Reported in this newsletter in narrative, graphical, and tabular form are data related to industrial research and development expenditures in 1974, showing a seven percent increase over 1973. It is noted that more than 80 percent of a total of $22.3 billion was spent by five industries; these included electrical equipment and communication, aircraft and missiles, machinery, motor vehicles and equipment for same, and chemicals and allied products. Total industrial research and development expenditures for energy and pollution abatement, by industry, 1973-1975, are summarized. A brief summary is presented relating research and development funds with net sales, as well as with basic research, applied research, and development. (EB)