research institutes declined from $5,200,000 to $4,500,000 during the same 

 period. If the colleges, universities, and research institutes are to meet the 

 rapidly increasing demands of industry and Government for new scientific 

 knowledge, their basic research should be strengthened by use of public 

 funds. 



For science to serve as a powerful factor in our national welfare, applied 

 research both in Government and in industry must be vigorous. To improve 

 the quality of scientific research within the Government, steps should be 

 taken to modifv the procedures for recruiting, classifying, and compensating 

 scientific personnel in order to reduce the present handicap of governmental 

 scientific bureaus in competing with industry and the universities for top- 

 grade scientific talent. To provide coordination of the common scientific 

 activities of these governmental agencies as to policies and budgets, a perma- 

 nent Science Advisorv Board should be created to advise the executive and 

 legislative branches of Government on these matters. 



The most important ways in which the Government can promote industrial 

 research are to increase the flow of new scientific knowledge through support 

 of basic research, and to aid in the development of scientific talent. In addi- 

 tion, the Government should provide suitable incentives to industry to con- 

 duct research (a) by clarification of present uncertainties in the Internal 

 Revenue Code in regard to the deductibility of research and development 

 expenditures as current charges against net income, and (h^ by strengthen- 

 ing the patent svstem so as to eliminate uncertainties which now bear heavily 

 on small industries and so as to prevent abuses which reflect discredit upon 

 a basically sound svstem. In addition, ways should be found to cause the 

 benefits of basic research to reach industries which do not now utilize new 

 scientific knowledge. 



We Must Renew Our Scientific Talent 



The responsibility for the creation of new scientific knowledge — and for 

 most of its application — rests on that small body of men and women who 

 understand the fundamental laws of nature and are skilled in the techniques 

 of scientific research. We shall have rapid or slow advance on any scientific 

 frontier depending on the number of highly qualified and trained scientists 

 exploring it. 



The deficit of science and technology students who, but for the war, would 

 have received bachelor's degrees is about 150,000. It is estimated that the 

 deficit of those obtaining advanced degrees in these fields will amount in 

 1955 to about 17,000 — for it takes at least 6 years from college entry— te^ 

 achieve a doctor's degree or its equivalent in science or engineering. The 

 real ceiling on our productivity of new scientific knowledge and its applica- 

 tion in the war against disease, and the development of new products and 

 new industries, is the number of trained scientists available. 



The training of a scientist is a long and expensive process. Studies clearly 

 show that there are talented individuals in every part of the population, but 

 with few exceptions, those without the means of buying higher education 



