Scientific Research & Development Services

Scientific Research & Development Services

Brief Excerpt from Industry Overview Chapter:

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

COMPETITIVE LANDSCAPE

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

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include three main categories: medical and health sciences (about 40% of industry revenue); engineering and technology (about 40%); and natural and exact sciences (about 20%). In addition, some companies in the industry generate revenue from government and private contributions, gifts, and grants. Companies are often affiliated with major research universities or use a line of research begun at a university. The industry also includes research divisions of major manufacturers such as Nestlé, Roche, DuPont, and IBM, as well as contract research organizations (CROs) that conduct research on behalf...