countries which continued to create and reinforce their R&D research basis during the period of 1970-80 (Bulgaria, Hungary end Poland). The stabilization of this Index In other countries (the USSR end Czechoslovakia.) can be explained to a certain degree by the fact that before the 70s they achieved a definite optimum In forming their S&T potentiality which was maintained by balanced growth of both constituent elements of the Index (expenditures and scientific personnel) during the subsequent years. Preservation of optimum proportions between the various types of R&D activities (fun,damental research. applied research and development) expressed as ratios of current expenditures by the above types constitutes an Important prerequlslt~·for organic coordination of S&T policy and structural pol Icy of a country. In the 70s In the majority of the European CMEA member States these proportions on the average were 151, 331 and 521 respec­ tively. At the same time there Is a tendency to real locate R and D resources In favour of applied research and developments. Consequently the share of expenditures on fundamental research has become lower. For comparison one can point out that lately the relative share of resources allocated for the development of -'-fundamental· research In the majority of Industrially developed capltalls~· countries was somewhat higher than In the European CMEA member states. For example, In 1975-76 the share of fundamental research resources In the total R&D resources ellocatlns was 26~11 In the Federal Republic of Germany, 21.41 In France, 23.01 In Canada, 20.61 In Italy, 20.11 In Finland, 19.81 1n Norway and 19.01 In _Sweden. In principle the optimum ratios between the types of R&D. activities depend on many factors among which I~ Is necessary to take Into account the level and existing orientations of sclentl~ ftc end technological development of a given country, the specia­
**Analysis**
The text appears to be discussing the development of research and development (R&D) in various countries, particularly in Eastern Europe, and comparing it to other industrialized countries. The text highlights the importance of balancing different types of R&D activities, such as fundamental research, applied research, and development, and how this balance can affect a country's scientific and technological potential.

**Category**
Science and technology, Economic development