and engineering or manufacturing. Development is research that generates requisite knowledge and designs for production and converts these into prototypes. Engineering is utilization of these plans and research to produce commercial products.

UNDERSTANDING SIMILAR TERMINOLOGY

There are a number of terms that are often used interchangeably. Thought there is often overlap in all of these processes, there still remains a considerable difference in what they represent. This is why it is important to understand these differences.

The creation of new body of knowledge about existing products or processes, or the creation of an entirely new product is called R&D. This is systematic creative work, and the resulting new knowledge is then used to formulate new materials or entire new products as well as to alter and improve existing ones

Innovation includes either of two events or a combination of both of them. These are either the exploitation of a new market opportunity or the development and subsequent marketing of a technical invention. A technical invention with no demand will not be an innovation.

New Product Development

This is a management or business term where there is some change in the appearance, materials or marketing of a product but no new invention. It is basically the conversion of a market need or opportunity into a new product or a product upgrade

When an idea is turned into information which can lead to a new product then it is called design. This term is interpreted differently from country to country and varies between analytical marketing approaches to a more creative process.

Product Design

Misleadingly thought of as the superficial appearance of a product, product design actually encompasses a lot more. It is a cross functional process that includes market research, technical research, design of a concept, prototype creation, final product creation and launch . Usually, this is the refinement of an existing product rather than a new product.

MAKING THE R&D DECISION

Investment in R&D can be extensive and a long term commitment. Often, the required knowledge already exists and can be acquired for a price. Before committing to investment in R&D, a company needs to analyze whether it makes more sense to produce their own knowledge base or acquire existing work. The influence of the following factors can help make this decision.

Proprietariness

If the nature of the research is such that it can be protected through patents or non-disclosure agreements , then this research becomes the sole property of the company undertaking it and becomes much more valuable. Patents can allow a company several years of a head start to maximize profits and cement its position in the market. This sort of situation justifies the cost of the R&D process. On the other hand, if the research cannot be protected, then it may be easily copied by a competitor with little or no monetary expense. In this case, it may be a good idea to acquire research.

Setting up a R&D wing only makes sense if the market growth rate is slow or relatively moderate. In a fast paced environment, competitors may rush ahead before research has been completed, making the entire process useless.

Because of its nature, R&D is not always a guaranteed success commercially. In this regard, it may be desirable to acquire the required research to convert it into necessary marketable products. There is significantly less risk in acquisition as there may be an opportunity to test the technology out before formally purchasing anything.

Considering the long term potential success of a product, acquiring technology is less risky but more costly than generating own research. This is because license fees or royalties may need to be paid and there may even be an arrangement that requires payments tied to sales figures and may continue for as long as the license period. There is also the danger of geographical limitations or other restrictive caveats. In addition, if the technology changes mid license, all the investment will become a sunk cost. Setting up R&D has its own costs associated with it. There needs to be massive initial investment that leads to negative cash flow for a long time. But it does protect the company from the rest of the limitations of acquiring research.

All these aspects need to be carefully assessed and a pros vs. cons assessment needs to be conducted before the make or buy decision is finalized.

BASIC R&D PROCESS

Foster Ideas

At this point the research team may sit down to brainstorm. The discussion may start with an understanding and itemization of the issues faced in their particular industry and then narrowed down to important or core areas of opportunity or concern.

Focus Ideas

The initial pool of ideas is vast and may be generic. The team will then sift through these and locate ideas with potential or those that do not have insurmountable limitations. At this point the team may look into existing products and assess how original a new idea is and how well it can be developed.

Develop Ideas

Once an idea has been thoroughly researched, it may be combined with a market survey to assess market readiness. Ideas with true potential are once again narrowed down and the process of turning research into a marketable commodity begins.

Prototypes and Trials

Researchers may work closely with product developers to understand and agree on how an idea may be turned into a practical product. As the process iterates, the prototype complexity may start to increase and issues such as mass production and sales tactics may begin to enter the process.

Regulatory, Marketing & Product Development Activities

As the product takes shape, the process that began with R&D divides into relevant areas necessary to bring the research product to the market. Regulatory aspects are assessed and work begins to meet all the criteria for approvals and launch. The marketing function begins developing strategies and preparing their materials while sales, pricing and distribution are also planned for.

The product that started as a research question will now be ready for its biggest test, the introduction to the market. The evaluation of the product continues at this stage and beyond, eventually leading to possible re-designs if needed. At any point in this process the idea may be abandoned. Its feasibility may be questioned or the research may not reveal what the business hoped for. It is therefore important to analyze each idea critically at every stage and not become emotionally invested in anything.

CREATING AN EFFECTIVE R&D PROCESS

A formal R&D function adds great value to any organization. It can significantly contribute towards organizational growth and sustained market share. However, all business may not have the necessary resources to set up such a function. In such cases, or in organizations where a formal R&D function is not really required, it is a good idea to foster an R&D mindset . When all employees are encouraged to think creatively and with a research oriented thought process, they all feel invested in the business and there will be the possibility of innovation and unique ideas and solutions. This mindset can be slowly inculcated within the company by following the steps mentioned below.

Assess Customer Needs

It is a good idea to regularly scan and assess the market and identify whether the company’s offering is doing well or if it is in trouble. If it is successful, encourage employees to identify reasons for success so that these can then be used as benchmarks or best practices. If the product is not doing well, then encourage teams to research reasons why. Perhaps a competitor is offering a better solution or perhaps the product cannot meet the customer’s needs effectively.

Identify Objectives

Allow your employees to see clearly what the business objectives are. The end goal for a commercial enterprise is to enhance profits. If this is the case, then all research the employees engage in should focus on reaching this goal while fulfilling a customer need.

Define and Design Processes

A definite project management process helps keep formal and informal research programs on schedule. Realistic goals and targets help focus the process and ensures that relevant and realistic timelines are decided upon.

Create a Team

A team may need to be created if a specific project is on the agenda. This team should be cross functional and will be able to work towards a specific goal in a systematic manner. If the surrounding organizational environment also has a research mindset then they will be better prepared and suited to assist the core team when ever needed.

Whenever needed, it may be a good idea to outsource research projects. Universities and specific research organizations can help achieve research objectives that may not be manageable within a limited organizational budget.

ADVANTAGES OF R&D

Though setting up an R&D function is not an easy task by any means, it has its unique advantages for the organization. These include the following.

Research and Development expenses are often tax deductible. This depends on the country of operations of course but a significant write-off can be a great way to offset large initial investments. But it is important to understand what kind of research activities are deductible and which ones are not. Generally, things like market research or an assessment of historical information are not deductible.

A company can use research to identify leaner and more cost effective means of manufacturing. This reduction in cost can either help provide a more reasonably priced product to the customer or increase the profit margin.

When an investor sets out to put their resources into any company, they tend to prefer those who can become market leaders and innovate constantly. An effective R&D function goes a long way in helping to achieve these objectives for a company. Investors see this as a proactive approach to business and they may end up financing the costs associated with maintaining this R&D function.

Recruitment

Top talent is also attracted to innovative companies doing exciting things. With a successful Research and Development function, qualified candidates will be excited to join the company.

Through R&D based developments, companies can acquire patents for their products. These can help them gain market advantage and cement their position in the industry. This one time product development can lead to long term profits.

R&D CHALLENGES

R&D also has many challenges associated with it. These may include the following.

Initial setup costs as well as continued investment are necessary to keep research work cutting edge and relevant. Not all companies may find it feasible to continue this expenditure.

Increased Timescales

Once a commitment to R&D is made, it may take many years for the actual product to reach the market and a number of years will be filled with no return on continued heavy investment.

Uncertain Results

Not all research that is undertaken yields results. Many ideas and solutions are scrapped midway and work has to start from the beginning.

Market Conditions

There is always the danger that a significant new invention or innovation will render years of research obsolete and create setbacks in the industry with competitors becoming front runners for the customer’s business.

It is important for any business to understand the advantages and disadvantages of engaging in Research and Development activities. Once these are studied, then the step can be taken towards becoming and R&D organization.

In the meanwhile, it is good practice to inculcate a research mind set and research oriented thinking within all employees, no matter what their functional area of expertise. This will help bring about new ideas, new solutions and an innovative way of approaching all business problems, whether small or large.

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• All previous cycle years

The FFRDC Research and Development Survey is the primary source of information on separately accounted for R&D expenditures at federally funded research and development centers in the United States.

Survey Info

• tag for use when URL is provided --> Methodology
• tag for use when URL is provided --> Data
• tag for use when URL is provided --> Analysis

The FFRDC Research and Development Survey is the primary source of information on separately accounted for R&D expenditures at federally funded research and development centers (FFRDCs) in the United States. Conducted annually for university-administered FFRDCs since FY 1953 and all FFRDCs since FY 2001, the survey collects information on R&D expenditures by source of funds and types of research and expenses. The survey is an annual census of the full population of eligible FFRDCs.

Areas of Interest

• Research and Development

Survey Administration

The FY 2021 survey was conducted by ICF under contract to the National Center for Science and Engineering Statistics.

Survey Details

• Survey Description (PDF 118 KB)
• Data Tables (PDF 460 KB)

Featured Survey Analysis

Federally Funded R&D Centers Report 6% Increase in R&D Spending in FY 2021

FFRDC R&D Survey Overview

Data highlights, the nation’s 43 federally funded research and development centers (ffrdcs) spent $24.9 billion on r&d in fy 2021..

FFRDCs in California and New Mexico accounted for more than half ($13.2 billion) of the $24.9 billion in total R&D expenditures at FFRDCs in FY 2021.

Methodology

Survey description, survey overview (fy 2021 survey cycle).

The Federally Funded Research and Development Center (FFRDC) R&D Survey is conducted by the National Center for Science and Engineering Statistics (NCSES) within the National Science Foundation (NSF). It is the primary source of information on separately accounted for R&D expenditures at FFRDCs in the United States.

Data collection authority

The information is solicited under the authority of the National Science Foundation Act of 1950, as amended, and the America COMPETES Reauthorization Act of 2010. The Office of Management and Budget control number is 3145-0100, with an expiration date of 31 August 2022.

Major changes to recent survey cycle

Key survey information, initial survey year, reference period, response unit.

Establishment.

Sample or census

Population size, sample size.

Not applicable. The survey is a census of all known eligible FFRDCs.

Key variables

Key variables of interest are listed below.

• R&D expenditures by source of funds (federal, state and local, business, nonprofit, or other)
• R&D expenditures by federal agency source
• R&D expenditures by type of R&D (basic research, applied research, or experimental development)
• R&D expenditures by type of costs (salaries, software, equipment, subcontracts, other direct costs, and indirect costs)
• Total operating budget

Survey Design

Target population.

All FFRDCs.

Sampling frame

The total survey universe is identified through the National Science Foundation (NSF) Master Government List of FFRDCs. NSF is responsible for maintaining this list and queries all federal agencies annually to determine any changes to, additions to, or deletions from the list.

Sample design

Not applicable. The FFRDC R&D Survey is a census of all eligible organizations.

Data Collection and Processing

Data collection.

The FY 2021 survey announcements were sent by e-mail to all FFRDCs in November 2021. The data collection period concluded in March 2022. Respondents could choose to submit an Adobe PDF questionnaire downloaded from the Web or use a Web-based data collection system to respond to the survey. Every effort was made to maintain close contact with respondents to preserve the consistency and continuity of the resulting data. Survey data reports were available on the survey website for each institution; these reports showed comparisons between the current year and the 2 prior years of data and noted any substantive disparities.

Data processing

Respondents were asked to explain significant differences between current and past year reporting upon the submission of their surveys. Questionnaires were then carefully examined by survey staff. Reviews focused on unexplained missing data and explanations provided for changes in reporting patterns. If additional explanations or data revisions were needed, respondents were sent personalized e-mails asking them to provide any necessary revisions before the final processing and tabulation of data. Respondents were encouraged to correct prior year data, if necessary. When respondents updated or amended figures from past years, NCSES made corresponding changes to trend data in the 2021 data tables and to the underlying microdata. For accurate historical data, use only the most recently released data tables.

Estimation techniques

No data were imputed for FY 2021.

Survey Quality Measures

Sampling error.

Because the FY 2021 survey was a survey distributed to all organizations in the universe, there was no sampling error.

Coverage error

Because of the availability of a comprehensive FFRDC list, there is no known coverage error for this survey. FFRDCs are identified through the NSF Master Government List of FFRDCs. NSF is responsible for maintaining the master list and queries all federal agencies annually to determine changes to, additions to, or deletions from the list.

Nonresponse error

Most FFRDCs have incorporated the data needed to complete most of the survey questions into their record-keeping systems. Twelve FFRDCs choose not to complete Question 5 of the survey, which asks for expenditures by type of cost. Eleven of those FFRDCs are managed by private companies for whom salary information is considered proprietary. One FFRDC, which is managed by a university, does not capture direct and indirect costs in their financial system in a way that is reportable on Question 5. Other FFRDCs did not answer all sections of Question 5: two FFRDCs could not provide information on software expenditures, and four could not provide data on equipment expenditures. One FFRDC did not report its operating budget (Question 6). One FFRDC could not provide expenditures funded by nonprofit organizations separately from those funded by businesses (Question 1); the combined amount was reported as business funded.

Measurement error

NCSES discovered during the FY 2011 survey cycle that seven FFRDCs included capital project expenditures in the R&D totals reported on the survey. Corrections made for the FY 2011 survey cycle lowered total expenditures by $468 million. However, previous years still include an unknown amount of capital expenditures in the total. The amount is estimated to be less than $500 million per year.

Prior to the FY 2011 survey, the five FFRDCs administered by the MITRE Corporation had reported only internally funded R&D expenditures. After discussions with NCSES, these five FFRDCs agreed to report all FY 2011 operating expenditures for R&D and to revise their data for FYs 2008–10.

NCSES discovered during the FY 2013 survey cycle that Los Alamos National Laboratory (LANL) was reporting some expenditures that were not for R&D as defined by this survey. Corrections made for the FY 2013 survey cycle lowered the laboratory’s total expenditures by $349 million. LANL also incorrectly was reporting that all expenditures were for basic research. In corrections made for FY 2013, LANL reported that $1,554 million (91%) of its total research expenditures was for applied research. LANL data from previous years still include an unknown amount of expenditures that were not for R&D and categorize all expenditures as basic research.

Prior to FY 2014, the Aerospace FFRDC reported only expenditures on internal R&D projects. After discussions with NCSES, the Aerospace Corporation agreed to report all R&D expenditures for FY 2014 and provide revised data to include all R&D expenditures for FYs 2010–13. R&D expenditures increased by more than $800 million each year.

During the FY 2014 survey, NCSES discovered that the National Optical Astronomy Observatory had been including data for the National Solar Observatory since FY 2010. The Association of Universities for Research in Astronomy, the administrator of both FFRDCs, provided revised data for both FFRDCs for FYs 2010–13.

During the FY 2016 survey, NCSES discovered that the Judiciary Engineering and Modernization Center was incorrectly classified as an industry-administered FFRDC in FYs 2011–15. This FFRDC is administered by the MITRE Corporation, a nonprofit organization and should have been classified as a nonprofit-administered FFRDC. The classification was corrected for FY 2016 and the Judiciary Engineering and Modernization Center’s FYs 2011–15 data were reclassified as coming from a nonprofit-administered FFRDC.

Prior to the FY 2021 collection, NCSES discovered that the Green Bank Observatory had split from the National Radio Astronomy Observatory on 1 October 2016, both retained FFRDC status. For FYs 2017–20, R&D expenditures reported for the National Radio Astronomy Observatory, include the expenditures for the Green Bank Observatory. The Green Bank Observatory began reporting separately on the FY 2021 survey.

Data Availability and Comparability

Data availability.

Annual data are available for all FFRDCs for FYs 2001–21.

Data comparability

When the review for consistency between each year’s data and submissions in prior years reveals discrepancies, it is sometimes necessary to modify prior years’ data. For accurate historical data, use only the most recently released data tables. Individuals wishing to analyze trends other than those in the most recent NCSES publication are encouraged to contact the Survey Manager for more information about the comparability of data over time.

Data Products

Publications.

The data from this survey are published annually in data tables in the series R&D Expenditures at Federally Funded R&D Centers ( https://www.nsf.gov/statistics/ffrdc/ ). Information from this survey is also included in Science and Engineering Indicators ( https://ncses.nsf.gov/indicators/ ) .

Electronic access

Public use files are available at https://www.nsf.gov/statistics/ffrdc/pub_data.cfm .

Technical Notes

Survey overview.

Purpos e . The Federally Funded Research and Development Center (FFRDC) Research and Development Survey is conducted by the National Center for Science and Engineering Statistics (NCSES) within the National Science Foundation (NSF). It is the primary source of information on separately accounted for R&D expenditures at FFRDCs in the United States.

Data c oll ec tion authorit y . The information is solicited under the authority of the NSF Act of 1950, as amended, and the American COMPETES Reauthorization Act of 2010. The Office of Management and Budget control number for the FY 2021 FFRDC R&D Survey is 3145-0100, with an expiration date of 31 August 2022.

Sur ve y c ontr a c tor. ICF.

Sur ve y sponsor. NCSES.

Fr e qu e n c y . Annual.

I nitial sur ve y ye ar. 2001.

R e f e r e n c e p e riod. FY 2021.

R e sponse unit. Establishment.

Sample or ce nsus. Census.

Population siz e . 43.

Sample siz e . Not applicable. The survey is a census of all known eligible FFRDCs.

T arg e t population. All FFRDCs.

Sampling fram e . The total survey universe is identified through the NSF Master Government List of FFRDCs ( https://www.nsf.gov/statistics/ffrdclist/ ). NSF is responsible for maintaining this list and queries all federal agencies annually to determine any changes to, additions to, or deletions from the list.

Sample d e sign. The FFRDC R&D Survey is a census of all eligible organizations.

Data Collection and Processing Methods

Data c oll ec tion. The FY 2021 survey announcements were sent by e-mail to all FFRDCs in November 2021. The data collection period concluded in March 2022. Respondents could choose to complete a questionnaire downloaded from the Web or use a Web-based data collection system to respond to the survey. Every effort was made to maintain close contact with respondents to preserve the consistency and continuity of the resulting data. Survey data reports were available on the survey website for each institution; these reports showed comparisons between the current year and the 2 prior years of data and noted any substantive disparities.

M od e . Respondents could respond to the survey by completing an Adobe PDF questionnaire downloaded from the Web or by using a Web-based data collection system. All FFRDCs submitted data using the Web-based survey.

R e sponse rat e s. All 43 FFRDCs included on the NSF Master Government List of FFRDCs during the FY 2021 survey cycle completed the key survey questions.

Data e diting. The FFRDC R&D Survey was subject to very little editing; respondents were contacted and asked to resolve possible self-reporting issues themselves. Questionnaires were carefully examined by survey staff upon receipt. These reviews focused on unexplained missing data and explanations provided for changes in reporting patterns. If additional explanations or data revisions were needed, respondents were sent personalized e-mail messages asking them to provide any necessary revisions before the final processing and tabulation of data.

Imputation. No data were imputed for FY 2021.

W e ighting. FFRDC R&D Survey data were not weighted.

Varian c e e stimation. No variance estimation techniques were used.

Sampling e rror. Because the FY 2021 survey was a survey distributed to all organizations in the universe, there was no sampling error.

C o ve rage e rror. Because of the availability of a comprehensive FFRDC list, there is no known coverage error for this survey. FFRDCs are identified through the NSF Master Government List of FFRDCs . NSF is responsible for maintaining the master list and queries all federal agencies annually to determine changes to, additions to, or deletions from the list.

N onr e sponse e rror. Most FFRDCs have incorporated the data needed to complete most of the survey questions into their record-keeping systems. Twelve FFRDCs chose not to complete Question 5 of the survey, which asks for expenditures by type of cost. Eleven of those FFRDCs are managed by private companies for whom salary information is considered proprietary. One FFRDC, which is managed by a university, does not capture direct and indirect costs in their financial system in a way that is reportable on Question 5. Other FFRDCs did not answer all sections of Question 5: two FFRDCs could not provide information on software expenditures, and four could not provide data on equipment expenditures. One FFRDC did not report its operating budget (Question 6). One FFRDC could not provide expenditures funded by nonprofit organizations separately from those funded by businesses (Question 1); the combined amount was reported as business funded.

Me asur e m e nt e rror. NCSES discovered during the FY 2011 survey cycle that seven FFRDCs were including capital project expenditures in the R&D totals reported on the survey. Corrections made for the FY 2011 survey cycle lowered total expenditures by $468 million. However, previous years still include an unknown amount of capital expenditures in the total. The amount is estimated to be less than $500 million per year.

NCSES discovered during the FY 2013 survey cycle that Los Alamos National Laboratory (LANL) was reporting some expenditures that were not for R&D, as defined by this survey. Corrections made for the FY 2013 survey cycle lowered the laboratory’s total expenditures by $349 million. LANL also incorrectly was reporting that all expenditures were for basic research. In corrections made for FY 2013, LANL reported that $1,554 million (91%) of its total research expenditures was for applied research. LANL data from previous years still include an unknown amount of expenditures that were not for R&D and categorize all expenditures as basic research.

During the FY 2016 survey, NCSES discovered that the Judiciary Engineering and Modernization Center was incorrectly classified as an industry-administered FFRDC in FYs 2011–15. This FFRDC is administered by the MITRE Corporation, a nonprofit organization, and should have been classified as a nonprofit-administered FFRDC. The classification was corrected for FY 2016, and the Judiciary Engineering and Modernization Center’s FYs 2011–15 data were reclassified as coming from a nonprofit-administered FFRDC.

Data Comparability (Changes)

Annual data are available for all FFRDCs for FYs 2001–21. When the review for consistency between each year’s data and submissions in prior years reveals discrepancies, it is sometimes necessary to modify prior years’ data. For accurate historical data, use only the most recently released data tables. Individuals wishing to analyze trends other than those in the most recent NCSES publication are encouraged to contact the Survey Manager for more information about the comparability of data over time.

C hang e s in survey coverage and population. Most years, there are some changes to the FFRDC population that may affect trend analyses. FFRDCs have been created, decertified, renamed, or restructured, as described below:

• On 20 December 2006, the National Biodefense Analysis and Countermeasure Center was created.
• Prior to FY 2009, the Center for Enterprise Modernization was listed as the Internal Revenue Service FFRDC.
• On 5 March 2009, the Homeland Security Studies and Analysis Institute and the Homeland Security Systems Engineering and Development Institute were created. These new FFRDCs replaced the Homeland Security Institute.
• On 1 October 2009, the National Solar Observatory split from the National Optical Astronomy Observatory, with both retaining their FFRDC status.
• On 2 September 2010, the Judiciary Engineering and Modernization Center was created.
• Prior to FY 2011, the National Security Engineering Center was listed as C3I FFRDC.
• On 1 October 2011, the National Astronomy and Ionosphere Center was decertified as an FFRDC.
• Prior to FY 2012, the Frederick National Laboratory for Cancer Research was listed as the National Cancer Institute at Frederick.
• On 27 September 2012, the Centers for Medicare and Medicaid Services FFRDC was created. On 15 August 2013, its name was changed to the CMS Alliance to Modernize Healthcare.
• Prior to FY 2013, the Systems and Analyses Center was listed as the Studies and Analyses Center.
• On 19 September 2014, the National Cybersecurity Center of Excellence was created.
• On 15 September 2016, the Homeland Security Operational Analysis Center was created.
• On 1 October 2016, Green Bank Observatory was split out from the National Radio Astronomy Observatory, both retained FFRDC status.
• The Homeland Security Studies and Analysis Institute was phased out on 31 October 2016.
• In June 2020, the National Optical Astronomy Observatory changed its name to NSF’s National Optical-Infrared Astronomy Research Laboratory or NSF’s NOIRLab.

C hang e s in qu e stionnai r e . FFRDCs are asked to provide R&D expenditures by source of funding and type of R&D. In FY 2016, NCSES added a question (Question 2) asking for R&D expenditures funded by seven specific federal agencies. In FY 2019, NCSES added a question (Question 3) asking which federal agencies funded the expenditures reported under Other federal agencies in Question 2.

Changes in reporting procedures or classification. The FFRDC R&D Survey has been conducted annually for university-administered FFRDCs since FY 1953 and for all FFRDCs since FY 2001.

Definitions

• Expenditures by federal agency. In Question 2, FFRDCs were asked for the amount of R&D expenditures by federal funding agency. FFRDCs were asked to report expenditures funded by seven specific agencies (Department of Defense; Department of Energy; Department of Health and Human Services, including the National Institutes of Health; Department of Homeland Security; Department of Transportation; National Aeronautics and Space Administration; and National Science Foundation). Any expenditures funded by other federal agencies were reported under Other federal agencies. In Question 3, FFRDCs were asked to list the specific agencies and corresponding expenditures included in Other federal agencies.
• E x p e nditur e s by sour c e . In Question 1, FFRDCs were asked to report their total R&D expenditures by funding source, as defined below:
• U.S. federal government . Any agency of the U.S. government. Federal funds that were passed through to the reporting institution from another institution were included.
• State and local government . Any state, county, municipality, or other local government entity in the United States, including state health agencies.
• Business . Domestic or foreign for-profit organizations. Funds from a company’s nonprofit foundation were not reported here; they were reported under Nonprofit organizations.
• Nonprofit organizations . Domestic or foreign nonprofit foundations and organizations.
• All other sources . Sources not reported in other categories, such as funds from foreign governments.
• E x p e nditur e s by t y p e of c ost. In Question 5, FFRDCs were asked for expenditures by type of cost, as defined below:
• Salari e s, w ag e s, and fri n ge b e n e fits . Included compensation for all R&D personnel, whether full time or part time, temporary or permanent, including salaries, wages, and fringe benefits paid from institution funds and from external support.
• Soft w are pur c has e s . Included payments for all software, both purchases of software packages and license fees for systems.
• Equipm e nt . Included payments for movable equipment, including ancillary costs such as delivery and setup.
• Sub c ontra c ts . Payments to subcontractors or subrecipients for services on R&D projects.
• Oth e r dir ec t c osts . Other costs that did not fit into one of the above categories, including (but not limited to) travel, computer usage fees, and supplies.
• I ndir ec t c osts . Included all indirect costs (overhead) associated with R&D projects.
• E x p e nditur e s by type of R&D . In Question 4, FFRDCs were asked for the amount of federal and nonfederal R&D expenditures by type of R&D, as defined below:
• Basic r e s e ar c h . Experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any particular application or use in view.
• Appli e d r e s e ar c h . Original investigation undertaken to acquire new knowledge. It is directed primarily toward a specific, practical aim or objective.
• Experimental d eve lop m e nt . Systematic work, drawing on knowledge gained from research and practical experience and producing additional knowledge, which is directed to producing new products or processes or to improving existing products or processes.
• Fis c al ye ar. FFRDCs were asked to report data for their fiscal year (or financial year).
• R & D . The FFRDC R&D Survey requested data from FFRDCs on their R&D, defined as systematic study directed toward fuller knowledge or understanding of the subject studied. R&D included basic research, applied research, and experimental development (see E x p e nditu re s b y type of R&D above for additional information). R&D did not include outreach or nonresearch training programs. Respondents were also asked to exclude capital projects (i.e., construction or renovation of research facilities) from reported expenditures.
• R & D e x p e nditur e s. FFRDCs were asked to report all current operating expenditures for activities specifically organized to produce R&D outcomes, including those funded by external sponsors or separately budgeted and accounted for by the organization using internal funds. Expenditures included indirect costs, equipment, software, clinical trials, and subcontract expenditures.
• T otal op e rating budg e t. Total executed operating budget for the FFRDC excluding capital construction costs.

Questionnaires

View archived questionnaires, data tables.

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• PDF (ZIP 615 KB)

General Notes

This report provides data from the 2021 Federally Funded Research and Development Center (FFRDC) Research and Development Survey. This survey is the primary source of information on separately accounted R&D expenditures at FFRDCs in the United States. Conducted annually for university-administered FFRDCs since FY 1953 and all FFRDCs since FY 2001, the survey collects information on R&D expenditures by source of funds and types of research and expenses. The survey is an annual census of the full population of eligible FFRDCs. See https://www.nsf.gov/statistics/ffrdclist/ for the Master Government List of FFRDCs maintained by the National Science Foundation.

Acknowledgments and Suggested Citation

Acknowledgments.

Michael T. Gibbons of the National Center for Science and Engineering Statistics (NCSES) developed and coordinated this report under guidance of Gary Anderson, NCSES Acting Program Director, and under the leadership of Emilda B. Rivers, NCSES Director; Vipin Arora, NCSES Deputy Director; and John Finamore, NCSES Chief Statistician.

Under contract to NCSES, ICF conducted the survey and prepared the tables. ICF staff members who made significant contributions include Kathryn Harper, Project Director; Rebecca Atkinson, Deputy Project Director; Jennifer Greer, Data Management Lead; Sindhura Geda, Data Management Specialist; Bridget Beavers, Data Management Specialist; Carolyn Bennett, Data Collection Manager; Cameron Shanton, Data Collection Specialist; Audrey Nankobogo, Data Collection Specialist; David Greene, Survey Systems Lead; Vladimer Shioshvili, Software Application Engineer. Publication processing support was provided by Devi Mishra, Christine Hamel, and Tanya Gore (NCSES).

NCSES thanks the FFRDCs that provided information for this report.

Suggested Citation

National Center for Science and Engineering Statistics (NCSES). 2022. FFRDC Research and Development Expenditures: Fiscal Year 20 2 1 . NSF 22-332. Alexandria, VA: National Science Foundation. Available at https://ncses.nsf.gov/pubs/nsf22332/ .

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Over 50% of FFRDC FY 2021 R&D Spending Was in Two States

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21+ SAMPLE Research and Development Report in PDF

Research and Development Report

21+ sample research and development report, what is a research and development report, types of research and development, criteria for identifying research and development, how to compose a research and development report, how do you write research and development (r&d), what is the importance of r&d, what is an r&d strategy.

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Faculty Research and Development Report

1. list down the project objectives, 2. describe the progress since the last report, 3. identify possible risk factors that affect the project schedule, 4. list the possible areas of future research, 5. outline possible changes in the key project personnel, share this post on your network, you may also like these articles, medical report.

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What Is Research and Development (R&D)? Definition and Guide

Learn the definition of research and development, the types of R&D, and the benefits and risks of investing in research and development for your business

When it comes to the products and ideas that revolutionize and reshape our world, it can be tempting to imagine them springing from a singular moment of inspiration (think Isaac Newton and the apple).

The truth, however, is that in any industry, the most innovative and successful products are typically the result of years of study, experimentation, and hard work. That process is known as research and development—and whether you're running a high-tech Fortune 500 company or a small online store, it can be the first step to incredible success.

In this guide, you'll learn the definition of research and development, as well as the potential benefits and risks of investing in the practice.

What is research and development?

Research and Development is a systematic activity that companies undertake to innovate and introduce new products and services or to improve their existing offerings. 

Many people think of pharmaceutical and technology companies when they hear “R&D,” but other firms, including those that produce consumer products, invest time and resources into R&D as well. For example, a spaghetti sauce brand's many variations on the original product – “Chunky Garden,” “Four Cheese,” and “Tomato Basil Garlic”– are the results of extensive R&D.

Any business that creates and sells a product or service, whether it's software or spark plugs,  invests in some level of R&D .

Basic vs. applied research

Research and development comes in two main types: basic, and applied.

Basic research

Basic research (also known as fundamental research) is focused on improving our understanding of a particular problem or phenomenon through exploration of big questions. Some examples of basic research questions are:

• Why do mice get caught in traps?
• Why are some people allergic to gluten?

While basic research can certainly help a company acquire new knowledge, its focus on research for its own sake means that the financial benefits are uncertain. Consequently, this type of research and development is primarily performed by large corporations, universities, and government agencies.

Applied research

Applied research is also done to acquire knowledge. But unlike basic research, it's done with a specific goal, use, or product in mind. Where basic research is theoretical, applied research is practical, with a focus on finding workable solutions for current problems. Some examples of applied research questions include:

• How can we build a better mousetrap?
• What combination of flours will produce the best gluten-free pie crust?

Why invest in research and development?

While the overarching goal of research and development is to add to a company's bottom line, companies undertake R&D for a variety of reasons.

• Create new and improved products: Whether you're starting a new company, or looking to expand your existing offerings, innovation research can help you meet customer demands for new and better products that solve their problems more quickly and easily.
• Increase business efficiency: R&D can help you gain knowledge about your production processes, business structure, and place in the market, providing insights that increase productivity by eliminating time-consuming inefficiencies and allocating resources to the most impactful projects.
• Reduce costs: Profits aren't the only way that research and development can pay off. In fact, many companies focus their R&D on improving existing technologies and processes for internal use, reducing the overall cost of bringing your products to market.
• Remain competitive: Research and development is a great way to stay ahead of the competition . By investing in emerging technologies that improve your products, you can gain a competitive edge over even the most established firms.
• Secure investment: Even if your research efforts aren't immediately profitable, they may point to future innovations or developments that investors are excited to support.

Who handles research and development?

Often, research and development is handled in house by an internal department in a company, but it can also be outsourced to a specialist or a university. Large multinational companies might do all three, and some of the outsourced work might be done in another country so that the company leverages both the talent and local market knowledge there.

Outsourced R&D is especially appealing to the small business owner who has a new product concept but lacks the design or engineering staff needed to create and test options. Solopreneurs who offer software as a service are an example on the smallest scale, as they sometimes outsource the R&D and resulting software development.

R&D and accounting

There are no guarantees when it comes to research and development, and it's very unlikely to lead to an immediate profit. Often, a company will spend a large amount of money in search of a better method, material, or medication, and never see a return on the investment. In this sense R&D is not an asset: it's a business  expense . For that reason, general  accounting  standards and practices dictate that most (but not all) costs associated with research and development be charged to expense as incurred.

That said, businesses can mitigate some of the impacts of research and development by leveraging federal tax breaks and deductions focused on promoting R&D.

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Research and development FAQ

What does r&d stand for, why is research and development important, what are the challenges of research and development, what is the difference between r&d and product development.

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FREE 10+ Research and Development Report Samples in MS Word | PDF

Being a professional working in a research and development (R&D) department of your company, it’s a given that you have good communication skills so that you are able to demonstrate the results of your research work.  In this article, we have some informative guide and downloadable research progress report templates to guide you in managing and monitoring the progress of your research work. Keep on reading!

Research And Development Report

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A research and development report is a significant document produced by various organizations or departments that contains approaches being investigated in order to solve current problems or issues. Using this informative and insightful report may help many businesses have meaningful improvements in their existing processes as increased efficiency and cost reduction may take place. Additionally, it serves an integral role in allowing newly-developed products and services to survive and thrive in competitive markets.

Writing a research and development report is crucial to the survival of many businesses. They should continuously innovate more and quickly, allowing an extensive range of products to customers. Doing this will definitely fulfill the customers’ expectations, especially coping with the fast outdated products because of technological progress and competitors strategies. 

In this section, we provide  you some easy-to-follow tips  that indicate how to design a report, as well as managing different kinds of stages in writing an effective research project report: 

The most important step in the process of developing a plan for your report is developing a scope statement. What are the things that need to be accomplished? Who are the customers or beneficiaries? Include solid goals and objectives as well. These aspects need to be clearly aligned to one another. 

Once the requirements for your research and development work are completed, you need to clearly define anticipated outcomes and the product, service, or process for your report . The final deliverables will need to have comparison with the project plan, confirming that performance has been reached as anticipated, and goals have been fulfilled.

After understanding the scope and deliverables, you need to fully describe the resources and materials required in your R&D work. Include a well-detailed feature, function or a comprehensive process.  

Last but not the least, you should create a well-designed outline of specific actions or tasks while developing and implementing the requirements for your R&D report. Some examples of these actions are performing the work within the existing resources, outsourcing, or purchasing. 

The format of the research report includes a list of major sections and that contains page numbers, tables, illustrations, reference list, and appendices. Also, it gives an abstract that demonstrates a summary of goals, methods, results, and conclusions.                                                                                               

 [/ns_row ] 

An R & D report should include activities that companies or business firms undertake to innovate and introduce new products and services. As the beginning phase in the development process, the aim here is to take new products and services to market and incorporate them into the company’s bottom line.. 

The three major types of research and development are basic research, applied research, and experimental development.

The research and development is the conception stage in the product life cycle while product development is the whole process of designing, creating, and marketing new or existing products with new features.

The book “ Innovation, Research and Development Management ” stated that the purpose of research and development is to develop new scientific and technical knowledge and to use it in the design of technological innovations, consisting of new processes, products, or services that generate added value compared to existing solutions and provisions. Thus, R&D acts a crucial role in initiating technological innovation, possessing a special position in strategy definition with marketing, production, implementation, etc. Here are some of our downloadable and printable report samples available in different kinds of formats. Simply click the templates in this article and start downloading now!

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• Published: 10 August 2024

Mapping biomimicry research to sustainable development goals

• Raghu Raman 1 ,
• Aswathy Sreenivasan 2 ,
• M. Suresh 2 &
• Prema Nedungadi 3  

Scientific Reports volume  14 , Article number:  18613 ( 2024 ) Cite this article

Metrics details

• Environmental sciences
• Environmental social sciences

This study systematically evaluates biomimicry research within the context of sustainable development goals (SDGs) to discern the interdisciplinary interplay between biomimicry and SDGs. The alignment of biomimicry with key SDGs showcases its interdisciplinary nature and potential to offer solutions across the health, sustainability, and energy sectors. This study identified two primary thematic clusters. The first thematic cluster focused on health, partnership, and life on land (SDGs 3, 17, and 15), highlighting biomimicry's role in healthcare innovations, sustainable collaboration, and land management. This cluster demonstrates the potential of biomimicry to contribute to medical technologies, emphasizing the need for cross-sectoral partnerships and ecosystem preservation. The second thematic cluster revolves around clean water, energy, infrastructure, and marine life (SDGs 6, 7, 9, and 14), showcasing nature-inspired solutions for sustainable development challenges, including energy generation and water purification. The prominence of SDG 7 within this cluster indicates that biomimicry significantly contributes to sustainable energy practices. The analysis of thematic clusters further revealed the broad applicability of biomimicry and its role in enhancing sustainable energy access and promoting ecosystem conservation. Emerging research topics, such as metaheuristics, nanogenerators, exosomes, and bioprinting, indicate a dynamic field poised for significant advancements. By mapping the connections between biomimicry and SDGs, this study provides a comprehensive overview of the field's trajectory, emphasizing its importance in advancing global sustainability efforts.

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Introduction.

Biomimicry, which combines 'bio' (life) and 'mimicry' (imitation), uses nature's patterns to solve human problems, aligning with the SDGs by fostering innovations 1 . This discipline studies natural processes to inspire sustainable designs and promote responsible consumption and production 2 . Biomimicry emphasizes sustainability, ideation, and education in reconnecting with nature to achieve the SDGs 3 . Collaboration among designers, technologists, and business experts is vital for translating natural mechanisms into commercial solutions 4 . Biomimetics, which aims for radical innovations by replicating living systems, strives for breakthroughs in economic growth 5 . By promoting systemic change through the emulation of nature's regenerative processes, biomimicry's alignment with the SDGs could enhance sustainability efforts. Merging biomimicry insights with SDGs could exceed sustainability benchmarks.

Integrating biomimicry with sustainable development goals (SDGs) is crucial for addressing global challenges. The SDGs offer a blueprint for global well-being and environmental stewardship by 2030 6 . They aim to protect the environment and foster social and economic development. Biomimicry provides innovative approaches to these objectives, drawing from natural strategies. While SDGs offer clear targets, biomimicry complements these by providing a unique lens for solutions 7 . The investigation of biomimicry in conjunction with the SDGs is based on the understanding that the development of biologically inspired materials, structures, and systems offers a novel and sustainable solution to design problems, particularly in the built environment 8 . By mimicking nature's answers to complicated challenges, biomimicry produces creative, clever, long-lasting, and environmentally responsible ideas.

The SDGs outline a comprehensive sustainability agenda targeting social equity, environmental conservation, and poverty alleviation 9 . The use of biomimicry in research can lead to the development of solutions that mimic natural efficiency 10 , revolutionizing industries with resource-efficient technologies and enhancing sustainability. This synergy could lead to environmentally friendly products, improved energy solutions, and effective waste management systems. Integrating biomimicry into industry and education promotes environmental stewardship and ecological appreciation 11 . Marrying biomimicry research with SDGs has accelerated progress toward sustainable development.

Biomimicry can provide insightful and useful solutions consistent with sustainability ideals by imitating the adaptability and efficiency observed in biological systems 12 . The built environment's use of biomimicry has a greater sustainable impact when circular design features are included 13 . Reusing materials, cutting waste, and designing systems that work with natural cycles are all stressed in a circular design. Combining biomimicry and circular design promotes social inclusion, environmental resilience, resourcefulness, and compassionate governance, all of which lead to peaceful coexistence with the environment. This all-encompassing strategy demonstrates a dedication to tackling the larger social and environmental concerns that the SDGs represent and design challenges 14 . Complementing these studies, Wamane 7 examined the intersection of biomimicry, the environmental, social, and governance (ESG) framework, and circular economy principles, advocating for an economic paradigm shift toward sustainability.

A key aspect of realizing the impact of biomimicry on SDGs is the successful translation and commercialization of biomimicry discoveries. This involves overcoming barriers such as skill gaps, the engineering mindset, commercial acumen, and funding. Insights from the "The State of Nature-Inspired-Innovation in the UK" report provide a comprehensive analysis of these challenges and potential strategies to address them, underscoring the importance of integrating commercial perspectives into biomimicry research.

This research employs bibliometric techniques to assess the integration and coherence within circular economy policy-making, emphasizing the potential for a synergistic relationship between environmental stewardship, economic growth, and social equity to foster a sustainable future.

In addressing the notable gap in comprehensive research concerning the contribution of biomimicry solutions to specific SDGs, this study offers significant insights into the interdisciplinary applications of biomimicry and its potential to advance global sustainability efforts. Our investigation aims to bridge this research gap through a systematic analysis, resulting in the formulation of the following research questions:

RQ1: How does an interdisciplinary analysis of biomimicry research align with and contribute to advancing specific SDGs?

RQ2: What emerging topics within biomimicry research are gaining prominence, and how do they relate to the SDGs?

RQ3 : What are the barriers to the translation and commercialization of biomimicry innovations, and how can these barriers be overcome to enhance their impact on SDGs?

RQ4: Based on the identified gaps in research and the potential for interdisciplinary collaboration, what innovative areas within biomimicry can be further explored to address underrepresented SDGs?

The remainder of this paper is arranged as follows. Section " Literature review " focuses on the literature background of biomimicry, followed by methods (section " Methods ") and results and discussion, including emerging research topics (section " Results and discussion "). Section " Conclusion " concludes with recommendations and limitations.

Literature review

The potential of biomimicry solutions for sustainability has long been recognized, yet there is a notable lack of comprehensive studies that explore how biomimicry can address specific sustainable development goals (SDGs) (Table 1 ). This research aims to fill this gap by investigating relevant themes and building upon the literature in this field.

Biomimicry, with its roots tracing back to approximately 500 BC, began with Greek philosophers who developed classical concepts of beauty and drew inspiration from natural organisms for balanced design 15 . This foundational idea of looking to nature for design principles continued through history, as exemplified by Leonardo Da Vinci's creation of a flying machine inspired by birds in 1482. This early instance of biomimicry influenced subsequent advancements, including the Wright brothers' development of the airplane in 1948 12 , 15 . The term "bionics," coined in 1958 to describe "the science of natural systems or their analogs," evolved into "biomimicry" by 1982. Janine Benyus's 1997 book, “Biomimicry: Innovation Inspired by Nature,” and the founding of the Biomimicry Institute (Biomimicry 16 ) were pivotal, positioning nature as a guide and model for sustainable design. Benyus’s work underscores the potential of biomimicry in tackling contemporary environmental challenges such as climate change and ecosystem degradation 12 , 17 .

In recent years, the call for more targeted research in biomimicry has grown, particularly in terms of architecture and energy use. Meena et al. 18 and Varshabi et al. 19 highlighted the need for biomimicry to address energy efficiency in building design, stressing the potential of nature-inspired solutions to reduce energy consumption and enhance sustainability. This perspective aligns with that of Perricone et al. 20 , who explored the differences between artificial and natural systems, noting that biomimetic designs, which mimic the principles of organism construction, can significantly improve resource utilization and ecosystem restoration. Aggarwal and Verma 21 contributed to this discourse by mapping the evolution and applications of biomimicry through scientometric analysis, revealing the growing significance of nature-inspired optimization methodologies, especially in clustering techniques. Their work suggested that these methodologies not only provide innovative solutions but also reflect a deeper integration of biomimetic principles in technological advancements. Building on this, Pinzón and Austin 22 emphasized the infancy of biomimicry in the context of renewable energy, advocating for more research to explore how nature can inspire new energy solutions. Their work connects with that of Carniel et al. 23 , who introduced a natural language processing (NLP) technique to identify research themes in biomimicry across disciplines, facilitating a holistic understanding of current trends and future directions.

To further illustrate the practical applications of biomimicry, Nasser et al. 24 presented the Harmony Search Algorithm (HSA), a nature-inspired optimization technique. Their bibliometric analysis demonstrated the algorithm's effectiveness in reducing energy and resource consumption, highlighting the practical benefits of biomimicry in technological innovation. Rusu et al. 25 expanded on these themes by documenting significant advancements in soft robotics, showing how biomimicry influences design principles and applications in this rapidly evolving field. Their findings underscore the diverse applications of biomimetic principles, from robotics to building design. Shashwat et al. 26 emphasized the role of bioinspired solutions in enhancing energy efficiency within the built environment, promoting the use of high solar reflectance surfaces that mimic natural materials. This perspective is in line with that of Pires et al. 27 , who evaluated the application of biomimicry in dental restorative materials and identified a need for more clinical studies to realize the full potential of biomimetic innovations in healthcare. Liu et al. 28 explored the application of nature-inspired design principles in software-defined networks, demonstrating how biomimetic algorithms can optimize resource and energy utilization in complex systems. This study builds on the broader narrative of biomimicry's potential to transform various sectors by offering efficient, sustainable solutions. Finally, Hinkelman et al. 29 synthesized these insights by discussing the transdisciplinary applications of ecosystem biomimicry, which supports sustainable development goals by integrating biomimetic principles across engineering and environmental disciplines. This comprehensive approach underscores the transformative potential of biomimicry, suggesting that continued interdisciplinary research and innovation are crucial for addressing global sustainability challenges effectively.

PRISMA framework

This study utilizes the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) framework to structure its analysis, following the established five-step protocol: formulating research questions, defining a search strategy, executing a literature search, screening identified literature, and analyzing the findings (Page et al., 2021). The application of the PRISMA guidelines across various research domains, including the SDGs, is well documented 30 .

To ensure a comprehensive search, we searched the Scopus database, a widely utilized resource for bibliometric studies 31 (Donthu et al. 82 ), which led to the discovery of 46,141 publications from 2013 to 2023. This period marked significant research activity following the introduction of the SDGs at the Rio + 20 summit in 2012. Publications were identified using the following terms in the title and abstract: “ (biomimic* OR biomimetic* OR bioinspired OR bioinsp* OR bionic* OR nature-inspired OR "biologically inspired" OR bioinspiration OR biomimesis OR biognosis).”

During the screening phase, publications lacking complete author details were reviewed, narrowing the field to 46,083 publications for further analysis. The eligibility phase utilized proprietary algorithms to map publications to the 17 SDGs, informed by initiatives such as the University of Auckland (Auckland’s SDG mapping 32 ) and Elsevier's SDG Mapping Initiatives (Elsevier's SDG Mapping 33 ). The selection of the Elsevier SDG Mapping Initiative for this study was based on its seamless integration with Scopus, facilitating the use of predefined search queries for each SDG and employing a machine learning model that has been refined through expert review. This approach has been utilized in various studies to analyze research trends within emerging fields. For example, the exploration of green hydrogen was detailed by Raman et al. 34 , while investigations into Fake News and the Dark Web were conducted by Raman et al. 35 , 36 , 37 and Rama et al. 38 , respectively. These examples demonstrate the efficacy of SDG mapping in elucidating how research outputs align with and contribute to sustainable development goals in these emerging domains. This phase identified 13,287 publications as mapped to SDGs. In the inclusion phase, stringent criteria further filtered the publications to English-language journals and review articles, culminating in 13,271 publications deemed suitable for in-depth analysis. This process ensures a comprehensive and high-quality dataset for the study, reflecting the robust and systematic approach afforded by the PRISMA framework in evaluating literature relevant to SDGs.

Our keyword search strategy, while comprehensive, may capture papers that do not genuinely contribute to the field. To mitigate this, we employed manual verification. After the automated search, the authors conducted a manual review of a subset of the final set of identified papers to assess their relevance and authenticity in the context of biomimicry. The subset was based on 20 highly cited papers from each year. We believe that papers that are frequently cited within the community are more likely to be accurately classified. The authors mainly reviewed the introduction, methodology, and results sections to confirm the relevance and authenticity of the papers. However, we acknowledge that these steps may not fully eliminate the inclusion of irrelevant papers, which could skew the results of our meta-analysis.

SDG framework

The examination of sustainable development goals (SDGs) reveals their interconnected nature, where the achievement of one goal often supports progress in others. Studies by Le Blanc (2015) and Allison et al. (2016) have mapped out the complex web of relationships among the SDGs, identifying both strong and subtle linkages across different objectives. To visualize these connections, we employed a cocitation mapping approach using VOSviewer 39 , which allows us to depict the semantic relationships between SDGs through their cocitation rates in scholarly works. This approach generates a visual map where each SDG is represented as a node, with the node size reflecting the goal's research prominence and the thickness of the lines between nodes indicating the frequency of cocitations among the goals. This visual representation reveals the SDGs as an intricate but unified framework, emphasizing the collaborative nature of global sustainability initiatives.

Topic prominence percentile

The Scopus prominence percentile is a crucial metric indicating the visibility and impact of emerging research topics within the scientific community. High-ranking topics in this percentile are rapidly gaining attention, highlighting emerging trends and areas poised for significant advancements. This tool enables researchers and policymakers to identify and focus on innovative topics, ensuring that their efforts align with the forefront of scientific development 35 , 36 , 37 . Topics above the 99.9th percentile were used in this study.

Results and discussion

Rq1: sdg framework and interdisciplinary research (rq4).

This study evaluates biomimicry research through the framework of SDGs. A cocitation SDG map shows two clusters and provides insights into the interplay between biomimicry themes and SDGs, highlighting the cross-disciplinary nature of this research (Fig.  1 ). The blue box hidden behind the “3 – Good Health and Well-being” and “7 – Affordable and Clean Energy” is “11 – Sustainable cities and Communities”. The blue box hidden behind “15 – Life on Land” is “16 – Peace, Justice and Strong institutions”.

Interdisciplinary SDG network of biomimicry research.

Cluster 1 (Red): Biomimetic innovations for health, partnership, and life on land

This cluster comprises a diverse array of research articles that explore the application of biomimicry across various SDGs 3 (health), 17 (partnership), and 15 (land). The papers in this cluster delve into innovative biomimetic ideas, each contributing uniquely to the intersection of sustainable development and biological inspiration. SDG 3, emphasizing good health and well-being for all, is significantly represented, indicating a global effort to leverage biomimicry for advancements in healthcare, such as new medication delivery systems and medical technologies. Similarly, the frequent citations of SDG 17 underscore the vital role of partnerships in achieving sustainable growth, especially where bioinspired solutions require interdisciplinary collaboration to address complex challenges. Finally, the prominence of 15 SDG citations reflects a commitment to preserving terrestrial ecosystems, where biomimicry is increasingly applied in land management, demonstrating nature's adaptability and resilience as a model for sustainable practices. Table 2 lists the top 5 relevant papers from Cluster 1, further illustrating the multifaceted application of biomimicry in addressing these SDGs.

A unique binary variant of the gray wolf optimization (GWO) technique, designed especially for feature selection in classification tasks, was presented by Emary et al. 40 . GWO is a method inspired by the social hierarchy and hunting behavior of gray wolves to find the best solutions to complex problems. This bioinspired optimization technique was used to optimize SDG15, which also highlights its ecological benefits. The results of the study highlight the effectiveness of binary gray wolf optimization in identifying the feature space for ideal pairings and promoting environmental sustainability and biodiversity. Lin et al. 41 focused on SDG 3 by examining catalytically active nanomaterials as potential candidates for artificial enzymes. While acknowledging the limits of naturally occurring enzymes, this study explores how nanobiotechnology can address problems in the food, pharmaceutical, and agrochemical sectors.

The investigation of enzymatic nanomaterials aligns with health-related objectives, highlighting the potential for major improvements in human health. Parodi et al. 42 used biomimetic leukocyte membranes to functionalize synthetic nanoparticles, extending biomimicry into the biomedical domain. To meet SDG 3, this research presents "leukolike vectors," which are nanoporous silicon particles that can communicate with cells, evade the immune system, and deliver specific payloads. In line with the SDGs about health, this study emphasizes the possible uses of biomimetic structures in cancer detection and treatments. A novel strategy for biological photothermal nanodot-based anticancer therapy utilizing peptide‒porphyrin conjugate self-assembly was presented by Zou et al. 43 . For therapeutic reasons, efficient light-to-heat conversion can be achieved by imitating the structure of biological structures. By providing a unique biomimetic approach to cancer treatment and demonstrating the potential of self-assembling biomaterials in biomedical applications, this research advances SDG 3. Finally, Wang et al. 44 presented Monarch butterfly optimization (MBO), which is a bioinspired algorithm that mimics the migration patterns of monarch butterflies to solve optimization problems effectively. This method presents a novel approach to optimization, mimicking the migration of monarch butterflies, aligning with SDG 9. Comparative analyses highlight MBO's exceptional performance and demonstrate its capacity to address intricate issues about business and innovation, supporting objectives for long-term collaboration and sector expansion.

The publications in Cluster 1 show a wide range of biomimetic developments, from ecological optimization to new optimization techniques and biomedical applications. These varied contributions highlight how biomimicry can advance sustainable development in health, symbiosis, and terrestrial life.

Cluster 2 (green): Nature-inspired solutions for clean water, energy, and infrastructure

Cluster 2, which focuses on the innovative application of biomimicry in sustainable development, represents a range of research that aligns with SDGs 6 (sanitation), 7 (energy), 9 (infrastructure), and 14 (water). This cluster is characterized by studies that draw inspiration from natural processes and structures to offer creative solutions to sustainability-related challenges. The papers in this cluster, detailed in Table 3 , demonstrate how biomimicry can address key global concerns in a varied and compelling manner.

Within this cluster, the high citation counts for SDG 7 underscore the significance of accessible clean energy, a domain where biomimicry contributes innovative energy generation and storage solutions inspired by natural processes. This aligns with the growing emphasis on sustainable energy practices. The prominence of SDG 9 citations further highlights the global focus on innovation and sustainable industry, where biomimicry's role in developing nature-inspired designs is crucial for building robust systems and resilient infrastructure. Furthermore, the substantial citations for SDG 6 reflect a dedicated effort toward ensuring access to clean water and sanitation for all. In this regard, biomimicry principles are being applied in water purification technologies, illustrating how sustainable solutions modeled after natural processes can effectively meet clean water objectives.

The study by Sydney Gladman et al. (2016), which presented the idea of shape-morphing systems inspired by nastic plant motions, is one notable addition to this cluster. This discovery creates new opportunities for tissue engineering, autonomous robotics, and smart textile applications by encoding composite hydrogel designs that exhibit anisotropic swelling behavior. The emphasis of SDG 9 on promoting industry, innovation, and infrastructure aligns with this biomimetic strategy. SDGs 7 and 13 are addressed in the study of Li et al. 45 , which is about engineering heterogeneous semiconductors for solar water splitting. This work contributes to the goals of inexpensive, clean energy and climate action by investigating methods such as band structure engineering and bionic engineering to increase the efficiency of solar water splitting. Li et al. 46 conducted a thorough study highlighting the importance of catalysts for the selective photoreduction of CO2 into solar fuels. This review offers valuable insights into the use of semiconductor catalysts for selective photocatalytic CO2 reduction. Our work advances sustainable energy solutions by investigating biomimetic, metal-based, and metal-free cocatalysts and contributes to SDGs 7 and 13. Wang et al. 47 address the critical problem of water pollution. Creating materials with superlyophilic and superlyophobic qualities offers a creative method for effectively separating water and oil. This contributes to the goals of clean water, industry, innovation, and life below the water. It also correlates with SDGs 6, 9, and 14. Singh et al. 48 also explored the 'green' synthesis of metals and their oxide nanoparticles for environmental remediation, which furthers SDG 9. This review demonstrates the environmentally benign and sustainable features of green synthesis and its potential to lessen the environmental impact of conventional synthesis methods.

Cluster 2 provides nature-inspired solutions for clean water, renewable energy, and sustainable infrastructure, demonstrating the scope and importance of biomimicry. The varied applications discussed in these papers help overcome difficult problems and advance sustainable development in line with several SDGs.

RQ2: Emerging research topics

Temporal evolution of emerging topics.

Figure  2 displays the publication counts for various emerging topics from 2013 to 2022, indicating growth trends over the years. For 'Metaheuristics', there is a notable increase in publications peaking in approximately 2020, suggesting a surge in interest. 'Strain sensor' research steadily increased, reaching its highest publication frequency toward the end of the period, which is indicative of growing relevance in the field. 'Bioprinting' sharply increased over the next decade, subsequently maintaining high interest, which highlights its sustained innovation. In contrast, 'Actuators' showed fluctuating publication counts, with a recent upward trend. 'Cancer' research, while historically a major topic, displayed a spike in publications in approximately 2018, possibly reflecting a breakthrough or increased research funding. 'Myeloperoxidase' has a smaller presence in the literature, with a modest peak in 2019. The number of 'Water '-related publications remains relatively low but shows a slight increase, suggesting a gradual but increasing recognition of its importance. Research on exosomes has significantly advanced, particularly since 2018, signifying a greater area of focus. 'Mechanical' topic publications have moderate fluctuations without a clear trend, indicating steady research interest. 'Micromotors' experienced an initial publication surge, followed by a decline and then a recent resurgence, possibly due to new technological applications. 'Nanogenerators' have shown a dramatic increase in interest, particularly in recent years, while 'Hydrogel' publications have varied, with a recent decline, which may point toward a shift in research focus or maturity of the topic.

Evolution of emerging topics according to publications (y-axis denotes the number of publications; x-axis denotes the year of publication).

Figure  3 presents the distribution of various research topics based on their prominence percentile and total number of publications. Topics above the 99.9th percentile and to the right of the vertical threshold line represent the most emergent and prolific topics of study. Next, we examine the topics within each of the four quadrants, focusing on how each topic has developed over the years in relation to SDGs and the key phrases associated with each topic.

Distribution of research topics based on prominence percentile and total number of publications.

Next, we examine each research topic in four quadrants, assessing their evolution concerning SDGs. We also analyze the keyphrase cloud to identify which keyphrases are most relevant (indicated by their font size) and whether they are growing or not. In the key phrase cloud, green indicates an increasing relevance of the key phrase, grey signifies that its relevance remains constant, and blue represents a declining relevance of the key phrase.

Niche biomimetic applications

These are topics with a lower number of publications and prominence percentiles, indicating specialized or emerging areas of research that are not yet widely recognized or pursued (Quadrant 1—bottom left).

Myeloperoxidase; colorimetric; chromogenic compounds

The inclusion of myeloperoxidase indicates that inflammation and the immune system are the main research topics. The focus on chromogenic and colorimetric molecules suggests a relationship to analytical techniques for identifying biological materials. The evolution of the research is depicted in Fig.  4 a shows an evolving emphasis on various sustainable development goals (SDGs) over time. The research trajectory, initially rooted in SDG 3 (Good Health and Well-being), has progressively branched out to encompass SDG 7 (Affordable and Clean Energy) and SDG 6 (Clean Water and Sanitation), reflecting an expanding scope of inquiry within the forestry sciences. More recently, the focus has transitioned toward SDG 15 (Life on Land), indicating an increased recognition of the interconnectedness between forest ecosystems and broader environmental and sustainability goals. This trend underscores the growing complexity and multidisciplinary nature of forestry research, highlighting the need to address comprehensive ecological concerns along with human well-being and sustainable development.

Evolution of research ( a ) and key phrases ( b ).

The word cloud in Fig.  4 b highlights key phrases such as 'Biocompatible', 'Actuator', and 'Self-healing Hydrogel', reflecting a focus on advanced materials, while terms such as 'Elastic Modulus' and 'Polymeric Networks' suggest an emphasis on the structural properties essential for creating innovative diagnostic and environmental sensing tools. Such developments are pertinent to health monitoring and water purification, resonating with SDG 3 (Good Health and Well-being) and SDG 6 (Clean Water and Sanitation). The prominence of 'Self-healing' and 'Bioinspired' indicates a shift toward materials that emulate natural processes for durability and longevity, supporting sustainable industry practices aligned with SDG 9 (Industry, Innovation, and Infrastructure) and SDG 12 (Responsible Consumption and Production), contributing to the overarching aim of sustainable development.

Next, we analyzed the top 3 cited publications. Catalytically active nanomaterials, or nanozymes, are exciting candidates for artificial enzymes, according to Lin et al. 41 . The authors explore the structural features and biomimetics applications of these enzymes, classifying them as metal-, carbon-, and metal oxide-based nanomaterials. This study emphasizes the benefits of enzymes over natural enzymes, including their high stability, variable catalytic activity, and controlled production. Wang et al. 49 developed biomimetic nanoflowers made from nanozymes to cause intracellular oxidative damage in hypoxic malignancies. Under both normoxic and hypoxic conditions, the nanoflowers demonstrated catalytic efficiency. By overcoming the constraints of existing systems that depend on oxygen availability or external stimuli, this novel technique represents a viable treatment option for malignant neoplasms. Gao et al. 50 investigated the use of a dual inorganic nanozyme-catalyzed cascade reaction as a biomimetic approach for nanocatalytic tumor therapy. This approach produces a high level of therapeutic efficacy by cascading catalytic events inside the tumor microenvironment. This study highlights the potential of inorganic nanozymes for achieving high therapeutic efficacy and outstanding biosafety, which adds to the growing interest in nanocatalytic tumor therapy.

Water; hydrophobicity; aerogels

With an emphasis on hydrophobicity, aerogel use, and water-related features, this topic relates to materials science and indicates interest in cutting-edge materials with unique qualities. From Fig.  5 a, we can see that, initially, the focus was directed toward SDG 6 (Clean Water and Sanitation), which is intrinsically related to the research theme, as biomimetic approaches are leveraged to develop innovative water purification and management solutions. As the research progressed, the scope expanded to intersect with SDG 14 (Life Below Water) and SDG 7 (Affordable and Clean Energy), signifying a broadened impact of biomimetic innovations in marine ecosystem conservation and energy-efficient materials. The gradual involvement with SDG 9 (industry, innovation, and infrastructure) and SDG 13 (climate action) indicates the interdisciplinary reach of this research, which aims to influence industrial practices and climate change mitigation strategies.

The word cloud in Fig.  5 b reinforces this narrative by showcasing key phrases such as 'Hydrophobic', 'Bioinspired', 'Emulsion', and 'Oil Pollution', which reflect the emphasis on developing materials and technologies that mimic natural water repellency and separation processes. 'Aerogel' and 'polydopamine', along with 'Underwater' and 'Biomimetic Cleaning', suggest a strong focus on creating lightweight, efficient materials capable of self-cleaning and oil spill remediation. These keywords encapsulate the essence of the research theme, demonstrating a clear alignment with the targeted SDGs and the overall aim of sustainable development through biomimicry.

Three highly referenced works that have made substantial contributions to the field of biomimetic materials for oil/water separation are included in the table. The development of superlyophilic and superlyophobic materials for effective oil/water separation was examined by Wang et al. 47 . This review highlights the applications of these materials in separating different oil-and-water combinations by classifying them according to their surface wettability qualities. The excellent efficiency, selectivity, and recyclability of the materials—which present a viable treatment option for industrial oily wastewater and oil spills—are highlighted in the paper. Su et al. 51 explored the evolution of super wettability systems. The studies included superhydrophobicity, superoleophobicity, and undersea counterparts, among other extreme wettabilities. The kinetics, material structures, and wetting conditions related to obtaining superwettability are covered in the article. This demonstrates the wide range of uses for these materials in chemistry and materials science, including self-cleaning fabrics and systems for separating oil and water. Zhang et al. 52 presented a bioinspired multifunctional foam with self-cleaning and oil/water separation capabilities. To construct a polyurethane foam with superhydrophobicity and superoleophobicity, this study used porous biomaterials and superhydrophobic self-cleaning lotus leaves. Foam works well for separating oil from water because of its slight weight and ability to float on water. It also shows exceptional resistance to corrosive liquids. According to the article, multifunctional foams for large-scale oil spill cleaning might be designed using a low-cost fabrication technology that could be widely adopted.

Growing interest in bioinspired healthcare

These topics have a higher prominence percentile but a lower number of publications, suggesting growing interest and importance in the field despite a smaller body of research (Quadrant 2—top left).

Exosomes; extracellular vesicles; MicroRNAs

Exosomes and extracellular vesicles are essential for intercellular communication, and reference to microRNAs implies a focus on genetic regulation. The evolution of this topic reflects an increasing alignment with specific sustainable development goals (SDGs) over the years. The initial research focused on SDG 3 (good health and well-being) has expanded to encompass SDG 9 (industry, innovation, and infrastructure) and SDG 6 (clean water and sanitation), showcasing the multifaceted impact of biomimetic research in healthcare (Fig.  6 a). The research trajectory into SDG 9 and SDG 6 suggests broader application of bioinspired technologies beyond healthcare, potentially influencing sustainable industrial processes and water treatment technologies, respectively.

The word cloud (Fig.  6 b) underscores the central role of 'Extracellular Vesicles' and 'Exosomes' as platforms for 'Targeted Drug Delivery' and 'Nanocarrier' systems, which are key innovations in medical biotechnology. The prominence of terms such as 'Bioinspired', 'Biomimetic', 'Liposome', and 'Gold Nanoparticle' illustrates the inspiration drawn from biological systems for developing advanced materials and delivery mechanisms. These key phrases indicate significant advancements in 'Controlled Drug Delivery Systems', 'Cancer Chemotherapy', and 'Molecular Imaging', which have contributed to improved diagnostics and treatment options, consistent with the objectives of SDG 3.

The work by Jang et al. 53 , which introduced bioinspired exosome-mimetic nanovesicles for improved drug delivery to tumor tissues, is one of the most cited articles. These nanovesicles, which resemble exosomes but have higher creation yields, target cells and slow the growth of tumors in a promising way. Yong et al.'s 54 work presented an effective drug carrier for targeted cancer chemotherapy, focusing on biocompatible tumor cell-exocytosed exosome-biomimetic porous silicon nanoparticles. A paper by Cheng et al. 55 discussed the difficulties in delivering proteins intracellularly. This study suggested a biomimetic nanoparticle platform that uses extracellular vesicle membranes and metal–organic frameworks. These highly cited studies highlight the importance of biomimetic techniques in improving drug delivery systems for improved therapeutic interventions.

Nanogenerators; piezoelectric; energy harvesting

This topic advises concentrating on technology for energy harvesting, especially for those that use piezoelectric materials and nanogenerators. We see a rising focus on medical applications of biomimetics, from diagnostics to energy harvesting mimicking biological systems.

The evolution of this research topic reflects a broader contribution to the SDGs by not only addressing healthcare needs but also by promoting sustainable energy practices and supporting resilient infrastructure through biomimetic innovation (Fig.  7 a). Initially, the emphasis on SDG 3 (Good Health and Well-being) suggested the early application of biomimetic principles in healthcare, particularly in medical devices and diagnostics leveraging piezoelectric effects. Over time, the transition toward SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation, and Infrastructure) indicates an expansion of bioinspired technologies into sustainable energy solutions and industrial applications. Nanogenerators and energy harvesting techniques draw inspiration from biological processes and structures, aiming to optimize energy efficiency and contribute to clean energy initiatives.

The word cloud in Fig.  7 b emphasizes key phrases such as 'Piezoelectric', 'Energy Harvesting', 'Tactile Sensor', 'Triboelectricity', and 'Nanogenerators', highlighting the core technologies that are being developed. These terms, along with 'Bioinspired', 'Wearable Electronic Devices', and 'Energy Conversion Efficiency', illustrate the convergence of natural principles with advanced material science to create innovative solutions for energy generation and sensor technology.

Yang et al.'s 56 study in Advanced Materials presented the first triboelectrification-based bionic membrane sensor. Wearable medical monitoring and biometric authentication systems will find new uses for this sensor since it allows self-powered physiological and behavioral measurements, such as noninvasive human health evaluation, anti-interference throat voice recording, and multimodal biometric authentication. A thorough analysis of the state-of-the-art in piezoelectric energy harvesting was presented by Sezer and Koç 57 . This article addresses the fundamentals, components, and uses of piezoelectric generators, highlighting their development, drawbacks, and prospects. It also predicts a time when piezoelectric technology will power many electronics. The 2021 paper by Zhao et al. 58 examines the use of cellulose-based materials in flexible electronics. This section describes the benefits of these materials and the latest developments in intelligent electronic device creation, including biomimetic electronic skins, optoelectronics, sensors, and optoelectronic devices. This review sheds light on the possible drawbacks and opportunities for wearable technology and bioelectronic systems based on cellulose.

Leading edge of biomimetic sensing and electronics

This quadrant represents topics with both a high number of publications and a prominence percentile, indicating well-established and influential research areas (Quadrant 3—top right).

Strain sensor; flexible electronics; sensor

Figure  8 a highlights the progress of research on bioinspired innovations, particularly in the development of strain sensors and flexible electronics for adaptive sensing technologies. Initially, concentrated on health applications aligned with SDG 3 (Good Health and Well-being), the focus has expanded. The integration of SDG 9 (Industry, Innovation, and Infrastructure) indicates a shift toward industrial applications, while the incorporation of SDG 7 (Affordable and Clean Energy) suggests a commitment to energy-efficient solutions. Additionally, the mention of SDG 11 (Sustainable Cities and Communities) and SDG 12 (Responsible Consumption and Production) reflects the broadening scope to include urban sustainability and eco-friendly manufacturing practices.

Figure  8 b provides insight into the key phrases associated with this research topic, highlighting terms such as 'Bioinspired', 'Self-healing', 'Wearable Electronic Devices', 'Flexible Electronics', and 'Pressure Sensor'. These key phrases speak to the innovative approaches for creating sensors and electronics that are not only inspired by biological systems but also capable of seamlessly integrating human activity and environmental needs. The mention of 'Wearable Sensors' and 'Tactile Sensor' indicates a focus on user interaction and sensitivity, which is crucial for medical applications and smart infrastructure.

The top three articles with the most citations represent the cutting edge of this topic’s study. Chortos et al. 59 investigated how skin characteristics can be replicated for medicinal and prosthetic uses. Kim et al. 60 focused on creating ultrathin silicon nanoribbon sensors for smart prosthetic skin, opening up new possibilities for bionic systems with many sensors. A bioinspired microhairy sensor for ultraconformability on nonflat surfaces was introduced in Pang et al.'s 61 article, which significantly improved signal-to-noise ratios for accurate physiological measurements.

Cancer; photoacoustics; theranostic nanomedicine

Modern technologies such as photoacoustics, theranostic nanomedicine, and cancer research suggest that novel cancer diagnosis and therapy methods are highly needed. Figure  9 a traces the research focus that has evolved across various SDGs over time, commencing with SDG 3 (Good Health and Well-being), which is indicative of the central role of health in biomimetic research. It then extends into SDG 9 (Industry, Innovation, and Infrastructure) and SDG 7 (Affordable and Clean Energy), illustrating the cross-disciplinary applications of biomimetic technologies from healthcare to the energy and industrial sectors.

Figure  9 b provides a snapshot of the prominent keywords within this research theme, featuring terms such as “photodynamic therapy”, “photothermal chemotherapy”, “nanocarrier”, and “controlled drug delivery”. These terms underscore the innovative therapeutic strategies that mimic biological mechanisms for targeted cancer treatment. 'Bioinspired' and 'Biomimetic Synthesis' reflect the approach of deriving design principles from natural systems for the development of advanced materials and medical devices. 'Theranostic nanomedicine' integrates diagnosis and therapy, demonstrating a trend toward personalized and precision medicine.

A study conducted by Yu et al. 62 presented a novel approach for synergistic chemiexcited photodynamic-starvation therapy against metastatic tumors: a biomimetic nanoreactor, or bio-NR. Bio-NRs use hollow mesoporous silica nanoparticles to catalyze the conversion of glucose to hydrogen peroxide for starvation therapy while also producing singlet oxygen for photodynamic therapy. Bio-NR is promising for treating cancer metastasis because its coating on cancer cells improves its biological qualities. Yang et al.'s 63 study focused on a biocompatible Gd-integrated CuS nanotheranostic agent created via a biomimetic approach. This drug has low systemic side effects and good photothermal conversion efficiency, making it suitable for skin cancer therapy. It also performs well in imaging. The ultrasmall copper sulfide nanoparticles generated within ferritin nanocages are described in Wang et al.’s 64 publication. This work highlights the possibility of photoacoustic imaging-guided photothermal therapy with improved therapeutic efficiency and biocompatibility. These highly referenced articles highlight the significance of biomimetic techniques in furthering nanotheranostics and cancer therapy.

Established biomimetic foundations

Here, there are topics with a greater number of publications but a lower prominence percentile, which may imply areas where there has been significant research but that may be waning in influence or undergoing a shift in focus (Quadrant 4—bottom right).

Metaheuristics; Fireflies; Chiroptera

This topic is a fascinating mix of subjects. Using Firefly and Chiroptera in metaheuristic optimization algorithms provides a bioinspired method for resolving challenging issues. The thematic progression of research papers suggests the maturation of biomimetic disciplines that resonate with several SDGs (Fig.  10 a). The shift from initially aligning with SDG 3 (Good Health and Well-being) extends to intersecting with goals such as SDG 9 (Industry, Innovation, and Infrastructure), SDG 7 (Affordable and Clean Energy), SDG 11 (Sustainable Cities and Communities), SDG 13 (Climate Action), and SDG 15 (Life on Land). This diversification reflects the expansive utility of biomimetic approaches, from health applications to broader environmental and societal challenges.

The top keyphrases, such as 'Swarm Intelligence', 'Global Optimization', 'Cuckoo Search Algorithm', and 'Particle Swarm Optimization', are shown in Fig.  10 b highlights the utilization of nature-inspired algorithms for solving complex optimization problems. These terms, along with the 'Firefly Algorithm' and 'Bat Algorithm', underscore the transition of natural phenomena into computational algorithms that mimic the behavioral patterns of biological organisms, offering robust solutions in various fields, including resource management, logistics, and engineering design.

The three highly referenced metaheuristic publications centered around the “Moth Flame Optimization (MFO),” Salp Swarm Algorithm (SSA),” and Whale Optimization Algorithm (WOA).” The WOA, authored by Mirjalili and Lewis 65 , is a competitive solution for mathematical optimization and structural design issues because it emulates the social behavior of humpback whales. Inspired by the swarming behavior of salps, Mirjalili et al. 66 introduced the SSA and multiobjective SSA. This shows how well they function in optimizing a variety of engineering design difficulties. Finally, Mirjalili 67 suggested the MFO algorithm, which is modeled after the navigational strategy of moths and exhibits competitive performance in resolving benchmark and real-world engineering issues.

Bioprinting; three-dimensional printing; tissue engineering

The emphasis on sophisticated manufacturing methods for biological applications in this field suggests a keen interest in the nexus of biology and technology, especially in tissue engineering. As shown in Fig.  11 a, the topic's evolution encompasses Sustainable Development Goals (SDGs) that have transitioned over the years, including SDG 3 (Good Health and Well-being), which is inherently connected to the advancement of medical technologies and tissue engineering for health applications. This research also touches upon SDG 6 (Clean Water and Sanitation) and SDG 7 (Affordable and Clean Energy), suggesting applications of bioprinting technologies in the environmental sustainability and energy sectors. The progression toward SDG 9 (Industry, Innovation, and Infrastructure) and SDG 15 (Life on Land) reflects a broader impact, where biomimetic principles are applied to foster innovation in industrial processes and contribute to the preservation of terrestrial ecosystems.

Key phrases emerging from the word cloud in Fig.  11 b, such as “Hydrogel”, “Biofabrication”, “Tissue Scaffold”, and “Regenerative Medicine”, highlight the specialized methodologies and materials that are inspired by natural processes and structures. Terms such as 'Three-Dimensional Printing' and 'Bioprinting' underscore the technological advancements in creating complex biological structures, aiming to revolutionize the field of tissue engineering and regenerative medicine.

Three widely referenced papers about advances in 3D printing—particularly in bioprinting, soft matter, and the incorporation of biological tissue with functional electronics—are described next. Truby and Lewis’s 68 review of light- and ink-based 3D printing techniques is ground-breaking. This highlights the technology's capacity to create soft matter with tunable properties and its potential applications in robotics, shape-morphing systems, biologically inspired composites, and soft sensors. Ozbolat, and Hospodiuk 69 provide a thorough analysis of “extrusion-based bioprinting (EBB).” The adaptability of EBB in printing different biologics is discussed in the paper, with a focus on its uses in pharmaceutics, primary research, and clinical contexts. Future directions and challenges in EBB technology are also discussed. Using 3D printing, Mannoor et al. 70 presented a novel method for fusing organic tissue with functioning electronics. In the proof-of-concept, a hydrogel matrix seeded with cells and an interwoven conductive polymer containing silver nanoparticles are 3D printed to create a bionic ear. The improved auditory sensing capabilities of the printed ear show how this novel technology allows biological and nanoelectronic features to work together harmoniously.

RQ3: Translation and commercialization

Biomimicry offers promising solutions for sustainability in commercial industries with environmentally sustainable product innovation and energy savings with reduced resource commitment 71 . However, translating biomimicry innovations from research to commercialization presents challenges, including product validation, regulatory hurdles, and the need for strategic investment, innovative financial models, and interdisciplinary collaboration 71 , 72 , 73 , 74 . Ethical considerations highlight the need for universally applicable ethical guidelines regarding the moral debates surrounding biomimicry, such as motivations for pursuing such approaches and the valuation of nature 75 .

Addressing these barriers requires interdisciplinary collaboration, targeted education, and training programs. Strategic investment in biomimicry research and development is also crucial. Encouraging an engineering mindset that integrates biomimicry principles into conventional practices and developing commercial acumen among researchers is essential for navigating the market landscape 76 . Securing sufficient funding is essential for the development, testing, and scaling of these innovations 76 .

Successful case studies illustrate that the strategic integration of biomimicry enhances corporate sustainability and innovation (Larson & Meier 2017). In biomedical research, biomimetic approaches such as novel scaffolds and artificial skins have made significant strides (Zhang 2012). Architecture benefits through energy-efficient building facades modeled after natural cooling systems (Webb et al. 2017). The textile industry uses biomimicry to create sustainable, high-performance fabrics 77 .

RQ4: Interdisciplinary collaboration

Agricultural innovations (sdgs 1—no poverty and 2—zero hunger).

Environmental degradation, biodiversity loss, poverty, and hunger highlight the need for sustainable agricultural methods to mimic natural ecosystems. This includes computational models for ecological interactions, field experiments for biomimetic techniques, and novel materials inspired by natural soil processes. Research can develop solutions such as artificial photosynthesis for energy capture, polyculture systems mimicking ecosystem diversity, and bioinspired materials for soil regeneration and water retention 28 . These innovations can improve sustainability and energy efficiency in agriculture, addressing poverty and hunger through sustainable farming practices.

Educational models (SDG 4—Quality education)

Integrating sustainability principles and biomimicry into educational curricula at all levels presents opportunities for innovation. Collaborations between educators, environmental scientists, and designers can create immersive learning experiences that promote sustainability. This includes interdisciplinary curricula with biomimicry case studies, digital tools, and simulations for exploring biomimetic designs, and participatory learning approaches for engaging students with natural environments. Designing biomimicry-based educational tools and programs can help students engage in hands-on, project-based learning 10 , fostering a deeper understanding of sustainable living and problem-solving.

Gender-inclusive design (SDG 5—Gender inequality)

Gender biases in design and innovation call for research into biomimetic designs and technologies that facilitate gender equality. This includes participatory design processes involving women as cocreators, studying natural systems for inclusive strategies, and applying biomimetic principles to develop technologies supporting gender equality. Bioinspired technologies can address women's specific needs, enhancing access to education, healthcare, and economic opportunities. Interdisciplinary approaches involving gender studies, engineering, and environmental science can uncover new pathways for inclusive innovation.

Inclusive urban solutions (SDG 11—Sustainable cities and communities)

Rapid urbanization challenges such as housing shortages, environmental degradation, and unsustainable transportation systems require innovative solutions. Methodologies include systems thinking in urban planning, simulation tools for modeling biomimetic solutions, and pilot projects testing bioinspired urban innovations. Research on biomimetic architecture for affordable housing, green infrastructure for climate resilience, and bioinspired transportation systems can offer solutions. Collaborative efforts among architects, urban planners, ecologists, and sociologists are essential 78 .

Peace and justice (SDG 16—Peace, justice and institutions)

Social conflicts and weak institutions necessitate innovative approaches that integrate political science, sociology, and biology. Methods involve case studies, theoretical modeling, and participatory action research to develop strategies for peacebuilding and institutional development.

This research provides a comprehensive exploration of the multifaceted dimensions of biomimicry, SDG alignment, and interdisciplinary topics, demonstrating a clear trajectory of growth and relevance. Interdisciplinary collaboration has emerged as a pivotal strategy for unlocking the full potential of biomimicry in addressing underexplored SDGs.

While answering RQ1, the interdisciplinary analysis underscores the significant alignment of biomimicry research with several SDGs. This reflects the interdisciplinary nature of biomimicry and its ability to generate solutions for societal challenges. The analysis of two thematic clusters revealed the broad applicability of biomimicry across various sustainable development goals (SDGs). The first cluster includes health, partnership, and life on land (SDGs 3, 17, and 15), highlighting biomimicry's potential in medical technologies, sustainability collaborations, and land management. The second cluster encompasses clean water, energy, infrastructure, and marine life (SDGs 6, 7, 9, and 14), demonstrating innovative approaches to clean energy generation, sustainable infrastructure, and water purification.

In response to RQ2, this study highlights emerging topics within biomimicry research, such as metaheuristics and nanogenerators, which reflect a dynamic and evolving field that is swiftly gaining attention. These topics, alongside sensors, flexible electronics, and strain sensors, denote evolving research objectives and societal demands, pointing to new areas of study and innovation. This focus on interdisciplinary topics within biomimicry underscores the field’s adaptability and responsiveness to the shifting landscapes of technological and societal challenges.

In addressing RQ3, biomimicry holds potential for sustainable innovation but faces challenges in commercialization. Biomimicry inspires diverse technological and product innovations, driving sustainable advancements (Lurie-Luke 84 ). Overcoming these barriers through strategic investment, training, interdisciplinary collaboration, and ethical guidelines is essential for unlocking their full potential.

For RQ4 , the recommendations are formulated based on underexplored SDGs like 1, 4, 5, and 10 where biomimicry could play a pivotal role.

Future research could apply generative AI models to this dataset to validate the findings and explore additional insights. While our current study did not explore this topic, we see significant potential for this approach. Generative AI models can process extensive datasets and reveal patterns, potentially offering insights into biomimetic research correlations. The interpretation required for context-specific analysis remains challenging for generative AI 36 , 37

Our study provides valuable insights, but some limitations are worth considering. The chosen database might limit the comprehensiveness of the research captured, potentially excluding relevant work from other sources. Additionally, while the combination of cocitation mapping and BERTopic modeling provides a powerful analysis, both methods have inherent limitations. They may oversimplify the complexities of the field or introduce bias during theme interpretation, even with advanced techniques. Furthermore, our use of citations to thematically clustered publications as a proxy for impact inherits the limitations of citation analysis, such as biases toward established ideas and potential misinterpretations 79 , 80 . Another limitation of our study is the potential for missing accurate SDG mappings, as multiple SDG mapping initiatives are available, and our reliance on a single, Scopus-integrated method may not capture all relevant associations. Consequently, this could have resulted in the exclusion of papers that were appropriately aligned with certain SDGs but were not identified by our chosen mapping approach. Given these limitations, this study provides a valuable snapshot for understanding biomimicry research.

Data availability

All data generated or analyzed during this study are included in this published article and its supplementary information files.

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Distribution of the 2,500 leading global research and development (R&D) spending companies in 2022, by region and industry

Pharmaceuticals & healthcare

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• Premium Statistic Distribution of pharmaceutical R&D companies by region 2023 vs. 2024
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• Basic Statistic Distribution of total funding on R&D for selected diseases 2020-2022
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• Basic Statistic Global top pharmaceutical companies based on R&D spending 2026

Total global pharmaceutical R&D spending 2014-2028

Total global spending on pharmaceutical research and development from 2014 to 2028 (in billion U.S. dollars)

Distribution of pharmaceutical R&D companies by region 2023 vs. 2024

Distribution of pharmaceutical R&D companies worldwide as of 2023 and 2024, by country

Top 50 pharmaceutical companies - Rx sales and R&D spending 2023

Leading 50 global pharmaceutical companies by prescription sales and R&D spending in 2023 (in billion U.S. dollars)

Top global biotech companies - R&D expenditure 2022

Select leading global biotechnology companies' R&D expenditure in 2022 (in million U.S. dollars)

Distribution of total funding on R&D for selected diseases 2020-2022

Distribution of total global funding on research and development for selected diseases from 2020 to 2022

Allocation of R&D investments in pharmaceutical industry by function 2022

Allocation of research and development investments in pharmaceutical industry in 2022, by function

Global top pharmaceutical companies based on R&D spending 2026

Global top 10 pharmaceutical companies based on projected R&D spending in 2026 (in billion U.S. dollars)

Software, computing, communication & electronics

• Premium Statistic ICT research and development expenditure in worldwide 2022, by country
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• Premium Statistic Artificial intelligence software market revenue worldwide 2018-2025

ICT research and development expenditure in worldwide 2022, by country

Information and communication technology (ICT) research and development (R&D) expenditure worldwide in 2022, by country or region (in billion euros)

Industrial R&D spending in the ICT sector worldwide 2020-2022

Industrial research and development (R&D) spending in the ICT sector worldwide from 2020 to 2022 (in billion U.S. dollars)

Technology hardware & equipment companies with the highest spending on R&D 2022

Ranking of the leading technology hardware & equipment companies with the highest spending on research and development (R&D) worldwide in 2022 (in million euros)

R&D spending in the ICT sector worldwide 2020-2022, by company

Research and development (R&D) spending in the ICT sector worldwide from 2020 to 2022, by company (in billion U.S. dollars)

Artificial intelligence software market revenue worldwide 2018-2025

Revenues from the artificial intelligence (AI) software market worldwide from 2018 to 2025 (in billion U.S. dollars)

Automotive, Aerospace & Defense

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Total R&D spending on automotive worldwide 2022, by region

Total global research and development (R&D) spending on automobiles and other transport in 2022, by region (in billion euros)

Global R&D spending: key companies in the automotive sector 2021

Leading automotive firms by research and development spending worldwide in FY 2021 (in billion U.S. dollars)

Total R&D spending on aerospace and defense worldwide 2022, by region

Total global research and development (R&D) spending on aerospace and defense in 2022, by region (in billion euros)

Government R&D spending on defense in OECD countries 2021

Leading government spending on defense research and development (R&D) among OECD members in 2021, by country (in share of R&D budget))

Chemicals, Energy & Industrial Manufacturing

• Premium Statistic Total R&D spending on chemicals worldwide 2022, by region
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• Premium Statistic Global renewable energy investments 2022, by region
• Premium Statistic ABB Group - R&D spending 2011-2023

Total R&D spending on chemicals worldwide 2022, by region

Total global research and development (R&D) spending on chemicals in 2022, by region (in billion euros)

Total R&D spending on energy worldwide 2022, by region

Total global research and development (R&D) spending on energy in 2022, by region (in billion euros)

Total R&D spending on industrials worldwide 2022, by region

Total global research and development (R&D) spending on industrials in 2022, by region (in billion euros)

Energy, chemicals, and industrial companies with the highest spending on R&D 2021

Ranking of the leading energy, chemicals, and industrial companies with the highest spending on research and development (R&D) in 2021 (in billion euros)

Global renewable energy investments 2022, by region

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ABB Group - R&D spending 2011-2023

ABB Group's research and development expenditures from FY 2011 to FY 2023 (in million U.S. dollars)

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U.S. Cap Rate Survey H1 2024

Cap rate expansion has peaked, but uncertainty will delay sales volume recovery until 2025..

July 31, 2024 5 Minute Read

Introduction

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The H1 2024 Cap Rate Survey provides a fresh perspective of where market sentiment is trending.

Welcome to CBRE’s H1 2024 Cap Rate Survey (CRS). This survey comes at a unique time for real estate capital markets as limited investment volume has caused pricing uncertainty. The data driving this report was informed by deals that occurred throughout the first five months of 2024. We acknowledge that market conditions are fluid, but we believe that the CRS provides a useful base and unlocks important truths about how investor sentiment is changing.

The CRS captures 3,600 cap rate estimates across more than 50 geographic markets to generate key insights.

More than 250 CBRE real estate professionals completed the H1 2024 CRS with their real-time market estimates between May and June. Given the rapidly changing macro environment, survey results may not reflect recent exogenous events or current market conditions. Readers should view all cap rate estimates within this context.

Cap Rates Held Steady During the First Half of 2024

Treasury yields remained volatile during the first half of 2024, reacting to economic data that sent mixed signals about the outlook for inflation, Federal Reserve policy, and long-term interest rates. The 10-Year Treasury yield started the year below 4% and peaked at 4.7% in late April. Ultimately continued disinflation and expectations for a Fed rate cut were holding the 10-Year Treasury yield to 4.2% as of June.

The average survey cap rate held steady in H1 2024. Interestingly, different property types did not move in unison but rather reacted uniquely to changing fundamentals and capital markets drivers. For instance, industrial cap rates fell on average and office yields continued their climb.

Figure 1: Real Estate Cap Rate and Bond Yields, period average (%)

Most Respondents Believe That Cap Rates Have Peaked

Every CRS asks respondents to estimate the direction of cap rates and the magnitude of the expected change during the next six months. Figure 2 aggregates all answers by property type and displays the results as a fraction of responses expecting further yield increases. This quarter the most common response across all categories was “no change.”

The share of respondents expecting further devaluations was highest within the office sector, reflecting the uncertainty around market fundamentals. Expectations for hotels have been less consistent with a rising share of respondents expecting cap rates to increase in coming quarters.

The share of respondents who believe cap rates will increase during the next six months has fallen compared with our previous two CRS publications. This improved sentiment is likely driven by more accommodative signals from the Fed and the decline in bond yields from their October 2023 peak.

Figure 2: Share of Respondents Who Think Yields Will Increase During the Next Six Months by CRS Vintage

Expansion Continued for Commodity Office Stock

Figure 3 compares stabilized cap rate estimates from the current CRS (horizontal axis) against H2 2023 estimates (vertical axis) for every property type and geographic market. Dots to the right of the 45-degree line represent markets where cap rates are higher than previous estimates. Yield expansion remained most pronounced in office properties, where yields increased by roughly 40 basis points, over the past six months. The estimated risk premium for Class A offices has widened considerably with cap rates exceeding 8%. Meanwhile, less competitive Class C spaces are seeing distressed pricing with cap rate estimates averaging in the low teens.

In addition to office cap rate estimates rising, the average spread between respondents’ lower and upper estimates (for example: 6%-7% has a spread of 1.0) have increased considerably suggesting more uncertainty for the sector’s pricing.

Figure 3: H1 2024 Stabilized Cap Rate Estimates Versus H2 2023 Estimates

Figure 4: Average Difference Between Lower and Upper Estimate by Sector (Percentage Points)

Uncertainty Around Values Limits Investment Volume Recovery

We asked CBRE capital markets and valuation professionals which underwriting variables market participants are most and least certain about. They say capital markets and valuation metrics are typically most difficult to estimate. Perhaps due to widespread price instability respondents believe changes in operating expenses are more difficult to gauge than space market fundamentals.

Predictably, respondents believe the office sector is facing the widest bid-ask spread. As price discovery proceeds in coming quarters this spread should shrink.

Persistent inflation and interest rates have delayed a recovery in sales volume. The previous CRS (H2 2023) pinned the recovery at late 2024. Today, most survey respondents do not expect the recovery to begin until 2025.

How certain respondents are of the outlook for key underwriting variables (1 = Least Certain)

How each sector ranks in terms of perceived bid-ask spread (1 = Widest Bid-Ask Spread)

Timing in which respondents believe transactions will begin to come back in a serious way

Definitions

Markets conform to metropolitan area and metropolitan divisions as defined by U.S. Census Bureau.

Cap rates presented in this report are based upon estimates by CBRE Capital Markets and Valuation professionals. These estimates are informed by recent trades within their markets and discussions with investors. The ranges represent the cap rates at which a given asset is likely to trade in the current market. Cap rates within each subtype vary, occasionally falling outside the stated ranges, based on asset location, quality and property-specific characteristics.

Stabilized properties are assets leased at market rents with typical lease terms and have vacancy levels close to market averages.

Stabilized cap rates are the ratio of stabilized net operating income (NOI) to the acquisition price of the asset.

Value-add cap rates are the ratio of stabilized NOI after property enhancements to the acquisition price of the asset plus value-add capital.

The NOI calculation is based on net income less operating expenses.

Related Insights

U.s. cap rate survey h2 2023.

March 5, 2024

Welcome to CBRE’s H2 2023 Cap Rate Survey (CRS). This survey comes at a unique time for real estate capital markets as limited investment volume has caused pricing uncertainty.

2024 U.S. Investor Intentions Survey

January 26, 2024

Investors cited higher-for-longer interest rates, tight credit conditions and differing buyer and seller expectations as the biggest impediments to commercial real estate investment activity in 2024.

Related Services

Commercial real estate market forecasts and analytics.

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Valuation & Advisory Services

Gain accurate insights on your property value from our experts across valuations, appraisals and advisory services, globally.

Research Contacts

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Carbon Utilization Infrastructure, Markets, and Research and Development

A final report.

National and international plans for halting and reversing climate change focus on reducing and eventually ending the largest source of greenhouse gas emissions: carbon dioxide (CO 2 ) released by fossil fuel combustion. However, as the nation moves towards replacing many fossil CO 2 -emitting processes with zero- or low-carbon-emission alternatives, special attention is needed to eliminate net carbon emissions from the systems that cannot be fully "decarbonized", such as the production of aviation fuel, chemicals, plastics, and construction materials. For these systems, carbon will need to be managed and utilized effectively, in a way that either prevents CO 2 from entering the atmosphere or reuses it through circular processes that do not contribute additional emissions.

Carbon Utilization Infrastructure, Markets, and Research and Development: A Final Report is the second report of a two-part study. The study's first report assessed the state of infrastructure for CO 2 transportation, use, and storage, highlighting priority opportunities for further investment. This second report identifies potential markets and commercialization opportunities for CO 2 - and coal waste-derived products, examines economic, environmental, and climate impacts of CO 2 utilization infrastructure, and puts forward a comprehensive research agenda for carbon utilization technologies.

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Suggested Citation

National Academies of Sciences, Engineering, and Medicine. 2024. Carbon Utilization Infrastructure, Markets, and Research and Development: A Final Report . Washington, DC: The National Academies Press. https://doi.org/10.17226/27732. Import this citation to: Bibtex EndNote Reference Manager

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