Funding of science
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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 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>OECD Science, Technology and Industry Scoreboard 2015: Innovation for growth and society. OECD. 2015. p. 156. doi:10.1787/sti_scoreboard-2015-en. ISBN 9789264239784 – 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-sky" ideas or technologies (such as nuclear fusion).<ref>Taylor, R.A. (2012). "Socioeconomic impacts of heat transfer research". International Communications in Heat and Mass Transfer. 39 (10): 1467–1473. doi:10.1016/j.icheatmasstransfer.2012.09.007.</ref>
History
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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 inventors using their own funds. A system of patents 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 corporations 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">OECD (2015-10-08). Frascati Manual 2015: Guidelines for Collecting and Reporting Data on Research and Experimental Development. The Measurement of Scientific, Technological and Innovation Activities. OECD. doi:10.1787/9789264239012-en. ISBN 978-92-64-23880-0.</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>OECD (2018-10-22). Oslo Manual 2018: Guidelines for Collecting, Reporting and Using Data on Innovation, 4th Edition. The Measurement of Scientific, Technological and Innovation Activities. OECD. doi:10.1787/9789264304604-en. ISBN 978-92-64-30455-0. 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>Guellec, Dominique; Van Pottelsberghe de la Potterie, Bruno (July 2004). "From R&D to Productivity Growth: Do the Institutional Settings and the Source of Funds of R&D Matter?". Oxford Bulletin of Economics and Statistics. 66 (3): 353–378. doi:10.1111/j.1468-0084.2004.00083.x. ISSN 0305-9049. S2CID 59568599.</ref> The analysis often boils down to whether public and private finance show crowding-in or crowding-out patterns.<ref>David, Paul A.; Hall, Bronwyn H.; Toole, Andrew A. (2000-04-01). "Is public R&D a complement or substitute for private R&D? A review of the econometric evidence". Research Policy. 29 (4): 497–529. doi:10.1016/S0048-7333(99)00087-6. ISSN 0048-7333. S2CID 1590956.</ref><ref>Rehman, Naqeeb Ur; Hysa, Eglantina; Mao, Xuxin (2020-01-01). "Does public R&D complement or crowd-out private R&D in pre and post economic crisis of 2008?". Journal of Applied Economics. 23 (1): 349–371. doi:10.1080/15140326.2020.1762341. ISSN 1514-0326. S2CID 225720398.</ref>
Funding types: public and private
Public/State Funding
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>Mansfield, Edwin (February 1991). "Academic research and industrial innovation". Research Policy. 20 (1): 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 appropriability hence private returns are high.<ref name="Jones 1119–1135">Jones, C. I.; Williams, J. C. (1998-11-01). "Measuring the Social Return to R&D". The Quarterly Journal of Economics. 113 (4): 1119–1135. doi:10.1162/003355398555856. ISSN 0033-5533.</ref> Basic research is weak on appropriability and so remains risky and under-financed.<ref>Nelson, Richard R. (June 1959). "The Simple Economics of Basic Scientific Research". Journal of Political Economy. 67 (3): 297–306. doi:10.1086/258177. ISSN 0022-3808. S2CID 154159452.</ref><ref>Arrow, K. J. (1972). "Economic Welfare and the Allocation of Resources for Invention" (PDF). Readings in Industrial Economics. London: Palgrave. pp. 219–236. doi:10.1007/978-1-349-15486-9_13. ISBN 978-0-333-10964-9. S2CID 38456056.</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 goods seconds this argument.<ref>Ostrom, Vincent; Ostrom, Elinor (2019-08-26), Savas, E. S. (ed.), "Public Goods and Public Choices", Alternatives for Delivering Public Services (1 ed.), Routledge, pp. 7–49, doi:10.4324/9780429047978-2, ISBN 978-0-429-04797-8, S2CID 150900527, retrieved 2022-04-13</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>Vuong, Quan-Hoang (2018). "The (ir)rational consideration of the cost of science in transition economies". Nature Human Behaviour. 2 (1): 5. doi:10.1038/s41562-017-0281-4. PMID 30980055. S2CID 46878093.</ref> The general 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>Archibugi, Daniele; Filippetti, Andrea (2015-01-29). "Knowledge as Global Public Good". Rochester, NY. SSRN 2557339. {{cite journal}}: Cite journal requires |journal= (help)</ref>
In endogenous growth theories, R&D contributes to growth.<ref>Nelson, Richard R.; Romer, Paul M. (January 1996). "Science, Economic Growth, and Public Policy". Challenge. 39 (1): 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>Mensch, Gerhard (1979). Stalemate in technology : innovations overcome the depression. Cambridge, Mass.: Ballinger Pub. Co. ISBN 0-88410-611-X. OCLC 4036883.</ref><ref>Schmookler, Jacob (2013-10-01). Invention and Economic Growth. Harvard University Press. doi:10.4159/harvard.9780674432833. ISBN 978-0-674-43283-3.</ref> Recently, (tacit) knowledge itself is said to be a source of economic driver internalized by science workers.<ref>Kastrinos, N. (2013-12-01). "The financial crisis and Greek R&D policy from a Schumpeterian perspective". Science and Public Policy. 40 (6): 779–791. doi:10.1093/scipol/sct025. ISSN 0302-3427.</ref> When this knowledge and/or human capital emigrates, countries face the so-called 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>Goolsbee, Austan (April 1998). "Does Government R&D Policy Mainly Benefit Scientists and Engineers?" (PDF). American Economic Review. Cambridge, MA: w6532. doi:10.3386/w6532. S2CID 2763177.</ref> In this sense, science funding is not only discretionary spending but also has elements of entitlement spending.
R&D funded and especially performed by the State may allow greater influence over its direction.<ref>Mazzucato, Mariana (December 2015). "6. Innovation, the State and Patient Capital". The Political Quarterly. 86: 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>Falck, Oliver; Gollier, Christian; Woessmann, Ludger (2011), "Arguments for and against Policies to Promote National Champions", Industrial Policy for National Champions, The MIT Press, doi:10.7551/mitpress/9780262016018.001.0001, ISBN 978-0-262-01601-8, retrieved 2022-03-28</ref> In the EU, dedicated safeguards have been enacted under a dedicated form of competition law called State Aid. State Aid safeguards business activities from governmental interventions. This invention was largely driven by the German ordoliberal school as to eliminate state subsidies advocated by the French dirigiste.<ref>Warlouzet, Laurent (January 2019). "The EEC/EU as an Evolving Compromise between French Dirigism and German Ordoliberalism (1957–1995)". JCMS: Journal of Common Market Studies. 57 (1): 77–93. doi:10.1111/jcms.12817. ISSN 0021-9886. S2CID 159378013.</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>Mazzucato, Mariana (2014). The entrepreneurial state : debunking public vs. private sector myths (Revised ed.). London. ISBN 978-0-85728-252-1. OCLC 841672270.{{cite book}}: CS1 maint: location missing publisher (link)</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 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">OECD (2021-01-12). "Government support for business research and innovation in a world in crisis". OECD Science, Technology and Innovation Outlook 2020. doi:10.1787/7a7891a5-en. ISBN 9789264391987. S2CID 242590616.</ref> Depending on the funding type, different modalities to distribute the funds may be used. For regulatory measures, often the 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>Lepori, Benedetto (2019), "The changing governance of research systems. Agencification and organizational differentiation in research funding organizations", Handbook on Science and Public Policy, Edward Elgar Publishing, pp. 448–465, doi:10.4337/9781784715946.00034, ISBN 978-1-78471-594-6, S2CID 197812506, retrieved 2022-03-28</ref> Research councils are (usually public) bodies that provide research funding in the form of research grants or scholarships. 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:
Conditionality
In addition to project deliverables, funders also increasingly introduce new eligibility requirements alongside traditional ones such as research integrity/ethics.
With the Open Science movement, funding is increasingly tied to data management plans and making data FAIR.<ref>Wilkinson, Mark D.; Dumontier, Michel; Aalbersberg, IJsbrand Jan; Appleton, Gabrielle; Axton, Myles; Baak, Arie; Blomberg, Niklas; Boiten, Jan-Willem; da Silva Santos, Luiz Bonino; Bourne, Philip E.; Bouwman, Jildau (15 March 2016). "The FAIR Guiding Principles for scientific data management and stewardship". Sci Data. 3 (1): 160018. Bibcode:2016NatSD...360018W. doi:10.1038/sdata.2016.18. ISSN 2052-4463. PMC 4792175. PMID 26978244.</ref> The Open Science requirement complements Open Access mandates<ref>"OECD Legal Instruments". legalinstruments.oecd.org. Retrieved 2022-03-28.</ref> which today are widespread.<ref>"How many Open Access policies are there worldwide? - ROARMAP". roarmap.eprints.org. Retrieved 2022-03-28.</ref>
The gender dimension also gained ground in recent years. The European Commission mandates applicants to adopt gender equality plans across their organization.<ref>European Commission (31 March 2021). "Horizon Europe - Work Programme - 13. General Annexes" (PDF). Retrieved 9 April 2022.</ref> The UK Research and Innovation Global Challenges Research Fund mandates a gender equality statement.<ref>"Equality, diversity and inclusion". www.ukri.org. Retrieved 2022-03-28.</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>European Commission (1 February 2022). "Horizon Europe - Programme Guide" (PDF). Retrieved 9 April 2022.</ref> "Do No Significant Harm" has been criticized as coupled with other eligibility requirements it is often characterized as red-tape.<ref>Jaffe, Matthew (2021-10-03). "Levels of Requirements, Robustness, Unicorns, and Other Semi-Mythical Creatures in the Requirements Engineering Bestiary: Why "Types" of Software Requirements Are Often Misleading". 2021 IEEE/AIAA 40th Digital Avionics Systems Conference (DASC). IEEE. pp. 1–8. doi:10.1109/dasc52595.2021.9594323. ISBN 978-1-6654-3420-1. S2CID 244137490.</ref><ref>"MEPs decry inclusion of 'do no significant harm' principle in Horizon Europe". Science|Business. Retrieved 2022-04-06.</ref> The European Commission has been trying to simplify the Framework Program for numerous years with limited success.<ref>European Commission (April 2020). "Implementation Strategy for Horizon Europe - Version 1.0" (PDF). Retrieved 14 April 2022.</ref> Simplification attempts are also taken by the UK Research and Innovation.<ref>"How we're improving your funding experience". ukri.org. 28 February 2022. Retrieved 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]
The Engineering and Physical Sciences Research Council in the United Kingdom has devised an alternative method of fund-distribution: the sandpit.<ref>
Corbyn, Zoë (2009-07-02). "'Sandpits' bring out worst in 'infantilised' researchers". Times Higher Education. TSL Education. 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.
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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". Sponsored Research Administration: A Guide to Effective Strategies and Recommended Practices Archived 2009-04-22 at the Wayback Machine</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 grants and the writing of grant proposals.<ref name="StackExchangeHardMoney">"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
Private funding for research comes from philanthropists,<ref name="Billionaire Ideas">William J. Broad (2014-03-15). "Billionaires With Big Ideas Are Privatizing American Science". The New York Times. Retrieved 30 November 2014.</ref> crowd-funding,<ref name="Crowdfunding" /> private companies, non-profit foundations, and professional organizations.<ref>"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>Anderson, Barrett R.; Feist, Gregory J. (2017-03-04). "Transformative science: a new index and the impact of non-funding, private funding, and public funding". Social Epistemology. 31 (2): 130–151. doi:10.1080/02691728.2016.1241321. ISSN 0269-1728. S2CID 151739590.</ref><ref>Diamond, Arthur M. (April 2006). "The relative success of private funders and government funders in funding important science". European Journal of Law and Economics. 21 (2): 149–161. doi:10.1007/s10657-006-6647-0. ISSN 0929-1261. S2CID 17707551.</ref> Many large technology companies spend billions of dollars on research and development each year to gain an 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">Jaruzelski, B.; V. Staack; B. Goehle (2014). Global Innovation 1000: Proven Paths to Innovation Success (Technical report). Strategy&.</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>Stephanie M. Lee (27 August 2014). "New Palo Alto lab for life science startups". SFGate.</ref> but aim to eventually become self-sufficient.<ref name="Crowdfunding">Giles, Jim (2012). "Finding philanthropy: Like it? Pay for it". Nature. 481 (7381): 252–253. Bibcode:2012Natur.481..252G. doi:10.1038/481252a. PMID 22258587.</ref><ref>Dharmesh Shah. "7 Lessons On Startup Funding From a Research Scientist".</ref>
Europe and the United States have both reiterated the need for further private funding within universities.<ref>"Research and Innovation". ec.europa.eu. Retrieved 2022-03-28.</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>Muscio, Alessandro; Quaglione, Davide; Vallanti, Giovanna (February 2013). "Does government funding complement or substitute private research funding to universities?". Research Policy. 42 (1): 63–75. doi:10.1016/j.respol.2012.04.010. hdl:11385/36074.</ref>
Influence on research
The source of funding may introduce conscious or unconscious biases into a researcher's work.<ref>"Who pays for science?". 18 April 2022.</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 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>Vuong, Quan-Hoang (2020). "Reform retractions to make them more transparent". Nature. 582 (7811): 149. Bibcode:2020Natur.582..149V. doi:10.1038/d41586-020-01694-x. 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>Lenard I Lesser; Cara B Ebbeling; Merrill Goozner; David Wypij; David S Ludwig (January 9, 2007). "Relationship between Funding Source and Conclusion among Nutrition-Related Scientific Articles". PLOS Medicine. PLOS. 4 (1): e5. doi:10.1371/journal.pmed.0040005. PMC 1764435. PMID 17214504.</ref> A British study found that a majority of the members on national and food policy committees receive funding from food companies.<ref>Marion Nestle (October 2001). "Food company sponsorship of nutrition research and professional activities: a conflict of interest?". Public Health Nutrition. Cambridge University Press. 4 (5): 1015–1022. doi:10.1079/PHN2001253. PMID 11784415.</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 trials 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>Davidoff, F; Deangelis, C. D.; Drazen, J. M.; Nicholls, M. G.; Hoey, J; Højgaard, L; Horton, R; Kotzin, S; Nylenna, M; Overbeke, A. J.; Sox, H. C.; Van Der Weyden, M. B.; Wilkes, M. S. (September 2001). "Sponsorship, authorship and accountability". CMAJ. 165 (6): 786–8. PMC 81460. PMID 11584570.</ref>
The Cochrane Collaboration, a worldwide group that aims to provide compiled scientific evidence to aid well informed health care decisions, conducts systematic reviews of randomized controlled trials of health care interventions and tries to disseminate the results and conclusions derived from them.<ref>Scholten, R. J.; Clarke, M; Hetherington, J (August 2005). "The Cochrane Collaboration". Eur J Clin Nutr. Suppl 1. 59 (S1): S147–S149. doi:10.1038/sj.ejcn.1602188. PMID 16052183.</ref><ref>"Welcome". www.cochrane.org.</ref> A few more recent reviews have also studied the results of non-randomized, 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>"How Well Do Meta-Analyses Disclose Conflicts of Interests in Underlying Research Studies". The Cochrane Collaboration website. Cochrane Collaboration. 2011-06-06. Retrieved 24 March 2014.</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>Levine, J; Gussow, JD; Hastings, D; Eccher, A (2003). "Authors' Financial Relationships With the Food and Beverage Industry and Their Published Positions on the Fat Substitute Olestra". American Journal of Public Health. 93 (4): 664–9. doi:10.2105/ajph.93.4.664. PMC 1447808. PMID 12660215.</ref>
A 2005 study in the journal Nature<ref>Martinson, BC; Anderson, MS; De Vries, R (2005). "Scientists behaving badly". Nature. 435 (7043): 737–8. Bibcode:2005Natur.435..737M. doi:10.1038/435737a. PMID 15944677. 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>"A Google billionaire's fingerprints are all over Biden's science office". POLITICO. 28 March 2022. Retrieved 2022-04-06.</ref> Ethics inquiries were initiated in the OSTP.
Efficiency of funding
The traditional measurement for efficiency of funding are publication output, citation impact, number of patents, number of PhDs awarded etc. However, the use of journal impact factor has generated a 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>Fang, H. (2011). "Peer review and over-competitive research funding fostering mainstream opinion to monopoly". Scientometrics. 87 (2): 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>"Read the Declaration". DORA. Retrieved 2022-03-28.</ref> and the Leiden Manifesto for research metrics.<ref>Hicks, Diana; Wouters, Paul; Waltman, Ludo; de Rijcke, Sarah; Rafols, Ismael (2015-04-23). "Bibliometrics: The Leiden Manifesto for research metrics". Nature. 520 (7548): 429–431. Bibcode:2015Natur.520..429H. doi:10.1038/520429a. hdl:10261/132304. ISSN 0028-0836. PMID 25903611. S2CID 4462115.</ref> The current system also has limitations to measure excellence in the Global South.<ref>Tijssen, Robert; Kraemer-Mbula, Erika (2018-06-01). "Research excellence in Africa: Policies, perceptions, and performance". Science and Public Policy. 45 (3): 392–403. doi:10.1093/scipol/scx074. hdl:1887/65584. ISSN 0302-3427.</ref><ref>Wallace, L.; Tijssen, Robert (2019). Transforming research excellence. Cape Town. ISBN 978-1-928502-07-4. OCLC 1156814189.{{cite book}}: CS1 maint: location missing publisher (link)</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>Lebel, Jean; McLean, Robert (July 2018). "A better measure of research from the global south". Nature. 559 (7712): 23–26. Bibcode:2018Natur.559...23L. doi:10.1038/d41586-018-05581-4. ISSN 0028-0836. PMID 29973734. S2CID 49692425.</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>"Research Dollars Go Farther at Less-Prestigious Institutions: Study". The Scientist Magazine®. Retrieved 2018-07-23.</ref><ref>Wahls, Wayne P. (2018-07-13). "High cost of bias: Diminishing marginal returns on NIH grant funding to institutions". bioRxiv: 367847. doi:10.1101/367847.</ref>
Trends
In 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">"Science,technology and innovation". UNESCO Science,technology and innovation indicators. 2017. Retrieved 13 June 2022.</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>"Global Investments in R&D" (PDF). UNESCO. June 2020. Retrieved 26 August 2023.</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>"Science,technology and innovation - GERD financed by the rest of the world %". UNESCO Science,technology and innovation Statistics. 2017. Retrieved 13 June 2022.</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>"Science,technology and innovation- GERD financed by non-profit %". UNESCO Science,technology and innovation Statistics. 2017. Retrieved 13 June 2022.</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.
| Country (and the EU) | GERD as % of the GDP in 2017<ref name=":2" /> | GDP Growth (annual %) in 2017<ref>"GDP Growth (annual %)". World Bank. 2017. Retrieved 13 June 2022.</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>The People's Government of Fujian Province (9 August 2021). "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". Retrieved 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 procyclically.<ref>Barlevy, Gadi (2007-08-01). "On the Cyclicality of Research and Development". American Economic Review. 97 (4): 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 countercyclical reactions were advocated for in the wake of the 2008 financial crisis, but this was difficult to achieve for some countries.<ref>Guellec, Dominique; Wunsch-Vincent, Sacha (2009-06-01). "Policy Responses to the Economic Crisis: Investing in Innovation for Long-Term Growth". OECD Digital Economy Papers. doi:10.1787/222138024482. {{cite journal}}: Cite journal requires |journal= (help)</ref><ref>Abi Younes, George; Ayoubi, Charles; Ballester, Omar; Cristelli, Gabriele; de Rassenfosse, Gaétan; Foray, Dominique; Gaulé, Patrick; Pellegrino, Gabriele; van den Heuvel, Matthias; Webster, Elizabeth; Zhou, Ling (2021-04-24). "COVID-19: Insights from innovation economists". Science and Public Policy. 47 (5): 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>OECD Directorate for Science, Technology and Innovation (March 2022). "OECD Main Science and Technology Indicators. R&D Highlights in the March 2022 Publication" (PDF). Retrieved 2022-04-13.</ref> The pandemic made health research and sectors with strategic value-chain dependencies the main target of science funding.<ref>UNESCO (2021). "UNESCO Science Report: The race against time for smarter development". unesdoc.unesco.org. Retrieved 2022-04-13.</ref>
See also
- Scientific funding advisory bodies (category)
- Funding bias
- Metascience
- Science policy
- Self-Organized Funding Allocation
- Industry funding of academic research
References
Further reading
- Eisfeld-Reschke, Jörg, Herb, Ulrich, & Wenzlaff, Karsten (2014). Research Funding in Open Science. In S. Bartling & S. Friesike (Eds.), Opening Science (pp. 237–253). Heidelberg: Springer. doi:10.1007/978-3-319-00026-8_16
- Herb, Ulrich (2014-07-31). "Open science's final frontier". Research Europe Magazine. Archived from the original on 2014-09-03. Retrieved 2014-08-30.
- Martinson, Brian C.; De Vries, Raymond; et al. (2005). "Scientists behaving badly". Nature. 435 (7043): 737–738. Bibcode:2005Natur.435..737M. doi:10.1038/435737a. PMID 15944677. S2CID 4341622.
- Mello, Michelle M.; et al. (2005). "Academic Medical Centers' Standards for Clinical-Trial Agreements with Industry". New England Journal of Medicine. 352 (21): 2202–2210. doi:10.1056/nejmsa044115. PMID 15917385. S2CID 8283797.
- Odlyzko, Andrew (1995-10-04). "The Decline of Unfettered Research". Retrieved 2007-11-02.
External links
- Where to Search for Funding | Science | AAAS, from Science Careers, from the Journal Science.
- ResearchCrossroads Aggregated funding data from the National Institutes of Health, the National Science Foundation, NSF, private foundations and the European Union
- Seventh Framework Programme (2007–2013) The European Unions's programme for funding and promoting research at the European level
- 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.
- Research Councils UK The portal for the UK-based Research Councils.
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