Experts covered by an RBC daily survey indicate that appropriations for science are divided in the unbalanced way where R&D institutions, with little input for practical life, get the major benefits, unlike in Western countries, while competitive enterprises and universities are cut off with a shilling.
      
       This latter group enjoys as little as 6% and 5% respectively, as estimated by Mr Gokhberg, provost of the Higher School of Economics, whereas the USA ploughs 75% into commercial companies. These are the two major research sectors. So far, Russia gives out half of the budget funds for the Academy of Sciences and leading research centers, with under 20% channeled to further cutting edge technologies.
      
       Currently, 70% of Russian scientific centres are state-run, with the average salary at some 7,000 roubles ($250) per month. In terms of the number of scientific staff, this country has no match in the world, but in terms of the effective innovation policy Russia is as behind as the 69th place. The research stake in the 2006 budget is 71.7bn roubles ($2.56bn).
      
       Late in last year the Ministry of Education and Science proposed a re-structuring scheme: first work out transparent assessment criteria for research projects, then cut down the number of scientific institutions, which would naturally boost finances for top priority spheres, including the pays of leading and most promising researchers. Furthermore, chiefs of R&D offices have some federal real estate in their permanent possession. The ministry now wants to have centralized control over all the financial flows.
      
       The innovation, however, encountered severe resistance on the part of the academy’s leadership, including Gennady Mesyats and Zhores Alfyorov and at the same time backup from the government, specifically by the economic development minister Mr Gref, which seeks to turn the Academy into a small group of innovation-conscious scientists. Recently Russian property management office inspected financial issues of the Academy, which revealed that from 2001 to 2002 the largest share of investment contracts dealing with real estate and top notch land resources has been concluded without any tenders, estimations of the assets and proper official contracts.
      
       Since the government has now sided with the education ministry, they will start to work out how to re-allocate funds. Appropriation schemes as well as property management system do not function as they should be, believe academicians. The sensitive spot lies at the project selection stage where the rules are not transparent.
      
       Sometimes money cannot get through all the barriers and reach laboratories: It is common knowledge now that if it is the Academy that distributes the grants, the performer might receive as little as 50% to 5%. “We should zero in on furthering management standards within our field, raising the image and status of our mission”, says Mr Cherkasov, managing director of the Nauka I Budushchee (Science and Future) Fund. The fund embarked upon the development of a monitoring strategy for research works ready to define the benchmark for projects involving the input of thousands of scientists. They feel it could work this way and are open for cooperation with the Academy of Sciences.