Figure 3-7 



Basic Research Expenditures in Universities and Colleges, by Source, 1960-74 



Constant 1967 dollars' 



Current dollars 



(Millions of Dollars) 

 2,200 



2,000 



(Millions of Dollars) 



1,800 



1,600 



1,400 



1,200 



1,000 



200 



Industry 



-^-^^-'■^-'-^■■4-f T-rT' 



I960 



74 

 (est.) 



' GNP implicit price deflators used to convert 

 current dollars to constant 1967 dollars. 

 SOURCE: National Science Foundation. 



200 



Other 

 sources 



Industry 



->-^H" 



1960 



■62 



■64 '66 '68 '70 '72 '74 



(est.) 



in current dollars, although the annual rate oF 

 growth diminished after 1968 (figure 3-7).'^ 

 This decline in the growth rate, coupled with 

 rising inflation, produced a level of constant 

 dollar expenditures which changed little during 

 the 1968-72 period. Small constant dollar 

 increases in 1971 and 1972 were succeeded by 

 larger decreases in the two following years, with 

 the result that basic research expenditures in 

 1974 were 9 percent lower than in 1972, the year 

 of highest constant dollar funding. 



13 These expenditure data are for R&D which has been 

 sponsored by other agencies and organizations, as well as 

 R&D supported by an institution's own funds which it 

 allocates to separately organized institutes, divisions, or 

 specific R&D projects. They do not include the expenditures 

 for research /teaching assignments of the faculty 

 (departmental research). Expenditures associated with 

 FFRDC's administered by universities are treated later in 

 this chapter. 



The leveling off and decline in constant dollar 

 expenditures for basic research is due mainly to 

 reduced growth of funding by the Federal 

 Government (figure 3-7), in combination with 

 inflation. The scientific fields most affected by 

 these declines were the physical sciences (par- 

 ticularly physics) and clinical medicine (see 

 figure 3-9 and Appendix table 3-9). 



Sources of funds for basic research 



The sources of financial support for basic 

 research in universities and colleges are shown 

 in figure 3-7. The largest of these— the Federal 

 Government — provided substantial annual in- 

 creases in current dollars between 1960-68, but 

 reduced significantly the average annual in- 

 crements in later years. Translated to constant 



60 



