Fwd: research and development spending

From: Elaine Hunt (ehunt@ces.clemson.edu)
Date: Wed Jan 10 2001 - 23:13:01 EET

>does anyone have figures- as a percentage of gross revenue- for how much
>companies typically spend on r & d?

Sources of R&D Expenditures

         Science—The Endless Frontier included pre-World War II data on
sources of national R&D expenditures (Bush 1945a, 86), and Science and Public
     Policy included similar data for 1947 (Steelman 1947, vol. I, 12).
According to the former, industry accounted for almost 68 percent of total
national R&D
     expenditures in 1940, with the Federal Government accounting for about
19 percent, universities for 9 percent, and other sources for about 4
percent. (See text
     table 1-3 and figure 1-2.) During World War II, the Federal Government
became the dominant supporter of R&D, a condition that continued during the
     postwar years. In 1947, according to the Steelman report, the Federal
Government accounted for approximately 54 percent of national R&D
investments and
     industry for about 40 percent, with universities and other sources
each contributing less than 4 percent. (See text table 1-3.)

         After the end of World War II in 1945, industrial R&D investments
increased, while Federal expenditures declined so that by the end of the decade
     industry was once again the leading supporter of R&D in the country.
The Korean War, which began on June 25, 1950, a few days before the start
of FY 1951,
     led to a rapid increase in defense R&D expenditures so that, beginning
in 1951, Federal contributions exceeded those of industry. That situation
     until 1980, when industrial R&D investments equaled and then began to
exceed those of the Federal Government. (See text table 1-3 and figure
1-2.) Since
     1990, Federal R&D expenditures measured in constant dollars have
declined, while those of industry, universities and colleges, and other
sources have
     continued to increase. In 1998, industry accounted for 65.1 percent of
national R&D investments, the Federal Government 30.2 percent, the academic
sector 2.3
     percent, and other sources 2.4 percent. (See chapter 2.)

         Today, both Science in the National Interest and Unlocking Our
Future emphasized that Federal Government R&D expenditures will remain
     during the foreseeable future and that industry will continue to be
the dominant funder of R&D. Both also noted the importance of the
complementary support
     roles of government and industry in maintaining the vitality of the
total national science and engineering system.

Opinions, suggestions, and other controversial matter VOID where prohibited.

Impossibilities are merely things which we have not yet learned.
                                                          ~ Charles W.

Elaine T. Hunt, Director elaine.hunt@ces.clemson.edu
Laboratory to Advance Industrial Prototyping
Clemson University 206 Fluor Daniel Bldg.
Clemson, SC 29634-0925
864-656-0321 (voice) 864-656-4435 (fax)

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