a much smaller portion of the activities of industri- 

 al applied R&D institutes. According to one recent 

 estimate, central budgetary allocations cover, on the 

 average, only about 20 to 25 percent of the work of 

 branch scientific organizations and about 15 percent 

 of the expenditures of industrial enterprises related 

 to "scientific and technical progress. ZJ 



Budget grants are made directly to the intermedi- 

 ate level management organs — the academies of sci- 

 ences, the Ministry of Higher and Specialized Second- 

 ary Education, the branch ministries, and the GKNT. 

 The size of the grants is negotiated and coordinated 

 by the GKNT. In recent years, about 30 percent of 

 the budgetary allocations for science has been ear- 

 marked for the "basic S&T problems," which fall un- 

 der the general responsibility of the GKNT. The re- 

 maining 70 percent has been distributed to the min- 

 istries and other major agencies to be used at their 

 discretion. The "discretion" of these organs in dis- 

 tributing the funds — also largely in the form of 

 block grants — to performer organizations depends upon 

 the extent to which the latter' s activities are ac- 

 counted for in the all-union, branch, and republic 

 plans. In such instances, the funds may be "desig- 

 nated" and the intermediate level management organ 

 serves merely as a conduit. Sometimes, the facility 

 itself proposes these projects. In any case the to- 

 tal size of a facility's budget allocation is not 

 likely to fluctuate widely as a consequence of vari- 

 ation in the number and size of projects of all-union 

 and branch importance. In other words, work not ac- 

 counted for in all-union and branch tasking in total 

 tends to fluctuate in size and accordingly is funded 

 to furnish stability to facility activities. 



The experience of the Ukrainian Academy of Sci- 

 ences in the 1960s illustrates this phenomenon as 

 well as the hierarchical funding procedure: 



At the beginning of each year, the State Com- 

 mittee for Science and Technology negotiates 

 with the Ministry of Finance an overall pre- 

 liminary sum. On the basis of the proposal 



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