Why grant funding should be spread thinly: some followup

Last month I posted “Why grant funding should be spread thinly”.  In a nutshell, I provided a simple mathematical model that I think supports the argument for an agency’s awarding many smaller grants rather than just a few very large ones. The discussion in the Comments section of that post was lively, no doubt because as scientist we’re heavily invested in the way society supports, or doesn’t support, our work. Our grants give us the tools we need to do the science we’re passionate about, and that passion comes out when we talk about granting policy.

My earlier post left some loose ends.

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Why grant funding should be spread thinly

How should a granting agency distribute the funds at its disposal? Different agencies have different answers to that question. The NSF (USA), for example, has traditionally awarded operating grants to rather few applicants, with each successful applicant getting quite a lot of money. NSERC (Canada), on the other hand, has traditionally awarded operating grants to most applicants, but with each successful applicant getting less money (a recent snapshot and some discussion here). NSERC has been moving slowly but steadily in the direction of the NSF model, with lower funding percentages, larger grants for top-ranked applications, and new categories of super-grants intended to recognize “excellence” (e.g., Vanier graduate scholarships, Banting postdoctoral scholarships, Canada Excellence Research Chairs program). Scientists have widely decried NSERC’s shift (for example, here) and NSF’s practice (for example, here and here) – but are they right? How should an agency like NSERC optimally distribute its funds?