US tech industries cut back on research

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Some of the biggest US technology companies have put a lid on their research and development spending even as the industry enjoys its strongest period of growth this decade, according to the latest financial filings.

With a US economic downturn looming, the pressure to hold down spending is expected to intensify further this year.

Leaving aside Google, which increased spending strongly, the 10 biggest tech spenders capped the growth in their R&D budgets last year at 4.1 per cent, at a time when their revenues jumped by more than 9 per cent. The biggest makers of computer systems held their spending broadly flat, while semiconductor companies cut back in the face of a downturn in the chip cycle.

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