With respect to the organization of the administration of scientific activities 

 within the Government, the Report declares: 



In the Government the arrangement whereby the numerous scientific agencies form 

 parts of larger departments has both advantages and disadvantages. But the present 

 pattern is firmly established and there is much to be said for it. There is, however, 

 a very real need for some measure of coordination of the common scientific activities 

 of these agencies, both as to policies and budgets, and at present no such means exist. 



The Report recommends : 



A permanent Science Advisory Board should be created to consult with these 

 scientific bureaus and to advise the executive and legislative branches of Government 

 as to the policies and budgets of Government agencies engaged in scientific research. 



The Report recommends that the board should be composed "of disinterested 

 scientists w^ho have no connection with the affairs of any Government agency." 



These observations are of particular interest in view of the current debate 

 over the need for a Department of Science and Technology. The coordina- 

 tion of common scientific activities, both as to policies and budget, is the 

 responsibility for the newly established Federal Council on Science and Tech- 

 nology; and the advice and counsel of disinterested scientists is available 

 to the President through his Science Advisory Committee. 



It should be noted, however, that full attention to these matters was stim- 

 ulated primarily by the Russian sputnik. Immediately after its successful 

 launching, the post of Special Assistant to the President for Science and 

 Technology was created; and the President's Science Advisory Committee — 

 which had been established under the Office of Defense Mobilization in 1950 

 — was reconstituted and placed directly under the President. 



Industrial Research 



The Bush Report approaches the issue of industrial research by stating 

 directly: "The simplest and most effective way in which the Government can 

 strengthen industrial research is to support basic research and to develop 

 scientific talent." It goes on to point out, however, that one of the most 

 important factors affecting the amount of industrial research is tax law, and 

 it recommends that the Internal Revenue Code be amended to remove un- 

 certainties in regard to the deductibility of research and development ex- 

 penditures as current charges against net income. 



The tax laws have now been changed, partially at least, to meet this par- 

 ticular problem. Among various legislative provisions designed to encourage 

 business participation in private research ventures are Section 174 of the 

 Internal Revenue Code of 1954, which permits business expenditures for 

 research to be deducted from taxable income, and Section 9 of the Small 

 Business Act of 1958, which encourages small business concerns to engage 

 in joint research and development efforts. 



The contributions of industrial research to our development as a nation 

 are too obvious to require review. Furthermore research and development are 

 themselves developing into a major industry for which the late Sumner 

 Slichter coined the phrase, "industry of discovery. The importance of 



