(OIP). The objective of this report is to analyze recent trends in industrial research and development (R&D) spending, using data provided by the National Science Foundation. The specific emphasis of the report is energy and energy .~ conservation R&D expenditures. Analyzing the causes of recent R&D expenditure trends was outside of the scope of the study, as was collecting primary R&D expenditure data from industrial firms. This objective was achieved by performing two tasks. The first task was to collect and assemble data on industrial R&D expenditures in the United States from the National Science Foundation (NSF), Office of Industrial Studies. The NSF data base contains information on R&D expenditures by year for each of the years 1975-1982, by two-and three-digit Standard Industrial Code (SIC), and by R&D type (total, energy, and energy conservation). The NSF defines R&D as either basic investigatory research, without commercial objectives; applied research with commercial objectives: or technical activities concerned with creating or developing new products or processes. Energy R&D is any R&D activity concerned with investigating or developing new uses of energy. Energy conservation R&D, a subset of energy R&D, is any R&D activity concerned with investigating or developing new energy-saving products or processes. The data cover the expenditures for R&D performed by private industry, including R&D that is both financed and performed by private industry and • R&D that is financed by the government (federal, state, and/or local) but performed by the private sector. The data do not cover expenditures for R&D that was actually performed by the government (such as research performed • by the National Institutes of Health or the National Bureau of Standards). Although the NSF has recently released this data to the public in a report entitled R&D in Industry: 1982 Statistical Tables, to our knowledge the data has not yet been used to perform an analysis of the type reported in this paper. In addition to the information on R&D expenditures, data on the Gross iii National Product (GNP) implicit price deflator for the years 1975-1982 was obtained from the 1984 Economic Report of the President The second task was to graphically and numercially analyze recent trends in total, energy-related, and energy conservation R&D expenditures. Total R&D and energy R&D expenditures for the period 1975-1982 were analyzed for each of nine industries: chemicals, petroleum, primary metals, machinery, electrical equipment, aircraft and missiles, professional and scientific instruments, other manufacturing, nonmanufacturing. Energy conservation R&D expenditures for this period were analyzed for each of six industries: chemicals, primary metals, machinery, electrical equipment, other manufacturing, and nonmanufacturing. In addition, for all three types of R&D, trends in expenditures for all industries combined were analyzed.
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