Allocation of Public Resources for Scientific Research: The Role of Governments and the Law

Abstract

Over centuries, efficient allocation of limited resources has been one main concerns of governments and social scientists. The emergence of the Internet fuelled the proliferation of online matching platforms that facilitate the redistribution of omnipresent surplus resources. This article examines the role of governments in the law in facilitating the most efficient allocation of public resources to academic researchers. Assuming that diversity of funded research projects is one of the primary goals, we developed a hypothetical social network model that helps compare two major policies employed by governments in allocating public funds (“selection and concentration” and “diverse allocation”). Our findings highlight the potential advantages of both funding approaches and illustrate that larger and more selective models could potentially lead to more diverse allocation of public resources. Accordingly, we offer some policy recommendations, one of which is that governments (and legal frameworks) should utilize multiple resource allocation approaches because this could lead to more efficiency and diversity.