Research and development (R&D), a virtually ignored aspect of American entreprencurship the turn of the century, became in the 1950s a critical element in American business's quest to offer new and higher-quality products at lower prices. By, 1953, the first year national statistics were kept, total national R&D expenditures, of which the federal govenment supplied 53:7 percent, exceeded $8.7 billion. By 1960 national investment in R&D topped $19.6 billion; the federal government's share, 64.6 percent, had fallen sightly from its 1950s high of 65.1 percent.

Funding for basic research, an important component of all R&D, passed the:$440-million mark in 1953. Industry put up $153 million, with universities and colleges kicking in $10 million. By 1960 total expenditures on basic research had reached $1.1 billion. At that time, colleges and universities, had, increased their contributions, sevenfold, while industry had only doubled its investment.

Aerospace technology constituted a key...