Research and development spending was down for the third consecutive quarter.
Manufacturing finances the lion's share of commercial research and development spending.
In the late 1970's and early 1980's, corporate research and development spending increased dramatically.
The swollen military budget, required to sustain an army now close to 80,000-strong, has crowded out development spending.
He said the company's research and development spending had been excessive relative to its manufacturing levels.
Debt and public subsidies increased dramatically while development spending was sharply curtailed.
Economic development spending was cut by 10% in 2002-3 as a result of recurring budget deficits and rising expenditure on healthcare services.
Dividing a company's market value by its research and development spending for the previous four quarters yields some interesting comparisons.
Research and development spending, which the task force considered a relic of the cold war arms race, would be reduced.
Research and development spending could get a £390m-a-year boost from planned reforms to give companies greater freedom in the way they account for tax incentives.
