Abstract
Administration priorities for federal support of nondefense research and development emphasize basic research and the concomitant training of students. In 4 years basic research has moved from the smallest to the largest component in nondefense R & D expenditures, and basic research specifically to universities has grown by 26 percent in real terms during that period. New programs for fiscal year 1985 emphasize engineering education and research, as well as improved interactions between universities, federal laboratories, and industry.

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