According to the Industrial Research Institute’s (IRI) 28th annual “R&D Trends Forecast,” 53% of respondents plan to spend the same amount on R&D in 2012 as last year. The IRI surveyed R&D managers at 104 firms in multiple industries in July and August 2011. R&D budget increases of 2.5% to 5% are expected by 22% of managers, and 11% plan to increase their R&D budgets by at least 10%. Capital spending is expected to be roughly the same for 58% of respondents. Capital spending increases above 10% are expected by 13% of respondents, and 12% project their capital spending will rise 2.5% to 5%. New-business project spending is expected to comprise the biggest chunk of R&D spending. Respondents in the chemical and food industries predict more of a boost in R&D budgets than the survey average. The majority of respondents predict that their “targeted R&D/sales ratio,” “grants, contracts, etc., for university R&D,” “participation in all consortia for pre-competitive university research” and “contracts with federal laboratories” will all be the same as in 2011. About a third of managers expect increases in these areas. More than half of managers plan to increase their “participation in alliances and joint R&D ventures.”

Source: IRI