R&D Spending to Grow in 2000

R&D expenditures are expected to increase by more than eight percent this year to a total of $266 billion, according to the latest Battelle-R&D Magazine research and development forecast. The report predicts increases in R&D funding by industry, universities, and other non-profit organizations, while federal research funding is expected to remain static.

Buoyed by the strong economy, industrial commitment to R&D is expected to lead all other sectors in growth, increasing by more than ten percent in 2000.  Industrial R&D is anticipated to total $187 billion in 2000, comprising 66 percent of the nation’s total research investment. With $66 billion in expenditures, federal R&D will account for 29 percent of the total. The balance of $12.6 billion, or 5 percent of the total, will be provided by universities and other nonprofit organizations.

The forecast also projects U.S. industry will continue to emphasize partnering and collaborative research projects, including relationships with federal labs, other industry, and foreign companies. Industrial-academic research collaborations, the report goes on to say, “will proceed as a continuing experiment — in spite of the fact that there are many years of experience.” Resolution of “competing and sometimes conflicting goals of the two types of institutions” is identified as an obstacle to overcome in developing successful industry-academia collaborations.

For more information, contact Jules Duga, co-author of the report, at (614) 424-6512. For a copy of the forecast, contact Karen Taylor at (614) 424-5545.