OLMIS

by Michael Meyers
Published Oct-22-2009

Fields of Scientific Research and Development Research Universities Important to Industry Employment Growing, Wages High Higher Education Required for Many Grants Help Fuel Research Industry More Than Lab Coats and Beakers

Scientific research and development services ("research" for short) is a growing industry in Oregon that provides stimulating work and good wages. Research is the pursuit of knowledge and development refers to the products and processes to apply that knowledge. When you think research, maybe you imagine people in lab coats, experiments, genetics and cancer research. And you'd be right. These are examples of research, but research also encompasses the fields of agriculture, computers, forestry, oceanography, psychology, politics, and much more.

If you think research is only for scientists and people with PhDs, think again. Nearly half of all jobs in research do not require Bachelor's degrees or higher. But this is an industry with a workforce that is more highly educated than average. This industry owes much of its growth to connections with Oregon's research universities - University of Oregon, Oregon State University, Oregon Health and Science University, and Portland State University. Many owners and employees of research businesses have connections to the universities through prior work and education experiences. The symbiotic relationship between universities and research firms has helped this industry grow and has contributed to the success of many new and innovative businesses in Oregon and beyond.

Scientific research and development services is an industry group defined by the North American Industry Classification System (NAICS). Research industries are further broken out on the basis of the type of research being conducted. There are two main branches of research: physical, engineering, and life sciences; and social sciences and humanities.

Within research and development in the physical, engineering, and life sciences, research and development in biotechnology is its own unique industry. Biotechnology involves the study of the use of microorganisms and cellular and biomolecular processes to develop or alter living or non-living materials. DNA research is a common example. The rest of physical, engineering, and life sciences research includes work in the sciences focused on agriculture, electronics, the environment, biology, botany, computers, chemistry, food, fisheries, forestry, geology, health, mathematics, medicine, oceanography, pharmacy, physics, veterinary medicine, and other allied subjects. Research and development in the social sciences and humanities is made up of firms conducting research in cognitive development, sociology, psychology, language, behavior, economics, politics, and other related fields.

Research firms in Oregon tend to be found in high concentrations near Oregon's research universities. Not surprisingly, the highest number of research firms can be found in the greater Portland metropolitan area, but location quotients show that other areas in Oregon have more research employment as a percent of their local employment than Portland. Location quotients are ratios that compare employment concentration of a particular industry in a defined area to that of a base area. When an industry has a location quotient of 1.00 in an area, that means it has the same percent of total employment in the area being analyzed as in the base area. The location quotient for research in Oregon compared to the U.S. is 0.50. Put another way, as a percent of total employment, Oregon's research industry is about half as big as the national average. Table 1 ranks Oregon counties with the highest research location quotients compared to the statewide average. Benton and Lane counties, home to Oregon State University and University of Oregon, have the highest location quotients.

According to covered employment and wage data, which count all firms and employees covered under unemployment insurance, there were 333 private research establishments in Oregon in 2008. They employed nearly 4,000 people and paid a robust annual average wage of $68,794. That was much higher than the average annual wage of $39,974 for all private industries. The covered employment and wage data do not include information on the self-employed.

Physical, engineering, and life sciences research accounts for most research activity in Oregon. This type of research employed nearly 3,000 people in 2008, compared to fewer than 1,000 people employed in social sciences and humanities research. Average annual wages were also higher in physical, engineering, and life sciences research - at $76,664 - compared to an annual average of $43,955 in social sciences and humanities research.

Over the past eight years, Oregon research employment grew much faster than the all industry average (Graph 1). Between 2001 and 2008, covered employment in research increased 19 percent, while total private covered employment rose 7 percent.

Strong employment growth is projected to continue for research over the next few years. Employment projections from the Oregon Employment Department forecasted an increase of over 27 percent in research employment between 2006 and 2016. Total private employment was forecast to grow by 15 percent over the same time period.

Educational requirements for jobs in research range from short term on-the-job training (OJT) to advanced postsecondary degrees. In general, this is a high education, high wage industry. Of the largest occupations in research (Table 2), most require at least a bachelor's degree. Those that do not are typically administrative jobs or research assistants and technicians. Wages vary by occupation. Typically, the more education required for the job, the higher the wage.

Jobs in research that require less than a bachelor's degree are expected to account for about half of all new jobs created in research by 2016. The largest occupations in this group include biological technicians and social science research assistants.

The National Science Foundation tracks expenditures in research and development in the U.S. by states and institutions. Between 1992 and 2007, total research and development (R&D) expenditures in Oregon increased 182 percent, which ranked 20^th among all states. Over the same time period, total R&D expenditures increased in the U.S. by 167 percent. Total R&D expenditures in Oregon in 2007 were $575 million, with over 70 percent of those expenditures from the federal government, and the majority of that from the National Institutes of Health (NIH). While the federal government may provide the most money for R&D in Oregon, it is not alone. State and local government, industry, universities, and others contribute to R&D spending in Oregon.

Grants are vital to the sustainability of many, but not all, research firms in Oregon. The biggest grantor to research firms in Oregon is the NIH. The NIH is part of the U.S. Department of Health and Human Services and is the primary federal agency conducting and supporting medical research. In 2008, the NIH awarded 720 grants worth $270 million in Oregon. The biggest recipients of NIH grants in Oregon were public research universities, which brought in more than $200 million in NIH grants last year. Private research firms received the next biggest chunk of NIH grant funding, with firms like Oregon Research Institute, Oregon Social Learning Center, Oregon Center for Applied Science, and Siga Technologies amongst others receiving grants.

Some research firms rely on grants from the NIH and others to sustain their business. Grants, by their very nature, can be unpredictable and susceptible to changes in the economy. Foundations and industry organizations can also change the focus of their funding, which can leave some research businesses without grants if they cannot adapt. While grants are vital to the sustainability of some businesses in this industry, many are selling their products and services on the open market. This not only provides an element of stability to businesses; it also provides more opportunities for economic and employment growth.

Research and development in the social sciences and humanities might be the lesser known and understood of the two branches of research. The work environment is, generally, not like the laboratory environment that one probably associates with research and development in the physical, engineering, and life sciences. Research in the social sciences and humanities analyzes human behavior - how we think and why we do the things we do.

Oregon Social Learning Center (OSLC) is located in Eugene. OSLC conducts research in behavioral psychology aimed at child development with an emphasis on the role that families play in child development. "Eugene is a hotbed of behavioral research," says Janet Chappell, Senior Administrator with OSLC.

The work of OSLC is primarily funded by competitive research grants from the NIH. Its primary products or services are published papers in professional journals in the field of childhood development. OSLC's location in Eugene, near the University of Oregon, is beneficial to its work. "Scientists in this field know each other really well; it's a fairly tight knit community," Chappell says. "The Psychology and Education Departments at the U of O, and Human Development and Family Sciences at OSU are where we connect the most. We have colleagues in a lot of universities."

Despite flat or declining budgets for the NIH over the past several years, OSLC has successfully increased its grant funding. "To be successful, you have to do excellent research and have cutting edge ideas," states Chappell. "And we've been pretty successful at that. Between 2003 and 2008, we had 8 percent revenue growth." Chappell was happy to see the NIH budget increase this year. OSLC is projecting at least 4 percent growth this year, but that could increase soon. "We submitted a lot of grants for stimulus dollars, but we won't know until late September what's going to happen," says Chappell. "The current version of the 2010 federal budget includes an increase for NIH as well."

OSLC employed 201 people in 2008. It employs scientists and research associates with PhDs, but don't think you need an advanced degree to work for OSLC. Chappell says the PhDs are a small portion of the workforce. "The biggest number of jobs are in data collection, interviewers who collect information, and data analysts." Workers with higher education have the best chance of getting hired at OSLC. "The most common requirement [for jobs] is a bachelor's degree," explains Chappell. "Some of our data analysts might have master's degrees. We have a lot of people just out of school."

These are desirable jobs, and as a result, OSLC attracts quality workers. "We typically attract a lot of job applicants," says Chappell. "A large portion of our employees have benefits and we have a nice benefit package." While the high wages, good benefit package, and nice work environment help attract workers, those aren't the main reasons people go to work for OSLC. "The work is interesting," explains Chappell. "It has a social purpose. What we learn can make our social situation better. We work with children and families, so we have a lot of family-oriented employees. We like to say it's science benefiting families."

Scientific research and development in Oregon encompasses a wide array of research activities, from agriculture and biotechnology to psychology. These are often good jobs with high pay, a real benefit to Oregon's economy.