Analysis
NAICS 54171 is the 2022 NAICS industry for research and development in the physical, engineering, and life sciences, part of 5417 (Scientific Research and Development Services). Census lists 55 example activities under it in the official index.
County Business Patterns counts 20,321 US establishments in this code in 2023, employing 957,341 people at an average annual payroll of $156,464 per employee (98th percentile of national industries). 50% of the establishments have fewer than five employees, which is close to the national mix.
Between 2018 and 2023 the number of establishments grew 20% and employment rose 30%. The 2018 count used NAICS 2017, so part of a large move can come from codes being redefined rather than from businesses opening or closing.
By establishments it ranks 1st of the 2 codes at this level within Scientific Research and Development Services, with 90.7% of them.
Census lists 7 related activities that belong elsewhere, most often in 54194, 62151, 81321 and 54138. Businesses that do several things are classified by their primary activity, the one that generates the most value, so check those boundaries before settling on this code.
Across its national industries Census lists 55 index entries; typical ones are nanobiotechnologies research and experimental development…, biotechnology research and development laboratories or… and aerospace research and development (except prototype….
Official definition
This industry comprises establishments primarily engaged in conducting research and experimental development in the physical, engineering, and life sciences, such as agriculture, electronics, environmental, biology, botany, biotechnology, computers, chemistry, food, fisheries, forests, geology, health, mathematics, medicine, nanotechnology, oceanography, pharmacy, physics, veterinary, and other allied subjects.
Source: US Census Bureau, NAICS 2022 Manual.
Not this code if…
| The business mainly does | Use instead |
|---|---|
| Providing veterinary testing services | 54194 Veterinary Services |
| Providing medical laboratory testing for humans | 62151 Medical and Diagnostic Laboratories |
| Raising funds for health related research | 81321 Grantmaking and Giving Services |
| Providing physical, chemical, or other analytical testing services (except medical or veterinary), such as acoustics or vibration testing, calibration testing, electrical and electronic testing, geotechnical testing, mechanical testing, nondestructive testing, or thermal testing | 54138 Testing Laboratories and Services |
| Creating and developing industrial designs and specifications that optimize the use, value, and appearance of automobiles, furniture, and other products | 54142 Industrial Design Services |
| Manufacturing vaccines, toxoids, blood fractions, and culture media of plant or animal origin (except diagnostic use) and/or uncompounded medicinal chemicals and their derivatives (i.e., enzyme proteins and antibiotics for pharmaceutical use) | 32541 Pharmaceutical and Medicine Manufacturing |
| Laboratory animal production (e.g., guinea pigs, mice, rats) | 11299 All Other Animal Production |
Index entries (55)
- Nanobiotechnologies research and experimental development laboratories
- Biotechnology research and development laboratories or services (except nanobiotechnology research and development)
- Aerospace research and development (except prototype production)