Research And Development

AS PART of his "America 2000" plan for improving the nation's education system, President Bush proposed a privately funded corporation to help create a "new generation" of schools. That's a worthy idea -- as long as it does not thwart existing experimental efforts to improve schools.Bush has named an 18-member board composed of prominent business, education and political leaders. They hope to raise $200 million in corporate donations for research and development to create 535 new schools by 1996.

Anne Arundel County became the third Maryland subdivision last night to eliminate property taxes on equipment used for research and development, primarily computer hardware and software.By a 7-0 vote, the County Council approved the legislation that is backed by the Gary administration as a way for Anne Arundel to attract and retain coveted high-tech business.County Executive John G. Gary, a Republican, is expected to sign the bill within days."This establishes us in a leadership position at a modest cost," said Michael S. Lofton, chief executive officer of Anne Arundel Economic Development Corp.

Two Baltimore-based companies have started work on a $38 million contract to build an advanced chemistry laboratory in Edgewood Area of Aberdeen Proving Ground, said Jeff Hinte, acting director for advanced planning and initiatives of the Edgewood Chemical Biological Center. The center has been the focus of research and development involving the chemical warfare agents in the defense against chemical weapons at the proving ground since World War I. Gaudreau Inc., an architectural firm, and Poole & Kent, a mechanical contractor, are to complete construction in two years.

Nova Pharmaceutical Corp. reported yesterday that it lost $14.2 million on revenues of $36.1 million last year.Revenues increased nearly 130 percent over 1989 for the East Baltimore company, which is concentrating on researching and developing new drugs and drug-delivery systems. But Nova's $14.2 million loss also surpassed that of the previous year, when the company posted a $12.7 million deficit.The 9-year-old company's primary efforts are in developing anti-inflammatory drugs and pharmaceuticals that combat central nervous system disorders, Kira Bacon, a company spokeswoman, said.

Celera Genomics Group, the Rockville-based unit of PE Corp. best known for its work sequencing the human genome, said yesterday that multimillion-dollar increases in its research and development costs pushed its fiscal third-quarter loss to $24.1 million -- nearly double that of the year-ago quarter. But PE Corp. Chief Executive Officer Tony White told Wall Street analysts in a conference call that the company expects to begin efforts to attract customers for its genetic-information databases within the next six months to a year, after sequencing of the genome is completed.

WASHINGTON - U.S. companies this year have begun shelving inventions and slicing outlays for science and engineering laboratories after five years of record growth in research and development spending. Spending may decline for the first time in eight years in 2001, industry and government analysts say. Companies such as Compaq Computer Corp., 3Com Corp. and Lucent Technologies Inc. are making cuts as profits slip during what has been called the first recession in a decade. Fewer new software programs, computer chips and medical devices may reach the market as a result, endangering productivity gains that make economic expansion possible without aggravating inflation.

Igen International Inc. of Gaithersburg said it raised $9.5 million yesterday by selling 789,075 shares of common stock to an investment fund that focuses on investments in life sciences companies. The stock purchased by Acqua Wellington North American Equities Fund Ltd. was part of the 3 million shares Igen registered in January to set aside and sell from time to time. Acqua Wellington has an agreement with Igen to buy up to $60 million of the company's shares at a discount. Yesterday's sale was made at about $12.04 a share, a discount of about 10 percent to Igen's closing price.

GM to sell car rental businessGeneral Motors Corp. said yesterday it reached a definitive agreement to sell its National Car Rental System Inc. to an investment group led by William Lobeck of Tulsa, Okla.Financial terms were not disclosed.The sale agreement includes provisions for National to continue to employ its 6,400 employees and to maintain its long-term fleet agreement with GM to purchase vehicles.NCR Acquisition Corp., which is buying National, is owned by Lobeck, Alvin Swanner of New Orleans and Archer McWhorter of Houston.

President Bush proposed:* A bank reform plan that relies on the banking industry to shore up the federal deposit insurance fund.* A transfer of $15 billion in domestic programs from the federal government to states in a single consolidated grant.* That Fed Chairman Alan Greenspan head a joint congressional and Federal Reserve Board study of a capital gains tax incentive.* Elimination of political action committees.* A comprehensive national energy strategy combining conservation, development, and greater use of alternative fuels.

Maryland earned a spot among the top 10 states for economic development in a report card issued by the Corporation for Enterpnse Development. The state received an A rating for "performance," attributed to solid scores in job quality and equity and earnings. Maryland also received high marks for its low poverty rate and high college attainment. Another strong ranking came in "innovation assets," where the state scored first in both university and federal research and development. For more information, go to www.cfed.