Research & Development (R&D)

Created by Rohit Chorghe, Modified on Mon, 17 Aug at 6:44 PM by Rohit Chorghe

The Research & Development (R&D) industry comprises organizations dedicated to conducting original research and applying discoveries to develop new products, processes, technologies, or knowledge.

This includes:

  • Corporate R&D laboratories
  • Independent research institutes
  • Contract Research Organizations (CROs)
  • University and academic research centers
  • Think tanks and development organizations

Unlike R&D departments embedded within other industries (such as healthcare, pharmaceuticals, or technology), the standalone R&D industry primarily produces research services, intellectual property, patents, prototypes, scientific discoveries, and innovation outputs rather than mass-market products.

The industry broadly aligns with Scientific Research and Development Services (NAICS 5417) and plays a critical role in advancing technology, medicine, manufacturing, defense, energy, and public policy.


Quick Industry Match Guide

Industry TierCompany TypesExamples
Tier 1: Prime R&D Providers & BrandsCorporate R&D labs, major research institutesIBM Research, Max Planck Institutes, Google X
Tier 1-2: Major Systems IntegratorsContract research organizations, applied research institutesIQVIA, Fraunhofer Institutes, Battelle
Tier 2-3: Component & Specialized SuppliersLab equipment suppliers, research software providers, testing servicesThermo Fisher Scientific, MATLAB, Charles River Laboratories
Tier 3: Raw Materials & FeedstockSuppliers of chemicals, materials, biological samples, and research dataSigma-Aldrich, Corning, AWS, ATCC

R&D Supply Chain Stages

Quick View Table

Supply Chain StageTier 3: Raw Materials & FeedstockTier 2-3: Component & Specialized SuppliersTier 1-2: Major Systems IntegratorsTier 1: Prime R&D Providers & Brands
Description & Key ActivitiesSupplying chemicals, materials, biological samples, datasets, and computing resources used in research. Disruptions can delay research programs and experiments.Providing equipment, software, analytical services, and specialized testing capabilities to support research execution.Performing applied research, contract studies, clinical trials, and technology development programs that translate scientific concepts into practical applications.Conducting advanced scientific research, innovation programs, and technology development that generate patents, prototypes, publications, and new knowledge.
Expanded Company TypesLaboratory chemical suppliers, biological sample providers, research material producers, cloud/data providersLaboratory equipment manufacturers, research software developers, testing providers, analytical service firmsContract Research Organizations, applied research institutes, engineering R&D firms, clinical trial operatorsCorporate innovation centers, independent research institutes, federally funded R&D centers, emerging research-focused startups
ExamplesSigma-Aldrich (research chemicals), Corning (laboratory materials), AWS (cloud computing), ATCC (cell lines)Thermo Fisher Scientific (lab instruments), MATLAB (simulation software), Charles River Laboratories (preclinical testing), Agilent (analytical systems)IQVIA (clinical trials), Fraunhofer Institutes (applied engineering), Battelle (technology commercialization), Covance (contract research)IBM Research, Google X, Max Planck Institutes, MIT Lincoln Laboratory, Moderna R&D

R&D Sub-Sectors

1. Corporate R&D Labs

Research organizations operating within or alongside corporations to develop future products, technologies, and intellectual property.

Company CategoryExpanded Examples & Roles
Technology R&D LabsGoogle X (advanced innovation projects); Microsoft Research (AI and computing research)
Industrial R&D CentersToyota Research Institute (mobility and robotics); GE Global Research (engineering innovation)
Consumer Product R&DProcter & Gamble (consumer product innovation); Unilever (personal care R&D)

Select if your company:

  • Operates a dedicated corporate research laboratory
  • Conducts innovation programs for future products or technologies
  • Focuses on patent generation and advanced product development

2. Independent Research Institutes

Organizations dedicated to conducting fundamental or applied research independently of commercial production activities.

Company CategoryExpanded Examples & Roles
Basic Science InstitutesMax Planck Institutes (physics, biology); CNRS (scientific research)
Applied Research InstitutesFraunhofer Institutes (engineering and industrial innovation); TNO (applied science research)
National LaboratoriesLos Alamos National Laboratory (defense and energy research); CERN (particle physics)

Select if your company:

  • Conducts independent scientific research
  • Operates as a non-profit or government-funded research organization
  • Focuses on fundamental scientific discovery

3. Contract Research Organizations (CROs)

Organizations that perform outsourced research, testing, validation, and development services on behalf of clients.

Company CategoryExpanded Examples & Roles
Pharma & Biotech CROsIQVIA (clinical research); Charles River Laboratories (preclinical studies)
Engineering R&D ServicesRicardo (automotive engineering research); Exponent (failure analysis and testing)
Testing & Validation ProvidersSGS (testing services); Intertek (product certification and validation)

Select if your company:

  • Conducts research projects for external clients
  • Manages clinical trials, testing, or validation programs
  • Performs outsourced engineering or product research

4. University & Academic Research Labs

Research entities attached to universities and academic institutions that generate scientific publications, patents, and technological innovation.

Company CategoryExpanded Examples & Roles
University Research LabsMIT (engineering and AI); Stanford University (biotechnology and computer science)
Technology Transfer OfficesOxford University Innovation (licensing and commercialization); UC Berkeley innovation programs
Collaborative Research CentersHarvard Wyss Institute (bioengineering); Cambridge Cavendish Laboratory (physics research)

Select if your company:

  • Operates university-based research facilities
  • Manages academic-industry collaboration projects
  • Commercializes university research outcomes

5. Think Tanks & Development Centers

Organizations focused on policy, economic, social, defense, and strategic research.

Company CategoryExpanded Examples & Roles
Policy Research Think TanksRAND Corporation (policy and defense analysis); Brookings Institution (economic research)
Economic & Social Research CentersUrban Institute (public policy research); CSIS (security and international studies)
Industry-Focused Development CentersBattelle (industry development programs); ITRI (industrial technology research)

Select if your company:

  • Produces policy or strategic research
  • Conducts economic, defense, or social science studies
  • Operates as a think tank or development center

Indirect Connections to R&D

Organizations not directly conducting research may still be affected by disruptions within the R&D ecosystem.

Indirect Connection TypeDescriptionExamplesRecommended Additional Industry
Material SuppliersProvide chemicals, reagents, biological samples, and research materialsLaboratory-grade chemicalsIndustrial Chemicals
Equipment ProvidersSupply instruments, testing devices, and laboratory toolsMicroscopes and analytical instrumentsGeneral Manufacturing
Technology ProvidersSupply software, simulation tools, cloud computing, and AI systemsCloud platforms for modeling and simulationsHigh Tech / Technology
Funding & Grant ProvidersFinance research projects and innovation programsGovernment grants and venture fundingInsurance & Finance
Logistics ProvidersHandle movement of samples, reagents, and research materialsCold-chain transport for biologicsFreight & Logistics
Data ProvidersSupply datasets used in scientific researchGenomic and AI training datasetsData Services

Additional Industries to Select Alongside R&D

Related IndustryWhy You Might Select ItIndirect Connection Examples
Industrial ChemicalsLaboratory chemicals and research reagentsShortages of specialty research chemicals
High TechResearch software, AI, analytics, and compute resourcesCloud outages impacting simulations
General ManufacturingLaboratory instruments and equipmentEquipment failures delaying research
Freight & LogisticsTransportation of samples and materialsDelays in biologic sample shipments
Insurance & FinanceGrants, funding, venture capital, and government programsResearch funding reductions
Data ServicesResearch datasets and analyticsRestricted access to critical datasets
Power & EnergyElectricity for laboratories and computing facilitiesPower interruptions affecting experiments

Do NOT Select Research & Development If Your Company

SituationSelect This Industry Instead
Manufactures and sells products based on R&D outcomesManufacturing, Consumer Goods, Healthcare, High Tech (as applicable)
Produces general laboratory equipmentGeneral Manufacturing
Provides non-research software servicesTechnology, SaaS
Supplies industrial materials without research focusIndustrial Chemicals or Natural Resources & Mining
Performs consulting without substantive research activitiesProfessional Services
Provides financing unrelated to research programsInsurance & Finance

Why Select Research & Development

Selecting Research & Development (R&D) ensures your organization receives EventWatch bulletins about:

  • Laboratory chemical and material shortages
  • Research equipment and software supply disruptions
  • Changes in government grants, innovation funding, and research incentives
  • Regulatory developments affecting clinical trials, testing programs, and scientific approvals
  • Intellectual property developments, patent filings, and licensing activity
  • Logistics challenges involving samples, biologics, and research materials
  • Breakthroughs and delays in key innovation areas such as AI, biotechnology, advanced materials, energy, and aerospace
  • University-industry collaboration initiatives and technology commercialization efforts

These alerts help organizations anticipate and respond to events that may affect research productivity, innovation pipelines, commercialization strategies, funding availability, intellectual property generation, and long-term competitive advantage.

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