Great advances have been made in fundamental scientific research in recent years. The new knowledge gathered, in addition to deepening our understanding of the physical universe, contributes a range of abilities and opportunities to society that would not otherwise be available. Much research that may be called applied because it addresses needs of society is quite fundamental in character, and support of such research at the National Science Foundation is to be handled in tandem by the research directorates. Other areas that require a refocusing of support are engineering science and education, at all levels, in science and engineering. Increasing our strength in these areas is essential to achieve our national economic, social, and political goals. Steps are being taken by the National Science Foundation to make its structure better able to deal with engineering and applied research and to provide greater mutual reinforcement between applied and basic research.