An Investment Model for University R&D Financing: Theoretical Framework and Practical Solutions

Russian universities are increasingly involved in pursuing the national objective of technological leadership by adopting new approaches to the organisation and financing of research and development (R&D). The state-driven shift toward the creation of innovative products with commercialisation potential calls for a new paradigm in assessing research performance – one that prioritises the efficiency of R&D expenditures. Leading institutions are moving from a cost-based R&D funding model to an investment model, in which projects are evaluated according to their prospective commercial value and return on investment. A comprehensive description of this model is still largely absent from the academic literature. The present study seeks to conceptualise an investment model of university R&D funding by building its theoretical framework and aggregating advanced practical solutions. Employing a set of complementary methods – namely theoretical modelling, systems analysis, and the examination of government policy papers and university documents – the study traces the transformation of university R&D funding from a cost-oriented to an investment-oriented approach. It concludes that the investment model assigns the university the active role of an investor focused on generating profit from the commercialisation of intellectual property assets and on attracting extrabudgetary R&D funding from industrial partners. The paper proposes a theoretical construct of the model, outlining its principal characteristics and stages of implementation. Based on an analysis of practices at leading Russian universities, six key trends in the model’s formation are identified and illustrated with concrete institutional examples. Overall, the article attempts to systematise both the content and the practices associated with the investment model of university R&D funding, thereby contributing to the theoretical understanding of how research financing in Russian higher education is being transformed under contemporary conditions.

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