65 



Supplement 1 



The Evolution and Impact of Federal Government 



Support for R&D in Broad Outline 



Today, the United States has the strongest research and development system 

 in the world. Measured b\' the total amount of spending for or the number of 

 persons employed in R&D.' the U.S. science and technology enterprise is the 

 largest in the world. It is also the most successful. The U.S. garners the lion's share 

 of the Nobel Prizes in physics, chemistry-, medicine or physiology, and economics. 

 Our nation sets the world standard for advanced education in nearly ever}' field of 

 science and engineering, and our high-technology firms are responsible for making 

 and commercializing a substantial proponion of the important new technologies of 

 our time. 



In contrast, before World War II the United States was not as strong as the 

 advanced countries of Europe in R&D. Private R&D spending was quite limited, 

 universirv- research was supported largely by private foundations and the states, and 

 the federal government financed only about one-fifth of the nation s R&D.- Annual 

 federal R&D expenditures at the eve of war in 1940 totaled under S^O million,^ or 

 about 1 percent of present-day expenditures, when adjusted for inflation. 



Although the remarkable half-centur)' interval from World War II to the 

 present has been discussed in some detail elsewhere,' it is outlined here to provide 

 some perspective on the historical processes that have shaped the current system 

 of support for U.S. R&D. Stud>' of the record reinforces appreciation of the depth 

 and range of discoveries that continue to touch all aspects of our lives (see Box 1.5 

 in Part I for a brief indication). It demonstrates that the federal role is essential in 

 stimulating necessary new ideas and shows additional influences of federal govern- 

 ment policy on U.S. science and technology. Strengths of the system will continue 

 to .ser\e national purpo.ses well in the future. 



The Contemporary Federal R&D Portfolio Resulted from Five Decades of 

 Response to National Crises and Opportunities 



Prior to World War II. most of the federal funds for R&D supported mission- 

 oriented research in agriculture, national defense, and natural resources carried out 

 by government employees in small government laboratories and experimental 

 stations. Such R&D as was supported by the Army and Navy was done in military' 

 arsenals. Universities rarely sought federal funds for R&D. and many leading U.S. 

 scientists obtained their advanced training in European universities. Industry' 

 received little government R&D money and looked to universities for technically 

 trained staff and faculty consultants. 



The evolution of the current system of support for U.S. science and technol- 

 ogy can be outlined in terms of the following stages and events, among others: 



• Federal support of R&D grew remarkably in size and complexity 

 during World War n. Federal expenditures for R&D increased by an order of 



41 



