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R&D. it is unlikely that they could take over for government. Finally, there are na- 

 tional science needs - such as defense and health research - that can not be completely 

 met by the private sector. 



1) Given that the federal government currently funds 430/0 of total R&D and 

 spends over $60 billion on R&D - can the private sector replace it as a source 

 of funds? 



(Answer: No, all other sources of R&D funds would have to nearly 

 double. Furthermore, the U.S. currently spends a lower share of 

 GNP on R&D than our major competitors - 2.7% in the U.S. com- 

 pared to 3.00/0 in Japan and 2.9% in Germany. Reduced govern- 

 ment R&D support would enlarge this gap - reducing national 

 competitiveness.) 



