Research and Development Spending Slows

Posted by: Emily Thornton on October 21, 2009

Here’s a sobering prediction: A new study put out by The New Democratic Leadership Council predicts that American investment in research and development will experience its biggest decline in 30 years. R&D spending is expected to fall 2.4% in 2009- marking the third time in 30 years the nation has witnessed a pullback in research spending.

Continued R&D spending is considered a key to economic growth. And there are companies that have continued to keep up their research investments.

Nevertheless, the US overall now lags behind its competitors in terms of the percent of the nation’s general economic output invested into research. Today, US research spending accounts for only 2.5% of its GDP. In Sweden, Finland, Japan and South Korea, research spending accounts for in excess of 3% of national economic output.

Reader Comments

Doug

October 21, 2009 4:35 PM

This is extremely bad news. I hope that the federal government does something to encourage and increase R&D spending, and soon. Otherwise we will be stuck with high unemployment and dropping living standards.

Doug

October 21, 2009 5:00 PM

Stocks of companies that have aggressively increased their research budgets the past twelve months should make excellent long term investments.

Jane | Dubai Jobs

November 5, 2009 3:35 AM

USA has tough time while facing huge economic decline, job loss & recession.

Reise Abenteuer

November 23, 2009 11:50 PM

Tamar

December 12, 2009 11:04 AM

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Golf

March 26, 2010 6:30 PM

Stocks of companies that have aggressively increased their research budgets the past twelve months should make excellent long term investments.

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