IBM to Spend $1 Billion on Net Research

International Business Machines Corp. said it will allocate 20% of its $5-billion research budget this year to Internet products, underscoring its commitment to the global computer network. The Armonk, N.Y.-based computer company is developing new services and products, including the Integrion home-banking network and the low-cost network computer, and converting existing technology, such as Lotus Notes, so it can be used with the Internet. “IBM has to adapt and enable every product in our portfolio to work with the Internet,” said Louis Gerstner, the company’s chairman and chief executive. IBM shares fell $1.625 to close at $156.125 on the New York Stock Exchange.