Research and Development in the Physical, Engineering, and Life Sciences in Massachusetts

Research and Development in the Physical, Engineering, and Life Sciences (NAICS 54171) in Massachusetts reports 97,905 workers across 1,732 establishments, with $20.4B of aggregate annual payroll flowing through Census CBP 2023 filings. That represents 10.2% of national employment for this industry, a concentration ratio that tells you whether Massachusetts is a primary labor market for this NAICS code or a smaller satellite. A share above 5% signals a meaningful regional cluster; below 1% usually means the state is not a structural fit for this industry at scale.

Wage benchmarking is where state-level data earns its keep. The average annual compensation for Research and Development in the Physical, Engineering, and Life Sciences employees in Massachusetts is $208,268/yr, versus a national average of $156,464/yr. Massachusetts pays above the national average for this industry, which usually reflects higher skill concentration, union density, or regional cost of living.

Profitability data is only available at the national level because the IRS Statistics of Income program does not publish state-level margin breakdowns. The national net profit margin for Research and Development in the Physical, Engineering, and Life Sciences is not reported, and while margins do vary by state, the direction of variance usually follows labor cost and establishment size, both shown above. For a complete picture, pair this state-industry view with the Research and Development in the Physical, Engineering, and Life Sciences national page (entity structure, SBA lending, sub-industries) and the Massachusetts overview (top employers, payroll dispersion across industries).