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NATIONAL R&D EXPENDITURES 45 NATIONAL R&D: SOURCES OF FUNDING Since the mid-1960s, the federal share of support for total national R&D expenditures has declined, from 65 percent in 1968 to less than half in 1988. During the same period, industry's share has grown, from 30 percent in 1968 to nearly 50 percent in 1988. Figure 2-13: U.S. R&D Expenditures by Source of Funds Figure 2-14: Distribution of U.S. R&D Expenditures by Source of Funds NOTE: Data series within the figures are not overlapped; top line represents total. Financial data are expressed in 1988 constant dollars to reflect real long-term growth trends. DEFINITION OF TERMS: Research is the systematic study directed toward fuller knowledge or understanding (basic and applied) of the subject studied; development is systematic use of the knowledge or understanding gained from research, directed toward the production of useful materials, devices, systems, or methods, including design and development of prototypes and processes. R&D expenditures include current-fund expenditures for all research and development activities that are separately budgeted and accounted for. Federal sector consists of all agencies of the federal government. Industry sector consists of both manufacturing and non-manufacturing companies; industry funding of industrial research includes all funds (e.g. state and local) other than those received from the federal government. Academic/State funding of research and development includes general educational funds, from any source, that academic institutions have been free to allocate for separately budgeted research; and state and local government funds separately budgeted for academic R&D. Other sector consists of institutions that are primarily granting in nature, such as private philanthropic foundations and voluntary health agencies. SOURCE: National Science Foundation, Division of Policy Research and Analysis. Database: CASPAR. Some of the data within this database are estimates, incorporated where there are discontinuities within data series or gaps in data collection. Primary data sources: National Science Foundation, Division of Science Resource Studies, Survey of Federal Funds for Research and Development; Survey of Federal Support to Universities, Colleges, and Non-profit Organizations; Survey of Scientific and Engineering Expenditures at Universities and Colleges; Survey of Industrial Research and Development.