Abstract
The study here analyses the structure and organisational behaviour of research organisations in the presence of shrinking budgets. A vital case study of large public research institution in Italy is investigated since it has a similar structure to other European research bodies. Empirical analysis shows negative rates of growth of human resources which are due to austerity programmes of governments to reduce public debt. Results support a pessimistic scenario for this public research body that might downsize the personnel of about 50% in the year 2024 or thereabouts, causing negative effects on performances of the national system of innovation. The method and findings provide vital information to policymakers for understanding the strategic change of public research institutions during environmental turbulence. Fruitful R&D management implications of human resources conclude the paper.
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