jects and input requirements without the necessity of 

 allocation by lump sum. Similarly, the lesser prior- 

 ity attached to decisions at this level implies that 

 funding is by no means a guarantee that real resour- 

 ces can be commanded if not allotted in production 

 and distribution plans. Thus, the importance and 

 priority of the particular input in question deter- 

 mines the extent to which funding decisions can have 

 an active role, especially at this level. 



Taken together, then, these various factors and 

 considerations illustrate that the allocation of fi- 

 nancial resources to research and development is an 

 integral feature of Soviet planning. They also de- 

 monstrate the predominantly hierarchical nature of 

 financial planning as well as the relative importance 

 of various sources of funding. The degree to which 

 financial mechanisms are an "active" planning control 

 instrument is largely a function of the level and 

 priority of the decision and decision maker. 



In addition to these features, a few other basic 

 points about Soviet resource planning and allocation 

 merit brief mention. 



First, insufficient attention is given to the 

 utilization of resources. Only since the late 1960s 

 have authorities gradually become aware of constraints 

 on resources and concerned about the effectiveness of 

 their use. However, analytical work is still defi- 

 cient in this sphere, in large part because the whole 

 system of planning, financing, and management of R&D 

 remains basically input-oriented rather than output- 

 oriented. 



A major aim, in fact, of the increased stress on 

 the programmed-goals approach is to help shift the 

 focus of planning, policy, and performance toward end 

 results. "By directly connecting goals and resources, 

 expenditures and output, programming methods of plan- 

 ning create a real basis for objectively evaluating 

 the effectiveness of resource utilization, for choos- 

 ing rational decisions, and for optimizing inter- 

 branch proportions," according to one group of So- 

 ld 



