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  Microsoft's focus on research closely watched
Time: 04:18 EST/09:18 GMT | News Source: Boston Globe | Posted By: Alex Harris

When Boston-area venture capitalists and entrepreneurs chatted with Microsoft Corp.'s New England ambassador last week, most mentioned one number -- 6.8 billion. That's how many dollars Microsoft plans to spend on research and development this fiscal year, which began July 1. At the company's recent meeting for financial analysts, chairman Bill Gates said Microsoft would increase R&D spending by 8 percent this year, to $6.8 billion, and add about 5,000 more employees.

The hefty budget increase, roughly in line with Microsoft's expected revenue growth this year, is a rare sign of strength in today's moribund high-tech ecosystem. It has also caught the attention of New England's technologists and financiers who are trying to gauge where Microsoft's sprawling technology initiatives are headed.

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