The state of university science and engineering research capabilities is considered. Attention is directed to the need for improving and enhancing the research infrastructure, including support for instrumentation, buildings, and other related research facilities. U.S. universities and colleges are encountering severe facilities and instrumentation problems. Federal funding to universities has recently been made in political, rather than peer review, circumstances. Recently, several universities have attempted to alleviate their infrastructural problems through direct solicitation to the Congress, thereby by-passing any peer-group review, which is based on scientific merits of specific proposals, in open competition. Constraints to the research infrastructure in U.S. universities include equipment, space, support personnel, graduate student support, and the ability to handle the information explosion and to translate new information into practice. In addition, universities face increased indirect costs. The attractiveness of an academic career is being diminished by an environment that provides outdated equipment and inadequate laboratory space. Tax incentives to business and equipment grants by the federal government are important catalysts in the development of university-industry research partnerships. (SW)