Table D.—Research and Development Expenditures by Performer: Sources and Methods for Constant-Dollar Estimates

Cost component Source data for cost component 1987 (billions of dollars) Method and source data
R&D expenditures127.39Sum of detail
Industry93.25Sum of detail
Compensation of employeesNSF reported distribution of wages of R&D personnel by industry38.32Sum of detail
Scientists and engineersBased on a 1975 split24.43Deflation: Proxy prices by industry—annual professional income of engineers from the Engineering Manpower Commission.
Support staffBased on a 1975 split13.89Deflation: Proxy prices by industry—indexes of average hourly earnings of production workers.
Materials and suppliesNSF reported distribution of costs of materials and supplies by industry16.73Deflation: Proxy prices—PPI for industrial commodities less fuel.
Overhead less CFCNSF reported distribution of other costs by industry less BEA estimate of depreciation33.25Deflation: Proxy prices—median weekly salaries of managers and administrators.
CFC for structures and equipmentBased on 1958 NSF reported distribution of depreciation and on 1982 depreciation charges of R&D auxiliaries from the Bureau of the Census 1982 Enterprise Statistics4.94Deflation: Proxy prices—a composite of IPD's for private purchases of new industrial nonresidential structures and producers' durable equipment.
Private universities and colleges4.21Sum of detail
Compensation of employeesDerived from sample of individual schools: Based on direct costs less materials and supplies1.86Deflation: Proxy prices by school (from a sample of private universities and medical schools representing 90 percent of R&D expenditures)— fixed weighted price indexes for academic personnel costs (salaries and fringe benefits) from the NIH BRDPI.
Materials and suppliesWeight from NIH BRDPI.73Deflation: Proxy prices—fixed weighted price index from academic nonpersonnel costs from the NIH BRDPI.
Overhead less CFCR&D expenditures less direct costs1.28Deflation: Proxy prices by school (from a sample of private universities and medical schools representing 90 percent of R&D expenditures)— product of the price index of direct costs and an index of the indirect cost rate.
CFC for structuresExpenditures for R&D structures.17Deflation: Proxy prices—NIPA IPD for educational services structures.
CFC for equipmentExpenditures for R&D capital equipment and reclassification of research equipment from current expense to investment.17Deflation: Proxy prices—NIPA IPD for educational services equipment.
FFRDC's administered by private universities and collegesWeight of expenditures based on R&D obligations to individual FFRDC's from four agency categories2.38Sum of detail
DOD funded.44Deflation: Proxy prices—NIPA IPD for DOD purchases of R&D.
DOE funded.75Deflation: Proxy prices—NIPA IPD for DOE purchases of R&D.;
NASA funded.82Deflation: Proxy prices—NIPA IPD for NASA purchases of R&D.
All other funded.13Deflation: Proxy prices—NIPA IPD for Federal other nondefense purchases of R&D.;
CFC for structuresExpenditures for R&D structures.15Deflation: Proxy prices—NIPA IPD for educational services structures.
CFC for equipmentExpenditures for R&D capital equipment and the reclassification of research equipment from current expense to investment.09Deflation: Proxy prices—NIPA IPD for educational services equipment.
FFRDC's administered by other nonprofit institutionsWeight of expenditures based on R&D obligations to FFRDC's administered by nonprofit institutions divided into four agency categories.59Sum of detail
DOD funded.47Deflation: Proxy prices—NIPA IPD for DOD purchases of R&D price.
DOE funded.11Deflation: Proxy prices—NIPA IPD for DOE purchases of R&D.
NASA funded<.01Deflation: Proxy prices—NIPA IPD for NASA purchases of R&D.;
All other funded.02Deflation: Proxy prices—NIPA IPD for Federal other purchases of R&D.
Other nonprofit institutionsR&D expenditures2.90Deflation: Proxy prices—NIPA index for noncommercial R&D.;
Federal 13.33Sum of detail
Compensation of employeesFederal obligations for intramural R&D personnel costs divided into four agency categories4.94Sum of detail
DOD 2.38Deflation: Proxy prices—NIPA IPD for Federal defense compensation of civilian employees.
All other agencies2.55Deflation: Proxy prices—NIPA IPD for Federal nondefense compensation of employees.
Materials and supplies and overhead excluding CFCExpenditures excluding compensation of employees and OMB budget based estimates of equipment6.06Sum of detail
DOD 4.11Deflation: Proxy prices—NIPA IPD for Federal installation support services.
DOE .07Deflation: Proxy prices—NIPA IPD for Federal weapons support services.
All other agencies1.88Deflation: Proxy prices—NIPA IPD for Federal nondefense services excluding compensation of employees.
CFC for structuresFederal obligations for intramural R&D plant and judgment split between structures and large equipment.67Deflation: Proxy prices—NIPA IPD for Federal nondefense industrial building, less force account construction.
CFC for equipmentOMB budget detail on equipment, Federal obligations for intramural R&D plant, and judgment1.68Deflation: Proxy prices—NIPA IPD for Federal nondefense durable goods.
State and local.71Sum of detail
Compensation of employees, materials and supplies, and overhead excluding CFCR&D expenditures excluding expenditures on plant.61Deflation: Proxy prices—NIPA price index for noncommercial R&D.;
CFC for structuresState and local expenditures on R&D plant and judgmental split between structures and large equipment.03Deflation: Proxy prices—NIPA IPD for State and local structures new construction put-in-place, other buildings.
CFC for equipmentState and local expenditures on R&D plant and judgmental split between structures and large equipment.07Deflation: Proxy prices—NIPA IPD for State and local new equipment.
Public universities and colleges8.02Sum of detail
Compensation of employeesDerived from sample of individual schools: Based on direct costs less materials and supplies4.18Deflation: Proxy prices by school (from a sample of public universities and medical schools representing 80 percent of R&D expenditures)—Fixed weighted price indexes for academic personnel costs (salaries and fringe benefits) from the NIH BRDPI.
Materials and suppliesWeight from NIH BRDPI1.40Deflation: Proxy prices—Fixed weighted price index for academic nonpersonnel costs from the NIH BRDPI.
Overhead excluding CFCR&D expenditures less compensation of employees, materials and supplies, and research equipment1.84Deflation: Proxy prices by school (from a sample of public universities and medical schools representing 80 percent of R&D expenditures)—Product of the price index of direct costs and an index of the indirect cost rate.
CFC for structuresExpenditures for R&D structures.30Deflation: Proxy prices—NIPA IPD for educational services structures.
CFC for equipmentExpenditures for R&D capital equipment and the reclassification of research equipment from current expense to investment.30Deflation: Proxy prices—NIPA educational services equipment IPD.
FFRDC's administered by public universities and collegesWeight of expenditures excluding CFC based on R&D obligations to individual FFRDC's from four agency categories1.99 Sum of detail
DOD funded.46Deflation: Proxy prices—NIPA IPD for DOD purchases of R&D.;
DOE funded1.32Deflation: Proxy prices—NIPA IPD for DOE purchases of R&D.
NASA funded<.01Deflation: Proxy prices—NIPA IPD for NASA purchases of R&D.;
All other funded.03Deflation: Proxy prices—NIPA IPD for Federal other nondefense purchases of R&D.
CFC for structuresExpenditures for R&D structures.09Deflation: Proxy prices—NIPA IPD for educational services structures.
CFC for equipmentExpenditures for R&D capital equipment and reclassification of research equipment from current expense to investment.09Deflation: Proxy prices—NIPA IPD for educational services equipment.

BEA Bureau of Economic Analysis

BRDPI Biomedical research and development price index

CFC Consumption of fixed capital

DOD U.S. Department of Defense

DOE U.S. Department of Energy

FFRDC Federally funded research and development center

IPD Implicit price deflator

NASA National Aeronautics and Space Administration

NIH National Institutes of Health

NIPA National income and products accounts

NSF National Science Foundation

OMB U.S. Office of Management and Budget

PPI Producer price index

R&D Research and development