R&D funds used in 1963 (millions of dollars)
$17,350
$2,400
$12,720
$1,700
$530
Amount of R&D financed in 1963 (millions of dollars) Basic research
Federal Government Industry
$11,340 5,565
Applied research
Development
Colleges and Universities
260
Other Nonprofit Institutions
185
Total
Total R&D
Federal Government
Industry
Colleges and Universities
$17,350
Other Nonprofit Institutions
Research Funds Constitute One Third of Total R&D Expenditures The total research and development bill for all sectors of the U.S. economy in 1963 was almost $17.4 billion or 2 . 9 % of the gross national product, says the National Science Foundation. In its latest review of data on science resources, NSF estimates that total R&D expenditures for 1964 reached $19 billion. In 1963, 1 0 % of the total expenditures went for basic research, 2 4 % for applied research, and the remaining 6 6 % for development. NSF points out that these proportions have remained fairly stable in recent years, reflecting a consistent adherence to priorities in those national programs which largely determine the level and composition of the nation's R&D activities. The survey notes that since 1958,
AlS-Sheli Dispute Sent Back to Lower Court The dispute between 10 employees (all members of the Association of Industrial Scientists) and Shell Development over employee transfer has been shifted back to a lower court. The U.S. Court of Appeals for the Ninth District has voided the decision of the Federal District Court in San Francisco not to order arbitration of the dispute, and has returned the decision to the District Court for a rehearing. In 1964, Shell Development attempted to transfer 10 employees from Emeryville, Calif., to Wood River and Chicago, 111. The employees feel that suitable employment was available at Emeryville at the time and that they should have been offered employment there as an alternative to transfer. Only one of the 10 employees actually 48
C&EN
JULY
12,
1965
the amount of funds allotted for research has been growing at about the same annual rate ( 1 0 % ) as that allotted for development ( 1 1 % ) . However, the growth rates of basic research expenditures and total R&D expenditures, which have been the same ( 1 6 % ) since 1953, began to diverge in 1958. Basic research expenditures are continuing to grow—annual rate of 16%—while the growth rate for total R&D dropped to about 1 0 % in 1963. Industry, the largest user of R&D funds, spent $12.7 billion in 1963. The Federal Government, which is foremost in financing research and development, provided $11.3 billion, of which $7.3 billion was spent in industry.
moved to Shell Development's research facility in Illinois—the other nine employees declined to move and resigned from the company. When the employees and AIS sought to submit the question to arbitration under AIS' collective bargaining agreement with Shell, the company refused to do so. AIS then asked the Federal District Court to order arbitration. In April 1964, the federal court denied the request. The court concluded that a dispute over transfers was not within the arbitration provision of the contract between Shell and AIS. No Strike. The U.S. Court of Appeals, however, sees it differently. Citing principally two previous decisions of the U.S. Supreme Court [Steel Workers vs. Warrior and Gulf Co., 363 U.S. 574,578 ( I 9 6 0 ) , and John Wiley & Sons vs. Livingston, 376 U.S.
543,547 (1964)], the court pointed out that the agreement between Shell Development and AIS contains a nostrike clause making it more than a contract. In fact, the court says, it should be viewed as an attempt to erect what the Supreme Court called "a system of industrial self-government. " When an agreement contains an absolute no-strike clause, management is bound to submit any dispute that arises to arbitration, the Appeals Court's decision says, unless there is the "most forceable evidence" that the parties intended to exclude the dispute from arbitration. With the guideline that issues should be deemed arbitrable if there is any doubt, the District Court will now rehear the case. The court is not bound, however, to order arbitration. And if new facts are unearthed at the rehearing, the court might not.
