This report documents study efforts to obtain information regarding the organization and performance of research and development in Pennsylvania State departments and agencies. Departmental procedures for determining research priorities, performers, project administration, and information dissemination were examined; and the relationship of these policies and arrangements to the methods for financing State research and development were analyzed. In the first part of the report the rationale for research programs is discussed, and R & D budgets, expenditures, and administration are examined. The presentation concludes with a description of the research activities for all those State departments and agencies in which descernible programs exist. (RA)