NEW YORK, Jan 10: US manufacturers are expected to increase spending on research and development this year by the biggest margin in years, reflecting recent sales growth, an annual trends survey reported on Wednesday.

Among the companies with US research facilities, more than half expect to boost their R&D spending from 0 to 5 per cent this year, according to the Industrial Research Institute. Another 26 per cent will increase R&D spending by more than 5pc.

By contrast, only 14 per cent expect to cut research funds this year, the IRI found. The growth in total expenditures is the biggest this decade, the business association said.

Companies also expect to dedicate more funds to academic research and to rely more on licensing technology and outsourcing of research to others.

For the fifth consecutive year, companies identified 'growing through innovation' as the number one problem facing their business. As a result, they are focused on developing new business projects, the survey found.

—Reuters