Data on funding and manpower are gathered by means of a series of surveys that cover the different performance sectors. This study combines data for 1973 from reports covering state agency expenditures for research and development and a series covering all institutions of higher education expenditures. This joint consideration of state agency and state university R and D efforts can be useful in assessing the factors that contribute to economic and social change within the States. These combined expenditures, representing funds that were disbursed by the budget offices of state agencies and universities, amounted to $1,990 million in 1973. The report compares and contrasts the R and D emphases of the state universities and agencies noting the sources of the funds as well as the areas of distribution: life sciences, engineering, social sciences, physical sciences, and others. The ranking of states by expenditures shows a strong correlation between the leadership of states in public R and D expenditures and their relative rankings in state population, total personal income, and total state government general expenditures. Finally, the report shows the growing recognition in both government and university circles that university expertise could be further extended into the public sphere with benefit to both groups. (JMF)