Research and development budget cuts by some U.S. companies are reportedly sparking fears the nation might become less competitive.
USA Today says many of the R&D cuts are occurring at some of the nation's most innovative companies, such as Microsoft, Sun Microsystems, Bell Labs and Hewlett-Packard.
Kei Koizumi, a director at the American Association for the Advancement of Science, says even federal R&D grants aren't keeping pace with inflation.
"It's not a good sign for the future innovation capacity of the U.S. economy," Koizumi told USA Today.
Although the United States currently spends more on research and development than any other nation, that might change, the newspaper said, with China expected to increase its R&D spending by 28 percent.
Copyright 2006 by United Press International
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