collection. For all but the industry sector, the 

 definition of basic research stresses that such 

 activity be directed toward increases of 

 knowledge in science with the primary aim of the 

 investigator being ". . .a fuller knowledge or 

 understanding of the subject under study, rather 

 than a practical application thereof. "^ For the 

 industrial sector, to take account of an individual 

 company's commercial goals, basic research is 

 defined as ". . .original investigations for the 

 advancement of scientific knowledge . . .which 

 do not have specific commercial objectives, 

 although they may be in fields of present or 

 potential interest to the reporting company. "-i 



' Ihul 



The varying levels of basic research expen- 

 ditures from 1960 to 1974 are shown in figure 3- 

 2 for the R&D-performing sectors. It should be 

 noted that the growth in current dollar expen- 

 ditures between 1908-74 was not sufficient to 

 compensate for inflation in any of these major 

 sectors. 



Constant dollar expenditures for basic 

 research leveled off in the late 1960's for most 

 sectors, and fluctuated around that level in 

 subsequent years. The largest proportional 

 declines between the year of peak funding and 

 1974 were in industry (31 percent), whereas the 

 smallest percentage decline (9 percent) occurred 

 in universities and colleges. 



Figure 3-2 



Basic Research Expenditures, by Performer, 1960-74 

 Current dollars 



Constant 1967 dollars' 



(Dollars in Millions) 

 4500 



4000 



(Dollars in Millions) 



3500 h- 



3000 



2500 — 



2000 



1500 



1000 



' GNP impNcit price deflators used to convert current dollars to 



constant 1967 dollars. 



- Federally Funded Research and Development Centers administered 



by universities 



SOURCE: National Science Foundation 



53 



