such as "basic research," "applied research," or "in- 

 novation." The planning and financing of R&D are 

 also conducted primarily on an institutional basis 

 rather than by stages, projects, or programs. 



Each of these subsystems has a distinct orienta- 

 tion. According to Nolting's estimates, fundamental 

 research is concentrated overwhelmingly in the acad- 

 emy system, which accounts for roughly 67 to 79 per- 

 cent of the total. About 10 to 13 percent is per- 

 formed in the VUZy and from 8 to 23 percent in branch 

 R&D organizations. The latter, however, conduct the 

 vast bulk (90 to 95 percent) of officially reported 

 applied scientific research and development. Only 

 about 5 to 10 percent of official applied R&D is done 

 by the academies of sciences and the VUZy together. ^° 

 Though the amount of R&D performed in the VUZy has 

 grown recently, higher educational institutions re- 

 main preoccupied with pedagogical functions. This 

 predominantly teaching orientation reflects the So- 

 viet pattern of research and education which has long 

 been based on a degree of separation of the two that 

 is much greater than in the United States. 



In terms of expenditures and manpower, the academy 

 system employs 9 percent of all scientific workers 

 and receives 8 percent of official allocations for 

 R&D. Branch scientific institutions of all kinds 

 have 58 percent of the scientific workers and 80 per- 

 cent of the official science budget. Higher educa- 

 tional institutions account for 28 percent and 9 per- 

 cent, respectively. Only 3 percent of all scientific 

 personnel and 2 percent of official science expendi- 

 tures are concentrated in production enterprises and 

 organizations . -*-° 



Organizational dissociation and administrative 

 fragmentation are important features — and conse- 

 quences — of this tripartite division of the R&D sys- 

 tem. Each of these institutional networks is a re- 

 latively independent administrative hierarchy. Each 

 has its own distinct focus, set of interests, reward 

 structure, and approaches to the R&D function. All 

 three subsystems, moreover, are separated generally 



46 



