Since the discovery of recombinant DNA in the early 1970s, biotechnology has become an essential tool for many industries. The potential of biotechnology to improve the Nation's health, food supply, and the quality of the environment leads logically to questions of whether current levels of investment in research and development, human resources, and policy formulation are adequate to meet these expectations. This special report is the fourth in a series of Office of Technology Assessment studies being carried out under an assessment of "New Developments in Biotechnology," requested by the House Committee on Energy and Commerce and the House Committee on Science, Space, and Technology. This report describes the levels and types of investment currently being made by the Federal, State, and private sectors. Ten major issues that affect investment were identified. They concern levels of research and development funding, research priorities, interagency coordination, information requirements, training and education needs, monitoring of university-industry research, state efforts to promote biotechnology, the effects of tax law on commercial biotechnology, the adequacy of federal assistance for biotechnology start-ups, and the effects of export control on biotechnology commerce. Appendices list biotechnology companies, corporate investors, training initiatives, acronyms, and terms. (CW)