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The effect of public funding on research output: the New Zealand Marsden Fund

Author

Listed:
  • Jason Gush
  • Adam Jaffe
  • Victoria Larsen
  • Athene Laws

Abstract

We estimate the impact of the NZ Marsden Fund on research success, by comparing the subsequent performance of funded and unfunded researchers. We control for selection bias using the Marsden panel rankings. We find that funding is associated with a 6%–15% increase in publications and an 11%–22% increase in citation-weighted papers for research teams. We attempt to pin down the dynamic structure of this effect by looking at the research trajectories of individual researchers, but this model yields inconsistent results. We find no systematic evidence that Marsden panel rankings are predictive of subsequent success.

Suggested Citation

  • Jason Gush & Adam Jaffe & Victoria Larsen & Athene Laws, 2018. "The effect of public funding on research output: the New Zealand Marsden Fund," New Zealand Economic Papers, Taylor & Francis Journals, vol. 52(2), pages 227-248, May.
    • Handle: RePEc:taf:nzecpp:v:52:y:2018:i:2:p:227-248
    DOI: 10.1080/00779954.2017.1325921
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    Cited by:

    1. Sarah Guillou & Basheer Kalash & Lionel Nesta & Michele Pezzoni & Evens Salies & Marc-Antoine Faure, 2023. "Impact de la nature du financement de la recherche sur ses résultats," Sciences Po Economics Publications (main) hal-04026916, HAL.
    2. Annita Nugent & Ho Fai Chan & Uwe Dulleck, 2022. "Government funding of university-industry collaboration: exploring the impact of targeted funding on university patent activity," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(1), pages 29-73, January.
    3. Hu, Albert G.Z., 2020. "Public funding and the ascent of Chinese science: Evidence from the National Natural Science Foundation of China," Research Policy, Elsevier, vol. 49(5).
    4. Alberto Corsini & Michele Pezzoni, 2022. "Does grant funding foster research impact? Evidence from France," Working Papers hal-03912647, HAL.
    5. Corsini, Alberto & Pezzoni, Michele, 2023. "Does grant funding foster research impact? Evidence from France," Journal of Informetrics, Elsevier, vol. 17(4).
    6. Bo Zhao, 2018. "State disinvestment in higher education: the impact on public research universities' patent applications," Working Papers 19-2, Federal Reserve Bank of Boston.
    7. Yu, Nannan & Dong, Yueyan & de Jong, Martin, 2022. "A helping hand from the government? How public research funding affects academic output in less-prestigious universities in China," Research Policy, Elsevier, vol. 51(10).
    8. Koichiro ONISHI & Hideo OWAN, 2020. "Heterogenous Impacts of National Research Grants on Academic Productivity," Discussion papers 20052, Research Institute of Economy, Trade and Industry (RIETI).
    9. Perlin, Marcelo & Borenstein, Denis & Imasato, Takeyoshi & Reichert, Marcos, 2024. "The determinants and impact of research grants: The case of Brazilian productivity scholarships," Journal of Informetrics, Elsevier, vol. 18(4).
    10. Subtil Lacerda, Juliana & van den Bergh, Jeroen C.J.M., 2020. "Effectiveness of an ‘open innovation’ approach in renewable energy: Empirical evidence from a survey on solar and wind power," Renewable and Sustainable Energy Reviews, Elsevier, vol. 118(C).
    11. Alberto Corsini & Michele Pezzoni, 2022. "Does grant funding foster research impact? Evidence from France," Sciences Po Economics Publications (main) hal-03912647, HAL.
    12. Davies, Benjamin & Gush, Jason & Hendy, Shaun C. & Jaffe, Adam B., 2022. "Research funding and collaboration," Research Policy, Elsevier, vol. 51(2).
    13. Nicolas CARAYOL & Marianne LANOË, 2017. "The Impact of Project-Based Funding in Science: \r\nLessons from the ANR Experience," Cahiers du GREThA (2007-2019) 2017-04, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    14. Ayoubi, Charles & Pezzoni, Michele & Visentin, Fabiana, 2019. "The important thing is not to win, it is to take part: What if scientists benefit from participating in research grant competitions?," Research Policy, Elsevier, vol. 48(1), pages 84-97.
    15. Cantner, Uwe & Grashof, Nils & Grebel, Thomas & Zhang, Xijie, 2023. "When Excellence is not Excellent: The Impact of the Excellence Initiative on the Relative Productivity of German Universities," MPRA Paper 118139, University Library of Munich, Germany.
    16. Niccolo Cattadori & Edoardo Frattola & Elena Lazzaro, 2025. "Excellence funds, excellent outcomes? Lessons from Italian university departments," Temi di discussione (Economic working papers) 1505, Bank of Italy, Economic Research and International Relations Area.
    17. Mike Thelwall & Subreena Simrick & Ian Viney & Peter Van den Besselaar, 2023. "What is research funding, how does it influence research, and how is it recorded? Key dimensions of variation," Scientometrics, Springer;Akadémiai Kiadó, vol. 128(11), pages 6085-6106, November.
    18. Yang Ding & Fernando Moreira, 2025. "Funding and productivity: Does winning grants affect the scientific productivity of recipients? Evidence from the social sciences and economics," Scientometrics, Springer;Akadémiai Kiadó, vol. 130(3), pages 1831-1870, March.
    19. Chang, Wan-Ying & Cheng, Wei & Lane, Julia & Weinberg, Bruce, 2019. "Federal funding of doctoral recipients: What can be learned from linked data," Research Policy, Elsevier, vol. 48(6), pages 1487-1492.
    20. Charles Ayoubi & Michele Pezzoni & Fabiana Visentin, 2017. "The Important Thing is not to Win, it is to Take Part: What If Scientists Benefit from Participating in Competitive Grant Races?," GREDEG Working Papers 2017-27, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.

    More about this item

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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