dustry, the share of contract financing had climbed 

 to roughly 20 percent and 38 percent, respectively. 

 In some academy facilities in the Ukraine this figure 

 is much higher. In the Institute for Superhard Ma- 

 terials and the Physico-Mechanical Institute, for ex- 

 ample, contracts accounted in 1975 for 69 percent and 

 70 percent, respectively, of the total work.3-> 



The degree of contract financing in university fa- 

 cilities also varies considerably. In some technical 

 schools and departments, the share is extremely high. 

 Overall, in fact, contracts account for about 80 per- 

 cent of all VUZy R&D. This high share reflects the 

 concentration of VUZy research and development in 

 branch laboratories, which are entirely financed 

 through contracts made with the branch ministries. 3° 

 During the period 1971 through 1975 the volume of R&D 

 financed through the State Budget rose by 38 percent 

 while contract receipts increased by 78 percent.-*' 



In the enterprise or production association sever- 

 al sources of funds are available for financing inno- 

 vation and R&D-related work. These include the Spe- 

 cial Fund for Financing Scientific Research of its 

 parent ministry as well as State Bank credits. The 

 largest source of financing is its own special pur- 

 pose funds: (1) the Unified Fund for the Development 

 of Science and Technology; (2) the Fund for Assimila- 

 tion of New Technology; (3) the Fund for Development 

 of Production. These funds are used to finance re- 

 search, development, and innovation conducted both by 

 enterprise scientific subdivisions and by outside 

 performers under contract. 3° In general, Berliner 

 concludes that "the organization of the supply of fi- 

 nancial resources for R&D appears to be no problem 

 for the innovating enterprise."-^ The real problem 

 is to create the will to innovate. Human motivation 

 is the commodity in short supply, not material and 

 fiscal resources. 



On the whole, financial allotments at this level 

 of R&D tend to be passive. Decisions at the level of 

 the institute, design bureau, enterprise, and asso- 

 ciation can be related more easily to specific pro- 



100 



