Authors: Professor Deshmukh Girija Sudhir
Abstract: Background: RD funding is a cornerstone for defining an innovation ecosystem and national competitiveness, and inclusive economic development. The R&D finance architecture has changed significantly over the past few years, as can be witnessed by the growing use of private sources, hybrid financial instruments, or mission-oriented investment by the public sector. But lack of access, institutional silos, and the failure to leverage new financing models have left an unwelcome chasm between what we have and what we need in terms of R&D systems. Objective: The purpose of this study is to examine the typologies, mechanisms, and systemic obstacles of R&D funding. It does so, in particular, by examining the impact of various funding models (public, private, hybrid, and decentralized) on the ability of an innovation system to produce innovative outcomes inclusively. The study also aims to identify strategic imperatives towards the development of equitable and resilient financing frameworks, especially in the case of developing economies. Methods: A qualitative-descriptive approach was used, based on secondary data from papers in peer-reviewed journals, policy reports, and institutional data available in the past 10 years. Analysis: A thematic analysis approach was applied to synthesise findings across geographies and sectors of the funding architecture, governance, and access equity. Results: show an increasing centralization of R&D spending in leading institutions and sectors, whereas front-line innovation and neglected actors are under-financed. Tax incentives and competitive grants are widely used instruments, whereas the new models of impact bonds and decentralized science platforms are emergent. Geographic, institutional, and design-based structural inequities endure throughout funding ecosystems. Conclusion: The paper suggests that financing of R&D should shift from volume-based approaches to ones that are inclusive, learning-oriented, and strategically focused. A new financing architecture— based on openness, fairness, and mission alignment—can harness the power of innovation for the benefit of society as a whole.
