In 1971 Lord (Victor) Rothschild published his report for the government, The organisation and management of government R&D, and Sir Peter Medawar launched a campaign for the election of Sir Karl Popper to Fellowship of the Royal Society. We explore these two developments in the contexts of the then current views of the role and purpose of science, and their underpinning philosophy. Although the political battle was won by Rothschild, resulting in major changes to the funding and management of applied R&D, we argue that, despite this, Medawar's campaign for Popper provided an embattled science community with a philosophical basis for defending pure research and the unity of basic and applied science.