More than 1,500 public companies, grappling with the slow economy, cut their research and development budgets last year. Tech companies made the biggest cuts, slashing research spending an average 9% from 2001.

The biggest declines were at companies with some of the largest research departments, which had more to cut.

The cuts could slow innovation at corporate research departments that have created the transistor, laser and personal computer.

Lucent budgets about 12% of its revenue for Bell Labs and for other development. But when Lucent's revenue plummeted nearly 50% last year, it trimmed more than $1 billion from research spending.

Lucent rivals Ericsson, Nortel Networks, Alcatel and Motorola have also been battered by the telecom industry's bust, so are making big cuts in many departments -- including research.