Industry Weekly reported that in 2006, R&D funding should hit $329 billion, up from $320 billon in 2005, according to Columbus, Ohio
-based Battelle-R&D Magazine
's annual forecast. Industrial expenditures are expected to reach $211.9 billion in 2006, an increase of 3.5% over the $204.8 expended in 2005.
A trend of note is the difference between how much industrial support will increase and how it is distributed between domestic and foreign performers. Major increases in the funding of offshore R&D performance, coupled with the expansion of offshore facilities, will have an impact on the U.S. R&D enterprise. While earlier data showed a favorable "balance of trade" in the funding of R&D -- with foreign company support of R&D performed in U.S.-located facilities outdistancing the amount of R&D funded abroad by U.S. companies -- the gap had been narrowing over the past few years. Recent studies reveal that the total amount of foreign direct investment is shifting heavily toward India
, and that the R&D component of this investment is increasing as well. In addition, Eastern Europe
is expected to be a growing actor in this field. It is expected that pharmaceuticals
, automotive and information technology will
continue their traditional roles as leaders in funding. A projected shortfall of scientists, engineers and researchers remains an area of concern that is exhibited in trends in the industrial market as well as in the federal government.