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Article covers obstacles and trends of science and higher education financing relatively theirs integration for human capital and innovation process activation necessity for Russian Federation. On the base of Russian and other countries experience it was shown in the article that endogenous growth models in economic theory are aimed at the assessment of science and education expenses as economic background to increase human capital quality and it’s provisions for dynamics of growth. Necessity for knowledge spillover effects inclusion in addition to human capital is explained in methodological part. Definition of this meanings and their evaluation in a model is given. Definitions of empirical model is elaborated with tested hypothesis validating interconnection of GRP growth with indicators on education expenditures with regard to spillover effects. Idea is proposed that all this spheres generating human capital while promoting advances in science were experiencing lack of financing in comparison to their possible influence on growth. Besides it is expected that expenditures on higher education will create knowledge spillover that will positively affect the dynamics of economic growth in the regions. Main goal of the paper is to obtain estimations of science and higher education financing influence on regional economic growth alongside with spillover effects. Government based statistics on 80 regions was used. It was proven that expenditures on higher education generated spillovers between all regions of Russian Federation while promoting regional growth. Methods obtained in paper can be implemented in science development strategic plans, higher education, innovations and regions in general

Estimation of Human Capital Influence on Economic Growth in Russian Regions under Conditions of Financial Shortage