communications equipment (SIC 366), electronic components (SIC 367), communications services (SIC 48), and computer and data processing services (SIC 737).

5. According to preliminary estimates from the National Science Foundation, defense R&D spending will decrease even further in FY00.

6. Many important, lasting IT developments sprang from DARPA's experimental projects, such as the ARPANET (which laid the groundwork for the Internet) and the Very Large Scale Integrated Circuit program, which helped advanced reduced-instruction-set computing.

7. Research supported by the NSF has contributed significantly to the evolution of IT. An important capability, scientific visualization, grew out of NSF sponsorship of computing in the service of science. Visualization, which uses carefully designed images to allow scientists and engineers to glean insight from computer simulations of natural phenomena, is now widely used in scientific computing and advanced engineering applications such as jet engine design.

8. For more information on the NGI, see <>.

9. The university centers established as part of ASCI are the Center for Integrated Turbulence Simulation at Stanford University, the Computational Facility for Simulating the Dynamic Response of Materials at the California Institute of Technology, the Center for Astrophysical Thermonuclear Flashes at the University of Chicago, the Center for Simulation of Accidental Fires and Explosions at the University of Utah, and the Center for Simulation of Advanced Rockets at the University of Illinois at Urbana-Champaign.

10. For more information on Project Oxygen, see Dertouzos (1999).

11. Additional information on the University of California at Berkeley 's Endeavor project is available online at <>.

12. Additional information on the University of Washington's Portolano/Workscape project is available online at <>.

13. As of April 2000, DARPA planned to transform its expeditions program into a program that would explore “ubiquitous computing,” a term used to describe the incorporation of computing and communications capabilities into a range of everyday devices.

14. It should also be cautioned that it is notoriously difficult to separate research from development, especially given that fundamental research advances sometimes emanate from focusing on development projects. Most often research and development are lumped together in the statistics, and attempts to separate out the research should be viewed with some skepticism.

15. The 20 percent figure reported in the 1998 data is unusually high, suggesting some inconsistencies in the collection or reporting of the data. IT firms reported that 10 percent of their research dollars were allocated to basic research in 1997, which is more consistent with earlier reports and anecdotal reports from research managers.

16. The Census Bureau is in the process of shifting from the SIC to a new system, the North American Industry Classification System, which features significant changes such as the introduction of an Information Sector and is undergoing additional modification and revision. Additional information on the transition to the new industry classification system is available online at <>.

17. Despite the difficulties in tracing the movements of firms among industry sectors, federal statistics are still the best source of data for tracking research in the IT industry. Corporate annual reports and other public documents cannot be used because individual companies do not report research investments in these documents, although most list combined research and development investments.

18. Indeed, there is reason to believe that much of the decline in reported research and development investments in the office and computing equipment industry between 1990 and 1991 resulted from the reclassification of large firms to other industries.

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