general course of science and technology develop- 
ment and reflect the changing character and com- 
parative stature of U.S. research and development 
(R&D) in the context of worldwide trends.? Unfor- 
tunately, the level of integration of the data used by 
NSF in Science Indicators prohibits the identification 
of marine science and engineering as a functional 
entity. 
National and International Trends in R&D Funding 
Historically, total national R&D expenditures grew 
at a steady linear rate of approximately one-half 
billion dollars annually from World War II through 
1956.° In 1957, the annual rate of expenditure in- 
creased significantly (fig. 7-1). Since that time, a 
40 
Total current 
35 dollars 
Total constant 
1972 dollars 
30 
25 
20 
Federal constant 
1972 dollars 
OL om) 
® 
Federal current 
dollars 
5 
1954 ‘56 ‘58 ‘6062 ‘64 ‘66 ‘68 ‘70 ‘72 74 «76 
Figure 7-1.—National R&D expenditures 1954-76 (billion 
dollars), Source: Science Indicators 1976, National 
Science Board, 1977, p. 206, p. 208. 
strong commitment to the national science effort 
has continued, with a steady increase in R&D funds. 
Inflation, however, has eroded the purchasing power 
of the research dollar so that in terms of constant 
dollars, i.e., current dollars adjusted by GNP implicit 
price deflators, R&D has been level-funded since 
1967 or has slightly declined. 
2 National Science Foundation, Science Indicators, 1967: Re- 
port by the National Science Board. Washington, D.C., Govern- 
ment Printing Office, 1977. 
3 “Research and Development” as used herein means basic and 
applied research and development activities. 
Federal funds for R&D increased in current dollars 
in all but two of the years between 1960 and 1976, 
reaching their highest level, over $20 billion, in 1976; 
funding in constant dollars, however, peaked in 
1967, had declined 20 percent by 1974, and then 
rose 3 percent to the 1976 level (fig. 7—1). 
In the meantime, 1960-76 R&D funds provided 
by industry rose more rapidly than those of the Fed- 
eral Government, reaching $16.5 billion in current 
dollars in 1976; these funds in constant dollars were 
at their highest level in 1976, although there had 
been a rise of only 1.5 percent since 1973. 
The proportion of the Gross National Product 
(GNP) expended for research is regarded as a uni- 
versal index of the national commitment to science 
and technology. According to this indicator, the 
3.5 
3.0 
2.5 
2.0 
10 
1960 ‘62 ‘64 ‘66 ‘68 70 ‘22 74 ‘16 
Figure 7-2.—R&D expenditures as a percentage of gross 
national product 1961-76 (percent). Source: Science In- 
dicators 1976. National Science Board, 1977, p. 184. 
VII-2 
