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The public research organizations that conduct research exclusively in the areas that have not been included in the list of Priority Directions of Development of Research and Techniques and the List of Critical Technologies of RF121 should be liquidated or privatized. It appears nec essary to consider the possibility for consolidation of research organizations of the same profile (regardless of their departmental affiliation) co existing in single territories, in the frame of integration with the universities, and as central research organizations branches.

Research organizations that conduct operations of the regional or local scale should be re assigned under control of the respective Subjects of RF or local self governance bodies. It should also become possible to re assign institutions of a double and even triple subordination under control of a sole founder.

Approved by the RF President in March 30, 2002 (No. Pr 577, No. Pr 578).

The property and incomplete construction objects that would be come available resulting from the reform should be sold, with the re spective proceeds being used, as a complementary source of targeted financing on, solidifying the research organizations material and tech nical base and developing the research and innovation infrastructure122.

To select organizations whose organizational and legal form should be modified, the following criteria should be used: the nature of re search and development, the organizations size, the existence of unique research equipment, the level of development of research con tacts. However, the criteria were too generalized and poorly justified and had no indicative values.

It should be noted that such research efforts deal with analysis of mostly government owned organizations, and the differentiation of ap proaches is made by sectors (the public, including academic, sector;

the sector for higher education; the business sector), rather than by research organizations organizational and legal forms.

The main principle underlying the academic sector reform became a re orientation to those research avenues where the national science holds leading positions, while for the higher education sector that be came integration of research with education and fostering thus already emerged or newly emerging integration structures.

However, the suggested reform approaches and avenues were not coordinated with the analysis of budget expenditures on maintenance of the research organizations network. Furthermore, the suggested re form concept fell short of classifying budget institutions as a separate group.

Meanwhile, a number of provisions of the suggested measures are worth consideration while developing scenarios of reforming the re search budget institutions network. Those are, for instance, considera tion of their profile, development of mechanisms of integration of aca demic research with university one, establishment of new organizations, particularly by using various organizational and legal forms, the prob lem of identification of areas to which the funds that would be come available due to the reform should be allocated.

Mindeli L.E., Gudkova A.A. Struktura seti nauchnykh organizatsiy: puti transformatsiii.

M., TSISN, 2004, p. 46.

The research along the other avenue allowed such recommenda tions on improvement of the budgeting in the area of financing R&Das introducing amendments to the budget classification, undertaking measures aimed at development of targeted forms and methods of fi nancing by reducing departmental ones and, in particular, boosting the proportion of federal targeted programs in the budgetary financing, increasing the proportion of the targeted government order, extending the practice of co financing from the budget and extra budgetary sources, and the budget institutions reform that should stimulate con traction in their number and provide for a strict separation of public in stitutions funded on the basis of estimates from other organizations that were granted funds and are currently financed in the targeted manner.

The noted research avenue focused solely on the structure and ave nues of spending budgetary funds, without an analysis of how the budget institutions network reform could impact the budget of the re search sector.

The noted research avenues appear to some extent mutually com plementary, but unfortunately they do not provide any, at least, expert, assessments of the scale of and effects from the budgetary research institutions reform.

4.3.2. Reforming the research institutions network The reform of the network of research institutions of various organ izational and legal forms was launched back in the late 1990s. It was implemented in a strict accordance to the departmental principle. The classification of the reform implementation options rests upon which agency was dealing with the issue. There were three basic reform op tions: that of the Russian Academy of Sciences (RAS), the Ministry of Education and the Ministry of Industry, Research and Technologies.

The Reform in the RAS system. The RAS reform was carried out mostly by means of cosmetic modifications and attempts to develop cooperation with other research sub sectors.

In 2002, RAS undertook a number of practical steps to restructure its research activities along three major lines:

Kitova G., Kuznetsova T. Analiz raskhodov federalnogo budgheta na NIOKR. M.: Tsenr fisklnoy politiki, 2001.

1) Changing the number of RAS departments in parallel with the re spective adjusting of the number of departmental institutions.

The RAS leadership has consolidated and enlarged a number of the institutions. However, shortly after the reorganization the institutions once again began separating and splitting from each other and by the end of the year their number grew by 4% vis a vis the late 1990s.

2) Introducing the tender based system of funding research.

The Presidium of RAS issued an edict on introduction of Main Guide lines of Planning Research Activities of the Research Organization of RAS. According to the document, RAS modified the organization of planned operations and reporting procedures. The fundamental con cept was to strengthen the tender based procedures that should underlie the R&D plans funded from the budget.

The Bureaus of RAS Departments were granted with the right to re ject unpromising research topics and reallocate funds to carry out pri ority fundamental research (that presumably was to allow cutting off non competitive research projects). However, in practice the new pro cedures have resulted in the rise of document traffic, while the principle of competition failed to be mirrored in the adopted documents, there were no announcements on tenders, as well as no identifications of po tential rivals.

3) Change in the number of research staff of RAS institutions.

In late 2002, the Presidium of RAS approved an order on a 4% re duction of the number of staffers of research institutions under RAS.

The order failed to be implemented. More than that, the overall number of the RAS staff grew, because new research centres were established under its aegis.

The 2003 inventory of research institutions put an end to operations of 45 of them, which, nonetheless, did not mean a contraction in an ab solute number of the RAS institutions, for their liquidation gave a rise to new ones that deal with promising directions of development of re search. The RAS Presidiums policy is aimed at precluding its research institutions from privatization and keeping the Academy as a omnipo tent ministry in control of budget resources and the network of its own productive research institutions.

Reforms in the sector for university research. In this particular sec tor, organizational modifications were taking two main tracks: namely, change in the number of research institutions under universities and granting a special status to universities that conduct voluminous R&D projects. The Ministry of Education allocated budget funds on research at its subordinated universities basing primarily on the program princi ple, rather than basic principle, with 82% of the budget funds allocated basing on the tender procedures124.

Between 1998 and 2000 in the university sector, 17 research institu tions were assigned to universities. In 2002, the Ministry of Education ruled to liquidate another 20 research institutions and create on their basis objects of the innovation infrastructure. By the moment of the launch of the 2004 administrative reform the restructuring of the univer sity research centres network (the concept for which was either to transform them into independent organizations not associated with uni versities, or integrate as structural divisions in universities) had been far from completion.

As concerns granting a special status to universities that intensively conduct research, the development of criteria for such an organiza tional modifications was underway for several years. Experts identified over 50 criteria that should help select such universities. The main set of parameters was similar to those applied to overseas research universi ties: an intense research and innovation activity, the presence of highly qualified researchers and faculty, a certain (greater than the average statistical) scale of training of highly qualified personnel, intense con nections with other, both domestic and overseas, organizations. The leading university should also serve as a centre of the cultural and so cial development in its territory. It was envisaged that the status of lead ing university should be granted on the basis of competition for the term of five years together with a complementary budget funding; plus, it should grant the university with freedom to build its own tuition pro grams.

The adoption of the concept of leading university has been sus pended so far. Instead, there was proposed a concept that implied sin gling out 2030 universities that conducted fundamental research, From the address of M. Strikhanov, Deputy Minister of Education of RF at the conven tion of the Russian Public Council for Development of Education, November 20, 2003// Vestnik Rossiyskogo obschestvennogo soveta po razvitiyu obrazovania. Issue 9. M.: GU VSHE, 2004, p. 43.

which should be receiving a guaranteed support from the federal budget. Plus, the Ministry of Education and Science raised an idea of creating research universities, which implied the emergence of new in tegration structures on the basis of interaction between universities and academic (RAS) institutions, and public research centres.

Development of the perspective model of organization of research activities. The 20022003 inventory of the national research organiza tions conducted under the auspices of the Ministry of Industry, Science and Technologies has resulted in development of a fundamental proce dure and approaches to reforming both budget institutions and federal public unitary enterprises.

It was suggested to reduce the number of existing budget institu tions under state academies. In parallel with that, it was suggested to increase the number of budget institutions under various government agencies and universities that received budget funding on the basis of the topic based plan and orders of the Ministry of Education (once known as the combined commissioned order) to conduct research and development operations. It was also planned to introduce a new form, non for profit organization, however the Ministry was going to grant this form to not more than 25 50 institutions, while the others were to be privatized, in this form or another.

The fundamental ideas that underlay the restructuring were as fol lows: academic institutions that conduct high quality R&D should retain their status of budget institutions, while less successful academic or ganizations should perform the research servicing functions. A part of academic institutions may become commercial structures, remaining at the same time within the academy system. As concerns organizations that are service providers to government agencies, as well as those op erating in the area of defence, national security, standardization, etc., they should remain in the public sector as budget institutions.

The experts have failed to develop strict criteria of identification of organizations that should continue to keep the organizational and legal form of budget institution.

So, presently there exist only several generalized approaches to re forming the research organizations network, while there is no justified assessment of the scale of reductions and form of transformations of budget institutions in this particular sphere.

Promising forms of interaction between academic (RAS) budget in stitutions and public universities.

Integration between budget research institutions and universities can form one of main avenues of transformations in the academic (RAS) sector, which should boost the quality of both research and edu cation.

The process of integration between research and education started yet in the late 1990s. At the time, it was supported by the state and overseas sponsors. As a result, there emerged tuition and research centres (TRC) and research and educational centres (REC).

The rise of TRCs was generated by implementation of the (initially Presidential and later the Federal targeted) program entitled Integra tion between research and higher education in Russia). The program was intended to solve a number of problems (training specialists in TRCs majors at the respective university departments and chairs, con ducting the profile research, attracting to that the faculty, post graduates, PhD candidates and students, using the TRCs material and technical base for organization of the tuition process, employing re search outputs in production and education process, etc.).

The Program outputs evidence that its implementation was domi nated by the issue of integration in the area of education and staff train ing for the sake of their greater orientation to research, that is why the major Program output influenced that particular sphere.

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