TY - JOUR

T1 - Investments in research infrastructure on the project level: Problems, methods and mechanisms

AU - Novikova, Tatyana S.

N1 - Funding Information: The proposed approach was tested for the project of Pilot Catalyst Production Center of Collective Usage of the Siberian Branch of the Russian Academy of Science. In the situation without support, this project is characterized by a negative level of financial efficiency and cannot be implemented in the private sector. At the same time, its level of economic efficiency is at an exceptionally high level. This combination provides the basis for significant budget funding during the investment period, complemented by indirect support during the operational period. Private investment financing by the example of a bank loan also helps to increase financial efficiency. As a result, a mutually beneficial combination of interests of various participants is provided. We found that various government support measures have a significant impact only at certain stages of the project. The main impact on the financial efficiency of research infrastructure projects is found at the investment stage through direct support measures, complemented by private funding. Indirect support measures only work successfully during the operational stage. Experimental calculations for the project of Pilot Catalyst Production Center of Collective Usage show that stimulating investment in research infrastructure depends on the choice of a certain combination of contractual relations between project participants and corresponding forms of government support. Publisher Copyright: © 2021 Elsevier Ltd

PY - 2022/4

Y1 - 2022/4

N2 - Evaluation of infrastructure projects usually involves the separate application of financial or economic analysis to assess return on investment. In this paper we have developed a modified approach that includes additional public effects and their distribution between project participants in the financial and economic model of the research infrastructure project. Evaluation methods are based on the transition from financial to economic efficiency by adjusting cash flows and including indirect effects (impact of technological spillovers), externalities (knowledge spillovers and ecological effects) and tax effects. Policy and practical implications are closely examined with a focus on the distributional effects for the Core Facility Project of the Catalyst Center in Novosibirsk Academic Town. The results show that a significant excess of economic returns compared to financial returns is determined mainly by the indirect benefits of private participants who use the results of the project, but are not direct participants in this project. The main impact on the financial efficiency arises at the investment stage through direct support measures, complemented by private funding. Indirect support measures only work successfully during the operational stage. Stimulation of the investments in research infrastructure through government support essentially depends on the choice of a certain combination of government support instruments and project financing.

AB - Evaluation of infrastructure projects usually involves the separate application of financial or economic analysis to assess return on investment. In this paper we have developed a modified approach that includes additional public effects and their distribution between project participants in the financial and economic model of the research infrastructure project. Evaluation methods are based on the transition from financial to economic efficiency by adjusting cash flows and including indirect effects (impact of technological spillovers), externalities (knowledge spillovers and ecological effects) and tax effects. Policy and practical implications are closely examined with a focus on the distributional effects for the Core Facility Project of the Catalyst Center in Novosibirsk Academic Town. The results show that a significant excess of economic returns compared to financial returns is determined mainly by the indirect benefits of private participants who use the results of the project, but are not direct participants in this project. The main impact on the financial efficiency arises at the investment stage through direct support measures, complemented by private funding. Indirect support measures only work successfully during the operational stage. Stimulation of the investments in research infrastructure through government support essentially depends on the choice of a certain combination of government support instruments and project financing.

KW - Financial and economic efficiency

KW - Investment project

KW - Redistribution effects

KW - Research infrastructure

UR - http://www.scopus.com/inward/record.url?scp=85117891787&partnerID=8YFLogxK

U2 - 10.1016/j.evalprogplan.2021.102018

DO - 10.1016/j.evalprogplan.2021.102018

M3 - Article

C2 - 34711416

AN - SCOPUS:85117891787

VL - 91

JO - Evaluation and Program Planning

JF - Evaluation and Program Planning

SN - 0149-7189

M1 - 102018

ER -