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The study research is devoted to the analysis of the effectiveness of public spending on scientific research and experimental development (hereinafter - R & D), providing intellectual capital growth and the economy reindustrialization. The urgency of this problem is confirmed by the fact that Russia currently holds a leading position in the world for public funding of research and development (70%), but has a relatively low level of patent activity and imports technology three times more than it exports. Production of the technologies not attractive for business at the expense of the budget is the most important problem hindering enhance of national competitiveness and technological independence, taking into account the current economic and geopolitical challenges. The aims and objectives of the study include following: the development of methodology for assessing the efficiency of public spending on R & D to address the economic, social problems and problems of state security. The study shows that the efficiency of public spending undertaken by public authorities, as the main managers of budgetary funds can be evaluated and analyzed based on strategic targets, as well as basic and advanced performance indicators of investment in R & D. This assessment will, if necessary, timely adjust the direction of spending in order to achieve maximum cost-effectiveness. We prove that the assessment of the public spending on R & D effectiveness is an essential element of public administration that provides reindustrialization by creating a critical mass as a fundamentally new technologies and techniques removing import dependence. It has been revealed that the developed method defines a single approach to monitor the effectiveness of the federal executive authorities, aimed at developing an innovative economy that provides a transition to more efficient management models of R & D investment. Key indicators and the procedure for determining the effectiveness of public financial support for the implementation of research, development and engineering works, and use of R & D results into economic circulation have also been identified in order to ensure sustainable economic development. It is concluded that the method of evaluating of the public spending on R & D effectiveness, proposed by the authors, will help to make timely management decisions contributing to the achievement of economic, social problems and problems of state security. In turn, this should facilitate the transition to a new model of innovation development of economy based on the timing of investment flows in research and development, patent activity, as well as the import of technologies, licenses and high-tech products. DOI: 10.5901/mjss.2015.v6n4p250

Methods of Assessing the Efficiency of Public Spending on Research and Development Design Work