[Analytical Perspectives]
[Special Analyses and Presentations]
[7. Research and Development Expenditures]
[From the U.S. Government Publishing Office, www.gpo.gov]


 
                7. RESEARCH AND DEVELOPMENT EXPENDITURES

  Scientific and technological advances have left few facets of life 
untouched. Great leaps in the speed and economy of transportation, 
enormous increases in farm productivity, global flows of information and 
services, advances in health treatment and prevention and in 
environmental protection--all these changes have created a world at the 
dawn of the 21st Century that is vastly different from the world our 
grandparents knew. As numerous studies show, technological innovation 
and scientific discovery have been responsible for at least half of the 
Nation's productivity growth in the last 50 years, generated millions of 
high-skill, high-wage jobs, and substantially improved the quality of 
life in America.
  The Federal government has played an important role in spurring and 
sustaining this scientific and technological advance. Among other feats, 
Government-sponsored research and development (R&D) has put Americans on 
the moon, explored the oceans, harnessed the atom, devised more 
effective treatments for cancers, found the remains of lost 
civilizations, tracked weather patterns and earthquake faults, and 
discovered the chemistry of life. No other country in history can match 
the United States' record of achievement in science and technology. 
Because these investments have paid such rich dividends, and because the 
next century will bring new challenges, opportunities and problems that 
science and technology can help address, continued U.S. leadership in 
science and technology is a cornerstone of the President's vision for 
America. The Administration is proposing $76.4 billion in outlays for 
R&D activities in 1999, including $36.4 billion for civilian R&D--a six-
percent increase over 1998. University-based research will increase to 
roughly $13.5 billion, an eight-percent increase over 1998. The 
``Federal Science and Technology'' (FS&T) budget is an alternative 
measure of the Federal investment in science and technology proposed by 
the National Academy of Sciences. By this alternative accounting method 
the FS&T budget total would be approximately $45 billion in 1999. 
Chapter Six of the Budget includes a lengthier discussion of R&D 
activities and shows budget authority data.

           Table 7-1.  FEDERAL RESEARCH AND DEVELOPMENT EXPENDITURES                                               
                       (Outlays, dollar amounts in millions)                                                         
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                                                                                                                                         Dollar  Percent
                                                                                                             1997     1998      1999    Change:  Change:
                                                                                                            Actual  Estimate  Proposed  1998 to  1998 to
                                                                                                                                          1999     1999 
--------------------------------------------------------------------------------------------------------------------------------------------------------
By Agency                                                                                                                                               
  Defense................................................................................................   37,844    36,592    36,714      122       0%
  Health and Human Services..............................................................................   11,407    13,096    14,127    1,031       8%
  National Aeronautics and Space Administration..........................................................    9,811     9,769     9,618     -151      -2%
  Energy.................................................................................................    6,572     6,289     7,002      713      11%
  National Science Foundation............................................................................    2,343     2,370     2,607      237      10%
  Agriculture............................................................................................    1,478     1,561     1,599       38       2%
  Commerce...............................................................................................      792       820       837       17       2%
  Interior...............................................................................................      572       622       632       10       2%
  Transportation.........................................................................................      561       517       908      391      76%
  Veterans Affairs.......................................................................................      563       608       664       56       9%
  Environmental Protection Agency........................................................................      537       596       617       21       4%
  Other..................................................................................................    1,050     1,007     1,108      101      10%
                                                                                                          ----------------------------------------------
    TOTAL................................................................................................   73,530    73,847    76,433    2,586       4%
                                                                                                                                                        
By R&D Type                                                                                                                                             
  Basic Research.........................................................................................   14,113    14,549    15,805    1,256       9%
  Applied Research.......................................................................................   13,898    15,030    15,787      757       5%
  Development............................................................................................   43,062    41,800    42,112      312       1%
  Equipment..............................................................................................      731       698       828      130      19%
  Facilities.............................................................................................    1,726     1,770     1,901      131       7%
                                                                                                          ----------------------------------------------
    TOTAL................................................................................................   73,530    73,847    76,433    2,586       4%
                                                                                                                                                        
By Civilian Theme                                                                                                                                       
  Basic Research.........................................................................................   12,981    13,456    14,684    1,228       9%
  Applied Research.......................................................................................    9,785    10,733    11,219      486       5%
  Development............................................................................................    8,118     8,166     8,384      218       3%
  Equipment..............................................................................................      582       552       684      132      24%
  Facilities.............................................................................................    1,411     1,336     1,423       87       7%
                                                                                                          ----------------------------------------------
    SUBTOTAL.............................................................................................   32,877    34,243    36,394    2,151       6%
                                                                                                                                                        

[[Page 164]]

                                                                                                                                                        
By Defense Theme                                                                                                                                        
  Basic Research.........................................................................................    1,132     1,093     1,121       28       3%
  Applied Research.......................................................................................    4,113     4,297     4,568      271       6%
  Development............................................................................................   34,944    33,634     33,72      894       0%
  Equipment..............................................................................................      149       146       144       -2      -1%
  Facilities.............................................................................................      315       434       478       44      10%
                                                                                                          ----------------------------------------------
    SUBTOTAL.............................................................................................   40,653    39,604    40,039      435       1%
                                                                                                                                                        
R&D Support to Universities..............................................................................   11,748    12,458    13,455      997       8%
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