The gross expenditure on the R&D expressed in the GDP percentage have been increasing during the resent years (Fig. 3) and in 2001 reached 0.69 % of GDP. This occurred due to highly increased R&D expenditure in the business sector during the recent years, that in 2001 reached 0.20 % of GDP. Although the expenditure in the business sector decreased, the gross expenditure in the R&D sector, expressed in percents of GDP, remained on the same level, and the absolute expenditure per year had increased from 331.1 million LTL in 2001 to 381.8 in 2003.
The amount of the state budget allocations for research and higher education institutions depends on the level and productivity of the research conducted by it. In addition, the methodology of allocation of funds promotes the participation in the EU framework programmes, other international programmes, as well as entering into contracts with business entities.
Figure 3. Gross expenditure on R&D (GERD) and R&D expenditure in the business sector (BERD) as a percentage of GDP
The State Science and Studies Foundation funds research on the competitive basis. The Foundation promotes complex research and the research comprising various research fields, supports the R&D carried out under the contracts with business entities, as well as the research carried out under international agreements.
The state budget allocations to the State Science and Studies Foundation to finance R&D and to sponsor the researchers are constantly being increased, and in 2002 reached 12 million LTL.