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      Total funding for research and development is expected to increase by approximately 2.9 percent to $329 billion in 2006, according to the Battelle-R&D Magazine annual forecast. The projected increase, from the estimated $320 billion spent in 2005, covers all research and development (R&D) expenditures across industry, government and academia.

      Highlights include:

      •The federal government is expected to spend $96.6 billion funding R&D efforts, a modest increase of 1.8 percent over the $94.9 spent in 2005.

      •Industrial expenditures on R&D are expected to reach $211.9 billion in 2006-an increase of 3.5 percent over the $204.8 expended in 2005.

      •Academia and other non-profits make up the remaining expenditures of $20.4 billion with academia increasing by a slim 1.1 percent and other non-profits increasing by a healthier 3.7 percent.

      A running — and important — theme revealed from data and trends throughout the report “is that the support of research and development runs the risk of being viewed as an expense and a luxury, rather than an investment, and one that can be shelved until more funds are available,” said Battelle’s Jules Duga, a senior research leader and co-author of the forecast.

      The federal deficit will have a significant impact on the extent to which R&D funds will be available within the overall category of discretionary spending. The massive unforeseen expenditures associated with the war in Iraq and hurricane relief programs have...

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