Abstract
The highway industry in the United States spends about $35 to $40 billion annually. Management of the industry is almost wholly decentralized. This decentralization plus diminishing fuel tax revenues used to finance road improvements have caused road research efforts to decline to a very low level. Comparisons between funds for highway research and those spent by private firms in similar industries show that private firms spend from 5 to 12 times the rate of highway agencies. The problem of how much to spend on research is difficult both for private-sector and for public-sector enterprises. The level of research spending is shown to correlate well with both profitability and growth in U.S. firms. Four methods used for making research decisions in the private sector are discussed. The goals of the Strategic Transportation Research Study (STRS), which is being conducted by the Transportation Research Board to examine highway and transportation needs, are described.
Published Version
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