Competition for public project funding in a small research system: the case of Estonia

Abstract

The extensive literature that deals with competition for research funding has focused on the mechanisms and outcomes of funding, but has not systematically studied the allocation of funding among research performers across different financing instruments. The analysis of a small research system on the basis of funding volumes disaggregated according to beneficiaries and funding instruments showed a very high and growing degree of market concentration strengthening existing dominant research institutions. The focus of research policy on competitive funding mechanisms has been successful for the purposes of research quality, but has also resulted in disadvantages such as weak options for steering the research and the misalignment of the research system with society's needs.