Historically, universities have been the principal performers of basic research in the United States, but they are now joined by federal government laboratories, independent research centers, and industrial laboratories. This paper reviews the available data on issues concerning the distribution of R&D resources among cate- gories of research performers. It then discusses the changing relationships and increased competition between universities and other R&D performers. Focus is on changes and trends in university-industry relationships in the past 10 years, includ- ing weakened bonds from 1945 to 1970, international comparisons, prospects for closer relationships, and encouragement of university-industry knowledge transfer. It is concluded that universities and private sector firms seem anxious to rediscover and reinforce the ties between them. Specific government programs may help, but their importance is not clear. Effective university-industry links depend most on the two partners' own incentives to promote the flow of people and ideas. (Author/LBH)