Conceptualizing and measuring performance orientation of research funding systems

Abstract

In this article, we propose a synthetic indicator for the performance orientation of public R&D funding at the country level that allows for quantitative comparisons across countries and over time, and we illustrate the methodology for its computation and validation. The indicator characterizes R&D funding from the state in terms of the extent the beneficiaries’ performance is taken into account in the allocation of resources. By building on the literature on research funding, the indicator combines information on how funding is allocated with quantitative measures of funding volumes. It is operationalized in terms of a fine-grained decomposition of public R&D funding in instruments, each of them characterized by their mode and criteria of allocation. Building on a large-scale European project, we test the operationalization of the indicator for a sample of European countries, and we perform a set of sensitivity and robustness analyses to inquire the impact of definitions and of data issues, particularly for what concerns cross-country comparisons. We conclude with a discussion of the advantages and limitations of the indicator and by proposing a research agenda for its further development.