How to Cite
Abstract
Leszek Balcerowicz’s article on backwardness annuity (Renta zacofania, Wprost weekly, 5 December 2004) caused stir in Poland’s research community, raising widespread indignation. The three key ideas of that article were as follows: 1. the scope of budgetary and non-budgetary funding for R&D depends on the achieved level of economic development; 2. selection of funding priorities for budgetary funding should be preceded by consideration of all alternative goals; 3. less developed countries which are trying to catch up with the world’s leaders can seek advantage not as much in their own R&D as in foreign R&D, obtained through foreign investments, licensing etc. When challenging Balcerowicz’s views one must consider that while his formulation of the issue may have been columnistlike, simplified, abridged and deprived of nuances, he did present opinions which can largely find empirical foundation and, moreover, those which are in line with views harboured by many economists. One might even undertake to elaborate upon, reinforce Balcerowicz’s views and find empirical proofs. The article discusses the ‘scientific background’ underlying Balcerowicz’s opinions and observes that strong counter-arguments against his third claim have been emerging for some time, based both on econometric research (Bert Verspagen’s findings) and experience of less developed countries (biotechnology investments in India or the rise of outsourcing, also in R&D).
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