Investments in research infrastructure on the project level: Problems, methods and mechanisms.

Evaluation of infrastructure projects usually involves the separate application of financial or economic analysis to assess return on investment. In this paper we have developed a modified approach that includes additional public effects and their distribution between project participants in the financial and economic model of the research infrastructure project. Evaluation methods are based on the transition from financial to economic efficiency by adjusting cash flows and including indirect effects (impact of technological spillovers), externalities (knowledge spillovers and ecological effects) and tax effects. Policy and practical implications are closely examined with a focus on the distributional effects for the Core Facility Project of the Catalyst Center in Novosibirsk Academic Town. The results show that a significant excess of economic returns compared to financial returns is determined mainly by the indirect benefits of private participants who use the results of the project, but are not direct participants in this project. The main impact on the financial efficiency arises at the investment stage through direct support measures, complemented by private funding. Indirect support measures only work successfully during the operational stage. Stimulation of the investments in research infrastructure through government support essentially depends on the choice of a certain combination of government support instruments and project financing.