FFRDC's Are R&D performing organizations exclusively or substantially financed by the Federal Government (at least 70 percent) that are supported 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. The FFRDC is expected to have long-term relationships with its sponsoring agency--five years or more, average annual budget (operating and capital) of $500,000 or more.

and an

The common

Full-Time-Equivalent Number (R&D Scientists and Engineers)
demoninator for combined numbers of full-time employees and part-time
employees.

Research, Development and R&D Plant (According to National Science Foundation) – This term includes all direct, indirect, incidental or related costs resulting from or necessary to research, development and R&D plant, regardless of whether the research and development are performed by a federal agency (intramural) or performed by private individuals and organizations under grant or contract (extramural). Research and development exclude routine product testing, quality control, mapping and surveys, collection of general-purpose statistics, experimental production and activities concerned primarily with the dissemination of scientific information and the training of scientific manpower.

a. Research is systematic, intensive study directed toward fuller

scientific knowledge or understanding of the subject under study.
In basic research the investigator is concerned primarily with

gaining a fuller knowledge or understanding of the subject under study.

b.

C.

In applied research the investigator is primarily interested in a
practical use of the knowledge or understanding for the purpose of
meeting a recognized need.

Development is systematic use of the knowledge and understanding
gained from research, directed toward the production of useful
materials, devices, systems or methods, including design and
development of prototypes and processes. It excludes quality
control, routine product testing and production.

R&D Plant (or R&D facilities and fixed equipment, such as reactors,
wind tunnels and radio telescopes) includes acquisition or

construction

of, major repairs to or alterations in structures, works, equipment, facilities or land, for use in R&D activities at federal or non-federal installations. Excluded from the R&D plant category are expendable equipment and office furniture and equipment. Obligations for foreign R&D plant are limited to federal funds for facilities located abroad and used in support of foreign research and development.

BIBLIOGRAPHY

Aerospace Industries Association of America, Inc.; Aerospace Facts and Figures; 1972.

Battelle Memorial Institute, Probable Levels of R&D Expenditures in 1972: Forecast and Analysis; Columbus Laboratories; Columbus, Ohio.

Department of Defense, "In-House Activity Reports, FY1966-1971, DDR&E." "Management Overview, RDT&E;" November 1971.

National Science Foundation; NSF 71-35, Federal Funds for Research and Other Scientific Activities FY70, FY71, FY72; Surveys of Science Resources, Volume XX.

Resources 1953-1972.

-

NSF 72-300, National Patterns of R&D

NSF 72-305, Functions Other Than Defense

and Space Show Rising Share in Federal R&D Expenditures; Science Resources Studies Highlights; April 25, 1972.

NSF 72-309, Research and Development in

Industry 1970, Funds 1970, Scientists and Engineers 1971.

NSF 72-314, Federal R&D Funding Continues

to Rise; Science Resources Studies Highlights; August 11, 1972.

Technology Review; "Technology in the U.S.--Issues for the 1970's;"

Parts I and II; J. Holloman; June and July 1972.

United States Budget; The U.S. Budget in Brief, FY1973.

"Federal Research and Development Programs."

Special Analysis of the U.S. Government, FY1973;

United States Senate; Armed Services

Subcommittee Hearings FY1973;

Part 4, "Appropriations."

United States House Representatives; Appropriations Committee Hearings, FY73; on Atomic Energy; Part 4 of Public Works and AEC Appropriations Bill 1973.

AEROSPACE
CAPITAL FORMATION

Impact of Inflation
and Depreciation

Volume I, Executive Summary

Prepared By:
Klaus P. Heiss, PhD.
ECON, INCORPORATED

Princeton, New Jersey

A Publication of

AEROSPACE RESEARCH CENTER

AEROSPACE INDUSTRIES ASSOCIATION OF AMERICA, INC. 1725 DE SALES STREET, N.W., WASHINGTON, D.C. 20036

APRIL 1976