Financing of the Science by Government and Business (Cross-country Comparisons)

Abstract

Cross-country comparisons of government and business spending on scientific research depending on the size of the country’s economy per capita GDP are carried out. The indicators of scientific funding for four groups that differ in per capita GDP are studied. Based on the analysis of the financing of scientific research by business, the differences in the approaches of financing for countries that differ in the specialization of the economy are shown. A comparison of Russia’s position with the BRICS countries, the Group of Seven and a group of economically developed countries are carried out. Based on the analysis groups of countries are identified that differ in their approach to the development of high-tech and low-tech sectors of the economy regardless of their per capita GDP. It is shown that the financing of scientific research by business increases with the growth of per capita GDP to about 35 thousand US dollars at purchasing power parity, after that it does not change to about 70 thousand US dollars at purchasing power parity, after which it begins to decline. The differences between business financing of scientific research for countries whose economies are focused on the development of high-tech industries, with diversified economies and economies focused on extractive industries or financial services are shown. It is shown that the differences in approaches to the financing of scientific research by the state for the selected types of economies are significantly less than the differences in the financing of science by business.