Figure 2-6 



National R&D Expenditures 



by Character of Work, 1960-74 



(Billions of Dollars) 

 22 I 



1960 



Applied research 



Basic researcli 



'64 



'66 



'68 



'70 



'72 



•74 



(est.) 



(a) GNP implicit price deflatois used to convert 

 current dollars to constant 1967 dollars. 



SOURCE: National Science Foundation, 



increased. In 1974, the Government provided 68 

 percent of the basic research funds, compared 

 with 59 percent in l^^oO; universities and colleges 

 furnished 11 percent in 1974 and b percent in 

 1960, while industry supplied only 15 percent of 

 the Nation's basic research expenditures in 1974 

 compared to 28 percent in 1O60 (figure 2-7). 



In current dollars, 1974 was the peak year for 

 basic research funding from each source. The 

 magnitude of support, however, was insufficient 

 to maintain the level of effort of earlier years as 

 measured by constant dollars. Federal funding in 

 1^74 was down 13 percent from the ic)68 high, 

 industry support was 20 percent below its high 

 of 1966, university expenditures were 10 

 percent lower than in 1972, and funding by 

 nonprofit institutions was down 4 percent. 



Applied research depends almost entirely on 

 Government and industry support. Federal 

 support in 1^74 accounted for 54 percent of all 

 such expenditures and industry for 41 percent. 

 This pattern has been fairly consistent through 

 the years. For each source of funds for applied 

 research, the 1974 constant dollar expenditures 

 were at or near their highest for the 1960-74 

 period. 



Funding for development in 1974 was supplied 

 equally by the Government and by industry, 

 about 50 percent each, in contrast with 1960 

 when industry's contribution represented only 

 32 percent. In current dollars, development 

 expenditures from the Federal Government 

 reached a high in 1974, but in constant dollars 

 were 25 percent below the 1966 peak year and 

 approximately the same as in 1961. Industry 

 support for development, on the other hand, has 

 risen to the extent that the constant dollar high 

 occurred in 1973, followed by a small decline in 

 1974. 



percent lower in 1974 than in 1968, the year of 

 highest funding. Constant dollar expenditures 

 for applied research, on the other hand, were at 

 their highest level in 1973, whereas spending for 

 basic research in 1974 was 10 percent lower than 

 its peak level of 1968. 



Each component of R&D draws its funding 

 from a different combination of sources which 

 may change over time. Such a shift occurred in 

 the funding of basic research during the 1960-74 

 period, with the industry role becoming smaller 

 while the contributory roles of the Federal 

 Government and universities and colleges 



FEDERALLY FUNDED 

 R&D IN FUNCTIONAL AREAS 



The financial resources provided by the 

 Federal Government for R&D reflect the extent 

 to which the Government depends upon R&Din 

 pursuit of a range of national concerns — from 

 such areas as defense, health, and energy to the 

 expansion of basic scientific knowledge. These 

 resources are described below in relationship to 

 total Federal outlays, the R&Dcomponent of the 

 "relatively controllable" portion of the Federal 



36 



