5417 - Scientific Research and Development Services
In today's rapidly evolving technological landscape, innovation is key to maintaining a competitive edge. Businesses engaged in cutting-edge scientific research and development form the backbone of this innovation engine. NAICS code 5417, titled Scientific Research and Development Services, plays a pivotal role in categorizing these vital activities within the economy. Whether you are a business owner, government contractor, or researcher, understanding this NAICS code is essential for proper classification, compliance, and growth opportunities.
What is NAICS Code 5417?
The North American Industry Classification System (NAICS) code 5417 focuses on establishments primarily engaged in:
- Conducting original investigation undertaken on a systematic basis to gain new knowledge (Research)
- Applying research findings or other scientific knowledge to create new or significantly improved products or processes (Experimental Development)
This code essentially covers businesses that specialize in advancing scientific knowledge and applying that knowledge for innovation across various industries.
Sector Overview: Professional, Scientific, and Technical Services
NAICS 5417 falls under the larger sector:
- Sector: Professional, Scientific, and Technical Services
This sector includes specialized service providers that require high levels of training and expertise in areas such as natural sciences, engineering, and technology.
Typical Business Activities Under NAICS 5417
Businesses operating within this code engage in activities such as:
- Biotechnology research and development
- Environmental consulting and research services
- Physical, engineering, and life sciences research laboratories
- Pharmaceutical research and experimental development
- Developing new chemical compounds or materials
Small Business Size Standards for NAICS 5417
To qualify as a small business under this NAICS code for federal contracting and regulatory purposes, establishments generally must meet the following size standards:
| NAICS Code | Industry Title | Size Standard (Employees) |
|---|---|---|
| 541711 | Research and Development in Biotechnology | 750 employees |
| 541712 | Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) | 1,250 employees |
Note: The size standard is based on the number of employees and varies slightly depending on the specific sub-industry within 5417.
Examples of Businesses Within NAICS Code 5417
- Biotechnology Research Firms: Conduct genetic engineering, drug development, and other biotech innovations.
- Environmental Consulting Services: Perform environmental impact assessments and develop sustainable technologies.
- Physical and Engineering Research Labs: Develop advanced materials, electrical devices, aerospace components, or other engineered solutions.
- Life Sciences Research Laboratories: Study biological processes and develop health-related products or analytical services.
NAICS Code 5417 Details Table
| Attribute | Information |
|---|---|
| NAICS Code | 5417 |
| Title | Scientific Research and Development Services |
| Description | Original investigation to gain new knowledge and application of research for innovation |
| Sector | Professional, Scientific, and Technical Services |
| Sub-industries Included | Biotechnology R&D, Physical & Engineering Sciences R&D, Environmental Consulting |
| Typical Business Types | Biotechnology firms, Research laboratories, Environmental consultants |
| Size Standards | 750 – 1,250 employees (varies by sub-industry) |
Frequently Asked Questions (FAQ)
What kind of research is covered under NAICS 5417?
NAICS 5417 covers original investigations conducted systematically to discover new knowledge (research) and the experimental application of this knowledge to develop new or significantly improved products or processes.
Can a company in software development fall under NAICS 5417?
No, software development firms typically fall under other NAICS codes, such as 5415 (Computer Systems Design and Related Services). NAICS 5417 primarily covers natural sciences, engineering, and life sciences.
How does NAICS 5417 benefit government contractors?
Having the correct NAICS classification helps companies identify applicable government contracts, meet size standards for small business programs, and streamline compliance requirements during bidding and contract management.
What are the size standards for small businesses under this NAICS code?
Small business size standards range between 750 to 1,250 employees based on the specific research sub-industry. For example:
- Biotechnology R&D firms: up to 750 employees
- Physical and engineering sciences: up to 1,250 employees
Are environmental consulting firms included?
Yes, environmental consulting services related to scientific research and development are typically classified under NAICS 5417 as long as they conduct original research or experimental development.
In conclusion, NAICS code 5417 is a crucial classification for businesses involved in scientific research and development services. Understanding this code helps companies accurately position themselves in the marketplace, meet regulatory requirements, and seize opportunities in federal contracting and beyond.
For businesses specializing in innovation through systematic research and development, embracing the finer details of NAICS 5417 is essential to success.
