Company-funded R&D is projected to in- 

 crease by about 25 percent between 1972 and 

 1975, rising to some $14 billion, and the number 

 of scientists and engineers employed in such 

 R&D is anticipated to increase to 260,000 in 

 1075.^ Individual industries show some varia- 

 tions from these projected trends. The drug 

 industry (a part of the larger chemical industry) 

 anticipates increases in R&D spending which are 

 larger than the all-industry average; electronic 

 firms expect increases in line with the rest of 

 industry; companies in industrial chemicals and 

 aerospace foresee future R&D growth at a pace 

 somewhat below the rest of industry; and petro- 

 leum firms expect only a slight increase in total 

 R&D spending over the next few years. 



Federally Funded R&D 



The Federal Government funds R&D prin- 

 cipally for defense and space purposes. In 1970, 

 for example, all but 14 percent of the Federal 

 funds for industrial R&D came from the Depart- 

 ment of Defense and NASA. The funds from 

 Federal agencies are directed to a small number 

 of industries, with more than 90 percent of the 

 funds going to five industries: aircraft and mis- 

 siles; electrical equipment and communication; 

 machinery; motor vehicles and other transporta- 

 tion equipment; and professional and scientific 

 instruments. Some 80 percent of all Federal 

 expenditures for R&D in industry go to the first 

 two industries.^ 



Federal funds are concentrated in develop- 

 ment activities, more so than are the funds sup- 

 plied by industry. On the average throughout 

 the 1961-72 period, development received about 

 85 percent of the total funds, applied research 

 12-14 percent, and basic research 2 percent. The 

 funding reductions noted above had the greatest 

 absolute effects on development activities, 

 expenditures for which peaked in 1966 and 

 subsequently declined 25 percent in constant 

 dollars between then and 1972. (Estimated cur- 

 rent dollar expenditures indicate a small in- 

 crease in 1972.) Similarly, the 1972 funding level 

 for applied research declined by 18 percent after 

 its peak funding year of 1962. But propor- 



tionally, basic research was even more ad- 

 versely affected; the 1972 funding level was 

 down by 40 percent since 1<^67, the year of its 

 maximum funding. 



R&D FUNDING 

 BY UNIVERSITIES AND COLLEGES 



These institutions together with other non- 

 profit organizations provide the remaining 5 

 percent of total national expenditures for R&D, 

 with the universities accounting for 4 percent. 

 University expenditures are concentrated in 

 research, with basic research accounting for 78 

 percent of expenditures and applied research 20 

 percent in 1972. This pattern of funding 

 distribution persisted with only minor changes 

 throughout the 10d1-72 period." 



Research expenditures reported by universi- 

 ties and colleges come from various non-Federal 

 sources, including State governments, indus- 

 tries, and foundations as well as from university 

 funds. In 1970 the separately budgeted research 

 expenditures from non-Federal sources were 

 distributed among major fields of science as 

 follows: 



Percent 



Life Sciences 47 



Social Sciences 16 



Engineering 12 



Physical Sciences 9 



Mathematics 5 



Environmental Sciences 4 



Psychology 3 



There was little change in this distribution 

 over the 1964-70 period for which data are avail- 

 able. (Academic research is treated more exten- 

 sively elsewhere in this report.) 



5 Projections are based on a National Science Foundation 

 survey in 1972 of 50 of the largest corporations in the United 

 States. 



" National Science Foundation, Rciearch a>ul Dcveloiimfiil m 

 Imiuslry 1970. NSF 72-309. 



" National Science Foundation, Nulhnuil Pnllenn of R&D 

 Reiources 1953-72, NSF 72-300. 



29 



