The Chemical World This Week
R&D SPENDING SLATED TO RISE 8 % IN 1978 The U.S. will spend about $44.1 billion on research and development in 1978, according to the annual R&D forecast prepared by economist W. Haider Fisher and associates at Battelle Columbus Laboratories. That amounts to an 8.0% increase over the $40.8 billion that the National Science Foundation estimates actually will be spent in 1977. But, Battelle says, higher costs will offset the dollar increase; there will be no real growth in R&D. Even in terms of current dollars, the R&D growth rate has dropped below the high rates that prevailed before 1968 and after 1971. "There is increasing concern," Battelle says, over "the relative decline in U.S. R&D activity and the danger posed thereby for future national economic strength." Not until fiscal year 1979 will the Carter Administration have sole responsibility for determining federal R&D support levels, Battelle notes. Even then, R&D will be one of the few elements in the budget that can be reduced to lessen or avoid deficits. "By the time the Administration gains full control over R&D appropriations, it may be forced to exert that control in ways it finds undesirable," the forecast comments. Meanwhile, patterns of R&D funding and performance show little change from previous years. Of the $44.1 billion, federal furfding will account for $24.4 billion (53.1% of the total), a 7.3% increase over 1977. Industry will provide $19.1 billion (43.2%), an 8.8% increase. Of the rest, $962 million (2.2%) is expected to come from academic institutions and $672 million (1.5%) from other nonprofit organizations. Defense-related R&D is still in favor with Congress, Battelle observes, and will account for half the total gain in U.S. R&D expenditures. However, energy is the fastest-growing R&D field. Nuclear programs are still the largest, but geothermal, solar, and advanced energy systems programs are growing rapidly, as is conservation R&D. Regardless of source of funds, industry will continue to do most of the work. Industry R&D performance is expected to come to $30.0 billion (68.0% of the total). That compares to $7.0 billion (16.0%) for in-house fed6
C&ENDec. 19, 1977
Chemical industry R&D support to grow 13% in 1978 Industrial R&D support, % change from 1977
Chemical· and
Stone» day f and Avaraoa, ailnduatnaa
Elaclilcal aojuipinant
Papaf and
Source: Battelle Columbus Laboratories
eral research, $5.5 billion (12.5%) for acedemic institutions, and $1.5 billion (3.5%) for other nonprofit organizations. Eight of 16 broad industry groups will increase their R&D support by more than the average 8.8%. Professional and scientific instruments will post the biggest gain (16%), followed by chemicals and allied products (13%). The only category showing an actual decline is food and kindred
products, down 4% from 1977. Four industry groups—chemicals, electrical equipment, machinery, and transportation equipment—are each expected to provide more than $2 billion in R&D support and will account for 71% of all industrial R&D funding in 1978. The same four, Battelle notes, are among the largest relative supporters of R&D, devoting more than 28% of their pretax profits to that purpose in 1978. D
Velsicol indicted for keeping data from EPA Velsicol Chemical Corp., a division of Northwest Industries, and six of its present or former officials were indicted last week by a federal grand jury in Chicago for criminally conspiring to withhold toxicology data from the Environmental Protection Agency. The data, according to the indictment, show that two pesticides manufactured by Velsicol, chlordane and heptachlor, induce tumors in laboratory animals. The defendants face stiff fines and long jail sentences if convicted. Velsicol strongly denies the charges. Last week's indictment is apparently the first instance of a corporation's being indicted for allegedly withholding test data from EPA, ac-
cording to a spokesman for that agency. The investigation was begun by the Justice Department in July 1975 at the request of EPA. The agency discovered in the course of a series of hearings begun in 1974 into the possible revocation of the pesticide registrations for chlordane and heptachlor that Velsicol had studies performed in 1971 and 1972 that allegedly show that the compounds produce tumors in animals. But until 1975 the firm had not disclosed the information, according to the indictment, and therefore violated the Federal Insecticide, Fungicide & Rodenticide Act, which regulates pesticide safety, as well as the
