NAICS 541714 Quarterly Industry Report
Research and Development in Biotechnology (except Nanobiotechnology)
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 541714Sector: Professional, Scientific, and Technical Services (54)Updated: Q1 2026
About This Report
This report describes NAICS 541714 (Research and Development in Biotechnology except Nanobiotechnology) based on the 2022 NAICS classification system and Fair Market Value industry data. Classification definitions follow Census Bureau[6] guidelines. Additional data is drawn from Bureau of Labor Statistics[7].. Information is sourced from Census Bureau data[5] and SBA[8] resources.
Industry Snapshot
Key metrics for the research and development in biotechnology (except nanobiotechnology) industry.
NAICS Sector
54
Professional, Scientific, and Technical Services
Industry Definition & Overview
Research and Development in Biotechnology (NAICS 541714) encompasses laboratory and physical research services focused on discovering, developing, and testing new biotechnology products and processes. This sector includes companies conducting research in drug discovery, genetic engineering, cell therapy, diagnostic development, and industrial biotech applications. Per Census Bureau[5] classifications, establishments perform fundamental and applied research to advance biological sciences.
The U.S. biotechnology market was valued at approximately $258 billion in 2026, with about 3,229 businesses operating in this sector. Industry growth has accelerated at a compound annual rate near 6 percent between 2020 and 2025. Key research areas include healthcare biotechnology, agricultural biotechnology, industrial biotech, and environmental applications. Demand continues to grow.
Technological breakthroughs in CRISPR-Cas9 and next-generation sequencing have expanded research capabilities and attracted investment in personalized medicine and precision diagnostics. Government agencies including the National Science Foundation, Department of Energy, and National Institutes of Health provide substantial funding and infrastructure support for biotech research initiatives across the country. Both academic institutions and commercial firms contribute to the research pipeline. Venture capital investment in biotech startups remains among the highest of any technology sector, with annual funding exceeding $20 billion in recent years. Regulatory pathways through the FDA continue to shape how biotech research translates into approved therapeutic and diagnostic products.
What's Included in This Industry
- Laboratory research in drug discovery and development
- Genetic engineering and gene therapy research
- Diagnostic testing and biomarker development
- Cell and tissue culture research
- Biomanufacturing process development
- Agricultural biotechnology research
- Industrial biotech applications and testing
- Clinical trial support and bioanalytical testing
- Genomic sequencing and bioinformatics services
- Environmental bioremediation research
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Professional, Scientific, and Technical Services | 54 |
| Subsector | Professional, Scientific, and Technical Services | 541 |
| Industry Group | Scientific Research and Development Services | 5417 |
| NAICS Industry | Research and Development in the Physical, Engineering, and Life Sciences | 54171 |
| National Industry | Research and Development in Biotechnology (except Nanobiotechnology) | 541714 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 541715 | Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) | Research and Development in Physical, Engineering, and Life Sciences covers broader life science research outside the biotechnology specialty, including agriculture, chemistry, and environmental science. |
| 325414 | Biological Product (except Diagnostic) Manufacturing | Biological Product Manufacturing transforms biotech research outputs into pharmaceutical and diagnostic products at commercial manufacturing scale for distribution. |
| 541713 | Research and Development in Nanotechnology | Research and Development in Nanotechnology focuses on nanoscale research that intersects with but is distinct from biotechnology, including nanobiotechnology applications excluded from 541714. |
| 621511 | Medical Laboratories | Medical Laboratories provide diagnostic testing services that support and complement biotechnology research and development activities in clinical validation. |
| 325412 | Pharmaceutical Preparation Manufacturing | Pharmaceutical Preparation Manufacturing applies outputs from biotech research to produce finished drug products for commercial distribution to healthcare providers. |
| 541380 | Testing Laboratories and Services | Testing Laboratories provide quality assurance, validation testing, and analytical services critical to biotechnology research and product development processes. |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 30.1% | 1,606 |
| 2 | Massachusetts | 12.3% | 656 |
| 3 | Maryland | 5.4% | 287 |
| 4 | New York | 4.5% | 238 |
| 5 | Texas | 4.1% | 220 |
| 6 | North Carolina | 4.1% | 219 |
| 7 | Florida | 3.7% | 199 |
| 8 | Pennsylvania | 3.6% | 194 |
| 9 | New Jersey | 3.0% | 158 |
| 10 | Washington | 2.4% | 125 |
% Of Establishments
0%
30%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
152
Total SBA Loans
$40.6M
Total Loan Volume
$267K
Average Loan Size
9 yrs
Average Loan Term
10.61%
Average Interest Rate
872
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: NAICS 541714 has a SBA[8] size standard of 1,000 employees for federal contracting purposes. Businesses at or below this employee count may qualify for small business programs, government contracts, and financing assistance designed to support growth in the biotech research sector. Eligible businesses can access SBA 7(a) loans[9] for working capital, equipment, and acquisition financing, while 504 loans[10] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | JPMorgan Chase Bank, National Association | 24 | $9.3M | $387K |
| 2 | First Bank of the Lake | 24 | $7.8M | $323K |
| 3 | Dogwood State Bank | 8 | $6.8M | $845K |
| 4 | Newtek Bank, National Association | 16 | $4.6M | $285K |
| 5 | Bank of America, National Association | 24 | $4.0M | $167K |
Frequently Asked Questions
Common questions about this industry.
What activities are classified under NAICS 541714?
NAICS 541714 includes laboratory research in drug discovery, genetic engineering, diagnostic development, and biotech process research. According to SBA guidelines[8], this excludes economic research, educational activities, computer programming, and medical laboratory testing.
What is the SBA size standard for NAICS 541714?
The SBA[8] size standard is 1,000 employees. Businesses meeting this threshold qualify for small business programs and government contracting opportunities.
How does 541714 differ from 541715?
NAICS 541714 specifically covers biotechnology research, while 541715[11] encompasses physical, engineering, and life sciences R&D excluding nanotechnology and biotechnology. The distinction focuses on specialized biotech methods and applications.
What types of biotechnology research are included?
Healthcare biotech, agricultural biotech, industrial biotech, environmental biotech, and pharmaceutical research activities are all included. NSF biotech resources[12] document the range of federally supported research areas.
Is medical laboratory testing included in NAICS 541714?
No, commercial and medical laboratory testing are explicitly excluded. Clinical diagnostic testing is classified separately under NAICS 621511. Census Bureau NAICS 541714[6]
How large is the biotechnology R&D sector?
The U.S. biotech industry was valued at approximately $258 billion in 2026 with about 3,229 businesses. Growth continues near 6 percent annually, driven by advances in genomic sequencing and personalized medicine.
What government agencies support biotech research?
NSF, DOE, NIH, and USDA provide substantial funding. DOE biotech initiatives[13] support fundamental research, technology development, and workforce training in biomanufacturing.
Does NAICS 541714 include nanobiotechnology?
No, nanobiotechnology is excluded from 541714 and classified under NAICS 541713, which covers nanotechnology-specific research including applications at the intersection of nanotechnology and biotechnology.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]Census Bureau data.census.gov
- [6]Census Bureau census.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]SBA sba.gov
- [9]SBA 7(a) loans sba.gov
- [10]504 loans sba.gov
- [11]541715 census.gov
- [12]NSF biotech resources nsf.gov
- [13]DOE biotech initiatives energy.gov
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