more, do not identify the wide applications made 

 of the results of this research. Nor do they 

 represent the economic and social returns from 

 the varied uses made of its cumulative findings. 

 The present indicators, in addition, do not 

 include measures of the effectiveness, or 

 productivity, of the research activity. 



Besides these deficiencies, there are other 

 limitations in regard to the data used for the 

 present indicators. There is, for example, 

 uncertainty regarding the precision with which 

 "basic" research can be distinguished from 

 "applied" research. A particular research effort 

 may be identified as basic or applied, depending 

 on whether the classification is made by the 

 sponsor of the research or by the organization 

 performing it. Furthermore, differences among 

 sectors in the assignment of costs to basic 

 research make it difficult to compare expen- 

 ditures and the magnitude of research efforts 

 among the sectors. Industrial firms, for example, 

 include in their reported expenditures for basic 

 research an annual depreciation cost of the 

 facilities used in the research; universities and 

 Federal laboratories do not. The construction 

 costs of large. Government-financed research 

 facilities such as the National Accelerator 

 Laboratory are not included as basic research 

 expenditures, whereas NASA, in figuring the 

 costs of research using expendable space probes, 

 includes the costs of spacecraft and launch 

 vehicles (in compliance with NSF reporting 

 requirements). 



Figure 3-1 



Basic Research Expenditures, 1960-74 



(Dollars in Millions) 

 $4500 



4000 



3500 — 



current 

 dollars 



3000 



2500 



2000 



1500 



1000- 



500- 







1960 



I 



62 



I I I I 

 64 66 



I I 

 70 



74 

 (est.) 



' GNP implicit price deflators used to convert 

 current dollars to constant 1967 dollars 

 SOURCE National Science Foundation 



RESOURCES FOR BASIC RESEARCH 



The Nation's total expenditures for basic 

 research increased continuously during the 

 1060-74 period, rising from $1.2 billion to $4.0 

 billion in current dollars (figure 3-1). In recent 

 years, however, this growth has not been large 

 enough to offset the eroding effect of inflation. 

 As a result, the actual level of basic research 

 activity — as reflected approximately by expen- 

 ditures in constant dollars — peaked in 1968 and 

 declined in subsequent years.- By 1974, expen- 

 ditures for basic research were at their 1965 level 

 in constant dollars, and 13 percent less than in 

 1968. 



- The use of constant 10o7 dollar expenditures to 

 approximate the level of research activity is discussed in the 

 preceding chapter entitled, "Resources for Research and 

 Development." 



The proportion of all R&D expenditures 

 reported for basic research has remained essen- 

 tially constant at some 13 percent since 1965, 

 after rising during the early 1960's.-' 



Expenditures by performer 



There are four major sectors of the research 

 community which perform basic research: 

 private industry. Federal laboratories, univer- 

 sities and colleges (and the Federally Funded 

 Research and Development Centers they ad- 

 minister), and other nonprofit institutions 

 which conduct R&D. Because these sectors have 

 differing missions and purposes, two different 

 definitions of basic research are used for data 



-' Nitlwtujl Pullfrui ol R&D Resourcci, I^S-J-ZS, National 

 Science Foundation (NSF 75-307). 



52 



