The Nature of Financial Mechanisms for Scientific and Technological Activities in Universities.

Figure 2 depicts the market for a technological good. In this case, the social cost of production is lower than the private cost - expressed as

supply curve. Specifically, the social cost of producing a technology is equal to the private cost minus the value of technology diffusion. Therefore, policy makers aiming to maximize social welfare will choose a larger quantity of technology than the private market. In this case, the government can internalize the externality by subsidizing research and development activities. If the government subsidizes firms that undertake R&D activities, the supply curve will shift downward by the amount of the subsidy, and this shift increases the equilibrium quantity of technology. To ensure that the equilibrium coincides with the socially optimal level, the subsidy must be equal to the value of technology diffusion.

How large is the scale of technological diffusion, and what are its implications for public policy? This is an important question, because technological progress is the key to increasing living standards from generation to generation. However, it is also a difficult question on which economists often disagree. Many economists believe that technological diffusion has far-reaching effects and that governments should encourage industries that promote large-scale technological diffusion.

From the above analysis, we come to the conclusion that funding for science and technology activities is the responsibility of both the state and enterprises. In which, enterprises fund applied research and development activities; while the state is the sponsor for basic research, and at the same time supports other activities.

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applied research and development. The state's responsibility is thus very great for the development of science and technology.

1.1.2.2. The nature of financial mechanisms for scientific and technological activities in universities.

According to the Dictionary of Economic Terms, the financial mechanism is “the totality of measures and forms of organization and management of the process of creating, distributing and using financial resources in the national economy. The financial mechanism must be suitable and adaptable to the economic management mechanism of each stage of social development. [75 pp.120-121]. Therefore, the financial mechanism for science and technology is the totality of measures and forms of organization and management of the process of creating, distributing and using financial resources for science and technology activities in universities.

The financial mechanism for science and technology activities in universities has common characteristics like the financial mechanism in the economy and in business activities.

Science and technology activities in general. These are measures and forms of organization and management of the creation, distribution and use of financial resources for science and technology activities. Therefore, it shows the relationship of benefit distribution between the state and the science and technology sector, between the sector and the units operating in the sector, between the units operating in the sector with each other, as well as between scientific researchers and the units in which they operate. Because of having to resolve the relationship of benefits, the financial mechanism in general, the financial mechanism for science and technology activities in particular, is very sensitive. It is related to the distribution of social capital. Correct distribution will promote the development of the economy in general, science and technology activities in particular, and vice versa.

For universities, the financial mechanism for science and technology activities reflects the movement of financial resources between the school and society to ensure science and technology activities in universities, thereby the relationship of interests between the school on one side, with the school's affiliated units, lecturers, researchers, the State, businesses, residents and consumers, and domestic and foreign social organizations is realized.

The nature of the financial mechanism for science and technology activities in universities is reflected in the following main aspects:

Firstly, the financial mechanism reflects the financial relationship between the school and the society. Scientific research is an intellectual activity that is carried out in a very diverse way. Basically, research topics can be carried out by an individual or a group of scientists. However, the research products are also ordered or ordered by an organization to organize the research implementation.

The organization that conducts research, development, and scientific services can be a scientific research institute, a center for applied research and development or scientific services, or a university that organizes the implementation of the topic. In current terminology in our country, it is called the host agency.

topic. Through the agency in charge of the topic, researchers receive research projects, implement them, and have them accepted, evaluated, and put into practical application.

In society, there are many agencies in charge of topics, each agency has different characteristics, different functions and tasks, and scientific research in each agency in charge of topics has different roles and effects.

The university is the host agency for research topics, assigning research tasks to scientists in faculties, departments under the university and to lecturers of the university. However, faculties, departments and individual scientists can also host research topics through exploiting and signing research contracts directly with units that have demand for research products. Relationships that arise in the activities

The scientific research activity is summarized in the following figure 3.

Figure 3: Relationships in scientific research activities at universities

State

(central and local)

Universities: Faculties, departments, research centers and individual scientists

Businesses in the economy

Population consumes scientific research products

Social organizations

For these relationships to be realized certain conditions must be met.

First of all, we must talk about the state's responsibility in developing science and technology, which is reflected in the state's development and implementation of strategies and plans for science and technology development in each period, making science and technology the basis and an important content in the development and implementation of strategies, plans, programs, and projects for socio-economic development to ensure national defense and security.

The State must be responsible for investing in building and developing endogenous capacity, training human resources, fostering and promoting talents in science and technology; promoting international cooperation; encouraging universities and individuals to invest in developing science and technology; and effectively using all science and technology resources.

The State must ensure stable and continuous development of basic research in scientific fields, especially in some specific scientific fields;

Promote applied research in the fields of science and technology, focusing on technology development, especially high technology and new technology; Promote the application of science and technology results; develop science and technology services; build and develop the science and technology market; encourage innovation, technical improvement, production rationalization, dissemination of science and technology knowledge and practical experience, create favorable conditions for science and technology associations to fulfill their responsibilities. The State has policies to encourage scientific research and technology development activities, popularize the application of science and technology achievements, strengthen science and technology human resources and transfer technology to the grassroots, focusing on

areas with particularly difficult socio-economic conditions.

For universities, it is necessary to carry out activities serving scientific research and technological development; activities related to intellectual property, technology transfer; services on information, consulting, training, fostering, dissemination and application of scientific and technological knowledge and practical experience. Universities have the task of conducting scientific research and technological development, combining

training with scientific research and production, science and technology services. At the same time, the university also has the task of conducting basic research, implementing priority and key science and technology tasks of the state and scientific research on education.

In universities, research, development, application and scientific service organizations such as institutes and research centers... operate according to the law to develop science and technology, disseminate knowledge, improve people's knowledge, train human resources, foster talents in science and technology; promote initiatives, improve techniques, rationalize production, apply scientific and technological achievements to socio-economic development, ensure national defense and security. Organize and motivate

Members participate in consulting, criticizing, social appraisal and conducting activities.

science and technology movement

For scientists, their task is to provide quality research products. Their research products meet the needs of school development, of the population, of businesses and of the state, then that work is applied in practice, their task is completed, they are paid for the research products and vice versa.

Citizens, businesses, and organizations are users of research products. In a market economy, they have to pay for the research products they use.

All of these raise a key issue: for science and technology to develop, it is necessary to invest resources, from human resources to facilities, and ultimately financial resources for this field to operate. These resources are formed from the state, enterprises, agencies, social organizations and the school itself. The scale of financial resources invested in universities reflects the relationship between universities and society. Under certain conditions, the more financial resources a university can mobilize for science and technology, the more important the university is, the greater its contributions and the closer its relationship with society.

Second, financial resources for science and technology activities in schools

University funding is very diverse, including sources from the state budget, from businesses and from social organizations, both domestic and foreign.

From the characteristics of funding for science and technology activities as analyzed above, it can be seen that financial sources for science and technology activities in universities include financial sources from the State, enterprises, social organizations, both domestic and foreign.

- Financial resources from the state budget for science and technology activities. Financial investment from the state budget for science and technology is the process of distributing and using a part of the state budget capital to maintain and develop science and technology activities according to the principle of no direct repayment. This is the implementation of the allocation of state financial resources for science and technology activities. This investment source has the following characteristics:

+ Financial resources from the state budget invested in science and technology activities not only

Not only does it provide financial resources to maintain and strengthen scientific and technological activities, it also has the effect of guiding and adjusting scientific and technological research and development activities according to the State's policies.

In a centrally planned economy like the former Soviet Union and Vietnam, all financial resources for investment in scientific and technological research are guaranteed by the state budget. All investments in scientific and technological research, from basic construction, in-depth investment, development of organizations, institutes, scientific research centers, salary payments for research staff, implementation of research programs and topics, etc. are guaranteed by the state budget.

In the conditions of a market economy, financial resources for investment in science and technology activities are very diverse. In countries with a market economy, financial resources for investment in scientific research are formed from the state budget, enterprises, from research institutions themselves, from social organizations and from funding from international organizations. The proportion of financial resources for science in each country is different, but in general, countries have policies to invest from the state budget in scientific research institutions and universities to create financial investment sources for science and technology activities.

+ Financial resources from the State budget serve science and technology activities in key areas, prioritizing the implementation of tasks to improve social benefits; Conducting oriented basic research in scientific fields; Maintaining and developing science and technology potential; Providing funds for state science and technology development.

water; Building material and technical facilities, investing in depth in state research and development organizations; Supporting enterprises to conduct applied research and develop technology in key priority areas.

+ Financial resources from the State budget for investment in science and technology in universities can be allocated directly from the State budget through the managing ministries and the managing ministries provide to the universities according to the research plan. However, financial resources from the State budget can also be allocated to ministries, branches and localities according to development requirements, then the ministries and branches and

Local authorities grant research contracts to universities.

- Non-state budgetary financial resources for science and technology activities

Developing science and technology brings practical benefits to both individuals and society. When science and technology products have social characteristics, organizations, businesses, individuals, families and communities all have the responsibility to contribute their efforts, intelligence and money to develop science and technology activities. Therefore, paying attention to the issue of developing science and technology activities is the right and responsibility of the whole society to realize the goal of socializing science and technology, diversifying financial sources for investment in science and technology activities, implementing the motto "the state and the people work together".

In the world, especially in countries with developed market economies, the rate

Investment in science and technology outside the state budget (industrial sector) is very high. Finland, USA, Germany, Ireland, Taiwan over 60%; Japan, Korea, Sweden over 70%; especially Luxembourg up to 91.0%. (See table 1)

Non-state budgetary financial resources for science are meant to enhance the responsibility of enterprises and individuals using science and technology products in production and business activities to improve economic efficiency. It enhances the social responsibility of organizations and individuals participating in activities.

science and technology activities. It exploits the potential of enterprises and economic organizations to reduce state budget expenditures. It increases research investment sources.

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