Resources for 

 Research and Development 



INDICATOR HIGHLIGHTS 



National expenditures for research and 

 development (R&D) in the United States 

 increased in current dollars each year 

 between 1960-74, reaching $32 billion in 

 1974; in constant dollars, however, expen- 

 ditures remained at $22-23 billion between 

 1968 and 1974. 



The total number of (full-time equivalent) 

 scientists and engineers engaged in R&D 

 reached its highest level in 1969 (at 558,000) 

 and declined to almost 528,000 in 1974; the 

 decline is due largely to reductions of such 

 personnel in industry as a result of cutbacks 

 in Federal funds in the aerospace area. 



The fraction of the gross national product 

 (GNP) going to R&D declined steadily from 

 a high of nearly 3.0 percent in 1964 to a low 

 of 2.3 percent in 1974; Federal funds for 

 R&D, as a fraction of GNP, dropped from 2.0 

 to 1.2 percent between 1964 and 1974, 

 whereas funds from all other sources 

 combined remained at approximately 1.0 

 percent of GNP throughout the period. 



Federal funds for R&D increased in current 

 dollars in all but two of the years between 

 1960-74, reaching their highest level of 

 nearly $17 billion in 1974; funding in 

 constant dollars, however, peaked in 1966 

 and was down by 19 percent in 1974 to less 

 than $12 billion, which is equivalent to the 

 funding level of 1963. 



R&D funds provided by industry rose more 

 rapidly than those of the Federal Govern- 

 ment during the 1960-74 period, reaching 

 nearly $14 billion in current dollars in 1974; 

 funds in constant dollars were at their 

 highest level in 1973, some 2 percent above 

 the level of 1974. 



The Federal Government and industry 

 provided 96 percent of all the funds for R&D 

 in 1974; the Federal share of the total 

 declined from a high of 65 percent in 1965 to 



a low of 53 percent in 1974, while industry's 

 share grew from 33 to 43 percent of the 

 total. 



R&D expenditures increased in current 

 dollars in all R&D-performing sectors' in 

 recent years, whereas funds expended in 

 constant dollars were lower in each sector in 

 1974 than in previous years; the largest 

 constant dollar decline was in industry 

 where expenditures in 1974 were 9 percent 

 lower than in 1969, due largely to declines in 

 Federal support for industrial R&D. 



The proportion of R&D funds allocated to 

 different types of R&D activities — basic 

 research, applied research, and 

 development — has remained nearly con- 

 stant since 1965, with development receiv- 

 ing 64 percent, applied research 23 percent, 

 and basic research 13 percent. 



R&D funds provided by the Federal Govern- 

 ment are a declining fraction of the total 

 Federal budget, falling from a high of 13 

 percent in 1965 to 7 percent in 1974; as a 

 fraction of the "relatively controllable" 

 portion of the Federal budget,- R&D spend- 

 ing has changed little, at 15 percent in 1974 

 compared with a high of 16 percent in 1967 

 and a low of 14 percent in 1970. 



Federal funds for R&D go primarily to 

 national defense, with "civilian"-' areas and 

 space exploration receiving the remainder; 

 the proportion of total Federal R&D funds 



' The sectors included are industry. Federal intramural 

 laboratories, universities and colleges with their Federally 

 Funded Research and Development Centers, and other 

 nonprofit institutions. 



- That part of the budget which is subject to annual 

 appropriations, rather than determined by fixed costs and 

 "open ended" programs whose funds increase by law. 



-' Includes areas such as health, energy, and the environ- 

 ment; see figure 2-10 for a listing of the areas. 



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