overall Industrial 

 r&d trends 



From 1965 to 1985, Japanese in- 

 dustrial R&D expenditures in- 

 creased at an average annual rate of 

 11 percent; total U.S. industrial R&D 

 increased at a rate of 3 percent and 

 U.S. company-funded R&D at a rate 

 of 5 percent for the same period.^" 



Consequently, Japanese indus- 

 trial R&D expenditures increased 

 from less than one-tenth the U.S. 

 level in 1965 to one-third of total U.S. 

 industrial R&D and one-half of U.S. 

 company-funded R&D expendi- 

 tures in 1986 (chart 17). Japanese in- 

 dustrial R&D expenditures were 

 constant $24.1 billion in 1985 (con- 

 stant $396 million were funded from 

 government sources) compared with 

 total U.S. industrial expenditures of 

 constant $70.4 billion (constant $23.8 

 billion from government sources). 



As a percentage of GNP, Japanese 

 industrial R&D more than doubled 

 from 1965 to 1986. In 1986 this ratio 

 was comparable to the U.S. propor- 

 tion: 1.9 percent and 2.0 percent, re- 

 spectively (chart 18). Since Japanese 

 industrial R&D is almost entirely (98 

 percent) financed by companies 

 themselves, Japanese company- 

 funded R&D as a percentage of GNP 

 has surpassed the U.S. ratio in every 

 year since 1970. In 1985 and 1986, 

 the ratio of company-funded R&D 

 to GNP was 1.9 percent for Japan 

 and 1.3 percent for the United States. 



-"Because less than 2 percent of Japanese indus- 

 trial R&D funds is from government sources, Jap- 

 anese company-funded R&D data are not discussed 

 separately. 



Chart 17. National industrial R&D expenditures 



[Constant 1982 dollars] 



Billions of dollars 

 80 



60 



40 



20 



80 



60 



40 







1965 '67 '69 71 73 75 77 79 '81 '83 '85 '86' 



Years 



NOTE: Because less than 1 percent ol Japanese Industrial R&D lunds comes from government sources, a separate company- 

 funded data series has not been provided 

 SOURCE National Science Foundation, SRS, laDle B-14 



Chart 18. Industrial R&D as a percent of GNP 



Percent 

 2.5 



0.5 



United States, company-funded 



2.5 



J \ I I I I I I I 1 1 L 



1965 '67 '69 '71 '73 '75 '77 



Years 



NOTE: Japanese industrial R&D is almost 98 percent company-tgnded 

 SOURCE National Science Foundalion. SflS. lable B-15 



J I \ I I L_J 



'79 '81 '83 '85 '86 



I 



18 



