and development — are shown in figure 14. The 

 most salient change appears in the development 

 area in which constant-dollar expenditures de- 

 clined during 1969-71. This decline accounts in 

 large part for the overall R&D reduction noted in 

 figure 14. In 1972, development activities 

 accounted for 64 percent of total R&D expendi- 

 tures, applied research 22 percent, and basic 

 research 14 percent. 



A part of the nation's human resources 

 devoted to R&D are the scientists and engineers 

 who are engaged in performing research and 

 development. Their total number reached 

 almost 560,000 in 1969 before declining in each 

 subsequent year for a total reduction of some 

 35,000 by 1972. Almost all the decline occurred 

 in the industrial sector (figure 15). Industry had 



two-thirds of the nation's total scientists and 

 engineers engaged in R&D (on a full-time- 

 equivalent basis) in 1972 as compared with the 

 universities and the Federal Government, each 

 of which had some 13 percent. 



FEDERALLY FUNDED 

 R&D AND NATIONAL OBJECTIVES 



R&D resources and activities can be related to 

 the national functions they serve, such as 

 defense, space, natural resources, commerce and 

 transportation, and health. Federal expendi- 

 tures for R&D' in these functional areas reflect 

 the extent to which R&D is used by the 

 government in the pursuit of national goals. 



Total Federal 



Outlays and R&D Expenditures 



Federal expenditures for R&D, expressed as a 

 percentage of total Federal outlays, declined 

 appreciably after 1965, as shown in figure 16. 

 The reduction resulted from a mixture of (a) 

 rapid growth of Federal outlays in areas which 

 have small R&D expenditures, (b) diminished 

 expenditures for space R&D, and (c) relative de- 

 cline in expenditures for national defense, as a 

 proportion of total Federal outlays. Federal 

 expenditures for retirement, disability, and un- 

 employed, for example, rose from 20 to 29 per- 

 cent of total Federal outlays between 1968 and 

 1972; R&D expenditures, however, were less 

 than 1 percent of the total outlays in this area. In 

 the space area, R&D expenditures declined both 

 in absolute terms and as a percent of total 

 Federal outlays. Total outlays for defense, which 

 has been the major source of R&D funds, fell 

 from 49 percent of all Federal outlays in 1963 to 

 35 percent in 1972. (For further detail, see An 

 Analysis of Federal R&D Funding hy Funiiion, National 

 Science Foundation, NSF 72-300.) 



R&D Activities 



in Functional Areas 



Expenditures for the 10 major areas of 

 federally funded R&D are presented for the 

 years 1963-72 in figure 17.- These areas 



' Expenditure data for other funding sources (e.g., 

 industry) are not available for these functional areas. 



2 Comparable data are not available for earlier years. 



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