Positive Outlook for R&D Funding
By David Feldman at 29 January, 2009, 5:05 am
With the U.S. economy officially entrenched in recession, much of the financial news over the past few months has focused on layoffs, bankruptcies and foreclosures. But a recently released study offers some positive financial news, forecasting that funding for research and development continues to experience a decade-long growth trend.
The 2009 Global R&D Funding Forecast shows that the economic downturn may have slowed growth somewhat, but that overall spending on research and development in the U.S. will have increased to more than $383 billion during the fiscal year that ends in March. The annual report is a collaborative effort by the Battelle Memorial Institute and R&D Magazine. R&D Magazine started producing the reports independently in 1959.
“One of the most remarkable findings in this year’s report is that funding continued to grow in the U.S. and around the world despite the global economic situation,” said Tim Studt, a co-author of the annual study for more than 20 years and editor-in-chief of R&D Magazine’s sister publication Laboratory Equipment. “The continued growth in funding is encouraging because research and development is critical to the advance of science and technology, helping further scientific knowledge, improving the human condition, and resulting in new and innovative products.”
The R&D Funding Forecast noted a few specific “hot technologies” that many organizations around the world are focusing on, including renewable energy sources, biotechnology, clean water, sustainable processes and low-cost transportation.
The U.S. leads the world in funding, with Japan and China in a distant second and third place. China’s 16 percent funding increase this year follows its trend of aggressive increases that often exceed 20 percent. The report lists China as an “up and coming R&D giant. Funding totals include government and private institutions, with the largest U.S. federal contributors for research and development being NASA, the EPA and the departments of Defense, Homeland Security and Energy.
Keep an eye on China on this one. Their expenditures will skyrocket very soon as they have made a strong commitment to becoming a home for innovation. It is good to see that, at least in this regard, the US continues to lead the world in something so critical as research and development. Also, investor types, note the areas of interest as tomorrow’s venture capital and Wall Street darlings (actually some already are).
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