The new investments include $45.3 million to increase manufacturing capacity for Humatrope, a biotech product used to treat growth hormone deficiency, at Lilly's facility in Liverpool, England. Other planned investments in the UK include $64.8 million to create a European Center for Excellence in Neuroscience Research at Erl Wood in Southeast England. At least 120 scientists will be recruited to work at the center during the next five years.

"This is the largest single investment by Lilly in any country in Europe, and it obviously shows that we feel the UK offers a positive business environment that fosters pharmaceutical company growth and innovation," said Rich Pilnik, president of Lilly's European Operations.

Asia Dominates Global Chip Production

Asia dominates the global contract chip-making industry with nearly 80 percent of the world's production valued at more than $8 billion, according to technology research firm Gartner Inc.

Last year, the Asia-Pacific's share of the worldwide industry stood at 78.1 percent and generated revenues of $8.2 billion.

Led by Taiwan, the epicenter of contract chip production with more than 83 percent of the region's output, Gartner predicted

Asia-Pacific's contract chip-making industry would grow 23 percent this year. That is expected to generate revenues of at least $10 billion, according to Gartner.

"Utilization rate in the current quarter is estimated to top 75 percent, with wafer shipments and ASP [average selling price] projected to increase by 26 percent and 2 percent quarter over quarter respectively," said Tan Kay-Yang, Gartner's principal analyst for semiconductors.

Japan Outpacing U.S. on R&D

Japan, despite myriad economic difficulties, continues to invest more in total R&D as a percentage of GDP than does the United States.

In 2000 (the most recent comparable data available), the figures were 2.98 percent for Japan and 2.69 percent for the United States, said Cliff Waldman, an economist at Manufacturers Alliance/MAPI, an Arlington, Va.,-based business policy group.

The study showed that the United States puts a higher percentage of its economy into R&D than does Germany, but only modestly so.

"R&D investment must be considered in a competitive context," Waldman said. "It is an essential avenue for creating new products and production methods that will give the U.S. economy and U.S. manufacturing the comparative advantage it needs in the current global environment."