Since the 1950s, the National Science Foundation has relied on the categories of basic research, applied research, and development in an effort to compare R&D expenditures in both the public and private sectors using a common set of definitions. The objective of this research is to question (1) how completely or accurately the basic/applied/development classification scheme reflects the overall R&D process and (2) the generality of any one classification scheme throughout the manufacturing sector. Based on extensive telephone interviews and mail surveys to a representative sample of firms in the chemicals industry, the machinery industry, and the electric and electronic equipment industry, information on the composition of R&D will be collected and evaluated in an effort to supplement the basic/applied/development scheme with more discrete expenditure categories.