the total applied R&D expenditures each 

 received in 1973, are shown in the table below. i^ 



Distribution of applied R&D 



expenditures, by selected 



product field, 1973 



Product field Percent 



Communication equipment and 



electronic components 17 



Aircraft and parts 12 



Guided missiles and 



spacecraft 12 



Machinery 11 



Motor vehicles and other 



transportation equipment 10 



Chemicals"* 7 



Substantial changes in applied R&D expen- 

 ditures have occurred in more specific product 

 fields in recent years. Fields with an overall 

 increase or decrease in constant dollar expen- 

 ditures of 10 percent or more during the 1971-73 

 period are cited below. 



Concentration of industrial R&D 



The U.S. industrial R&D effort is concen- 

 trated within relatively few industries, and 

 within a small number of large companies within 

 these industries. Throughout the 1960's and 

 early 1970's, over 80 percent of all industrial 

 R&D expenditures and over 11 percent of 

 industrial scientific personnel engaged in R&D 

 were concentrated in only five industries — 

 aircraft and missiles, electrical equipment and 

 communications, chemicals and allied products. 



machinery, and motor vehicles and other 

 transportation equipment (figure 4-8). The 

 largest change over the period occurred in the 

 aircraft and missiles industry, where R&D 

 expenditures declined significantly in relative 

 terms after the mid-1960's. 



Similar trends are evident in the concentration 

 of R&D scientists and engineers in these same 

 five industries. The aircraft and missiles in- 

 dustry is seen to account for a declining 

 proportion of the total industrial R&D per- 

 sonnel resources beginning in 1963. This 

 industry, however, in combination with the 

 electrical equipment and communications in- 

 dustry employed over 46 percent of all scientists 

 and engineers engaged in industrial R&D in 

 1973 (figure 4-9). 



To a significant degree, the concentration of 

 industrial R&D in a few industries reflects the 

 influence of Federal R&D contract work, 

 primarily in the defense and space areas. In 1973, 

 for example, almost 92 percent of all federally 

 funded R&D in industry went to these five 

 industries. Federal funds to these industries 

 ranged from about 10 percent of the total R&D 

 expenditures in the chemicals and allied products 

 industry, to some 50 percent in electrical 

 equipment and communications, and to over 80 

 percent in the aircraft and missiles industry. 

 Together, Federal funding for R&D in these five 

 industries represented over 35 percent of the 

 total expenditures for industrial R&D in 1973. 



A similar pattern is observed in regard to the 

 concentration of scientific personnel. The five 

 industries cited above employed 90 percent of all 



Increases of 

 more than 25 percent 



Percent change in constant dollar applied R&D expenditures, 

 by product field, 1971-73 



Increases of 

 10-25 percent 



Decreases of 

 10 percent or more 



Ferrous metals & products 

 Transportation equipment, 



except motor vehicles . . . 



Textile mill products 



Motor vehicles & 



equipment 



Professional & scientific 



instruments 



Engines & turbines 



Rubber & plastics products 



87 Electrical industrial 



apparatus 



S^ Farm machinery & equipment 

 36 Office, computing, and 



accounting machines 



35 Ordnance, except guided 



missiles 



32 Stone, clay, & glass 



30 products 



26 Communication equipment & 



electronic components 



1" For additional data on these and other product fields, see 

 Research ami Development in Imiuslry, 1973, National Science 

 Foundation (NSF 75-315). 



1' Except drugs and medicine. 



24 

 19 



19 



11 



10 



10 



Guided missiles 



Metalworking machinery 



and equipment 



Nonferrous metals & 



products 



Agricultural chemicals . . 

 Plastics materials & 



synthetic resins 



-20 

 -20 



-19 

 -19 



-10 



91 



