While total U.S. industry domestic R&D was 3.2 percent of domestic net sales during 2011, the manufacturing ratio was 3.9 percent, well above the 2.3 percent average for nonmanufacturing industries. The well-known “spillover” impacts from productive innovation investment, where the direct and indirect benefits of new products and ideas spread from industry to industry, testify to the economy-wide benefit of the R&D-intensive manufacturing sector.

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