80 



Boxn.4 Continued 



What method was used to estimate the levels of funding for the FS&Tbase shown in the 

 figures in this report.' 



A number of assumptions and sources of data were used to approximate the levels of 

 funding for the FS&T base (they are detailed in the caption for each figure). The general ap- 

 proach was to subtract the advanced s%'stems development funding of DOD, NASA, and DOE 

 from total federal R&D spending as currently reported: 



• Funding of research by all federal agencies was included; 



• Funding of development by all federal agencies except the Department of Defense, 

 National Aeronautics and Space Administration, and Department of Energy was included; 



• Funding of what DOD calls Research Category 6.3A was included, as reported by the 

 Office of the Director of Defense Research and Engineering (ODDR&E). Thus, funding of 

 categories 6.3B through 6.6 was not included; and 



• Finally, and most roughly, funding of the equivalent of 6.3A-type activities by NASA and 

 DOE was included (based on estimates for FY 1993 made by ODDR&E). 



The procedure outlined above yields an estimate of $37.6 billion for the FS&T base in 

 Fiscal Year 1994. Because that number is based on a series of approximations and extrapola- 

 tions, the range of $35 billion to $40 billion is used^in this report. The point estimate of $37.6 

 billion is used for illustration in the accompanying figures, with similar estimates for other 

 vears (see Box II. 3). 



'These fields are listed and defined in National Science Foundation, Federal Funds for Research and 

 Development: FY' 1992. 1993. ami 1994. NSF 94-328 (Arlington, Va.: National Science Foundation, 

 1995), pp. 6-9. 



Federal R&D supports both a core of FS&T and a set of activities 

 closer to production or application. 



Most federal departments and agencies report their total investments in R&D 

 within three categories: basic research, applied research, and development. How- 

 ever, for some agencies — in paniciilar DOD, DOE, and NASA — R&D expenditures 

 include the costs of activities that in other agencies or in the private sector might be 

 considered as outside the scope of R&D. including engineering development, up- 

 grades and modernization, testing and evaluation, and the like. As discussed in 

 Part I of this report, the committee focuses on the FS&T investments of the federal 

 depanments and agencies. For most of them, FS&T is identical to R&D. For DOD, 

 DOE. and NASA, however, the committee excludes demonstration, testing, and 

 evaluation of existing technologies from FS&T. For Fiscal Year 1994, the committee 

 estimates that total federal R&D funding was approximately $70 billion, while FS&T 

 funding was between $35 billion and $40 billion. 



