Research intensity, measured by company R & D spending, relates significantly to growth rates of sales, assets, net income, and other variables of sixteen industries performing nearly all manufacturing activity. The relation appears two years after R & D spending and increases thereafter. Research intensity, measured by manpower ratios, relates less effectively. When research intensity ratios include federal R & D funds, correlations with growth rates fall, usually below significance. By eliminating two industries receiving five-sixths of federal funds--aircraft and missiles and electrical equipment--significance emerges between federal R & D intensity and growth rates. Industrial growth appears slowed by excessive allocation of R & D resources to defense-space uses.