More than one-third of the companies that responded to a survey by the Industrial Research Institute said they expected to increase R&D spending by at least 5% in 2008, while 11% planned cuts. The IRI comprises 219 science and technology companies with US-based R&D operations, including traditional physics hubs such as IBM Corp, Xerox Corp, and Bell Labs parent company Alcatel-Lucent.
James Scinta, a manager at member company ConocoPhillips Co and author of the IRI survey report, says it is surprising to see companies continue to invest in R&D given mixed market signals related to the mortgage crisis, energy prices, and the weak dollar. Results are shown in the figure and table. The report also indicates that technology leaders are planning to hire more new graduates and expand their R&D staff in 2008 but cite “attracting and retaining talent” as one of their “biggest problems.” Scinta points to the...
