[Analytical Perspectives, Budget of the United States Government,
   Fiscal Year 1998][Page 143]


[[Page 143]]

 
                7.  RESEARCH AND DEVELOPMENT EXPENDITURES

  Technological innovation has accounted for at least half of the 
Nation's productivity growth in the last 50 years. We enjoy the fruits 
of this innovation every day in the many technologies we have come to 
depend on for our way of life, including lasers, computers, x-rays, 
teflon, weather and communication satellites, jet aircraft, microwave 
ovens, solar-electric cells, and human insulin. These advances have 
generated millions of high-skilled, high-wage jobs and significantly 
improved our quality of life. Because our investments in research and 
development (R&D) have paid such rich dividends, the Administration is 
proposing $72.7 billion in R&D activities in 1998. Of this total, 
civilian R&D will be funded at $34.3 billion, a $1.2 billion or four-
percent increase over 1997 and an 18-percent increase since 1993. 
University-based research will increase to roughly $12.9 billion, a $529 
million or four percent increase over 1997. Chapter Four of the Budget 
includes a discussion that contains more information on R&D activities.

                                     

                            Table 7-1.  FEDERAL RESEARCH AND DEVELOPMENT EXPENDITURES                           
                                      (Outlays, dollar amounts in millions)                                     
----------------------------------------------------------------------------------------------------------------
                                                                                               Dollar    Percent
                                                                1993 \1\    1997      1998     change    change 
                                                                 actual   estimate  proposed   1997 to   1997 to
                                                                                                1998      1998  
----------------------------------------------------------------------------------------------------------------
By Agency:                                                                                                      
  Defense.....................................................    38,035    36,902    35,479    -1,423       -4%
  Health and Human Services...................................     9,660    12,323    13,169      +846       +7%
  National Aeronautics and Space Administration...............     8,885     9,182     9,308      +126       +1%
  Energy......................................................     6,945     6,540     6,746      +206       +3%
  National Science Foundation.................................     1,842     2,448     2,448         0        0%
  Agriculture.................................................     1,455     1,522     1,539       +17       +1%
  Commerce....................................................       607       885       841       -44       -5%
  Interior....................................................       636       590       600       +10       +2%
  Environmental Protection Agency.............................       519       494       527       +33       +7%
  Other.......................................................     1,736     1,928     2,009       +81       +4%
                                                               -------------------------------------------------
Total.........................................................    70,320    72,814    72,666      -148        0%
                                                                                                                
By R&D Theme:                                                                                                   
  Basic Research..............................................    12,625    14,625    14,882      +257       +2%
  Applied Research............................................    12,437    14,252    14,540      +288       +2%
  Development.................................................    42,625    41,408    40,503      -905       -2%
  Equipment...................................................        NA       973       993       +20       +2%
  Facilities..................................................     2,633     1,556     1,748      +192      +12%
                                                               -------------------------------------------------
Total.........................................................    70,320    72,814    72,666      -148        0%
                                                                                                                
By Civilian Theme:                                                                                              
  Basic Research..............................................    11,370    13,494    13,729      +235       +2%
  Applied Research............................................     8,511    10,212    10,569      +357       +3%
  Development.................................................     7,374     7,651     8,211      +560       +7%
  Equipment...................................................        NA       530       539        +9       +2%
  Facilities..................................................     1,749     1,217     1,282       +65       +5%
                                                               -------------------------------------------------
Subtotal......................................................    29,004    33,104    34,330    +1,226       +4%
                                                                                                                
By Defense Theme:                                                                                               
  Basic Research..............................................     1,255     1,131     1,153       +22       +2%
  Applied Research............................................     3,926     4,040     3,971       -69       -2%
  Development.................................................    35,250    33,757    32,292    -1,465       -4%
  Equipment...................................................        NA       443       454       +11       +2%
  Facilities..................................................       885       339       466      +127      +37%
                                                               -------------------------------------------------
Subtotal......................................................    41,316    39,710    38,336    -1,374       -3%
                                                                                                                
R&D Support to Universities...................................    10,463    12,364    12,893      +529       +4%
----------------------------------------------------------------------------------------------------------------
NA = Not applicable.                                                                                            
                                                                                                                
\1\ Equipment and Facilities were not collected separately in 1993.