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Funding of science
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==Methodology to measure science funding== The guidelines for R&D data collections are laid down in the [[Frascati Manual]] published by the [[OECD]].<ref name=":1">{{Cite book |last=OECD |url=https://www.oecd-ilibrary.org/science-and-technology/frascati-manual-2015_9789264239012-en |title=Frascati Manual 2015: Guidelines for Collecting and Reporting Data on Research and Experimental Development |date=2015-10-08 |publisher=OECD |isbn=978-92-64-23880-0 |series=The Measurement of Scientific, Technological and Innovation Activities |language=en |doi=10.1787/9789264239012-en |archive-date=2023-08-21 |access-date=2022-03-28 |archive-url=https://web.archive.org/web/20230821120149/https://www.oecd-ilibrary.org/science-and-technology/frascati-manual-2015_9789264239012-en |url-status=live }}</ref> In the publication, R&D denotes three type of activity: basic research, applied research and experimental development. This definition does not cover innovation but it may feed into the innovative process. Business sector innovation has a dedicated OECD manual.<ref>{{Cite book |last1=OECD |url=https://www.oecd-ilibrary.org/science-and-technology/oslo-manual-2018_9789264304604-en |title=Oslo Manual 2018: Guidelines for Collecting, Reporting and Using Data on Innovation, 4th Edition |date=2018-10-22 |publisher=OECD |isbn=978-92-64-30455-0 |series=The Measurement of Scientific, Technological and Innovation Activities |language=en |doi=10.1787/9789264304604-en |s2cid=239892975 |archive-date=2023-08-13 |access-date=2022-03-28 |archive-url=https://web.archive.org/web/20230813123058/https://www.oecd-ilibrary.org/science-and-technology/oslo-manual-2018_9789264304604-en |url-status=live }}</ref> The most frequently used measurement for R&D is Gross domestic expenditure on R&D ([[GERD]]). GERD is often represented in GERD-to-GDP ratios, as it allows for easier comparisons between countries. The data collection for GERD is based on reporting by performers. GERD differentiates according to the funding sector (business, enterprise, government, higher education, private non-profit, rest of the world) and the sector of performance (all funding sectors with the exception of rest of the world as GERD only measures activity within the territory of a country). The two may coincide for example when government funds government performed R&D.{{cn|date=March 2025}} Government funded science also may be measured by the Government budget appropriations and outlays for R&D (GBAORD/ GBARD). GBARD is a funder-based method, it denotes what governments committed to R&D (even if final payment might be different). GERD-source of funding-government and GBARD are not directly comparable. On data collection, GERD is performer based, GBARD is funder. The level of government considered also differs: GERD may include spending by all levels of the government (federal β state β local), whereas GBARD excludes the local level and often lacks state level data. On geographic coverage, GERD takes into account performance within the territory of a country whereas GBARD also payments to the Rest of the world. {{cn|date=March 2025}} Comparisons on the effectiveness of both the different sources of funding and sectors of performance as well as their interplay have been made.<ref>{{Cite journal |last1=Guellec |first1=Dominique |last2=Van Pottelsberghe de la Potterie |first2=Bruno |date=July 2004 |title=From R&D to Productivity Growth: Do the Institutional Settings and the Source of Funds of R&D Matter? |url=https://onlinelibrary.wiley.com/doi/10.1111/j.1468-0084.2004.00083.x |journal=Oxford Bulletin of Economics and Statistics |language=en |volume=66 |issue=3 |pages=353β378 |doi=10.1111/j.1468-0084.2004.00083.x |s2cid=59568599 |issn=0305-9049 |archive-date=2023-04-29 |access-date=2022-03-28 |archive-url=https://web.archive.org/web/20230429155956/https://onlinelibrary.wiley.com/doi/10.1111/j.1468-0084.2004.00083.x |url-status=live |url-access=subscription }}</ref> The analysis often boils down to whether public and private finance show crowding-in or crowding-out patterns.<ref>{{Cite journal |last1=David |first1=Paul A. |last2=Hall |first2=Bronwyn H. |last3=Toole |first3=Andrew A. |date=2000-04-01 |title=Is public R&D a complement or substitute for private R&D? A review of the econometric evidence |url=https://www.sciencedirect.com/science/article/pii/S0048733399000876 |journal=Research Policy |language=en |volume=29 |issue=4 |pages=497β529 |doi=10.1016/S0048-7333(99)00087-6 |s2cid=1590956 |issn=0048-7333 |archive-date=2012-02-01 |access-date=2022-04-06 |archive-url=https://web.archive.org/web/20120201080311/http://www.sciencedirect.com/science/article/pii/S0048733399000876 |url-status=live }}</ref><ref>{{Cite journal |last1=Rehman |first1=Naqeeb Ur |last2=Hysa |first2=Eglantina |last3=Mao |first3=Xuxin |date=2020-01-01 |title=Does public R&D complement or crowd-out private R&D in pre and post economic crisis of 2008? |journal=Journal of Applied Economics |volume=23 |issue=1 |pages=349β371 |doi=10.1080/15140326.2020.1762341 |s2cid=225720398 |issn=1514-0326|doi-access=free }}</ref>
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