This project builds upon previous work funded by the National Science Foundation (NSF) and conducted by the Bureau of the Census. The objectives are i) to update to 1985 and expand to more than 1000 companies the linked NSF/Census R&D company-level data base and the Census Longitudinal Establishment Data (LED) file which contains information on the output and inputs of manufacturing plants, and ii) to conduct an economic study on the effect of R&D investment on manufacturing produc- tivity using the linked R&D/LED data and various other industry- level data files. Among the topics studied will be the relation- ship between R&D activity and size of company, R&D activity and changes in plant ownership (e.g., as a result of mergers and acquisitions), the effect of total R&D versus basic research on productivity, and the measurement of returns to company-funded versus Federally-funded R&D. The project will provide statistical data and the linking mechanism that can be used in analyzing the relationship between R&D funding and other economic variables. The results should provide further understanding of the role of industrial R&D activities in promoting national economic growth and competitive- ness, and thereby contribute to the Foundation's responsibility to provide a source of information for policy formulation in the area of science and technology.
