Welcome!

Government Cloud Authors: Liz McMillan, Gopala Krishna Behara, Raju Myadam, Kevin Jackson, Carmen Gonzalez

News Feed Item

Battelle-R&D Magazine Global Funding Forecast Predicts Cautious Growth for Research and Development Activity in 2014

U.S. Still Leads in R&D Funding but Federal Budget Turmoil Having Specific, Real Impact on Defense and Aerospace Industries

COLUMBUS, OH -- (Marketwired) -- 12/09/13 -- Global research and development (R&D) spending is forecast to grow by 3.8 percent -- or $60.0 billion -- to $1.6 trillion in 2014, according to the closely watched annual forecast by Battelle and R&D Magazine. After a flat year of R&D spending in 2013, the U.S. is projected to show modest growth while China is expected to continue its two-decade upward trajectory in R&D investment.

The full 2014 Global R&D Funding Forecast can be found here.

"We are cautiously optimistic that U.S. R&D funding will improve after a flat 2013, largely attributable to growth in private sector R&D spending," said Martin Grueber, a Battelle research leader, and co-author of the report. "However, federal funding has become difficult to forecast because of the breakdown of orderly budget processes."

The U.S. remains the world's largest R&D investor at a globally competitive level of research intensity. The Battelle-R&D Funding Forecast projects U.S. investments to equal 2.8 percent of the U.S. Gross Domestic Product (GDP). United States research activity is projected to increase by 3.2 percent to $465 billion in 2014, a 1.0 percent increase in real dollar terms. This is significant in that R&D directly employs more than 2.7 million U.S. residents in the public and private sectors and indirectly supports an additional 6 million jobs throughout the U.S. economy.

The outlook contains a degree of uncertainty because of the various budgetary paths federal lawmakers could take. Increases could result either as a result of mitigation of the federal budget sequestration or the enactment of a budget that prioritizes R&D. Among the scenarios considered for this report, the reasons this scenario was selected include: General acknowledgment that R&D has both short- and long-term returns to the economy; concern about maintaining U.S innovation-based competitiveness at a time when other nations are catching up in R&D spending, capability and output; and the apparent bipartisan support for publicly funded R&D.

Federal Outlook: The U.S. federal government is expected to fund $123 billion of R&D in 2014 -- an increase of 1.5 percent, largely to agencies that focus on basic research like the National Institutes of Health (NIH), the National Science Foundation (NSF), and the Department of Energy's Office of Science. Read more here.

Industry Outlook: Industrial funding of R&D in the U.S. is expected to rebound from 2013, increasing by 4 percent to $307.5 billion in 2014. Although many individual firms and some industries increased investments in 2013, industry investment in R&D as a whole was flat due to the slow global economy, continued rationalization of R&D activities in selected industries and the private-sector impact of federal budgets and sequestration. Industries that supply and support the federal government -- notably aerospace, defense and security -- also were subject to funding reductions and increased uncertainty. The impact on revenue led many firms to restrain internal R&D activity and these cautious strategies are likely to continue in 2014. Read more here.

Academic Outlook: Academic R&D performance in the U.S is expected to increase by 2.2 percent to $62.9 billion. This growth stems from the forecast's optimistic projection of slight increases in federal R&D funding. Read more here.

Global Outlook: The broad patterns of R&D spending are not expected to change significantly in 2014, but regional shifts are occurring. Asian share of global R&D continues to increase, driven by China, Japan and Korea, while U.S. and European shares decrease. At the current rates of growth and investment, China's total funding of R&D is expected to surpass that of the U.S. by about 2022. Read more here.

Trends

  • Significant R&D investments by Western countries in long-range technology platforms such as robotics, high-performance computing, social media, software, cost-effective energy sources and nanobiotechnology could stimulate rapid industry-scale economic growth.
  • The civilian and defense aerospace industries are seeing the creation of more efficient, cost-effective capabilities that are offsetting reduced government funding. These are occurring via internal R&D and technological integration in materials, electronics and communication and surveillance technologies.

Industry Snapshots

Life Sciences: The biopharmaceutical sector accounts for 85 percent of all expenditures in the life sciences industry that also includes medical instruments and devices, animal/agricultural bioscience and commercial life science research and testing. The global industry is forecast to have a healthy recovery after a flat 2013, increasing 3.1 percent to $201 billion in 2014. In the U.S., a small projected rebound of 2.2 percent would increase spending to about $93 million, with growth primarily coming from smaller biopharmaceutical innovators and medical device manufacturers. A complicating factor in the coming year is the Affordable Healthcare Act which could create vulnerabilities or new markets as the number of people with healthcare expands. Read more here.

Information and Communication Technologies: This industry is the largest private-sector R&D investor in the U.S., performing nearly one-third of the total, and is expected to grow by 5.4 percent to $146 billion in 2014. U.S. firms also are dominant globally and will account for more than half of the industry's worldwide R&D expenditures of $257 billion in 2014. Cloud computing and associated technologies will remain the major R&D thrust for the foreseeable future. Read more here.

Aerospace, Defense and Security: The economic and policy climate indicates a small decline in 2014 and a negative 1.2 percent retrenchment is forecast for this $12.6 billion industry in the U.S. Global industry R&D spending remains stable due to growth among major non-U.S aerospace firms in Asia, Russia and Europe, reaching $26.4 billion in 2014. Read more here.

Energy: The level of energy industry R&D is projected to increase in the U.S. by 1.7 percent to $7 billion and increase by 4.8 percent globally reaching nearly $22 billion. Respondents to the R&D Funding Forecast survey identify biofuels research as the most significant development area, although it still faces challenges in reaching economically competitive production levels. Read more here.

Chemistry and Advanced Materials: The forecast for R&D growth in the chemical and advanced materials industry reflects the improving global economy and the key markets the industry serves. Spending is expected to grow in the U.S. by 3.6 percent, reaching $12 billion in 2014, while overall global R&D is expected to grow at slightly higher rate of 4.7 percent to $45 billion. Read more here.

About the Report

This year's report is the 56th annual R&D Funding Forecast created by R&D Magazine and the 20thdone jointly with Battelle. The forecast draws upon information from a variety of sources, including the National Science Foundation, the American Association for the Advancement of Science, the International Monetary Fund and the White House Office of Science and Technology policy. See other source material here.

Hard copies of the report are available by contacting Battelle's Sandy Walker at (614) 424-7610 or [email protected].

About Battelle

Every day, the people of Battelle apply science and technology to solving what matters most. At major technology centers and national laboratories around the world, Battelle conducts research and development, designs and manufactures products, and delivers critical services for government and commercial customers. Headquartered in Columbus, Ohio since its founding in 1929, Battelle serves the national security, health and life sciences, and energy and environmental industries. For more information, visit www.battelle.org.

About R&D Magazine

Since its founding in 1959 as Industrial Research, R&D Magazine has served research scientists, engineers and technical staff at laboratories around the world, providing timely, informative news and useful technical articles that broaden readers' knowledge of the research and development industry and improve the quality of their work. R&D Magazine is a publication of Advantage Business Media.

Add to Digg Bookmark with del.icio.us Add to Newsvine

Media Contacts

For more information contact
Katy Delaney
(614) 424-7208
Email Contact

T.R. Massey
(614) 424-5544
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develop...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.