| Abstract: |
Scientific research has properties of a public good; there are few monetary
incentives for individuals to undertake basic research and the conventional
wisdom is that the market, if left to its own devices, would under- invest in
research in terms of social benefits relative to social costs. Thus research,
especially of a basic nature, has traditionally been supported by either the
government or philanthropic institutions. More recently, industry has also
begun to support research conducted in nonprofit institutions. This paper
explores the various sources of support for research in the university sector.
Although the focus is on the United States, the paper discusses trends in
other countries as well. The paper also examines mechanisms for distributing
funds, including peer review and performance based distribution. The paper
closes with a case study of the National Institutes of Health doubling during
the period 1998-2002. |