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A system driven by [[marketing]] is one that puts the customer needs first, and produces goods that are known to sell.<ref>{{Cite news|url=https://hbr.org/1998/11/business-marketing-understand-what-customers-value|title=Business Marketing: Understand What Customers Value|last1=Anderson|first1=James C.|date=1998-11-01|work=Harvard Business Review|access-date=2019-02-06|last2=Narus|first2=James A.|issue=November–December 1998|issn=0017-8012}}</ref> [[Market research]] is carried out, which establishes the needs of consumers and the potential [[niche market]] of a new product. If the development is technology driven, R&D is directed toward developing products to meet the unmet needs.{{citation needed|date=March 2017}}
In general, research and development activities are conducted by
[[Statistics]] on organizations devoted to "R&D" may express the state of an [[Industry (economics)|industry]], the degree of [[competition]] or the lure of [[scientific progress|progress]].<ref>{{Cite book|url=https://books.google.com/books?id=fax-DwAAQBAJ&q=Statistics+on+organizations+devoted+to+%22R&pg=PT659|title=Biotechnology Fundamentals|last=Khan|first=Firdos Alam|date=2018-09-03|publisher=CRC Press|isbn=9781498723459|language=en}}</ref> Some common measures include: [[budget]]s, numbers of [[patent]]s or on rates of peer-reviewed [[publication]]s. Bank ratios are one of the best measures, because they are continuously maintained, public and reflect risk.
In the United States, a typical ratio of research and development for an industrial company is about 3.5% of revenues; this measure is called "[[R&D intensity]]".<ref>{{
Generally such firms prosper only in markets whose customers have extreme high technology needs, like certain prescription drugs or special chemicals, [[scientific instrument]]s, and [[safety-critical system]]s in medicine, [[aeronautics]] or [[military weapons]]. {{citation needed|date=March 2017}}The extreme needs justify the high risk of failure and consequently high gross margins from 60% to 90% of revenues.{{citation needed|date=March 2017}} That is, [[gross profit]]s will be as much as 90% of the sales cost, with manufacturing costing only 10% of the product price, because so many individual projects yield no exploitable product. Most industrial companies get 40% revenues only.{{citation needed|date=March 2017}}
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===United States===
{{See also|Federally funded research and development centers}}
Former President [[Barack Obama]] requested $147.696 billion for research and development in [[Fiscal year|FY]]2012, 21% of which was destined to fund basic research.<ref>{{Cite book|url=https://fas.org/sgp/crs/misc/R41098.pdf|title=Federal Research and Development Funding: FY2011|publisher=Library of Congress, Congressional Research Service|year=2011|editor-last=Sargent|editor-first=John F Jr|oclc=1097445714}}</ref> According to National Science Foundation in U.S., in 2015, R&D expenditures performed by federal government and local governments are 54 and 0.6 billions of dollars.<ref>{{Cite web|url=https://www.nsf.gov/statistics/2018/nsb20181/assets/1038/research-and-development-u-s-trends-and-international-comparisons.pdf|title=Research and Development: U.S. Trends and International Comparisons, National Science Foundation.}}</ref> The federal research and development budget for fiscal year 2020 was $156 billion, 41.4% of which was for the Department of Defense ([[United States Department of Defense|DOD]]).<ref>{{Cite web|date=17 December 2020|title=Federal Research and Development (R&D) Funding: FY2021|url=https://crsreports.congress.gov/product/pdf/R/R46341|access-date=20 February 2021}}</ref> DOD's total research, development, test, and evaluation budget was roughly $108.5 billion.<ref>{{Cite web|date=February 2020|title=RDT&E Programs (R-1)|url=https://comptroller.defense.gov/Portals/45/Documents/defbudget/fy2021/fy2021_r1.pdf|access-date=20 February 2021|website=Office of the Undersecretary of Defense (Comptroller)}}</ref><gallery mode="packed" heights="120">
File:The Jet Propulsion Laboratory (9416811752).jpg|The Jet Propulsion Laboratory, California
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In 2015, research and development constituted an average 2.2% of the [[global GDP]] according to the [[UNESCO Institute for Statistics]].<ref>{{Cite web|url=https://data.worldbank.org/indicator/GB.XPD.RSDV.GD.ZS|title=Research and development expenditure (% of GDP) {{!}} Data|website=data.worldbank.org|language=en-us|access-date=2017-12-12}}</ref>
By 2018, research and development constituted an average 1.79% of the [[global GDP]] according to the
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