Industry Leads 1999 Increase in Spending.

• Position: Research and development spending expected to increase in 1999 - Brief Article

Total expenditures in research and development in the U.S. are expected to increase to nearly $236,000,000,000 in 1999, according to the annual Battelle-R&D Magazine forecast. The figure represents a jump of nearly seven percent over the $221,000,000,000 the National Science Foundation estimated was spent in 1998. This would be a considerable one-year leap in R&D spending, which has been climbing after stagnating in the early 1990s.

"Barring any major economic downturns, the increase in 1999 will be part of a trend that will continue into the 21 st century," predicts Jules J. Duga, a senior researcher at Battelle, Columbus, Ohio, and co-author of the report. "A strong economy, a Federal budget surplus, and a clear interest in breakthrough innovations for commercial products have fueled this cycle."

Industry, which continues to dominate the amount and growth of R&D spending, will increase funding to $157,000,000,000, up more than nine percent from 1998. The expenditures are rising at a rate that significantly exceeds inflation. The Federal government will spend $68,100,000,000 for R&D in 1999. This is a slight increase over 1998 spending, barely keeping pace with inflation. The Federal budget continues to give mixed signals relative to the support of R&D. While greater amounts of funding have been authorized, the actual expenditures remain relatively low. Universities and other nonprofit organizations will spend $10,800,000,000, about five percent more than the amount expended in 1998.

Duga estimates that industry's commitment to fund R&D will continue to be strong, noting that it has seen the benefit of long-term investments--providing...