Pretesting of Respondent Letters for the Survey of Industrial Research & Development

D R A F T

February XX, 2008 (cover letter)

Dear company representative:

Enclosed is the Survey of Industrial Research and Development (SIRD), form RD-1. We ask that you complete and return the survey by Month/Day, 2008. If you need assistance, please contact us at (800) 851-2014 (select option 0) between the hours of 8:00 am 5:00 pm (EST) Monday through Friday.

The SIRD is an annual survey conducted since 1953. It is conducted jointly by the National Science Foundation (NSF) and the U.S. Census Bureau. The SIRD is the primary source of statistics on private sector R&D activity in the U.S. The survey collects data on, among other things:

• Costs incurred for R&D by type of R&D (basic and applied research, and development);

• Major type of expense (e.g., salaries and wages, materials and supplies, etc.);

• Location of R&D performance by state and by country;

• Receipts;

• Employment.

The survey is based on a sample of approximately 32,000 companies out of a population of nearly 2 million. Most companies new to the survey were chosen randomly from the population to represent other companies of similar size and type.

The aggregate data provided by companies like yours are used by Federal, State, and local governments, academia, and the private sector. The SIRD provides information on expenditures for research and development that public officials use to examine R&D tax credits, allocate research funding by state, and compare R&D spending in this country with other countries to ensure that U.S. businesses are not at a competitive disadvantage. Your company's participation is vital to the accuracy of the data that the survey provides.

More information about the SIRD, including contact information for personal assistance, a list of frequently asked questions, and a PDF version of the form, is available online at

http://bhs.econ.census.gov/BHS/RD/index.html

An electronic reporting option is also available:

http://bhs.econ.census.gov/BHS/RD/ElecRepRD.html.

Your user ID (UID) and password are pre-printed on the enclosed survey form.

Your response to this survey is required by law (Title 13, U.S. Code). By the same law, we are required to keep your information confidential. Only persons sworn to protect Title 13 information will see your data. The data you report will be aggregated to produce summary statistics. You can view publications from past surveys at the NSF website:

http://www.nsf.gov/sbe/srs/indus/start.htm

Thanks in advance for your assistance with this important survey.

Sincerely,

, Chief

Division

U.S. Census Bureau