Slow Growth for Fed R&D in 2001

Spending by the federal government on research and development is expected to increase just 1.3 percent in 2001 to $72 billion, a rate that does not keep pace with inflation, according to a report released by Battelle-R&D Magazine.

"The federal budget continues to give very mixed signals about its support of R&D, with major differences between budget authorization and actual expenditures of funds," said Jules Duga, a senior researcher with Battelle Memorial Institute of Columbus, Ohio, and co-author of the report.

The commercial sector is forecast to increase its R&D spending by about 6.5 percent to $190 billion, according to the report. It cautioned that the outlook could be influenced by significant upheavals in foreign economic or political stability, as well as the unpredictability of the dot-com industry and stock market fluctuations, all of which can affect near-term spending, such as investments in R&D.

The report concluded that industry will continue to emphasize various forms of partnering and collaborations, including relationships with other industries, federal laboratories and international facilities.