effective policies will be briefly discussed. On 

 both sides the problems promise to tax the imagina- 

 tion and ingenuity of political leaders and the broad- 

 er scientific and engineering communities alike. 



RELATIONSHIP OF SCIENTIFIC R&D TO INDUSTRY 



The relationship of industry to scientific R&D 

 differs significantly in the US and USSR. This indus- 

 trial connection, moreover, affects appreciably the 

 problems of innovation and diffusion in the two coun- 

 tries. In the United States industry plays two roles 

 in influencing the conduct of R&D. On the one hand, 

 industry sponsors, selects, performs, and utilizes 

 the results of R&D. On the other hand, industry is 

 the performer and user of R&D sponsored by federal 

 government agencies. In a lesser role, industry in- 

 fluences what R&D is sponsored by the federal govern- 

 ment through submission of unsolicited proposals and 

 through the use of lobbyists to influence legislation. 



In the Soviet Union, industrial enterprises per- 

 form little R&D; they influence the selection of only 

 a small portion of the R&D, and directly sponsor only 

 a minority share of R&D. Except in the newly devel- 

 oping associations, most scientific R&D is conducted 

 in institutions independent of the production enter- 

 prises which ultimately use the results. Industrial 

 enterprises do not appear to influence directly the 

 State's selection of R&D to be performed, although 

 they may influence their own industry R&D facilities 

 through the intercession of central ministry manage- 

 ment organs. In general, scientific R&D is an auton- 

 omous and closed subsystem in the USSR. The dominant 

 focus has been on R&D as a relatively isolated entity 

 rather than on the interplay of R&D with industry. 

 R&D planning has been geared largely to the develop- 

 ment of scientific and technical potential, that is, 

 to the expansion of science and technology themselves 

 rather than to the application of existing knowledge. 



304 



