Abstract:
The purpose of the study is to quantify the impact of the economic position of high-tech industry on the funding of applied research and development (R&D). Special attention is paid to the impact of industry economic problems on funding of applied sciences: whether the research and development expenditures decline, or they may grow? The latter is possible since the tightening of the industry increases its interest in new technologies allowing it to adapt to more severe conditions. However, as the economic situation of the sector has been deteriorating, it reduces its resource capabilities. The main objectives are to assess the economically profitable level of R&D expenditures depending on the parameters of «hardness» of conditions, in which the industry operates; as well as to assess the possibilities of the industry to allocate funds for research and development depending on its economic situation. As an example, we considered the civil aviation industry and the impact of the increased cost of aviation fuel on the economic situation of the sector and on the funding of the development of technologies aimed to reduce fuel consumption. We considered a model of Cournot duopoly in the markets of aircraft. According to the model, competitors determine the optimal expenditure on research and development by the criterion of maximum net profit (i. e. operating profit excluding these expenditures). We take into account the nonlinear nature of the relationship between R&D cost and the R&D efficiency. Initial data for parametric calculations correspond to the real parameters of scientific and technological development of the industry at the present stage. Using the proposed model, we have identified the conditions under which the deterioration of the economic situation of the aircraft industry due to the increased cost of jet fuel will increase and reduce the level of applied R&D funding.
