This report analyzes data on research and development (R&D) performed by industry during 1979, examines historical trends for key R&D funding variables, and presents information on industry-employed R&D scientists and engineers. Areas addressed in the first section on R&D funds include: major R&D industries (aircraft/missiles, electrical equipment, machinery, chemicals, and motor vehicles); company R&D funds and R&D performed by U.S. companies abroad; federal R&D funds, including federally funded R&D centers administered by industry; geographic distribution; R&D funds by size of company; R&D funds related to net sales; character of work (basic research and applied R&D); energy R&D; pollution abatement R&D; and distribution of R&D funds by special categories, focusing on R&D performed to meet government regulations and product- versus processes-applied R&D. Data on full-time equivalent (FTE) R&D scientists/engineers by industry; percent of total R&D expenditures devoted to wages, materials and supplies, and overhead costs for selected industries; and other data are discussed in the second section. Technical notes, statistical tables, and survey instruments are provided in appendices. Data indicate that industrial expenditures for 1979 totaled $38 billion, a 14-percent gain over 1978 and that industry spent $194 million on R&D projects undertaken by colleges and universities. (Author/JN)