PUBLIC FINANCING OF RESEARCH AND DEVELOPMENT IN PRIORITY SCIENCE AND TECHNOLOGY AREAS: NATIONAL CHARACTERISTICS
1 Dobrov Institute for Scientific and Technological Potential and Science History Studies of the NAS of Ukraine
Nauka naukozn. 2021, 3(113): 20-38
Section: Problems of the development of science and technology potential
Abstract: While OECD governments invested significant funds in research and development (R&D), Ukraine features the more and more pronounced downward trend in budgetary funding of R&D Ukraine. A comparative analysis of the government R&D financing in Ukraine and OECD countries will be topical given the importance of preservation and performance enhancement of the Ukrainian R&D. As limited financial resources of the government cannot allow for performing R&D in all the priority thematic fields, this raises the importance of their updating and informed selection.
The article’s objective is to present the results of a study of current trends in the financial support of the R&D sector in Ukraine, and changes in the dynamics and structure of national science and technology priorities and their compliance with global trends; to discuss the author’s approach to setting up and financing priority thematic areas of scientific research.
Results of a comparative analysis of budgetary R&D expenditure in Ukraine and selected OECD countries revealed the gap between the budgetary funding of R&D in Ukraine and global trends; they showed that the government spending in OECD countries was the main source of funds for basic research, and gave the authors evidence for substantiating the expediency of a significant increase in the government support to basic, exploratory and applied research in Ukraine.
An in-depth analysis of the structural change in the budgetary funding of priority science and technology areas in Ukraine was made. A review of data on R&D funding from the US federal budget was carried out. Data on the investment allocated by the US government in priority science and technology areas are given. It is demonstrated that the budgetary expenditure for R&D in Ukraine in all the priority areas were extremely low if compared with developed countries.
It is concluded that Ukraine needs to radically change the approach to capacity building in R&D, especially its financing, in keeping with current global trends, and to create an effective mechanism for priority setting in the science & technology field and coordination of research with consideration to the competitive advantages of domestic research and forecasts, as well as global trends in science and technology.
Keywords: research and development, public budget, government financing of research and development, priority areas of science and technology, basic research, applied research.
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