Efficient Contracting in the R&D Sector: Key Parameters

Abstract

In 2012, the Russian government drew up a plan for improving the system of research remuneration by implementing the so-called «efficient contract» model in public R&D organizations. The details of this government initiative, however, still remain unclear, as do specific implementation arrangements.

The paper provides the results of focus groups, held by the Higher School of Economics, in order to identify potential parameters of efficient contract modeling in the R&D sector. The discussions involved representatives from the State Academies of Sciences, universities and government research centers. Among issues raised were the organization of labor and remuneration system in the R&D sector, productivity of scientific activities, institutional conditions for a transition to «efficient contracts», and factors affecting the loyalty of researchers.

Major conclusions presented in the paper include recommendations for salaries and for the research remuneration system for R&D personnel. In the authors’ view, one of the key parameters of an efficient research contract should be a «fair» minimum salary guaranteed by the government.

Another recommendations in reference to R&D evaluation is that efficient contracts should guarantee not only fair rewards but also competitive selection in order to prevent an excessive inflow of the workforce from other sectors of the economy.

Finally, the paper discusses problems of funding and the institutional development of the R&D sector. In the authors’ view, it will hardly be possible to build a high-performing system of efficient contracts without implementing profound reforms restructuring the R&D sector («selection of the best»), improving the funding system (finding additional sources of investment, streamlining the operation of public science foundations), modernizing the physical infrastructure, and arranging for the conservation of Russian scientific schools and attracting young talent.