66 



Table 1. — Federal expenditures for research compared mth 

 total Federal expenditures — regular and vmcrgcncn funds— 

 fiscal years 1937 and 1938 



[Amounts In millions of dollars] 



' "Current expenses," plus "plant and equipment," as used in Budget oj the United 

 States Oovernmevt, 19S9, Table 4, pp. 852-853. 



' "Fixed char§es," "acquisition of property" other than "plant and equipment, 

 "payment of debt," and "payments for rights and obligations," as used in Budget, 

 19S9, table 4 (opcit.). 



• From Budget, 19S9, table 4 (op. cit.). 



* Partly estimated. 



Research Expenditures Compared With 

 Total Expenditures 



Kesearch has never been a large factor in the 

 expenditures of the Federal Government and still 

 remains insignificant in the work of many Govern- 

 ment agencies. Research activities accounted for about 

 1.4 percent of the total Federal obligations for all 

 purposes (exclusive of those for the District of Colum- 

 bia) in the fiscal year 1937, while the corresponding 

 figure for the fiscal year 1938 was 1.2 percent. If only 

 the regular funds are considered and payments such 

 as for grants, pensions, refunds, retirement of debt, 

 and acquisition of land and buildings, are excluded 

 from the calculations, the percentage of the remaining 

 operating expenses used for research becomes approxi- 

 mately 2.4 percent for the fiscal year 1937 and 2.5 per- 

 cent for the fiscal year 1938 (see table 1). 



Comparison of these percentages, showing the im- 

 portance of research in the Goveriunent's operating 

 expenses, with corresponding estimates for industry 

 and universities are of some interest. Some of the 

 larger industrial concerns are known to be spending 

 from 4 to 6 percent of their gross income for research, 

 while according to a recent estimate about 25 percent 

 of the expenditures of 20 leading universities are for 

 research.' It must be remembered, however, that in- 

 dustrial research is largely pointed toward internal 

 efficiency; while universities carry on research partly 

 for its own sake, and partly as a training technique. 

 By contrast, a large part of the Government's investi- 

 gations is carried on to promote more effectively the 

 welfare of certain industrial and social groups among 



■ By Dr. R. M. Hughes, in materials prepared for the Committee on 

 Survey of Governmental Relations to Research. See p. 177. below. 



National Resources Com/mittee 



its citizens, rather than to improve its own internal 

 efficiency or to train research workers. 



Research Expenditures Compared With 

 Costs of Other Functions 



A few comparisons and contrasts are made for illus- 

 trative purposes in table 2 between the magnitude of 

 research expenditures and some other Federal expendi- 

 tures from regular funds. The amount expended for 

 research is approximately the same as the cost of col- 

 lecting the revenue (including both internal revenue 

 and customs duties). In the fiscal year 1937, the total 

 expenditures of the Department of the Interior were 

 approximately the same, disregarding emergency 

 funds, as the cost of the research activities of the Fed- 

 eral Government. For purposes of contrast, the ex- 

 penditures for the Department of State and the Vet- 

 eians' Admiiiistration may be cited. The total budget 

 of the Department of State is less than one-quarter 

 of the amount spent by the Government for research ; 

 while, on the other hand, the budget of the Veterans' 

 Administration, including pensions, was over 15 times 

 that amount (see tiible 2). 



Table 2. — Research expenditures compared with some other 

 Federal expenditures — regular funds only 



[In millions of dollars] 



Research, including payments and real property '- 

 Research, excluding payments and real property... 



lUu^trative simitar magnitude expenditures 



Collecting the revenue 



Department of the Interior '.. 



TllustratiDe smilter expenditures 



Department of State '. . 

 Department of Labor '- 



lUiMtrative larger expenditures 



Repairs and alterations ' 



Interest on public debt ' 



Veterans' Administration '_. 



70.3 

 63.9 



71.7 

 68.7 



16.6 



22.3 



116.1 



866.4 



1, 128. 1 



1938 

 (esti- 

 mated) 



78.4 

 71.6 



78.1 

 91.4 



17.8 

 26.1 



104.7 

 927.0 

 673.7 



I Research amounts on obligations basis, "Payments and real property" include 

 grants and contributions and a small amount for land and buildings acquired. 



' From Budget of the United States Government, 1939. Statement 2, pp. A28 (Veterans' 

 Administration), A64 (Interior), ASS (Labor), A63 (State), A65-66 (Collecting the 

 revenue), A69 (Interest on public debt). 



« Obligations basis, from Budget, 1959, table 4, p. 852. 



Research Expenditures Distributed 



by Agency 



Number of Agencies Reporting Research 



There are approximately 250 agencies in the Fed- 

 eral Government, where research * would seem an ap- 

 propriate activity, if the bureaus and major offices in 

 the departments as well as active independent estab- 

 lishments are counted separately as "agencies," and 

 liquidating, superseded, ex officio advisory, subsidiary, 



* For definition of "research" as used in this study, see pp. 62-63. 



