The Economic Behaviour of Research Institutions in Developing Countries — Some Methodological Points

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Abstract
The capacity to make policy for the regulation and control of scientific and technological activities has recently begun to occupy the thoughts of decision- makers in many developing countries. An important aspect of this general problem is how to monitor and control the activities of research institutes so as to maximize their impact on social and economic development, which in turn implies the capability to assess, in a meaningful and efficient way, the present behaviour of a heterogeneous collection of such establishments. This paper argues that an assessment procedure which relies on traditional cost-benefit techniques to provide appropriate guidelines is in general not to be recommended. An alternative methodology is proposed in which research establishments are examined as optimally behaving institutes. Deviations from idealized behaviour can then be used as a basis from which to make and execute policy.

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