See U.S. R&D spending up 3.4% in 2003. (Perspectives: news and views of the current research...

Total R&D expenditures in the United States are expected to increase 3.4 percent to $302 billion in 2003, according to the annual Battelle-R&D Magazine research and development forecast.

However, the gain is expected to come exclusively from a 10.5-percent jump in Federal R&D

This is consistent with the Industrial Research Institute's latest R&D trends forecast (RTM, Jan.-Feb. 2003, pp. 17-19), which yielded a more negative "sea change" index of respondents' anticipated R&D investment than in prior years.

Battelle observes that the minimal increase in industrial support of R&D is far less than the 7-8 percent above inflation of recent years, and calls it "a reflection of the economic factors that have emerged in the past year and the uncertainties that are inherent in the stock market. The industrial expenditures were expected to level off, falling from a rate of growth that was difficult to sustain."

However, Battelle also maintains that the revelation of "significant irregularities in company bookkeeping and the damage to major companies has had a far-reaching impact on U.S. businesses." Moreover, "the downstream impacts of loss in confidence, bankruptcies, ripple effects and associated disruptions are not the only consequences. These direct results have created questions relative to the accuracy of the entire financial reporting system, including that which addresses the reported values of R&D investments."

The Battelle report is available from Jean Hayward at (614) 424-7039 or hayward@battelle.org