The level and organization of the financing system for research and development is one of the most important development-related issues in contemporary knowledge-based economies.
(The continuation of these considerations can be found in the comments below).
In view of the above, the current question is: The issue of financing research and development works from the funds of the national public finance sector?
Please, answer, comments. I invite you to the discussion.
The level and organization of the financing system for research and development is one of the most important development-related issues in contemporary knowledge-based economies.
In my country there are various financial support systems for scientific research. When developing interesting research projects, there is currently no problem with financing their implementation. There are various agencies functioning within the state administration system and operating within the public sector as well as commercial investment funds that are willing to subsidize innovative research projects. There is basically no problem with financing of investment projects. On the other hand, the developing country is characterized by, however, a significantly lower income level of the population compared to the income earned by the citizens of highly developed countries. This quarter is correlated with the country's production potential and level of development, including equipment for technology, the degree of innovation, work efficiency, generated value added in production processes, etc. In this respect, there is a large variation in the situation of comparing developed and developing countries. These economic and production issues are correlated with the inflow of funds to the state budget for taxes. Taking into account this issue, i.e. the level of expenditure from the state budget on the research and development sector, in my country much less is spent on these research and development goals as a percentage. expenditures from the state budget in comparison with the richest developed countries. Thus, we can formulate a thesis that the issue of research and development is unfortunately not treated privately, which is strange since we operate in the age of knowledge-based economies, in which the main factors of production include information, technologies, innovations, patents, rationalization solutions, etc. Relatively lower The level of financing R & D from the central public finance funds does not correlate with the claim that the economy belongs to countries where the fourth technological revolution is currently being described as Industry 4.0.
I invite you to the discussion.
Financing research projects using financial resources from public finance system funds is particularly important in the case of high budget research, for which the issue of profitability in the situation of industrial implementation of research results in the coming years could not be satisfactorily achieved for entities operating commercially. Commercial banks that also sometimes finance research projects include banks and investment funds. However, without a high probability of generating high profitability from the research results to business activity after a few years, usually these commercial entities are not interested in financing research projects burdened with high risk of failure of the entire research project or failure to achieve high profitability after the implementation of the results achieved in industrial scale. research. In this situation, it is necessary to provide financial support for high-budget research projects from the public finance system funds. Such projects include, for example, research work aimed at creating new technological solutions in the field of renewable energy sources, ecological innovations applied in large power plants, e.g. based on photovoltaic technology, atomic energy, electromobility of the motor industry, transmission and storage of energy in energy-saving batteries , improving automated waste sorting and recycling techniques. Research in this area is necessary in the context of the progressing global warming. The probel of global warming is most likely to be the greatest challenge of humanity in the 21st century. This will be a challenge primarily in the financing of large research and implementation projects in the field of renewable energy sources etc. As some of those necessary for implementation of investment projects may have low profitability in the first years of operation, commercial financial institutions may not be interested in this type of financing. research and implementation works. In this situation, it is necessary to provide financial support for high-budget research projects from the public finance system funds.
In view of the above, the current question is: The issue of financing research and development works from the funds of the national public finance sector?
Please, answer, comments. I invite you to the discussion.
Dear Emmanuel V Murray, Thank you very much for participating in this discussion. Best wishes,
Have a nice day,
Dariusz Prokopowicz
Revered Professor Dariousz Prokopowicz,
This is my opinion. The finance for R&D is to be allocated by the Government that is usual practice but now a days the Private Organisations are ready to find for R&D in order to strengthen the system functioning well.
It is possible in Developed Countries where as in the Developing Countries situation are totally different. In such case, it is welcomed to finance from Private Institutions also.
Regards
Senapathy
Dear Senapathy Marisennayya, Thank you very much for participating in this discussion and for a substantive, constructive reply.
Thank you very much and best regards, Have a nice day,
Dariusz Prokopowicz
An example of financing important, developmental research projects, financing important for the development of scientific research are grants and subsidies from public funds of the state, which financed research work on the development of new methods of treating Covid-19 disease and new types of vaccines against the SARS-CoV-2 coronavirus . Without these financial support programs for the development of research work, solving the problem of the SARS-CoV-2 (Covid-19) coronavirus pandemic, solving the problem of the health crisis, economic crisis, etc. would be much more difficult, and perhaps completely impossible.
Best wishes,
Dariusz Prokopowicz