technology (4.4 percent), transportation (3.8 

 percent), environment (3.2 percent), and 

 energy conversion and development (2.5 per- 

 cent). 



D Total expenditures for industrial R&D in 

 current dollars increased until 1969, de- 

 clined in 1970, and then rose in 1971 and 

 1972; the trend in constant 1958 dollars, 

 however, was one of considerable declines 

 after 1969 and a small increase in 1972, 

 leaving expenditures at their 1965-66 level. 



D Industry-funded R&D, which rose in. cur- 

 rent dollar expenditures throughout the 

 1961-72 period, is devoted to applied re- 

 search and development in the electrical 

 equipment, aircraft and missiles, motor 

 vehicles, chemical, and machinery indus- 

 tries. Some 80 percent of Federal expendi- 



tures for industrial R&D went to the first 

 two industries in 1970. 



D Federal funds for industrial R&D leveled off 

 in the mid-1960's and declined in current 

 dollars after 1969 — primarily because of re- 

 duced expenditures for space R&D — while 

 industry continued to increase its expendi- 

 tures, with the result that in 1968 industry 

 replaced the Federal Government as the 

 prime source of support for industrial R&D. 



D Universities and colleges, which provided 4 

 percent of the Nation's R&D funds in 1972, 

 concentrate their expenditures on basic and 

 applied research in the life sciences (almost 

 50 percent), physical sciences and engi- 

 neering (20 percent), and the social sciences 

 (16 percent). 



■ The Nation devotes a sizable share of its 

 human, institutional, and financial resources to 

 research and development. The largest propor- 

 tion of these resources is directed toward the 

 achievement of national objectives in areas such 

 as defense, health, space, energy, and the 

 environment. A somewhat smaller share of the 

 resources goes for developing the technological 

 basis for new and improved industrial products 

 and services. And a considerably smaller share is 

 used for improving the fundamental under- 

 standing of man and nature. 



NATIONAL RESOURCES 

 FOR RESEARCH AND DEVELOPMENT 



Total U.S. expenditures for R&D are shown in 

 figure 14 for 1961-72 in both current and con- 

 stant (1958) dollars. Current dollar expendi- 

 tures rose throughout the period. As measured 

 in constant dollars, however, expenditures 

 peaked in 1968, and declined by 6 percent over 

 the next 3 years to a level equivalent to 1966. 

 Slightly increased expenditures are estimated 

 for 1972. (Coincident with the constant dollar 

 declines were nearly equivalent proportional 

 reductions in the total number of scientists and 

 engineers engaged in R&D, as shown in figure 

 15.) 



As a part of its gross national product, the 

 United States is estimated to have devoted 2.5 

 percent of GNP to R&D in 1972. This ratio, 

 which reached its highest level of 3.0 percent in 

 1964, has declined steadily since 1967 (figure 

 14). The reduction is attributable to the con- 

 tinued growth of the GNP coupled with de- 

 clines in R&D expenditures by the Federal 

 Government; non-Federal expenditures for 

 R&D remained at approximately 1.2 percent of 

 GNP between 1967-72. 



The principal sources of R&D funds are the 

 Federal Government which provided 55 percent 

 of the nation's total R&D expenditures in 1972, 

 private industry 40 percent, and the universi- 

 ties and colleges 4 percent. Other nonprofit 

 institutions contributed the remaining 1 per- 

 cent (figure 14). Government funding in cur- 

 rent dollars declined slightly between 1968 and 

 1970 and increased in 1971 and 1972; in con- 

 stant dollars, however. Federal funding de- 

 clined by 12 percent between 1968-71 before in- 

 creasing slightly in 1972. Federal expenditures 

 for R&D in FY 1973 are estimated at approxi- 

 mately $16.5 billion, a 3-percent increase over 

 expenditures for FY 1972, which were in turn 6 

 percent higher than FY 1971. 



Expenditures for R&D in terms of the charac- 

 ter of work — basic research, applied research. 



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