Government funding of applied research in Russia

Since 2005, the government funding of basic and applied research in Russia has been growing at different rates. However, no impressive results have been reached so far in high-tech production. It's share in total export volume hasn't significantly grow. The economy of Russia heavily depends on high-tech imports. Decreasing of the state budget in terms of economic instability and low oil prices leads to new risks and the need to find new ways of R&D expenditures management in order to increase their effectiveness. The aim is to analyze government spending on applied research in the total research spending, in the context of government programs and codes of budget classification and to make recommendations for improving the quality of state funding applied research. The methodology is based on analysis of budget expenditures in the context of government programs. The study has focus on the dynamics of changes in public spending on applied research in comparison with the dynamics of change in the total expenditure on science. It has revealed the changes in the amounts of applied research funding under government programs in 2014–2015. Expenditures on applied research are presented with a breakdown as per budget classification codes. The government expenditures on applied research in the context of government programs of industrial production are analyzed. Recommendations are given how to improve the quality of budgetary spending on applied science.