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



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                7. RESEARCH AND DEVELOPMENT EXPENDITURES

  In the last one hundred years, science and technology have 
fundamentally transformed our lives, from the ways we travel and 
communicate, to the food we eat; from the manner in which we learn, to 
the quality of our health care and our ability to create a cleaner 
environment. The next century offers new fields of research and 
innovation and potential solutions to some of society's most pressing 
challenges. Technological advances continue to strengthen the ties 
between Americans and the rest of the world, enabling new business 
endeavors, providing access to news and information from anywhere on the 
globe, and improving cultural understanding. As the forces of innovation 
and globalization gain momentum, the 21st Century promises to be an era 
of great opportunity for the entire world, propelled by new and 
remarkable developments.
  In the latter half of this century, the Federal Government has played 
a critical role in spurring and sustaining scientific and technological 
advances. Among other feats, Government-sponsored research and 
development put Americans on the moon, explored the oceans, boosted 
agricultural productivity, harnessed the atom, devised more effective 
treatments for cancers, found the remains of lost civilizations, tracked 
weather patterns and earthquake faults, created the Internet, and 
deciphered the chemistry of life. Numerous studies show technological 
innovation and scientific discovery generated at least half of the 
Nation's productivity growth over the last 50 years, created millions of 
high-skill, high-wage jobs, and improved the quality of life in America.
  In the last year alone, Federal government funding of research and 
development produced numerous impressive results, including the first 
photograph of a planet outside our own solar system, creation of the 
world's fastest supercomputer, identification of the gene that causes 
Parkinson's Disease, and a host of other notable achievements.
  The future holds even greater possibilities. Scientists and engineers 
in many disciplines are within reach of even more exciting advances. 
Building on decades of experimental and theoretical developments, they 
will be able to rely on new and sophisticated research tools for future 
discoveries--supercomputers that can make trillions of calculations in a 
second, particle accelerators and electron microscopes that can decipher 
atoms and the nature of matter, and space telescopes that can reach to 
parts of the universe previously unexplored. In particular, 
computational science--supercomputer modeling of extremely complex 
systems such as the global climate, the human body, and galaxies--is 
emerging as a new and significant branch of research, providing insights 
not likely to occur through experimentation or theorizing alone.
  Continued leadership in science and technology is a cornerstone of the 
President and the Vice President's vision for America. The 
Administration is proposing $77.1 billion in outlays for research and 
development (R&D) activities in 2000, including $38.7 billion for 
civilian R&D--a six percent increase over 1999. Chapter Seven 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)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                         Dollar  Percent
                                                                                                             1998     1999      2000    Change:  Change:
                                                                                                            Actual  Estimate  Proposed  1999 to  1999 to
                                                                                                                                          2000     2000
--------------------------------------------------------------------------------------------------------------------------------------------------------
By Agency
  Defense................................................................................................   37,844    37,186    34,992   -2,194      -6%
  Health and Human Services..............................................................................   12,685    14,226    15,582    1,356       9%
  National Aeronautics and Space Administration..........................................................   10,251    10,032     9,620     -412      -4%
  Energy.................................................................................................    6,730     7,194     7,495      301       4%
  National Science Foundation............................................................................    2,302     2,334     2,634      300      11%
  Agriculture............................................................................................    1,546     1,671     1,707       36       2%
  Commerce...............................................................................................      835       862       864        2       0%
  Interior...............................................................................................      451       519       618       99      19%
  Transportation.........................................................................................      661       573     1,324      751     131%
  Veterans Affairs.......................................................................................      564       658       662        4       1%
  Environmental Protection Agency........................................................................      527       638       652       14       2%
  Other..................................................................................................      958       966       983       17       2%
                                                                                                          ----------------------------------------------
    TOTAL................................................................................................   75,354    76,859    77,133      274       0%
 
By R&D Type
  Basic Research.........................................................................................   14,892    16,248    17,598    1,350       8%
  Applied Research.......................................................................................   14,545    15,447    15,916      469       3%
  Development............................................................................................   43,325    42,281    40,560   -1,721      -4%
  Equipment..............................................................................................      937       937     1,021       84       9%

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  Facilities.............................................................................................    1,659     1,950     2,038       88       5%
                                                                                                          ----------------------------------------------
    TOTAL................................................................................................   75,354    76,859    77,133      274       0%
 
By Civilian Theme
  Basic Research.........................................................................................   13,839    15,096    16,448    1,352       9%
  Applied Research.......................................................................................   10,410    10,923    11,350      427       4%
  Development............................................................................................    8,370     8,343     8,616      273       3%
  Equipment..............................................................................................      608       608       707       99      16%
  Facilities.............................................................................................    1,251     1,455     1,581      126       9%
                                                                                                          ----------------------------------------------
    SUBTOTAL.............................................................................................   34,478    36,425    38,702    2,277       6%
 
By Defense Theme
  Basic Research.........................................................................................    1,053     1,152     1,150       -2       0%
  Applied Research.......................................................................................    4,135     4,524     4,566       42       1%
  Development............................................................................................   34,951    33,934    31,950   -1,984      -6%
  Equipment..............................................................................................      329       329       314      -15      -5%
  Facilities.............................................................................................      408       495       457      -38      -8%
                                                                                                          ----------------------------------------------
    SUBTOTAL.............................................................................................   40,876    40,434    38,431   -2,003      -5%
 
R&D Support to Universities..............................................................................   12,528    13,719    14,427      708       5%
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