Grants, Contracts and the Division of Labor in Academic Research

Eran Binenbaum
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Eran Binenbaum: School of Economics, Adelaide University

No 2005-10, Centre for International Economic Studies Working Papers from University of Adelaide, Centre for International Economic Studies

Abstract: This paper aims to shed light on the division of labor among types of research sponsors and among universities. It interprets data on grants and contracts as conveying information on the sponsorsÂ’ objectives and on the nature of the sponsored institutions. Building on this idea, the paper investigates some notions that appear to be fairly common: That more prestigious universities tend to rely more on grant funding relative to contract funding; that less prestigious research universities tend to rely more heavily on contracts; that grant (contract) funding tends to be associated with basic (applied) research; and that types of sponsors differ in their use of grants versus contracts, depending on their institutional commitment to knowledge as a public good.

Pages: 35 pages
Date: 2005-07
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