[1] In this chapter, adjustment for inflation is based on the GDP implicit price deflator. Because GDP deflators are calculated on an economywide rather than R&D-specific basis, their use should be interpreted as a measure of real resources forgone in engaging in R&D rather than in other activities (such as consumption or physical investment), and not a measure of cost changes in doing research. See appendix table 4-1.

[2] FFRDCs are R&D-performing organizations that are exclusively or substantially financed by the federal government either to meet a particular R&D objective or, in some instances, to provide major facilities at universities for research and associated training purposes. Each FFRDC is administered either by an industrial firm, a nonprofit institution, a university, or a consortium. In some of the statistics provided in this chapter, FFRDCs are included as part of the sector that administers them. In particular, statistics on the industrial sector often include industry-administered FFRDCs because some of the statistics from the NSF Survey of Industrial Research and Development before 2001 cannot be separated from the FFRDC component.

[3] See Godin (2006) for a history of the linear model of innovation.