Funding of science

Research funding is a term that generally encompasses any funding for scientific research in the areas of natural science, technology, and social science. While different methods can be used to disburse funding, the term generally connotes funding obtained through a competitive process, in which potential research projects are evaluated, with only the most promising and economically viable receiving funding. Usually, it is measured through gross domestic expenditure on research and development (GERD). GERD includes R&D performed within a country and funded from abroad but excludes payments for R&D performed abroad.

The largest share of research funding comes from two major sources: corporations (through research and development departments) and government (primarily carried out through universities and specialized government agencies, often known as research councils). A smaller amount of scientific research is funded by charitable foundations, especially in relation to developing cures for diseases such as cancer, malaria, and AIDS.

According to the Organisation for Economic Co-operation and Development (OECD), more than 60% of research and development in scientific and technical fields is carried out by industry, and 20% and 10% respectively by universities and government. Comparatively, in countries with a relatively lower national GDP, such as Portugal and Mexico, the industry contribution is significantly lower. The government funding proportion in certain industries is higher, and it dominates research in the social sciences and humanities. In commercial research and development, all but the most research-oriented corporations focus more heavily on near-term commercialization possibilities rather than "blue-sky" ideas or technologies (such as nuclear fusion).