Abstract
The purpose of this paper is to analyse relation of Research and Development (R&D) Performance indicators with R&D Expenditures made by the Higher Education (HE) sector and to identify other types of determinants of performance indicators in Latvia and Baltic States. Research helps to determine whether increase of financing promotes improvement of R&D performance indicators. HE performance indicators and their relation to R&D expenditures in Baltic States were compared.Authors concluded that several performance indicators relate to the expenditure level in the HE sectors, however certain indicators do not relate to expenditures. Furthermore, the authors concluded that policy of funding should be more performance based.
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