Abstract
The measurement of real research and development (R&D) expenditures is an issue for discussion, especially forcountries with a high inflation, when general price indices do not correctly reflect trends in the cost of performing R&D. Theaim of this paper is to present the procedure for the calculation of R&D price indices for Ukraine, which takes into accountspecific features of the country’s research system. The paper analyses the theoretical background of the measurement of realR&D expenditures and methodological approaches to the calculation of R&D price indices. We have applied a FrascatiManual recommendation, according to which components of R&D expenditure are deflated by specific price indices. Theexperimental calculations of real R&D expenditures for Ukraine for the period 2001-2010 and the construction of R&D priceindices are presented in this paper. The results obtained are new for Ukrainian statistics and they will be used in R&Dstatistics practice in Ukraine.
Highlights
A number of scientific publications are devoted to problems of the impact of research and development (R&D) on economic growth and the estimation of real expenditure on R&D [1,2,3,4,5,6,7,8,9,10]
The Bureau of Economic Analysis (BEA)’s experts’ conclusions are based on a model of the innovator, where the innovation is a result of R&D, and the price of innovation is equal to the expected discounted volume of profit associated with the adoption of the innovation
The R&D price index ІR&D is calculated as a ratio of the deflated R&D expenditure to the volume of R&D
Summary
A number of scientific publications are devoted to problems of the impact of R&D on economic growth and the estimation of real expenditure on R&D [1,2,3,4,5,6,7,8,9,10]. The Frascati Manual suggests that deflators have to be used, as this helps to eliminate differences in prices It recommends the use of indices that allow changes in the weights of the components of R&D expenditure. The BEA’s experts’ conclusions are based on a model of the innovator, where the innovation is a result of R&D, and the price of innovation is equal to the expected discounted volume of profit associated with the adoption of the innovation They propose calculating two indices for measuring real R&D expenditure [7]:. Other material costs and other current costs are aggregated into one indicator This approach is based on the results of an OECD survey, which showed that the deflation of each type of cost is a rather complex procedure. Type of R&D expenditure Wages & salaries expenditure Other current expenditure Capital expenditure
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