Short abstract

Understanding the cost of developing, writing, reviewing and deciding on research proposals is a prerequisite to understanding the efficiency of funding decisions. This study estimated the cost and transaction cost for a sample of funding schemes and explored the qualitative benefits of the process.

Long abstract

Understanding the cost of developing, writing, reviewing and deciding on research proposals is a critical prerequisite to understanding the efficiency of funding decisions. The objective of this study was to develop estimates for cost and transaction cost – the ratio of cost to funding – for a sample of different funding schemes administered by two funders. The perceived benefits of the peer review funding process to applicants, reviewers and panellists were also explored. 12,617 people were surveyed between April 2022 and June 2023, with an overall response rate of 11%. The study estimated that the cost of grant and fellowship application processes is 13% of the value of the grant, and that 89% of those costs are borne by the applicants. This would suggest that any policy to increase the efficiency of grant funding (beyond increasing success rates) should focus on university and research institute practices, rather than those of research funders.