Abstract
The article discusses the future of a non-profit research and development organization. The nonprofit research and development organization as a concept is linked with the rise of federal government expenditures for research and development (R&D) and national defense. The future of the nonprofits is a difficult problem, in part because of cutbacks in defense spending or decreases in the rate of growth of this spending. Undoubtedly, these decreases do create problems for the nonprofits because so much of their business is in the federal government research and defense sector and their future is threatened by the difficulties of converting defense to nondefense industries through disarmament. However, the imperative question of the future of nonprofits needs to be addressed even if conversion problems and decreasing military expenditures were not factors in this future. Even though the military will continue to be a major customer for most nonprofits for some time to come, innovation is the most crucial area for the nonprofits. In a sense, the nonprofits have only innovation to offer. Given that nonprofits are concerned with advanced research, development, and technology, innovation represents the creativity and technical discipline which advances research, development, and technology. Innovation for nonprofit depends on both its freedom for effective research and its capacity to perform research.