R&D Spending Is Higher for Five Industries with Biggest Outlays Federally Financeu K&D Funds
•
•
Industrially Financed R&D Funds
Aircraft and Parts Electrical Equipment and Communication
'58 '59
Machinery Chemicals and Allied Products
58 '59
Motor Vehicles and Other Transportation Equipment
'58 '59
Millions of Dollars
0
400
800
1200
1600
2000
2400
2800
3200
Source: National Science Foundation
Industrial R&D Outlays Hit $10 Billion Spending for industrial research and development in 1960 may háve rcached $10 billion, the National Science Foundation estimates. This is little more than a 6% increase over
the $9.4 billion spent in 1959 and 22% more than 1958's $8.2 billion. The Federal Government, through R&D contracts with industry, contributed 57% of the total in 1959, up 17% from
Chemical Industry Leads in Total Outlays for Basic Research INDUSTRY
1959 1958 (Millions of Dollars)
PER CENT CHANGE 1958-1959
CHEMICALS A N D ALLIED PRODUCTS
Industrial Chemicals Drugs and medicines
$67 24
$58*
$16*
22
9
7
6
17
98
86
14
59 52 41 19 8
56
5
41 20 20
27 105 -5 14
7 6
6
Rubber products Stone, clay, and glass products
5
5
0
Food and kindred products Paper and allied products Fabricated metal products
5 1 1
4 1 1
25 0 0
Source:
* C&EN Estimates
Other chemicals TOTAL Electrical equipment and communication Petroleum refining and extraction Aircraft and parts Machinery Primáry metals Motor vehicies and other transportation equipment
National Science Foundation
7
5
17 20
its 1958 outlays of $4.6 billion for R&D. Industrial companies financed the remaining $4.0 billion in 1959, an increase of 12% over their 1958 expenditures of about $3.6 billion. About 55% of 1959's outlays for industrial R&D were made by the aircraft and parts industry and the electrical equipment and Communications industry together. The aircraft and parts industry got about 87% of its R&D funds from the Government, the electrical equipment industry about 70% of its R&D outlays. Some R&D programs, however, were almost 100% industry financed. For example, the drug industry itself financed almost 98% of its R&D work, which totaled $151 million in 1959. Funds for industrial basic research were $344 million in 1959, only 4% of the total outlays for industrial R&D. Basic research is defined as "originál investigation for the advancement of scientific knowledge, which does not háve specific commercial objectives . . . " But although the dollar volume spent for basic research is small compared to that spent for R&D, the $344 million spent by industry represents about on e third of the estimated $1 billion of šuch funds spent in the U.S., says NSF. The chemical industry continues 'to pace all other industries in outlays for industrial basic research. In 1959, it spent $98 million of the total $344 million spent by all U.S. industry for that purpose. JAN.
2 3, 1 9 6 1 C & E N
23
