NAICS 541715 Quarterly Industry Report
Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 541715Sector: Professional, Scientific, and Technical Services (54)Updated: Q1 2026
About This Report
This report provides an overview of NAICS 541715: Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology). Data reflects the 2022 NAICS classification from the U.S. Census Bureau[6]. Information includes industry composition, business counts, employment figures, and SBA size standards reflecting Fair Market Value assessments. The report incorporates data from the Bureau of Labor Statistics[7] and Census Bureau economic publications.
Industry Snapshot
Key metrics for the research and development in the physical, engineering, and life sciences (except nanotechnology and biotechnology) industry.
NAICS Sector
54
Professional, Scientific, and Technical Services
Industry Definition & Overview
Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541715) encompasses establishments primarily engaged in conducting research and experimental development in fields such as agriculture, electronics, environmental science, biology, chemistry, computers, food, geology, health, mathematics, medicine, oceanography, pharmacy, physics, and veterinary sciences. This classification excludes nanotechnology and biotechnology research. Per Census Bureau[5] data, approximately 1,918 companies operate in this sector, employing nearly 486,222 workers nationwide.
Organizations range from small independent laboratories to large research facilities supporting advancement across multiple industries. These establishments conduct fundamental and applied research that develops new technologies, processes, and products. Work performed here directly impacts fields from aerospace engineering to environmental science. Revenue exceeded $100 billion in recent years.
In 2017, the industry generated annual payroll exceeding $52 billion, reflecting the substantial economic contribution of this research sector. Scientific discoveries and experimental developments produced by these organizations form the foundation for technological advancement and industrial progress. Federal research funding from agencies including NSF, DOE, and NIH supports a broad portfolio of physical, engineering, and life sciences research programs across academic and commercial institutions. Corporate R&D spending in the physical sciences sector adds substantially to the federal investment base. International collaboration and technology transfer agreements further expand the research capacity of U.S. establishments.
What's Included in This Industry
- Agricultural research and experimental development
- Electronics and computer research establishments
- Environmental research on air quality, water systems, and pollution control
- Materials science laboratories studying metals, ceramics, polymers, and composites
- Physics and mathematics research facilities
- Health and medical research (excluding biotechnology)
- Chemistry and chemical engineering research centers
- Engineering research in mechanical, civil, electrical, and structural systems
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 the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) | 541715 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 541713 | Research and Development in Nanotechnology | Research and Development in Nanotechnology handles specialized research at molecular and atomic scale, including nanobiotechnology applications excluded from the broader 541715 classification. |
| 541714 | Research and Development in Biotechnology (except Nanobiotechnology) | Research and Development in Biotechnology covers biological and genetic research developing products from living organisms and biomolecular processes excluded from 541715. |
| 541720 | Research and Development in the Social Sciences and Humanities | Research and Development in Social Sciences and Humanities comprises establishments conducting research in psychology, sociology, economics, and cultural studies rather than physical sciences. |
| 541380 | Testing Laboratories and Services | Testing Laboratories perform analytical testing and calibration services that complement but are distinct from the research and development activities conducted under 541715. |
| 541620 | Environmental Consulting Services | Environmental Consulting Services focuses on environmental compliance and remediation guidance, while 541715 encompasses environmental research and experimental development activities. |
| 541330 | Engineering Services | Engineering Services provides specialized engineering design and consultation that may collaborate with or support research operations classified under the 541715 code. |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 20.2% | 2,523 |
| 2 | Massachusetts | 7.0% | 876 |
| 3 | Texas | 6.3% | 786 |
| 4 | Florida | 6.0% | 747 |
| 5 | New York | 4.3% | 537 |
| 6 | North Carolina | 3.7% | 459 |
| 7 | Pennsylvania | 3.7% | 459 |
| 8 | Virginia | 3.6% | 452 |
| 9 | Maryland | 3.6% | 452 |
| 10 | New Jersey | 3.0% | 379 |
% Of Establishments
0%
20%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
256
Total SBA Loans
$98.4M
Total Loan Volume
$384K
Average Loan Size
11 yrs
Average Loan Term
10.30%
Average Interest Rate
3,464
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[8] size standard for NAICS 541715 is 1,300 employees, measured as the average over the last 24 months. Meeting this threshold qualifies businesses for SBA loans, set-asides in federal contracting, and other small business assistance programs. 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 | Newtek Bank, National Association | 48 | $21.6M | $450K |
| 2 | Washington Trust Bank | 16 | $14.8M | $925K |
| 3 | Hanover Community Bank | 8 | $10.0M | $1.3M |
| 4 | TD Bank, National Association | 16 | $7.2M | $450K |
| 5 | Texas Capital Bank | 8 | $6.2M | $771K |
Frequently Asked Questions
Common questions about this industry.
What is the difference between 541715, 541713, and 541714?
NAICS 541715 covers physical, engineering, and life sciences R&D but excludes nanotechnology (541713) and biotechnology (541714). Companies are classified based on their primary research focus area. Census Bureau NAICS 541715[6]
What types of organizations fall under NAICS 541715?
Universities with R&D facilities, government laboratories, independent research institutions, corporate research centers, and specialized testing facilities conducting experimental development in agriculture, chemistry, electronics, physics, health sciences, and engineering.
What is the SBA size standard for 541715?
The SBA[8] size standard is 1,300 employees averaged over the preceding 24 months. This threshold applies to federal contracting programs and SBA loan eligibility.
What is excluded from NAICS 541715?
Nanotechnology R&D, biotechnology R&D, and specialized research areas covered by other codes are excluded. The Census Bureau[5] provides detailed descriptions of inclusions and exclusions for this classification.
Is medical research included in NAICS 541715?
General medical and health research not focused on biotechnology is included, covering disease mechanisms, treatment methods, and health outcomes studied through physical, chemical, and engineering-based approaches.
How does 541715 differ from testing laboratories (541380)?
NAICS 541380 focuses on analytical testing and quality assurance. NAICS 541715 focuses on research and experimental development advancing scientific knowledge. Organizations are classified by primary business function. BLS occupational data[7]
How large is the NAICS 541715 sector?
Approximately 1,918 companies employ 486,222 workers with annual payroll exceeding $52 billion, reflecting the substantial scale and economic contribution of physical, engineering, and life sciences research.
How are companies classified if they do multiple types of R&D?
Companies are assigned to whichever classification accounts for the largest share of revenue or employees. The 2022 NAICS classification system[11] details the determination process.
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]U.S. 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]2022 NAICS classification system census.gov
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