Presented is an overview of the national investment in research and development (R&D) in terms of expenditures and the utilization of R&D scientists and engineers. Four sectors of the economy are included: government, industry, universities and colleges, and other non-profit institutions. The data presented are based primarily on a series of surveys conducted by the National Science Foundation (NSF) between 1953 and 1977. Highlights of the report include the estimate that total R&D spending will reach $40.8 billion in 1977 and account for 2.2% of the gross national product. About 53% of this support comes from the Federal Government. Approximately 542,000 R&D scientists and engineers were employed in 1976. The report includes descriptions of R&D funding patterns and examines work in three areas: basic research, applied research, and development. The funding and manpower patterns in each sector of the economy are analyzed. Appendices provide statistical tables and technical notes. (SD)