IP: FYI #87 - Recent R&D Reports

[David Farber <farber () cis upenn edu>]

FYI
The American Institute of Physics Bulletin of Science Policy News
Number 87: July 8, 1997


Recent Reports: Japan's R&D Funding Grows; U.S. Level Declines


According to a June 13 NSF Issues Brief, Japan is on track to
achieve a doubling of its government R&D investment between the
years 1992 and 2000.  If it continues with funding increases such
as those approved for 1996 and 1997, the NSF brief says, "annual
government R&D investment would be around $18 billion in the year
2000, approximately double the 1992 budget in constant yen."


A large portion of the added funding would go toward renovating
facilities and instruments, particularly at universities.  Funds
would also be directed toward expanding doctoral programs at
universities, increasing the amount of competitive grant money
available, and attempting to create Centers of Excellence in
specific research areas at Japanese universities.  In recent
years, Japan has also "provided additional funds to intensify
international research cooperation in basic sciences" such as the
Human Genome Project and construction of the Large Hadron
Collider at CERN in Europe.


"Relative to the size of its economy, Japan's overall R&D
investment (both public and private) is about the same as that of
the United States," the paper states.  In 1994, Japan spent 2.6
percent of its GDP on research and development compared to the
U.S.'s 2.5 percent.  However, most of the Japanese investment
comes from private industry.  The Japanese government supports
less than 20 percent of total R&D, compared with support of 35-40
percent by the U.S. and Europe.  If Japan achieves its doubling
of federal research dollars by 2000, government support will
equal approximately 29 percent of the R&D total.


The four-page NSF brief, "Japan Hopes to Double Its Government
Spending on R&D," (NSF-97-310), can be obtained under "Issue
Briefs" on the NSF HomePage at:
http://www.nsf.gov/sbe/srs/pubdata.htm; or by sending an email
request to pubs () nsf gov or calling (703) 306-1773.


In contrast, a May GAO report on U.S. trends in federal
investment shows a decline in government R&D funding in the past
decade.  According to GAO, the share of federal spending
classified as investment ("specifically intended to enhance the
private sector's long-term productivity") increased in constant
dollars from the early 1980s through the mid-1990s, then began a
gradual decline that is projected to continue through fiscal year
2002.  Among various types of investment spending, federal R&D
follows a similar trend, increasing in constant dollars through
the 1980s, then declining in the 1990s.  In constant 1992
dollars, the report shows, federal R&D spending rose from $48
billion in FY 1981 to $63 billion in FY 1990.  It has since
dropped to an FY 1996 level of $58 billion, and the
Administration's estimate for FY 2002 is about $50 billion.  The
report criticizes the current budget structure for not
highlighting "for decision-making purposes the differences
between spending for long-term investment and current
consumption."


The 19-page GAO report, "Budget Trends: Federal Investment
Outlays, Fiscal Years 1981-2002," (GAO/AIMD-97-88), is available
on the Internet under the "Budget and Spending" heading for May
GAO reports at http://www.gao.gov/monthly.list/may/may97.htm; or
by calling (202) 512-6000 or faxing a request to (301) 258-4066.


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Audrey T. Leath
Public Information Division
The American Institute of Physics
fyi () aip org
(301) 209-3094
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