[1] Vannevar Bush. Science—The Endless Frontier. National Science Foundation, Washington, DC, 1980: 18.

[2] Research and Development Definitions:

Research is defined as systematic study directed toward fuller scientific knowledge or understanding of the subject studied. Research is classified as either basic or applied according to the objectives of the sponsoring agency.

Basic research is defined as systematic study directed toward fuller knowledge or understanding of the fundamental aspects of phenomena and of observable facts without specific applications towards processes or products in mind.

Applied research is defined as systematic study to gain knowledge or understanding necessary to determine the means by which a recognized and specific need may be met.

Development is defined as systematic application of knowledge or understanding, directed toward the production of useful materials, devices, and systems or methods, including design, development, and improvement of prototypes and new processes to meet specific requirements.

[3]  Federal obligations for R&D controlling for inflation.

[4]  Morrill Acts of 1862 and 1890, Accessed 27 October 2007.

[5]  National Science Board (NSB). 2008. Science and Engineering Indicators 2008 (SEI 2008), Arlington, VA: National Science Foundation. Appendix table 4-8.

[6]  NSB. 2008. Appendix table 5-2.

[7]  NSB. 1993. In Support of Basic Research (NSB-93-127). Accessed 27 October 2007.

[8]  NSB. 2008. Chapter 4.

[9]  Contributions to basic research are indicated by publications in science and engineering peer-reviewed journals.

[10]  NSB. 2008. Appendix table 4-8. In 2003, basic research exceeded 4% of industrial R&D, reaching 4.2%.

[11]  Primary Federal R&D funding agencies:

Department of Defense: the largest Federal R&D funding agency devotes about 89% of its estimated FY2007 expenditures of $56B to development.

Health and Human Services (primarily NIH): about 55% of the R&D budget of $29B in FY2007 is devoted to basic research.

National Aeronautics and Space Administration: about 55% of the total R&D FY2007 budget of $8B is basic and applied research.

Department of Energy: about 67% of a FY2007 R&D budget of $8B is spent in Federally Funded R&D Centers (FFRDCs).

National Science Foundation: about 91% of the FY2007 of $6B is devoted to basic research.

U.S. Department of Agriculture: about 69% of the $2B FY2007 R&D budget is intramural funding.

[12]  NSB. 2008. Appendix table 4-9.

[13]  National Science Foundation, Division of Science Resources Statistics. 2007. National Patterns of R&D Resources: 2006 Data Update. NSF 07-331. Brandon Shackelford and John E. Jankowski, project officers. Arlington, VA, Table 6.

[14]  Consistent with this trend, reported Federal expenditures for academic R&D declined between 2005 and 2006. A decline in real terms in Federal expenditures for academic R&D had not previously occurred in the last quarter century.

[15]  America COMPETES Act. (H.R. 2272)

[16]  National Academies. 2007. Rising Above the Gathering Storm: Energizing and Employing America for a Brighter Future, National Academies Press.

[17]  National Science Board, op. cit. Accessed 27 October 2007.

[18]  Organisation for Economic Co-operation and Development, Accessed 27 October 2007.

[19]  G-7: The United States, Japan, Germany, France, United Kingdom, Italy and Canada. G-7 finance ministers meet several times a year to discuss economic policy.
g7/g7_members.cfm. Accessed October 27, 2007.

[20]  Inventors can be individuals or organizations. Most are organizations.

[21]  EU: European Union, comprising 27 countries.

[22]  NSB. 2008. Appendix table 6-28.

[23]  NSB. 2008. "S&E Articles in Peer Reviewed Journals/Articles in Basic Research Journals" in chapter 6.

[24]  "Highly influential" defined by citations by other authors.

[25]  EU-15: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, and the UK.

[26]  Derek Hill, Alan I. Rapoport, Rolf F. Lehming and Robert K. Bell. 2007. Changing U.S. Output of Scientific Articles: 1988-2003. Arlington, VA: National Science Foundation.

[27]  Manufacturing "know-how" is defined as industrial processes used in the production of goods, sold as intellectual property. See SEI 2006: 6-23.

[28]  The nature of jobs associated with "manufacturing" in high-technology industries varies greatly. They may include basic research, applied research, systems engineering, planning, design, development, fabrication, sales, distribution, customer support, etc. Trade statistics often reflect the value flows due to the fabrication and the distribution of products, services and applications to a customer destination. In practice, value flows due to other job functions may not be reflected in trade statistics. This could be significant in considering current employment and trade statistics as indicators of national competitiveness.

[29]  "Affiliate" is defined as "A company or business enterprise located in one country but owned or controlled (10% or more voting securities or equivalent) by a parent company in another country; may be either incorporated or unincorporated." See SEI 2008, 6-45.

[30]  NSB. 2008. Chapter 4: Highlights, 4-52.

[31]  George W. Bush. 2006. State of the Union Address.
stateoftheunion/ 2006/index.html. Accessed 3 December 2007.