This policy statement looks at America's basic research enterprise and lays out the processes and systematic reforms needed to meet emerging risks to the outcomes from investments in basic research. The Committee for Economic Development (CED) undertook this project in the belief that significant progress with many of society's problems and new discoveries will primarily depend upon fundamental scientific insights derived from basic research. Fourteen recommendations include: (1) Policymakers in Congress and the Administration should set broad national priorities for basic research that reflect the needs of society at large; (2) Federal support for basic research should continue to be diverse in its sources and objectives; (3) Within broad priorities established by policymakers, the primary mechanisms for allocating federal basic research funds in all agencies and to all institutions should be based on scientific merit determined through peer review; (4) Basic research should be a high priority in the federal budget in the decades to come; (5) Leadership and productivity of the nation's research universities should continue to guide other institutions receiving federal support; (6) Mechanisms should be devised to allow researchers to compete for longer-term funding, and administrative burdens from granting agencies should be reduced; (7) Development of simplified system for determining indirect costs; (8) Clear definition of the missions of the Department of Energy's national laboratories and realignment of missions and functions; (9) Government should not be in the business of directly funding the development and commercialization of technologies; (10) The federal government should continue to play a major role in funding large-scale infrastructure projects that are used extensively by many; (11) Raising of academic achievement in math and science in grades K-12 through adoption of nationals, policies to increase teacher knowledge and skills, and upgrades in classroom curricula, facilities, and teaching materials; (12) Higher prioritization of graduate training and increased federal funding of scholarships and training grants; (13) Industry-university relations and university patenting and licensing should be directed towards maximizing benefits for society at large; and (14) Expansion of U.S. efforts to benefit from international collaboration and the globalization of basic research. Two appendixes are included: (1) Overview of Resources for Basic Research; and (2) University Patenting Guidelines. (Contains 81 notes and 21 figures.)