R&D investment in US polymer sector grows 20%

Fort Worth, Texas – A five-year ‘innovation slump’ has been reversed in the US rubber & plastics R&D spend, as the segment invested a total of $3.1 billion (€2.8 billion) in research & development last year.

The figure was up 19.4% year-on-year, following a 16.2% overall decline in R&D investment in the five years to 2023, according to data released by tax consulting firm Source Advisors.

The level of increased investment, said a 7 May statement by Source Advisors, is two times higher than the US average of 10.6%.

The sector has seen the 12th highest increase in R&D spend of all sectors in the US, with 42% of output destined for international exports.

“Investment in R&D is no longer optional but a strategic necessity to stay ahead in the competitive landscape,” said Jordan Fazio, senior director R&D tax credit at Source Advisors.

Working with the plastics and rubber manufacturing sector, Fazio said, Source Advisors have seen "increased importance" placed on technology improvement, enhancing services and identifying "new innovation routes".

According to the Texas-based advisors, spending areas included design & development of advanced polymers, improvements in the manufacturing processes and sustainability of products.

R&D investment “allows companies to anticipate market trends, adapt to technological changes, and respond proactively to the evolving needs of their customers,” said Bonnie Ruan, chief product officer at Beska Mold.

“To ensure that R&D investments yield a substantial return, companies should adopt a strategic approach to their innovation efforts,” Ruan added.