Publications - Working Papers IER SAS

The US has long been a country that spends a considerable amount of Money on research and development. In recent years, however, their status has been jeopardized by the adoption of legislation to reduce the budget deficits at federal level. These measures bring with them automatic cuts in federal government spending, which will also affect areas of research and development support. This working paper provides an analysis of the federal R & D support structure and the assessment of Budget Consolidation Act current impact. We examine the position of individual US states and compare their intensity of support for R & D with selected EU countries. We further argue, that federal assistance is distributed across the US to multiple performers, largely interlinked with private R & D support and activities, which means that federal funds cuts may not have an immediate negative impact, especially if publicprivate partnership and cooperation will continue to function. This could be further supported with an indirect form of financial assistance where, compared to other advanced economies, the US has relatively large scope for motivating R & D activity of companies.