Figure 4-3 



Expenditures for industrial R&D, by source of funds, 1960-74 



Current dollars 



(Dollars m Billions) 

 14 



1960 



'62 



'64 



'66 



'68 



'70 



1 GNP implicit price deflators usei) to convert current ilollars to 



constant 1967 dollars 



SOURCE National Science Foundation. 



I I I I I 1 



'74 

 (est) 



Constant 1967 dollars' 



(Dollars in Billions) 

 — 1 14 



Federal Government 



Industry ^^^ 



I I I I I I I I I L^ 



I960 



■62 



•66 



•72 '74 



(est) 



another, as shown in the table below. s 



Federal funds as a percentage of 



total industrial R&D expenditures, by 



industry, 1973 



Industry Percent 



Aircraft and missiles 78 



Electrical equipment & 



communication 50 



Professional & scientific 



instruments 20 



Motor vehicles and other 



transportation equipment 17 



Machinery 16 



Rubber products 12 



Chemicals and allied 



products 10 



Fabricated metal products 5 



Primary metals 4 



Petroleum refining and 



extraction 3 



Stone, clay, and glass 



products 2 



Textiles and apparel 2 



Food and kindred products 1 



Paper and allied products 1 



5 Federal support for nonmanufacturing industries 

 amounted to 56 percent of their total R&D expenditures in 

 1973. 



Industrial R&D personnel 



Another indicator of the magnitude of in- 

 dustrial R&D is the number of scientists and 

 engineers engaged in such activities. Trends in 

 this measure are shown in figure 4-4, for the 

 total of such personnel as well as for those who 

 are supported by industry itself and those by 

 R&D funds from the Federal Government. The 

 total number of these personnel rose to a high of 

 some 387,000 in 1969, declined 10 percent over 

 the next three years, and rose slightly in both 

 1973 and 1974. 



The decline in 1970-72 was concentrated 

 among those scientists and engineers, principal- 

 ly the latter, supported by Federal R&D funds. 

 The reductions, corresponding to the pattern of 

 declines in Federal funding of industrial R&D 

 described above, were primarily in the aircraft 

 and missiles industry and secondarily in the 

 electrical and communication, machinery, and 

 chemicals industries. Some 70 percent of the 

 reduction in numbers of federally supported 

 R&D scientists and engineers was in these four 

 industries. 



86 



