View source for Funding of science

{{Short description|Mechanisms of allocating financial resources to  research}}
{{Science|expanded=Society}}
'''Research funding''' is a term generally covering any funding for scientific [[research]], in the areas of [[natural science]], [[technology]], and [[social science]]. Different methods can be used to disburse funding, but the term often connotes funding obtained through a competitive process, in which potential research projects are evaluated and only the most promising receive funding. It is often measured via Gross domestic expenditure on R&D (GERD).

Most research funding comes from two major sources: corporations (through [[research and development]] departments) and government (primarily carried out through universities and specialized government agencies; often known as ''research councils''). A smaller amount of scientific research is funded by charitable foundations, especially in relation to developing cures for diseases such as [[cancer]], [[malaria]], and [[AIDS]].

According to the [[OECD|Organisation for Economic Co-operation and Development]] (OECD), more than 60% of [[research and development]] in scientific and technical fields is carried out by industry, and 20% and 10% respectively by [[universities]] and government.<ref>{{Cite book |url=http://www.oecd-ilibrary.org/science-and-technology/oecd-science-technology-and-industry-scoreboard-2015_sti_scoreboard-2015-en |title=OECD Science, Technology and Industry Scoreboard 2015: Innovation for growth and society |publisher=OECD |year=2015 |isbn=9789264239784 |page=156 |doi=10.1787/sti_scoreboard-2015-en |via=oecd-ilibrary.org}}</ref> Comparatively, in countries with less GDP such as [[Portugal]] and [[Mexico]], the industry contribution is significantly lower. The government funding proportion in certain industries is higher, and it dominates research in [[social science]] and [[humanities]]. In commercial research and development, all but the most research-oriented corporations focus more heavily on near-term commercialization possibilities rather than "[[Blue skies research|blue-sky]]" ideas or technologies (such as [[nuclear fusion]]).<ref>{{cite journal |last1=Taylor |first1=R.A. |year=2012 |title=Socioeconomic impacts of heat transfer research |journal=International Communications in Heat and Mass Transfer |volume=39 |issue=10 |pages=1467–1473 |doi=10.1016/j.icheatmasstransfer.2012.09.007}}</ref>

==History==
{{Unreferenced section|date=March 2023}}
Conducting research requires funds. Over the past years, funding for research has gone from a closed patronage system to which only few could contribute, to an open system with multiple funding possibilities.

In the early Zhou dynasty (-c. 6th century to 221 BCE), government officials used their resources to fund schools of thought of which they were patron. The bulk of their philosophies are still relevant, including Confucianism, Legalism and Taoism.

During the Mayan Empire (-c. 1200–1250), scientific research was funded for religious purposes. The Venus Table is developed, showing precise astronomical data about the position of Venus in the sky. In Cairo (-c. 1283), the Mamluk Sultan Qalawun funded a monumental hospital, patronizing the medical sciences over the religious sciences. Furthermore, Tycho Brahe was given an estate (-c. 1576 – 1580) by his royal patron King Frederik II, which was used to build Uraniborg, an early research institute.

=== The age of the academies ===
In 1700–1799, scientific academies became central creators of scientific knowledge. Funded by state sponsorship, societies are still free to manage scientific developments. Membership is exclusive in terms of gender, race and class, but academies open the world of research up beyond the traditional patronage system.

In 1799, Louis-Nicolas Robert patents the paper machine. When he quarrels over invention ownership, he seeks financing from the Fourdrinier brothers. In 19th century Europe, businessmen financed the application of science to industry.

In the eighteenth and nineteenth centuries, as the pace of technological progress increased before and during the [[industrial revolution]], most scientific and technological research was carried out by individual [[inventor]]s using their own funds. A system of [[patent]]s was developed to allow inventors a period of time (often twenty years) to commercialize their inventions and recoup a profit, although in practice many found this difficult.

The Manhattan Project (1942 – 1946) had cost $27 billion and employed 130,000 people, many of them scientists charged with producing the first nuclear weapons. In 1945, 70 scientists signed the Szilard petition, asking President Truman to make a demonstration of the power of the bomb before using it. Most of the signers lost their jobs in military research.

In the twentieth century, scientific and technological research became increasingly systematized, as [[corporation]]s developed, and discovered that continuous investment in [[research and development]] could be a key element of success in a competitive strategy. It remained the case, however, that imitation by competitors - circumventing or simply flouting patents, especially those registered abroad - was often just as successful a strategy for companies focused on innovation in matters of organisation and production technique, or even in marketing.

Today, many funders move towards transparent and accessible research outcomes through data repositories or Open-access mandates. Some researchers turn to crowdfunding in search of new projects to fund. Private and public foundations, governments, and others stand as an expansion of funding opportunities for researchers. As new funding sources become available, the research community grows and becomes accessible to a wider, and more diverse group of scientists.

==Methodology to measure science funding==
The guidelines for R&D data collections are laid down in the Frascati Manual published by the OECD.<ref name=":1">{{Cite book |last=OECD |url=https://www.oecd-ilibrary.org/science-and-technology/frascati-manual-2015_9789264239012-en |title=Frascati Manual 2015: Guidelines for Collecting and Reporting Data on Research and Experimental Development |date=2015-10-08 |publisher=OECD |isbn=978-92-64-23880-0 |series=The Measurement of Scientific, Technological and Innovation Activities |language=en |doi=10.1787/9789264239012-en}}</ref> In the publication, R&D denotes three type of activity: basic research, applied research and experimental development. This definition does not cover innovation but it may feed into the innovative process. Business sector innovation has a dedicated OECD manual.<ref>{{Cite book |last1=OECD |url=https://www.oecd-ilibrary.org/science-and-technology/oslo-manual-2018_9789264304604-en |title=Oslo Manual 2018: Guidelines for Collecting, Reporting and Using Data on Innovation, 4th Edition |date=2018-10-22 |publisher=OECD |isbn=978-92-64-30455-0 |series=The Measurement of Scientific, Technological and Innovation Activities |language=en |doi=10.1787/9789264304604-en |s2cid=239892975}}</ref>   

The most frequently used measurement for R&D is Gross domestic expenditure on R&D (GERD). GERD is often represented in GERD-to-GDP ratios, as it allows for easier comparisons between countries. The data collection for GERD is based on reporting by performers. GERD differentiates according to the funding sector (business, enterprise, government, higher education, private non-profit, rest of the world) and the sector of performance (all funding sectors with the exception of rest of the world as GERD only measures activity within the territory of a country). The two may coincide for example when government funds government performed R&D.

Government funded science also may be measured by the Government budget appropriations and outlays for R&D (GBAORD/ GBARD). GBARD is a funder-based method, it denotes what governments committed to R&D (even if final payment might be different). GERD-source of funding-government and GBARD are not directly comparable. On data collection, GERD is performer based, GBARD is funder. The level of government considered also differs: GERD should include spending by all levels of the government (federal – state – local), whereas GBARD excludes the local level and often lacks state level data. On geographic coverage, GERD takes into account performance within the territory of a country whereas GBARD also payments to the Rest of the world.  

Comparisons on the effectiveness of both the different sources of funding and sectors of performance as well as their interplay have been made.<ref>{{Cite journal |last1=Guellec |first1=Dominique |last2=Van Pottelsberghe de la Potterie |first2=Bruno |date=July 2004 |title=From R&D to Productivity Growth: Do the Institutional Settings and the Source of Funds of R&D Matter? |url=https://onlinelibrary.wiley.com/doi/10.1111/j.1468-0084.2004.00083.x |journal=Oxford Bulletin of Economics and Statistics |language=en |volume=66 |issue=3 |pages=353–378 |doi=10.1111/j.1468-0084.2004.00083.x |s2cid=59568599 |issn=0305-9049}}</ref> The analysis often boils down to whether public and private finance show crowding-in or crowding-out patterns.<ref>{{Cite journal |last1=David |first1=Paul A. |last2=Hall |first2=Bronwyn H. |last3=Toole |first3=Andrew A. |date=2000-04-01 |title=Is public R&D a complement or substitute for private R&D? A review of the econometric evidence |url=https://www.sciencedirect.com/science/article/pii/S0048733399000876 |journal=Research Policy |language=en |volume=29 |issue=4 |pages=497–529 |doi=10.1016/S0048-7333(99)00087-6 |s2cid=1590956 |issn=0048-7333}}</ref><ref>{{Cite journal |last1=Rehman |first1=Naqeeb Ur |last2=Hysa |first2=Eglantina |last3=Mao |first3=Xuxin |date=2020-01-01 |title=Does public R&D complement or crowd-out private R&D in pre and post economic crisis of 2008? |journal=Journal of Applied Economics |volume=23 |issue=1 |pages=349–371 |doi=10.1080/15140326.2020.1762341 |s2cid=225720398 |issn=1514-0326|doi-access=free }}</ref>

== Funding types: public and private ==
=== Public/State Funding ===
{{Main article|Science policy}}

{{See also|Research council|United States national laboratories (disambiguation){{!}}United States national laboratories|Federally funded research and development centers|label 3=List of federally-funded research and development centers (US)}}Public funding refers to activities financed by tax-payers money. This is primarily the case when the source of funds is the government. Higher education institutions are usually not completely publicly financed as they charge tuition fees and may receive funds from non-public sources.

==== Rationale for funding ====
R&D is a costly, and long-term investment to which disruptions are harmful.<ref>{{Cite journal |last=Mansfield |first=Edwin |date=February 1991 |title=Academic research and industrial innovation |url=https://linkinghub.elsevier.com/retrieve/pii/004873339190080A |journal=Research Policy |language=en |volume=20 |issue=1 |pages=1–12 |doi=10.1016/0048-7333(91)90080-A}}</ref>

The public sector has multiple reasons to fund science. The private sector is said to focus on the closer to the market stage of R&D policy, where [[wiktionary:appropriability|appropriability]] hence private returns are high.<ref name="Jones 1119–1135">{{Cite journal |last1=Jones |first1=C. I. |last2=Williams |first2=J. C. |date=1998-11-01 |title=Measuring the Social Return to R&D |url=https://academic.oup.com/qje/article-lookup/doi/10.1162/003355398555856 |journal=The Quarterly Journal of Economics |language=en |volume=113 |issue=4 |pages=1119–1135 |doi=10.1162/003355398555856 |issn=0033-5533}}</ref> Basic research is weak on appropriability and so remains risky and under-financed.<ref>{{Cite journal |last=Nelson |first=Richard R. |date=June 1959 |title=The Simple Economics of Basic Scientific Research |url=https://www.journals.uchicago.edu/doi/10.1086/258177 |journal=Journal of Political Economy |language=en |volume=67 |issue=3 |pages=297–306 |doi=10.1086/258177 |s2cid=154159452 |issn=0022-3808}}</ref><ref>{{Cite book |last=Arrow |first=K. J. |title=Readings in Industrial Economics |chapter-url=http://www.nber.org/chapters/c2144.pdf |chapter=Economic Welfare and the Allocation of Resources for Invention |publisher=Palgrave |year=1972 |pages=219–236 |isbn=978-0-333-10964-9 |location=London |doi=10.1007/978-1-349-15486-9_13 |s2cid=38456056 |oclc=}}</ref> Consequently, although governmental R&D may provide support across the R&D value chain, it is often characterized as [[Market failure]] induced intervention to maintain early-stage research where incentives to invest are low. The theory of [[Public good (economics)|public goods]] seconds this argument.<ref>{{Citation |last1=Ostrom |first1=Vincent |title=Public Goods and Public Choices |date=2019-08-26 |url=https://www.taylorfrancis.com/books/9780429706899/chapters/10.4324/9780429047978-2 |work=Alternatives for Delivering Public Services |pages=7–49 |editor-last=Savas |editor-first=E. S. |edition=1 |publisher=Routledge |language=en |doi=10.4324/9780429047978-2 |isbn=978-0-429-04797-8 |access-date=2022-04-13 |last2=Ostrom |first2=Elinor|s2cid=150900527 }}</ref> Publicly funded research often supports research fields where social rate of return is higher than private rate of return often related to appropriability potential.<ref>{{Cite journal|last1=Vuong|first1=Quan-Hoang|date=2018|title=The (ir)rational consideration of the cost of science in transition economies |journal=Nature Human Behaviour|volume=2|issue=1|pages=5|doi=10.1038/s41562-017-0281-4|pmid=30980055 |s2cid=46878093 |doi-access=free}}</ref> The general [[Free-rider problem|free rider problem]] of public goods is a threat especially in case of global public goods such as climate change research, which may lower incentives to invest by both the private sector but also other governments.<ref>{{Cite journal |last1=Archibugi |first1=Daniele |last2=Filippetti |first2=Andrea |date=2015-01-29 |title=Knowledge as Global Public Good |url=https://papers.ssrn.com/abstract=2557339 |language=en |location=Rochester, NY|ssrn=2557339 }}</ref>  

In [[Endogenous growth theory|endogenous growth theories]], R&D contributes to growth.<ref>{{Cite journal |last1=Nelson |first1=Richard R. |last2=Romer |first2=Paul M. |date=January 1996 |title=Science, Economic Growth, and Public Policy |url=https://www.tandfonline.com/doi/full/10.1080/05775132.1996.11471873 |journal=Challenge |language=en |volume=39 |issue=1 |pages=9–21 |doi=10.1080/05775132.1996.11471873 |issn=0577-5132}}</ref> Some have depicted this relationship in the inverse, claiming that growth drives innovation.<ref>{{Cite book |last=Mensch |first=Gerhard |url=https://www.worldcat.org/oclc/4036883 |title=Stalemate in technology : innovations overcome the depression |date=1979 |publisher=Ballinger Pub. Co |isbn=0-88410-611-X |location=Cambridge, Mass. |oclc=4036883}}</ref><ref>{{Cite book |last=Schmookler |first=Jacob |url=https://www.degruyter.com/document/doi/10.4159/harvard.9780674432833/html |title=Invention and Economic Growth |date=2013-10-01 |publisher=Harvard University Press |isbn=978-0-674-43283-3 |language=en |doi=10.4159/harvard.9780674432833}}</ref> Recently, (tacit) knowledge itself is said to be a source of economic driver internalized by science workers.<ref>{{Cite journal |last=Kastrinos |first=N. |date=2013-12-01 |title=The financial crisis and Greek R&D policy from a Schumpeterian perspective |url=https://academic.oup.com/spp/article-lookup/doi/10.1093/scipol/sct025 |journal=Science and Public Policy |language=en |volume=40 |issue=6 |pages=779–791 |doi=10.1093/scipol/sct025 |issn=0302-3427}}</ref> When this knowledge and/or human capital emigrates, countries face the so-called [[Human capital flight|brain–drain]]. Science policy can assist to avoid this as large shares of governmental R&D is spent on researchers and supporting staff personnel salaries.<ref name=":1" /><ref>{{Cite journal |last=Goolsbee |first=Austan |date=April 1998 |title=Does Government R&D Policy Mainly Benefit Scientists and Engineers? |url=http://www.nber.org/papers/w6532.pdf |journal=American Economic Review |language=en |location=Cambridge, MA |pages=w6532 |doi=10.3386/w6532|s2cid=2763177 }}</ref> In this sense, science funding is not only [[discretionary spending]] but also has elements of [[Mandatory spending|entitlement spending]].

R&D funded and especially performed by the State may allow greater influence over its direction.<ref>{{Cite journal |last=Mazzucato |first=Mariana |date=December 2015 |title=6. Innovation, the State and Patient Capital |url=https://onlinelibrary.wiley.com/doi/10.1111/1467-923X.12235 |journal=The Political Quarterly |language=en |volume=86 |pages=98–118 |doi=10.1111/1467-923X.12235}}</ref> This is particularly important in the case of R&D contributing to public goods. However, the ability of governments have been criticized over whether they are best positioned to pick winners and losers.<ref>{{Citation |last1=Falck |first1=Oliver |title=Arguments for and against Policies to Promote National Champions |date=2011 |url=https://mitpress.universitypressscholarship.com/10.7551/mitpress/9780262016018.001.0001/upso-9780262016018-chapter-1 |work=Industrial Policy for National Champions |publisher=The MIT Press |doi=10.7551/mitpress/9780262016018.001.0001 |isbn=978-0-262-01601-8 |access-date=2022-03-28 |last2=Gollier |first2=Christian |last3=Woessmann |first3=Ludger}}</ref> In the EU, dedicated safeguards have been enacted under a dedicated form of competition law called [[State aid (European Union)|State Aid]]. State Aid safeguards business activities from governmental interventions. This invention was largely driven by the German [[Ordoliberalism|ordoliberal]] school as to eliminate state subsidies advocated by the French [[Dirigisme|dirigiste]].<ref>{{Cite journal |last=Warlouzet |first=Laurent |date=January 2019 |title=The EEC/EU as an Evolving Compromise between French Dirigism and German Ordoliberalism (1957–1995) |url=https://doi.org/10.1111/jcms.12817 |journal=JCMS: Journal of Common Market Studies |volume=57 |issue=1 |pages=77–93 |doi=10.1111/jcms.12817 |s2cid=159378013 |issn=0021-9886}}</ref> Threats to global public goods has refueled the debate on the role of governments beyond a mere market failure fixer, the so-called mission-driven policies.<ref>{{Cite book |last=Mazzucato |first=Mariana |url=https://www.worldcat.org/oclc/841672270 |title=The entrepreneurial state : debunking public vs. private sector myths |date=2014 |isbn=978-0-85728-252-1 |edition=Revised |location=London |oclc=841672270}}</ref>

==== Funding modalities ====
Governments may fund science through different instruments such as: direct subsidies, tax credits, loans, financial instruments, regulatory measures, public procurement etc.
While direct subsidies have been the prominent instrument to fund business R&D, since the [[Financial crisis of 2007–2008|financial crisis]] a shift has taken place in OECD countries in the direction of tax breaks. The explanation seems to lay in the theoretical argument that firms know better, and in the practical benefit of lower administrative burden of such schemes.<ref name=":0">{{Cite book |last=OECD |title=OECD Science, Technology and Innovation Outlook 2020 |date=2021-01-12 |isbn=9789264391987 |language=en |chapter=Government support for business research and innovation in a world in crisis |doi=10.1787/7a7891a5-en |chapter-url=https://www.oecd-ilibrary.org/science-and-technology/oecd-science-technology-and-innovation-outlook-2021_7a7891a5-en |s2cid=242590616}}</ref> Depending on the funding type, different modalities to distribute the funds may be used. For regulatory measures, often the [[Competition law|competition/antitrust]] authorities will rule on exemptions. In case of block funding the funds may be directly allocated to given institutions such as higher education institutions with relative autonomy over their use.<ref name=":1" /> For competitive grants, governments are often assisted by research councils to distribute the funds.<ref>{{Citation |last=Lepori |first=Benedetto |title=The changing governance of research systems. Agencification and organizational differentiation in research funding organizations |date=2019 |url=https://www.elgaronline.com/view/edcoll/9781784715939/9781784715939.00034.xml |work=Handbook on Science and Public Policy |pages=448–465 |publisher=Edward Elgar Publishing |language=en |doi=10.4337/9781784715946.00034 |isbn=978-1-78471-594-6 |s2cid=197812506 |access-date=2022-03-28}}</ref> Research councils are (usually public) bodies that provide research funding in the form of research grants or [[scholarship]]s. These include arts councils and research councils for the funding of science.

==== List of research councils ====
An incomplete list of national and international pan-disciplinary public research councils:
{| class="wikitable sortable"
|-
! Name !! Location
|-
| [[National Scientific and Technical Research Council]]
| {{Flag|Argentina}}
|-
| [[Australian Research Council]], [[National Health and Medical Research Council]], [[CSIRO|Commonwealth Scientific and Industrial Research Organisation]], [[Australian Nuclear Science and Technology Organisation]], [[Australian Space Agency]], [[Defence Science and Technology Group]]
| {{Flag|Australia}}
|-
| [[Austrian Research Promotion Agency]], [[Austrian Science Fund]], [[Austrian Space Agency]]
| {{Flag|Austria}}
|-
|[[Sciensano]], [[Research Foundation - Flanders (FWO)|Research Foundation - Flanders]]
| {{Flag|Belgium}}
|-
| [[National Council for Scientific and Technological Development]], [[Brazilian Space Agency]]
| {{Flag|Brazil}}
|-
| [[National Research Council (Canada)|National Research Council]], [[Natural Sciences and Engineering Research Council]], [[Canadian Institutes of Health Research]], [[Social Sciences and Humanities Research Council]], [[Canadian Space Agency]], [[Defence Research and Development Canada]], [[Atomic Energy of Canada Limited]], [[Public Health Agency of Canada]]
| {{Flag|Canada}}
|-
| [[CONICYT|National Commission for Scientific Research and Technology]]
| {{Flag|Chile}}
|-
| [[National Natural Science Foundation of China]], [[Ministry of Science and Technology of the People's Republic of China|Ministry of Science and Technology]], [[Chinese Academy of Sciences]], [[China National Space Administration]]
| {{Flag|China}}
|-
| [[Czech Science Foundation]], [[Technology Agency of the Czech Republic]], [[Czech Space Office]]
| {{Flag|Czech Republic}}
|-
| Danish Agency for Science, Technology and Innovation<ref>{{Cite web|url=https://ufm.dk/en|title=Home|first=Mikael|last=Larsen|website=Uddannelses- og Forskningsministeriet}}</ref>
| {{Flag|Denmark}}
|-
| [[European Research Council]], [[European Defence Fund]]
| {{Flag|European Union}} 
|-
| [[Research Council of Finland]], [[Tekes (agency)|Finnish Funding Agency for Technology and Innovation]]
| {{Flag|Finland}}
|-
| [[Agence Nationale de la Recherche|National Agency for Research]], [[CNES|National Centre for Space Studies]], [[French Alternative Energies and Atomic Energy Commission]], [[French National Centre for Scientific Research]], [[Inserm|French National Institute of Health and Medical Research]]
| {{Flag|France}}
|-
| [[Deutsche Forschungsgemeinschaft|German Research Foundation]], [[German Aerospace Center]]
| {{Flag|Germany}}
|-
| [[National Hellenic Research Foundation]]
| {{Flag|Greece}}
|-
| [[Icelandic Centre for Research]]<ref>{{cite web |url=http://rannis.is/english/ |title=RANNIS (Icelandic Centre for Research) |website=Rannis.is}}</ref> 
| {{Flag|Iceland}}
|-
| [[Council of Scientific and Industrial Research]], [[Indian Council of Medical Research]], [[Indian Space Research Organisation]], [[Indian Council of Agricultural Research]], [[Defence Research and Development Organization]]
| {{Flag|India}}
|-
| [[Irish Research Council]], [[Science Foundation Ireland]]
| {{Flag|Ireland}}
|-
| [[Israel Science Foundation]],<ref>{{cite web|url=http://www.isf.org.il/english/|title=Israel Science Foundation|archive-url=https://web.archive.org/web/20151216073658/http://www.isf.org.il/English/|archive-date=2015-12-16|url-status=dead}}</ref> [[Israel Innovation Authority]], [[Israel Space Agency]]
| {{Flag|Israel}}
|-
| [[National Research Council (Italy)|National Research Council]], [[Italian Space Agency]]
| {{Flag|Italy}}
|-
| [[National Research and Technology Council (Mexico)|National Research and Technology Council]], [[Mexican Space Agency]]
| {{Flag|Mexico}}
|-
| [[Netherlands Organisation for Scientific Research]], [[Netherlands Space Office]]
| {{Flag|Netherlands}}
|-
| [[Research Council of Norway]], [[Norwegian Defence Research Establishment]], [[Norwegian Institute of Public Health]], [[Norwegian Space Agency]]
| {{Flag|Norway}}
|-
| [[Pakistan Science Foundation]], [[Pakistan Council of Scientific and Industrial Research]], [[Pakistan Health Research Council]], [[Space and Upper Atmosphere Research Commission]], [[Pakistan Agricultural Research Council]], [[Defence Science and Technology Organization]]
| {{Flag|Pakistan}}
|-
| [[Fundação para a Ciência e Tecnologia|Portuguese Foundation for Science and Technology]]
| {{Flag|Portugal}}
|-
| [[Science Fund of the Republic of Serbia]]
| {{Flag|Serbia}}
|-
| [[Agency for Science, Technology and Research]], [[Defence Science and Technology Agency]]
| {{Flag|Singapore}}
|-
| [[National Research Foundation of South Africa]]
| {{Flag|South Africa}}
|-
| [[Spanish National Research Council]], [[State Research Agency]], [[National Institute for Aerospace Technology]], [[Centre for the Development of Industrial Technology]], [[Spanish Space Agency]], [[Carlos III Health Institute]], [[CIEMAT|Centre for Energy, Environmental and Technological Research]]
| {{Flag|Spain}}
|-
| [[National Research Council of Sri Lanka]]
| {{Flag|Sri Lanka}}
|-
| [[Swedish Research Council]], [[Swedish National Space Agency]], [[Swedish Defence Research Agency]]
| {{Flag|Sweden}}
|-
| [[Swiss National Science Foundation]], [[Swiss Space Office]]
| {{Flag|Switzerland}}
|-
| [[National Science and Technology Development Agency]]
| {{Flag|Thailand}}
|-
| [[Scientific and Technological Research Council of Turkey]], [[Turkish Space Agency]]
| {{Flag|Turkey}}
|-
| Uganda National Council for Science and Technology<ref>{{Cite web|url=https://www.uncst.go.ug/|title=Uganda National Council for Science and Technology|website=www.uncst.go.ug}}</ref>
| {{Flag|Uganda}}
|-
| [[National Research Foundation (United Arab Emirates)|National Research Foundation]], [[United Arab Emirates Space Agency]]
| {{Flag|United Arab Emirates}}
|-
| [[Engineering and Physical Sciences Research Council]], [[Medical Research Council (United Kingdom)|Medical Research Council]], [[Biotechnology and Biological Sciences Research Council]], [[Science and Technology Facilities Council]], [[Defence Science and Technology Laboratory]], [[Innovate UK]], [[National Institute for Health and Care Research]], [[Natural Environment Research Council]], [[Economic and Social Research Council]], [[Research England]], [[United Kingdom Atomic Energy Authority]], [[UK Energy Research Centre]], [[UK Space Agency]], [[Advanced Research and Invention Agency]]
| {{Flag|United Kingdom}}
|-
| [[National Science Foundation]], [[National Institutes of Health]], [[NASA|National Aeronautics and Space Administration]], [[Defence Advanced Research Projects Agency]], [[Advanced Research Projects Agency-Energy]], [[Office of Science|DOE Office of Science]], [[Agricultural Research Service]]
| {{Flag|United States}}
|}

==== Conditionality ====
In addition to project deliverables, funders also increasingly introduce new eligibility requirements alongside traditional ones such as research [[Scientific integrity|integrity/ethics]].

With the [https://unesdoc.unesco.org/ark:/48223/pf0000379949.locale=en Open Science movement], funding is increasingly tied to [[data management plan]]s and making [[FAIR data|data FAIR]].<ref>{{Cite journal |last1=Wilkinson |first1=Mark D. |last2=Dumontier |first2=Michel |last3=Aalbersberg |first3=IJsbrand Jan |last4=Appleton |first4=Gabrielle |last5=Axton |first5=Myles |last6=Baak |first6=Arie |last7=Blomberg |first7=Niklas |last8=Boiten |first8=Jan-Willem |last9=da Silva Santos |first9=Luiz Bonino |last10=Bourne |first10=Philip E. |last11=Bouwman |first11=Jildau |date=15 March 2016 |title=The FAIR Guiding Principles for scientific data management and stewardship |journal=Sci Data |language=en |volume=3 |issue=1 |page=160018 |doi=10.1038/sdata.2016.18 |issn=2052-4463 |pmc=4792175 |pmid=26978244|bibcode=2016NatSD...360018W }}</ref> The Open Science requirement complements [[Open access|Open Access]] mandates<ref>{{cite web |title=OECD Legal Instruments |url=https://legalinstruments.oecd.org/en/instruments/OECD-LEGAL-0347 |access-date=2022-03-28 |website=legalinstruments.oecd.org}}</ref> which today are widespread.<ref>{{cite web |title=How many Open Access policies are there worldwide? - ROARMAP |url=http://roarmap.eprints.org/dataviz2.html |access-date=2022-03-28 |website=roarmap.eprints.org}}</ref>

The gender dimension also gained ground in recent years. The European Commission mandates applicants to adopt gender equality plans across their organization.<ref>{{cite web |last=European Commission |date=31 March 2021 |title=Horizon Europe - Work Programme - 13. General Annexes |url=https://ec.europa.eu/info/funding-tenders/opportunities/docs/2021-2027/horizon/wp-call/2021-2022/wp-13-general-annexes_horizon-2021-2022_en.pdf |access-date=9 April 2022}}</ref> The UK Research and Innovation Global Challenges Research Fund mandates a gender equality statement.<ref>{{cite web |title=Equality, diversity and inclusion |url=https://www.ukri.org/about-us/policies-standards-and-data/good-research-resource-hub/equality-diversity-and-inclusion/ |access-date=2022-03-28 |website=www.ukri.org |language=en-US}}</ref>

Most recently, the European Commission also introduced a “Do No Significant Harm” principle to the Framework Program which aims to curb the environmental footprint of scientific projects.<ref>{{cite web |last=European Commission |date=1 February 2022 |title=Horizon Europe - Programme Guide |url=https://ec.europa.eu/info/funding-tenders/opportunities/docs/2021-2027/horizon/guidance/programme-guide_horizon_en.pdf |access-date=9 April 2022}}</ref> "Do No Significant Harm" has been criticized as coupled with other eligibility requirements it is often characterized as [[Red tape|red-tape]].<ref>{{Cite book |last=Jaffe |first=Matthew |title=2021 IEEE/AIAA 40th Digital Avionics Systems Conference (DASC) |chapter=Levels of Requirements, Robustness, Unicorns, and Other Semi-Mythical Creatures in the Requirements Engineering Bestiary: Why "Types" of Software Requirements Are Often Misleading |date=2021-10-03 |chapter-url=http://dx.doi.org/10.1109/dasc52595.2021.9594323 |pages=1–8 |publisher=IEEE |doi=10.1109/dasc52595.2021.9594323|isbn=978-1-6654-3420-1 |s2cid=244137490 }}</ref><ref>{{cite web |title=MEPs decry inclusion of 'do no significant harm' principle in Horizon Europe |url=https://sciencebusiness.net/news/meps-decry-inclusion-do-no-significant-harm-principle-horizon-europe |access-date=2022-04-06 |website=Science{{!}}Business |language=en}}</ref> The European Commission has been trying to simplify the Framework Program for numerous years with limited success.<ref>{{Cite web |last=European Commission |date=April 2020 |title=Implementation Strategy for Horizon Europe - Version 1.0 |url=https://ec.europa.eu/info/sites/default/files/research_and_innovation/strategy_on_research_and_innovation/documents/ec_rtd_implementation-strategy_he.pdf |access-date=14 April 2022}}</ref> Simplification attempts are also taken by the [[UK Research and Innovation]].<ref>{{cite web |website=ukri.org |date=28 February 2022 |title=How we're improving your funding experience |url=https://www.ukri.org/apply-for-funding/how-were-improving-your-funding-experience/ |access-date=9 April 2022}}</ref>

==== Process ====
Often scientists apply for research funding which a granting agency may (or may not) approve to financially support. These ''grants'' require a lengthy process as the granting agency can inquire about the researcher(s)'s background, the facilities used, the equipment needed, the time involved, and the overall potential of the scientific outcome. The process of grant writing and grant proposing is a somewhat delicate process for both the grantor and the grantee: the grantors want to choose the research that best fits their scientific principles, and the individual grantees want to apply for research in which they have the best chances but also in which they can build a body of work towards future scientific endeavors.{{Citation needed|date=September 2012}}

The [[Engineering and Physical Sciences Research Council]] in the United Kingdom has devised an alternative method of fund-distribution: the sandpit.<ref>
{{cite news |last=Corbyn |first=Zoë |date=2009-07-02 |title='Sandpits' bring out worst in 'infantilised' researchers |newspaper=Times Higher Education |publisher=TSL Education |url=http://www.timeshighereducation.co.uk/story.asp?storycode=407201 |quote=Sandpits, which were devised by the Engineering and Physical Sciences Research Council, typically involve about 30 selected researchers from different areas who are brought together for several days of intensive discussions about a particular topic. [...] The wheels of such events are oiled with the promise of up to £1 million in funding, which is dished out at the end through a group peer-review process.}}
</ref>

Most universities have research administration offices to facilitate the interaction between the researcher and the granting agency.<ref>
Gonzales, Evelina Garza, "External Funding and Tenure at Texas State University-San Marcos" (2009). Texas State University. Applied Research Projects. Paper 315.  http://ecommons.txstate.edu/arp/315</ref> "Research administration is all about service—service to our faculty, to our academic units, to the institution, and to our sponsors. To be of service, we first have to know what our customers want and then determine whether or not we are meeting those needs and expectations."<ref>Robert A. Killoren Jr., Associate Vice President for Research, Office of Sponsored Programs, Penn State U, Fall 2005.  From Lowry, Peggy (2006)  "Assessing the Sponsored Research Office". ''[http://www.aiseducation.com/RAG_product.html Sponsored Research Administration: A Guide to Effective Strategies and Recommended Practices] {{Webarchive|url=https://web.archive.org/web/20090422083401/http://www.aiseducation.com/RAG_product.html|date=2009-04-22}}''</ref>

In the United States of America, the [[National Council of University Research Administrators]] serves its members and advances the field of research administration through education and professional development programs, the sharing of knowledge and experience, and by fostering a professional, collegial, and respected community.

==== Hard money versus soft money ====
In academic contexts, ''hard money'' may refer to funding received from a government or other entity at regular intervals, thus providing a steady inflow of financial resources to the beneficiary. The antonym, ''soft money'', refers to funding provided only through competitive [[research grant]]s and the writing of grant proposals.<ref name="StackExchangeHardMoney">[http://academia.stackexchange.com/a/30627 "What is a soft-money research position?"], Academia StackExchange</ref>

Hard money is usually issued by the government for the advancement of certain projects or for the benefit of specific agencies. Community [[healthcare]], for instance, may be supported by the government by providing hard money. Since funds are disbursed regularly and continuously, the offices in charge of such projects are able to achieve their objectives more effectively than if they had been issued one-time grants.

Individual jobs at a research institute may be classified as "hard-money positions" or "soft-money positions";<ref name="StackExchangeHardMoney" /> the former are expected to provide [[job security]] because their funding is secure in the long term, whereas individual "soft-money" positions may come and go with fluctuations in the number of grants awarded to the institution.

=== Private funding: industrial/philanthropy/crowdfunding ===
{{see also|Private-equity fund}}

Private funding for research comes from [[philanthropist]]s,<ref name="Billionaire Ideas">{{Cite news|url=https://www.nytimes.com/2014/03/16/science/billionaires-with-big-ideas-are-privatizing-american-science.html?_r=0|author=William J. Broad|title=Billionaires With Big Ideas Are Privatizing American Science|access-date=30 November 2014|date=2014-03-15|newspaper=The New York Times}}</ref> [[crowd-funding]],<ref name="Crowdfunding" /> [[private companies]], [[non-profit foundation]]s, and [[professional organization]]s.<ref>{{Cite web|url=http://www.webguru.neu.edu/undergraduate-research/research-funding/possible-funding-sources|title=Possible Funding Sources}}</ref> Philanthropists and foundations have been pouring millions of dollars into a wide variety of scientific investigations, including basic research discovery, disease cures, particle physics, astronomy, marine science, and the environment.<ref name="Billionaire Ideas" /> Privately funded research has been adept at identifying important and transformative areas of scientific research.<ref>{{Cite journal |last1=Anderson |first1=Barrett R. |last2=Feist |first2=Gregory J. |date=2017-03-04 |title=Transformative science: a new index and the impact of non-funding, private funding, and public funding |url=https://www.tandfonline.com/doi/full/10.1080/02691728.2016.1241321 |journal=Social Epistemology |language=en |volume=31 |issue=2 |pages=130–151 |doi=10.1080/02691728.2016.1241321 |s2cid=151739590 |issn=0269-1728}}</ref><ref>{{Cite journal |last=Diamond |first=Arthur M. |date=April 2006 |title=The relative success of private funders and government funders in funding important science |url=http://link.springer.com/10.1007/s10657-006-6647-0 |journal=European Journal of Law and Economics |language=en |volume=21 |issue=2 |pages=149–161 |doi=10.1007/s10657-006-6647-0 |s2cid=17707551 |issn=0929-1261}}</ref> Many large technology companies spend billions of dollars on research and development each year to gain an [[innovation|innovative]] advantage over their competitors, though only about 42% of this funding goes towards projects that are considered substantially new, or capable of yielding radical breakthroughs.<ref name="Business Strategy">{{cite tech report|url=http://www.strategyand.pwc.com/global/home/what-we-think/reports-white-papers/article-display/2014-global-innovation-1000-study|title=Global Innovation 1000: Proven Paths to Innovation Success|first=B.|last=Jaruzelski|author2=V. Staack|author3=B. Goehle|institution=Strategy&|year=2014|issue=77}}</ref> New scientific start-up companies initially seek funding from [[crowd-funding]] organizations, [[venture capitalists]], and [[angel investors]], gathering preliminary results using rented facilities,<ref>{{cite web|url=http://www.sfgate.com/news/article/New-Palo-Alto-lab-for-life-science-startups-5717097.php|title=New Palo Alto lab for life science startups|author=Stephanie M. Lee|date=27 August 2014|work=SFGate}}</ref> but aim to eventually become self-sufficient.<ref name="Crowdfunding">{{cite journal|title=Finding philanthropy: Like it? Pay for it|first=Jim|last=Giles|journal=Nature|volume=481|issue=7381|pages=252–253|date=2012|doi=10.1038/481252a|pmid=22258587|bibcode=2012Natur.481..252G|doi-access=free}}</ref><ref>{{cite web|url=http://onstartups.com/tabid/3339/bid/76387/7-Lessons-On-Startup-Funding-From-a-Research-Scientist.aspx|title=7 Lessons On Startup Funding From a Research Scientist|author=Dharmesh Shah}}</ref>

Europe and the United States have both reiterated the need for further private funding within universities.<ref>{{cite web |title=Research and Innovation |url=https://ec.europa.eu/regional_policy/en/policy/themes/research-innovation/ |access-date=2022-03-28 |website=ec.europa.eu |language=en}}</ref> The European Commission highlights the need for private funding via research in policy areas such the European Green Deal and Europe's role in the digital age.<ref>{{Cite journal |last1=Muscio |first1=Alessandro |last2=Quaglione |first2=Davide |last3=Vallanti |first3=Giovanna |date=February 2013 |title=Does government funding complement or substitute private research funding to universities? |url=https://linkinghub.elsevier.com/retrieve/pii/S0048733312001199 |journal=Research Policy |language=en |volume=42 |issue=1 |pages=63–75 |doi=10.1016/j.respol.2012.04.010|hdl=11385/36074 |hdl-access=free }}</ref>

==Influence on research==
The source of funding may introduce conscious or unconscious [[bias]]es into a researcher's work.<ref>{{cite web |title=Who pays for science? |date=18 April 2022 |url=http://undsci.berkeley.edu/article/0_0_0/who_pays}}</ref> This is highly problematic due to [[academic freedom]] in case of universities and [[regulatory capture]] in case of government-funded R&D.

=== Conflict of Interest ===
Disclosure of potential [[Conflict of interest|conflicts of interest]] (COIs) is used by journals to guarantee credibility and transparency of the scientific process. Conflict of interest disclosure, however, is not systematically nor consistently dealt with by journals that publish scientific research results.

When research is funded by the same agency that can be expected to gain from a favorable outcome there is a potential for biased results and research shows that results are indeed more favorable than would be expected from a more objective view of the evidence.<ref>{{Cite journal|last1=Vuong|first1=Quan-Hoang|date=2020|title=Reform retractions to make them more transparent |url=https://www.nature.com/articles/d41586-020-01694-x|journal=Nature|volume=582|issue=7811|pages=149|doi=10.1038/d41586-020-01694-x|bibcode=2020Natur.582..149V |s2cid=219529301 }}</ref> A 2003 [[systematic review]] studied the scope and impact of industry sponsorship in [[biomedical]] research.  The researchers found financial relationships among industry, scientific investigators, and academic institutions widespread.  Results  showed a statistically significant association between industry sponsorship and pro-industry conclusions and concluded that "Conflicts of interest arising from these ties can influence biomedical research in important ways".<ref>{{Cite journal|title=Relationship between Funding Source and Conclusion among Nutrition-Related Scientific Articles|volume=4|issue=1|pages=e5|journal=[[PLOS Medicine]]|publisher=[[PLOS]]|author1=Lenard I Lesser |author2=Cara B Ebbeling |author3=Merrill Goozner |author4=David Wypij |author5=David S Ludwig |doi=10.1371/journal.pmed.0040005|pmid=17214504|pmc=1764435|date=January 9, 2007|doi-access=free}}</ref> A British study found that a majority of the members on national and food policy committees receive funding from food companies.<ref>{{Cite journal|title=Food company sponsorship of nutrition research and professional activities: a conflict of interest?|volume=4|issue=5|pages=1015–1022|journal=[[Public Health Nutrition]]|publisher=[[Cambridge University Press]]|author=Marion Nestle|doi=10.1079/PHN2001253|pmid=11784415|date=October 2001|doi-access=free}}</ref>

In an effort to cut costs, the [[pharmaceutical industry]] has turned to the use of private, nonacademic research groups (i.e., contract research organizations [CROs]) which can do the work for less money than academic investigators.  In 2001 CROs came under criticism when the editors of 12 major scientific journals issued a joint editorial, published in each journal, on the control over [[clinical trial]]s exerted by sponsors, particularly targeting the use of contracts which allow sponsors to review the studies prior to publication and withhold publication of any studies in which their product did poorly. They further criticized the trial methodology stating that researchers are frequently restricted from contributing to the trial design, accessing the raw data, and interpreting the results.<ref>{{cite journal | pmc = 81460 | pmid=11584570 | volume=165 | issue=6 | title=Sponsorship, authorship and accountability |date=September 2001 | journal=CMAJ | pages=786–8| last1=Davidoff | first1=F | last2=Deangelis | first2=C. D. | last3=Drazen | first3=J. M. | last4=Nicholls | first4=M. G. | last5=Hoey | first5=J | last6=Højgaard | first6=L | last7=Horton | first7=R | last8=Kotzin | first8=S | last9=Nylenna | first9=M | last10=Overbeke | first10=A. J. | last11=Sox | first11=H. C. | last12=Van Der Weyden | first12=M. B. | last13=Wilkes | first13=M. S. }}</ref>

The [[Cochrane Collaboration]], a worldwide group that aims to provide compiled scientific evidence to aid well informed health care decisions,  conducts [[systematic review]]s of [[randomized controlled trial]]s of health care interventions and tries to disseminate the results and conclusions derived from them.<ref>{{cite journal|title=The Cochrane Collaboration|journal=Eur J Clin Nutr|date=August 2005|volume=59|series=Suppl 1|issue=S1|pages=S147–S149|doi=10.1038/sj.ejcn.1602188|pmid=16052183|last1=Scholten|first1=R. J.|last2=Clarke|first2=M|last3=Hetherington|first3=J|doi-access=free}}</ref><ref>{{Cite web|url=https://www.cochrane.org/welcome|title=Welcome|website=www.cochrane.org}}</ref>  A few more recent reviews have also studied the results of non-randomized, [[Observational study|observational studies]]. The systematic reviews are published in the [[Cochrane Library]]. A 2011 study done to disclose possible conflicts of interests in underlying research studies used for medical [[meta-analyses]] reviewed 29 meta-analyses and found that conflicts of interest in the studies underlying the meta-analyses were rarely disclosed.  The 29 meta-analyses reviewed an aggregate of 509 randomized controlled trials. Of these, 318 trials reported funding sources with 219 (69%) industry funded. 132 of the 509 trials reported author disclosures of conflict of interest, with 91 studies (69%) disclosing industry financial ties with one or more authors. However, the information was seldom reflected in the meta-analyses. Only two (7%) reported funding sources and none reported author-industry ties. The authors concluded, "without acknowledgment of COI due to industry funding or author industry financial ties from RCTs included in meta-analyses, readers' understanding and appraisal of the evidence from the meta-analysis may be compromised."<ref>{{cite web|title=How Well Do Meta-Analyses Disclose Conflicts of Interests in Underlying Research Studies|url=http://www.cochrane.org/news/blog/how-well-do-meta-analyses-disclose-conflicts-interests-underlying-research-studies|work=The Cochrane Collaboration website|publisher=[[Cochrane Collaboration]]|access-date=24 March 2014|date=2011-06-06}}</ref>

In 2003 researchers looked at the association between authors' published positions on the safety and efficacy in assisting with weight loss of [[olestra]], a [[fat substitute]] manufactured by the [[Procter & Gamble]] (P&G), and their financial relationships with the food and beverage industry.  They found that supportive authors were significantly more likely than critical or neutral authors to have financial relationships with P&G and all authors disclosing an affiliation with P&G were supportive.  The authors of the study concluded: "Because authors' published opinions were associated with their financial relationships, obtaining noncommercial funding may be more essential to maintaining objectivity than disclosing personal financial interests."<ref>{{cite journal|title=Authors' Financial Relationships With the Food and Beverage Industry and Their Published Positions on the Fat Substitute Olestra| pmc=1447808 | pmid=12660215|volume=93| issue=4 |year=2003|pages=664–9 | last1 = Levine | first1 = J | last2 = Gussow | first2 = JD | last3 = Hastings | first3 = D | last4 = Eccher | first4 = A | doi=10.2105/ajph.93.4.664 | journal=American Journal of Public Health}}</ref>

A 2005 study in the journal ''[[Nature (journal)|Nature]]''<ref>{{Cite journal|pmid=15944677|year=2005|last1=Martinson|first1=BC|last2=Anderson|first2=MS|last3=De Vries|first3=R|title=Scientists behaving badly|volume=435|issue=7043|pages=737–8|doi=10.1038/435737a|journal=Nature|bibcode=2005Natur.435..737M|s2cid=4341622}}</ref> surveyed 3247 US researchers who were all publicly funded (by the [[National Institutes of Health]]). Out of the scientists questioned, 15.5% admitted to altering design, methodology or results of their studies due to pressure of an external funding source.

=== Regulatory capture ===
Private funding also may be channelled to public funders. In 2022, a news story broke following the resignation of Eric Lander, former director of the [[Office of Science and Technology Policy]] (OSTP) at the Biden administration, that the charity of former Google executive Eric Schmidt, Schmidt Futures, paid the salary of a number employees of the OSTP.<ref>{{cite web |title=A Google billionaire's fingerprints are all over Biden's science office |url=https://www.politico.com/news/2022/03/28/google-billionaire-joe-biden-science-office-00020712 |access-date=2022-04-06 |website=POLITICO |date=28 March 2022 |language=en}}</ref> Ethics inquiries were initiated in the OSTP.

== Efficiency of funding ==
The traditional measurement for efficiency of funding are [[Scientific literature|publication]] output, [[citation impact]], number of [[patent]]s, number of [[Doctor of Philosophy|PhDs]] awarded etc. However, the use of [[Impact factor|journal impact factor]] has generated a [[Publish or perish|publish-or-perish]] culture and a theoretical model has been established whose simulations imply that [[peer review]] and over-competitive research funding foster mainstream opinion to monopoly.<ref>{{cite journal |last1=Fang |first1=H. |year=2011 |title=Peer review and over-competitive research funding fostering mainstream opinion to monopoly |journal=Scientometrics |volume=87 |issue=2 |pages=293–301 |doi=10.1007/s11192-010-0323-4 |s2cid=24236419}}</ref> Calls have been made to reform research assessment, most notably in the [[San Francisco Declaration on Research Assessment]]<ref>{{cite web |title=Read the Declaration |url=https://sfdora.org/read/ |access-date=2022-03-28 |website=DORA |language=en-US}}</ref> and the [[Leiden Manifesto|Leiden Manifesto for research metrics]].<ref>{{Cite journal |last1=Hicks |first1=Diana |last2=Wouters |first2=Paul |last3=Waltman |first3=Ludo |last4=de Rijcke |first4=Sarah |last5=Rafols |first5=Ismael |date=2015-04-23 |title=Bibliometrics: The Leiden Manifesto for research metrics |journal=Nature |language=en |volume=520 |issue=7548 |pages=429–431 |bibcode=2015Natur.520..429H |doi=10.1038/520429a |issn=0028-0836 |pmid=25903611 |s2cid=4462115|doi-access=free |hdl=10261/132304 |hdl-access=free }}</ref> The current system also has limitations to measure excellence in the Global South.<ref>{{Cite journal |last1=Tijssen |first1=Robert |last2=Kraemer-Mbula |first2=Erika |date=2018-06-01 |title=Research excellence in Africa: Policies, perceptions, and performance |url=https://academic.oup.com/spp/article/45/3/392/4600842 |journal=Science and Public Policy |language=en |volume=45 |issue=3 |pages=392–403 |doi=10.1093/scipol/scx074 |issn=0302-3427|doi-access=free |hdl=1887/65584 |hdl-access=free }}</ref><ref>{{Cite book |last1=Wallace |first1=L. |url=https://www.worldcat.org/oclc/1156814189 |title=Transforming research excellence. |last2=Tijssen |first2=Robert |date=2019 |isbn=978-1-928502-07-4 |location=Cape Town |oclc=1156814189}}</ref> Novel measurement systems such as the Research Quality Plus has been put forward to better emphasize local knowledge and contextualization in the evaluation of excellence.<ref>{{Cite journal |last1=Lebel |first1=Jean |last2=McLean |first2=Robert |date=July 2018 |title=A better measure of research from the global south |journal=Nature |language=en |volume=559 |issue=7712 |pages=23–26 |bibcode=2018Natur.559...23L |doi=10.1038/d41586-018-05581-4 |issn=0028-0836 |pmid=29973734 |s2cid=49692425|doi-access=free }}</ref>

Another question is how to allocate funds to different disciplines, institutions, or researchers. A recent study by Wayne Walsh found that “prestigious institutions had on average 65% higher grant application success rates and 50% larger award sizes, whereas less-prestigious institutions produced 65% more publications and had a 35% higher citation impact per dollar of funding.”<ref>{{cite web |title=Research Dollars Go Farther at Less-Prestigious Institutions: Study |url=https://www.the-scientist.com/news-opinion/research-dollars-go-farther-at-less-prestigious-institutions--study-64529 |access-date=2018-07-23 |website=The Scientist Magazine® |language=en}}</ref><ref>{{Cite journal |last=Wahls |first=Wayne P. |date=2018-07-13 |title=High cost of bias: Diminishing marginal returns on NIH grant funding to institutions |url=https://www.biorxiv.org/content/early/2018/07/13/367847 |journal=bioRxiv |language=en |page=367847 |doi=10.1101/367847 |doi-access=free}}</ref>

==Trends==
{{Main|List of countries by research and development spending}}

In [[Endogenous growth theory|endogenous growth theories]] R&D contributes to economic growth. Therefore, countries have strong incentives to maintain investments in R&D.

=== By country ===
Different countries spend vastly different amounts on research, in both absolute and relative terms. For instance, [[South Korea]] and [[Israel]] spend more than 4% of their GDP while many less developed countries spend less than 1%.<ref name=":2">{{Cite web |date=2017 |title=Science,technology and innovation |url=http://data.uis.unesco.org/Index.aspx?DataSetCode=SCN_DS&lang=en |access-date=13 June 2022 |website=UNESCO Science,technology and innovation indicators}}</ref> In developed economies, GERD is financed mainly by the business sector, whereas the government and the university sector dominates in less-developed economies.<ref>{{cite web|website=UNESCO|date=June 2020|access-date=26 August 2023|url=http://uis.unesco.org/sites/default/files/documents/fs59-global-investments-rd-2020-en.pdf|title=Global Investments in R&D}}</ref> In some countries, funding from the Rest of the World makes up 20-30% of total GERD, probably due to FDI and foreign aid, but only in Mali it is the main source of fund.<ref>{{Cite web |date=2017 |title=Science,technology and innovation - GERD financed by the rest of the world % |url=http://data.uis.unesco.org/Index.aspx?DataSetCode=SCN_DS&lang=en |access-date=13 June 2022 |website=UNESCO Science,technology and innovation Statistics}}</ref> Private non-profit is not the main source of fund in any countries, but it reaches 10% of total GERD in Columbia and Honduras.<ref>{{Cite web |date=2017 |title=Science,technology and innovation- GERD financed by non-profit % |url=http://data.uis.unesco.org/Index.aspx?DataSetCode=SCN_DS&lang=en |access-date=13 June 2022 |website=UNESCO Science,technology and innovation Statistics}}</ref>

When comparing annual GERD and GDP Growth, it can be seen that countries with lower GERD are often growing faster. However, as most of these countries are developing, their growth is probably driven by other [[factors of production]]. On the other hand, developed countries who have higher GERD also produce positive growth rates. GERD in these countries has a more substantial contribution to growth rate. 
{| class="wikitable"
|+
!Country (and the EU)
!GERD as % of the GDP in 2017<ref name=":2" />
!GDP Growth (annual %) in 2017<ref>{{Cite web |date=2017 |title=GDP Growth (annual %) |url=https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?view=map&year=2017 |access-date=13 June 2022 |website=World Bank}}</ref>
!Main GERD source of fund<ref name=":2" />
!Targets
|-
|Israel
|4,81
|4,38
|Business
|
|-
|Republic of Korea
|4,29
|3,16
|Business
|5% by 2017
|-
|USA
|2,81
|2,33
|Business
|
|-
|European Union
|2,15
|2,8
|Business
|3% of EU GDP by 2030
|-
|China
|2,11
|6,95
|Business
|annual increase of 7% (2021- 2025)<ref>{{cite web |last=The People's Government of Fujian Province |date=9 August 2021 |title=Outline of the 14th Five-Year Plan (2021-2025) for National Economic and Social Development and Vision 2035 of the People's Republic of China |url=https://www.fujian.gov.cn/english/news/202108/t20210809_5665713.htm |access-date=13 April 2022}}</ref>
|-
|Uruguay
|0,48
|1,63
|Higher Education
|
|-
|Mali
|0,29
|5,31
|Rest of the World
|
|-
|Armenia
|0,22
|7,5
|Government
|
|-
|Iraq
|0,04
| -1,82
|Government
|
|-
|Guatemala
|0,02
|4,63
|Higher education
|
|}

=== Recessions ===
In crisis, business R&D tends to act [[Procyclical and countercyclical variables|procyclically]].<ref>{{Cite journal |last=Barlevy |first=Gadi |date=2007-08-01 |title=On the Cyclicality of Research and Development |url=https://pubs.aeaweb.org/doi/10.1257/aer.97.4.1131 |journal=American Economic Review |language=en |volume=97 |issue=4 |pages=1131–1164 |doi=10.1257/aer.97.4.1131 |issn=0002-8282}}</ref> As R&D is a long-term investments and so disruptions should be avoided Keynesian [[Procyclical and countercyclical variables|countercyclical]] reactions were advocated for in the wake of the 2008 financial crisis, but this was difficult to achieve for some countries.<ref>{{Cite journal |last1=Guellec |first1=Dominique |last2=Wunsch-Vincent |first2=Sacha |date=2009-06-01 |title=Policy Responses to the Economic Crisis: Investing in Innovation for Long-Term Growth |url=https://www.oecd-ilibrary.org/science-and-technology/policy-responses-to-the-economic-crisis_222138024482 |series=OECD Digital Economy Papers |language=en |doi=10.1787/222138024482|doi-access=free }}</ref><ref>{{Cite journal |last1=Abi Younes |first1=George |last2=Ayoubi |first2=Charles |last3=Ballester |first3=Omar |last4=Cristelli |first4=Gabriele |last5=de Rassenfosse |first5=Gaétan |last6=Foray |first6=Dominique |last7=Gaulé |first7=Patrick |last8=Pellegrino |first8=Gabriele |last9=van den Heuvel |first9=Matthias |last10=Webster |first10=Elizabeth |last11=Zhou |first11=Ling |date=2021-04-24 |title=COVID-19: Insights from innovation economists |url=https://academic.oup.com/spp/article/47/5/733/5865508 |journal=Science and Public Policy |language=en |volume=47 |issue=5 |pages=733–745 |doi=10.1093/scipol/scaa028 |issn=0302-3427 |pmc=7337780}}</ref> Due to the nature of COVID-19, the pandemic accelerated publicly funded R&D spending in 2020, primarily into the [[pharmaceutical industry]]. A fall is expected in spending for 2021, although not below 2020 levels.<ref>{{Cite web |last=OECD Directorate for Science, Technology and Innovation |date=March 2022 |title=OECD Main Science and Technology Indicators. R&D Highlights in the March 2022 Publication |url=http://www.oecd.org/sti/msti2022.pdf |access-date=2022-04-13}}</ref> The pandemic made health research and sectors with strategic value-chain dependencies the main target of science funding.<ref>{{Cite web |last=UNESCO |date=2021 |title=UNESCO Science Report: The race against time for smarter development |url=https://unesdoc.unesco.org/ark:/48223/pf0000377433 |access-date=2022-04-13 |website=unesdoc.unesco.org}}</ref>

== See also ==
* [[:Category:Scientific funding advisory bodies|Scientific funding advisory bodies (category)]]
* [[Funding bias]]
* [[Metascience]]
* [[Science policy]]
* [[Self-Organized Funding Allocation]]
* [[Industry funding of academic research]]

==References==
{{Reflist|2}}

==Further reading==
* Eisfeld-Reschke, Jörg, Herb, Ulrich, & Wenzlaff, Karsten (2014). Research Funding in Open Science. In S. Bartling & S. Friesike (Eds.), Opening Science (pp.&nbsp;237–253). Heidelberg: Springer.  {{doi|10.1007/978-3-319-00026-8_16}}
*{{cite news | first=Ulrich | last=Herb | title=Open science's final frontier | url=http://www.researchresearch.com/index.php?option=com_news&template=rr_2col&view=article&articleId=1345626 | publisher=[[Research Europe (magazine)|Research Europe]] Magazine | date=2014-07-31 | access-date=2014-08-30 | archive-url=https://web.archive.org/web/20140903102354/http://www.researchresearch.com/index.php?option=com_news&template=rr_2col&view=article&articleId=1345626 | archive-date=2014-09-03 | url-status=dead }}
*{{cite journal | last1 = Martinson | first1 = Brian C. | year = 2005 | title = Scientists behaving badly | journal = Nature | volume = 435 | issue = 7043| pages = 737–738 | doi=10.1038/435737a | pmid=15944677 | display-authors = etal | bibcode = 2005Natur.435..737M | last2 = De Vries | first2 = Raymond | s2cid = 4341622 }}
*{{cite journal | last1 = Mello | first1 = Michelle M. | s2cid = 8283797 | year = 2005 | title = Academic Medical Centers' Standards for Clinical-Trial Agreements with Industry | journal = New England Journal of Medicine | volume = 352 | issue = 21| pages = 2202–2210 | doi=10.1056/nejmsa044115| pmid = 15917385  | display-authors = etal  | doi-access = free }}
*{{cite news | first=Andrew | last=Odlyzko | author-link=Andrew Odlyzko | title=The Decline of Unfettered Research | url=http://www.dtc.umn.edu/~odlyzko/doc/decline.txt | date=1995-10-04 | access-date=2007-11-02 }}

==External links==
* [https://www.science.org/content/page/where-search-funding Where to Search for Funding | Science | AAAS], from Science Careers, from the Journal Science.
* [http://www.ResearchCrossroads.org ResearchCrossroads] Aggregated funding data from the National Institutes of Health, the National Science Foundation, NSF, private foundations and the European Union
* [http://ec.europa.eu/research/fp7/index_en.cfm?pg=understanding Seventh Framework Programme (2007–2013)] The European Unions's programme for funding and promoting research at the European level
* [http://cordis.europa.eu/home_en.html CORDIS - the official website of the European Unions's programme for funding and promoting research] This website contains comprehensive information on research projects already funded.
* [http://www.rcuk.ac.uk/ Research Councils UK] The portal for the UK-based Research Councils.

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[[Category:Innovation economics]]
[[Category:Research]]
[[Category:Science in society]]
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