PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES OF THE UNITED STATES OF AMERICA
ABSTRACT This paper is a review of recent trends in United States expenditures on research and development (R&D). Real
expenditures by both the government and the private sector increased rapidly between the mid-1970s and the mid-1980s, and have
since leveled off. This is true of both overall expenditures and expenditures on basic research, as well as funding of academic research.
Preliminary estimates indicate that about $170 billion was spent on R&D in the United States in 1995, with ≈60% of that funding
coming from the private sector and about 35% from the federal government. In comparison to other countries, we have historically
spent more on R&D relative to our economy than other advanced economies, but this advantage appears to be disappearing. If defenserelated
R&D is excluded, our expenditures relative to the size of the economy are considerably smaller than those of other similar
economies.
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