within Government — again largely applied research — has also been greatly 

 expanded. In the decade from 1930 to 1940 expenditures for industrial 

 research increased from $116,000,000 to $240,000,000 and those for scientific 

 research in Government rose from $24,000,000 to $69,000,000. During the 

 same period expenditures for scientific research in the colleges and univer- 

 sities increased from $20,000,000 to $31,000,000, while those in the endowed 

 research institutes declined from $5,200,000 to $4,500,000. These are the 

 best estimates available. The figures have been taken from a variety of 

 sources and arbitrary definitions have necessarily been applied, but it is 

 believed that they may be accepted as indicating the following trends: 



(a) Expenditures for scientific research by industry and Government — 

 almost entirely applied research — have more than doubled between 

 1930 and 1940. Whereas in 1930 they were six times as large as the 

 research expenditures of the colleges, universities, and research insti- 

 tutes, by 1940 they were nearly ten times as large. 



(b) While expenditures for scientific research in the colleges and univer- 

 sities increased by ope-half during this period, those for the endowed 

 research institutes have slowly declined. 



// the colleges, universities, and research institutes are to vieet the rapidly 

 increasing demands of industry and Government for new scientific knowledge, 

 their basic research shoidd he strengthened l^y ^^se of fiihlic funds. 



Research Within the Government 



Although there are some notable exceptions, most research conducted 

 within governmental laboratories is of an applied nature. This has always 

 been true and is likely to remain so. Hence Government, like industry, is 

 dependent upon the colleges, universities, and research institutes to expand 

 the basic scientific frontiers and to furnish trained scientific investigators. 



Research within the Government represents an important part of our total 

 research activity and needs to be strengthened and expanded after the war. 

 Such expansion should be directed to fields of inquiry and service which are 

 of public importance and are not adequately carried on by private organi- 

 zations. 



The most important single factor in scientific and technical work is the 

 quality of personnel employed. The procedures currently followed within 

 the Government for recruiting, classifying and compensating such personnel 

 place the Government under a severe handicap in competing with industry 

 and the universities for first-class scientific talent. Steps should be taken to 

 reduce that handicap. 



In the Government the arrangement whereby the numerous scientific 

 agencies form parts of large departments has both advantages and disadvan- 

 tages. 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 coordin- 

 ation of the common scientific activities of these agencies, both as to policies 

 and budgets, and at present no such means exist. 



A permanent Science Advisory Board shoidd he created to consult with 



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