Main Approaches to Research and Development Financing from Budgetary and Extra-Budgetary Sources in Russia and Several Foreign Countries

Introduction. The relevance of this paper is due to the importance of research and development for the economic performance of countries. The object of the study is to identify key features and regularities in the sphere of financing of research and development in the Russian Federation and foreign countries. The subject of the study is to analyze the volume and structure of research and development expenditures in the countries for the purposes of their comparative analysis with the corresponding volume and structure in the Russian Federation. The scientific problem, which the research covered in this article is aimed at solving, is to determine whether the volume and structure of R&D financing in Russia are in line with the global trends in R&D financing established as a result of this study. Methods. Such methods of analysis as general scientific, formal-legal, comparative-legal and system-structural were used in the study. Results and Discussion. The financing of research and development of each analyzed country has its own peculiarities. In the UK, the share of public expenditure on R&D is small, with the largest amount of public funding going to universities, which account for around 80 % of non-commercial R&D expenditure. In Germany, the business and higher education sectors account for the largest share of total domestic expenditure on research and development (hereinafter referred to as DERD). Three mechanisms are used to finance organizations: basic, through commercial orders, and government project financing. The primary financiers in the United States include federal government bodies, private industries, universities, and charitable foundations. A notable feature is the dominance of private investments, facilitated by a variety of grant and cooperative programs. In China, a clear trend is observed: the larger the potential funding for a project, the less freedom in selecting the project's topic. In Japan, a significant portion of R&D expenses is borne by the business sector, with experimental development being the predominant type of work. India employs two main mechanisms for funding research and development: program-targeted and grant-based. The Central Government serves as the primary source of funding. In the Russian Federation, the principal sources of DERD funding are the state and business sectors. Simultaneously, there is a trend in regulatory legal acts toward specifying the financing object. Competitive selection is the most prevalent method of fund allocation. Funding is more frequently allocated to scientific teams for basic and exploratory research, while legal entities receive more funding for targeted and applied research. Conclusion. The main funding sources include the state budget, scientific funds, science and technology agencies, loans, and grants. In Russia, there is an increased focus on ensuring the efficient and effective use of state resources. The non-profit sector accounts for the smallest share of financing in all the countries considered. The establishment of science and technology agencies is a crucial factor in supporting and developing high-tech manufacturing.