Chemical world This week
In Brief NSF report indicates that the na tional rate of R&D spending is rising. But, measured in constant dollars, the rise in spending is not so encouraging 7 In a letter to White House science adviser David, ACS President Melvin Calvin recommends two programs to assist unemployed scientists 8 Bausch & Lomb expects its new hydrophilic contact lens to expand the use of such lenses. FDA has given approval for sale of lenses made from new material 8 Under lab conditions simulating the Martian environment, sci entists have produced formalde hyde, acetaldehyde, and glycolic acid 8 Chicago-based scientists have isolated erythropoietin, the hormone that stimulates red blood cell formation 9 Industrial polluters face tougher sledding from many sources but especially the state of Ohio, which is instituting very strict rules 9 In Michigan, however, the efforts of students to help clean up the environment have been channeled into Clean Earth Corps, a kind of environmental Peace Corps 10 Du Pont aims to capture a part of the composites market with a new organic fiber. The market is currently dominated by graphite and boron fibers 10
March 29,1971
NATIONS R&D OUTLAYS UP Spending for R&D in the U.S. will reach a record level of $27.8 billion this year, according to the National Science Foundation. That's 3.7% higher than 1970 R&D outlays. The Administration's budget for fiscal 1972 calls for more federal R&D spending—an increase of 7.6% to $16.7 billion. That contrasts with an average annual growth rate for such spending of 1.0% between 1966 and 1971. Encouraging figures? Perhaps, but the good news is tempered by the fact that in terms of constant (1966) dollars there will be no in crease in R&D spending, NSF says. Furthermore, R&D spending is not keeping pace with growth in the economy. NSF estimates that the ratio of R&D spending to gross na tional product of 2.7% this year will be the lowest since 1960. There was a high of 3.0% in 1964. GNP growth has averaged 6.9% since 1966. NSF provides these compari sons in a new report titled "National Patterns of R&D Resources, 195371." Using 1969 dollars and R&D/GNP ratios of 2.7% and 3.0%, NSF pro jects that total R&D spending will range between $33.7 and $44.5 bil lion in 1980. In 1971, federal sup port of R&D will total $14.7 billion, compared to $14.5 billion in 1967. But even though federal support of R&D has leveled off, the Govern ment remains the largest source of R&D funds in the nation. Industry spending for R&D will surge to almost $20 billion this year. Industry spent $15.5 billion for R&D in 1966. Industrial R&D spending, NSF says, has grown at a rate of about 10% annually over the 1966-71 period, with an annual growth rate in real terms of about 6% compared to a 3% drop annually for government spending. About 60% of industrial spending on re search and development comes from company funds. Industry will spend $645 million or 3% of the total industrial R&D budget this year for basic research. But applied research will get more
than $3.5 billion and development will get $15.6 billion. NSF notes that four firms spend 20% of the R&D funds in manufacturing indus tries and 100 firms account for 80%. One third of federal R&D contract work is performed by four firms. In 1969, fully 2% of federal R&D spend ing went for R&D on chemicals and allied products compared to 16% spent by industry of its total out lays on R&D. Total industry R&D expenditures, compared to GNP, find industry spending growing more consistently than its rate of spending for new plant and equip ment, advertising, and profits after taxes (see graph).
Industry R&D outlays lag behind capital spending, profits Percent of gross national product
4
3
2
1
Ο 61 66 70a 61 66 70a
61 66 70a 61 66 70a
Year Company R&D outlays H Capital spending for new plant and equipment • Advertising outlays • Net prof its after taxes Estimate Source: National Science Foundation, U.S. Department of Commerce, and Marketing/Communications
MARCH 29, 1971 C&EN 7
