This report contains a summary of the allocation of funds and manpower among the four sectors of the economy--federal government, industry, universities and colleges, and other nonprofit institutions. Funding data include basic research, applied research, and development, covering years 1953-75. Time series on R and D scientific and engineering manpower employed by each sector are presented for 1954-74. Highlights indicate: (1) total R and D spending in the U.S. is projected at $34.3 billion in 1975, 7 percent above the 1974 level of $32 billion; (2) in 1975 the U.S. is expected to devote 2.3 percent of its gross national product (GNP) to R and D activities; (3) the federal government will support 53 percent of the total U.S. R and D effort in 1975; two-thirds of this will be in areas of defense and space; (4) basic research spending is estimated at $4.1 billion in 1975; and (5) nearly 528,000 scientists and engineers were employed on a full-time-equivalent basis on R and D activities in 1974. (Author/EB)