WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE. <ARTICLE> 6 <CIK> 0000893739 <NAME> HARRIS & HARRIS GROUP, INC. <PERIOD TYPE> 12-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> DEC-31-1998 <INVESTMENTS-AT-COST> 14,124,643 <INVESTMENTS-AT-VALUE> 24,532,191 <RECEIVABLES> 414,036 <ASSETS-OTHER> 248,489 <OTHER-ITEMS-ASSETS> 0 <TOTAL-ASSETS> 25,358,859 <PAYABLE-FOR-SECURITIES> 0 <SENIOR-LONG-TERM-DEBT> 0 <OTHER-ITEMS-LIABILITIES> 2,802,150 <TOTAL-LIABILITIES> 2,802,150 <SENIOR-EQUITY> 0 <PAID-IN-CAPITAL-COMMON> 16,158,381 <SHARES-COMMON-STOCK> 10,591,232 <SHARES-COMMON-PRIOR> 10,692,971 <ACCUMULATED-NII-CURRENT> 0 <OVERDISTRIBUTION-NII> 0 <ACCUMULATED-NET-GAINS> (525,177) <OVERDISTRIBUTION-GAINS> 0 <ACCUM-APPREC-OR-DEPREC> 6,996,664 <NET-ASSETS> 22,556,709 <DIVIDEND-INCOME> 52,550 <INTEREST-INCOME> 480,468 <OTHER-INCOME> 102,468 <EXPENSES-NET> 3,634,786 <NET-INVESTMENT-INCOME> (2,765,112) <REALIZED-GAINS-CURRENT> (1,768,528) <APPREC-INCREASE-CURRENT> 1,655,830 <NET-CHANGE-FROM-OPS> (2,877,810) <EQUALIZATION> 0 <DISTRIBUTIONS-OF-INCOME> (8,019,728) <DISTRIBUTIONS-OF-GAINS> 0 <DISTRIBUTIONS-OTHER> 0 <NUMBER-OF-SHARES-SOLD> 0 <NUMBER-OF-SHARES-REDEEMED> 0 <SHARES-REINVESTED> 0 <NET-CHANGE-IN-ASSETS> (10,897,538) <ACCUMULATED-NII-PRIOR> 0 <ACCUMULATED-GAINS-PRIOR> 0 <OVERDISTRIB-NII-PRIOR> 0 <OVERDIST-NET-GAINS-PRIOR> 0 <GROSS-ADVISORY-FEES> 0 <INTEREST-EXPENSE> 0 <GROSS-EXPENSE> 0 <AVERAGE-NET-ASSETS> 28,105,821 <PER-SHARE-NAV-BEGIN> 3.15 <PER-SHARE-NII> (0.42) <PER-SHARE-GAIN-APPREC> 0.16 <PER-SHARE-DIVIDEND> 0.75 <PER-SHARE-DISTRIBUTIONS> 0 <RETURNS-OF-CAPITAL> 0 <PER-SHARE-NAV-END> 2.13 <EXPENSE-RATIO> 10.9 <AVG-DEBT-OUTSTANDING> 0 <AVG-DEBT-PER-SHARE> 0