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NATIONAL R&D EXPENDITURES 49 NATIONAL BASIC RESEARCH: SOURCES OF FUNDING The federal share of support for basic research grew from 55 percent in 1958 to 70 percent in the 1960s and 1970s; declining to 64 percent by 1988. The industrial support share declined during the 1960s, from 33 percent in 1958 to 15 percent in 1978; rising to 20 percent by 1988. The share contributed together by academic institutions and state and local governments has increased from 2 percent in 1953 to over 12 percent in 1988. Figure 2-21: U.S. Basic Research Expenditures by Source of Funds Figure 2-22: Distribution of U.S. Basic Research 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: Basic research is a systematic study where the primary aim of the investigator is directed toward fuller knowledge or understanding of the subject under study, rather than a practical or commercial application thereof. Research expenditures include current fund expenditures for all research 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 sector consists of all institutions of higher education, both public and private. Academic funding of research and development includes state and local government funds separately budgeted for R&D; and general educational funds, from any source, that the institutions have been free to allocate for separately budgeted research. 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.