The costs and benefits of research grant funding peer review.

Understanding the costs of developing, writing, reviewing, and deciding on research proposals is a critical prerequisite for 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 panelists were also explored. A total of 12,617 individuals 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 applicants. This would suggest that policies seeking to improve the efficiency of grant funding processes should consider the role of university and research institute practices alongside funder requirements and assessment processes.