Economic research on the returns to R&D investment (Grant)

Apply for funding to support research that can help develop new measurements of the return on investments in research and development (R&D). You must be based at a UK research organisation eligible for UK Research and Innovation (UKRI) funding, however, collaborations with international researchers are strongly encouraged. The full economic cost (FEC) of your project can be up to £308,000. UKRI will fund 80% of the FEC. The duration of this award is 24 months. Projects should start no later than 1 April 2027. Demand management Demand management is not being applied to this funding opportunity Aim UKRI is seeking to support research that can help develop consensus estimates of the economic and social return on investments in research and development (R&D). This funding opportunity aims to spur rigorous, empirical studies that can narrow the range of existing estimates and inform public and private R&D investment decisions. This funding opportunity is solely supported by UKRI but has been developed in collaboration with the Alfred P. Sloan Foundation and Coefficient Giving as part of an international research challenge. UKRI award holders will be encouraged to engage with award holders funded directly by the Alfred P. Sloan Foundation and Coefficient Giving. Scope This funding opportunity is supported through the UK Metascience Unit. Metascience is a rapidly expanding research field that draws on a wide range of disciplinary expertise to understand how research is conducted, funded and supported, and how these practices can be enhanced or improved. For a deeper understanding of what metascience means to UKRI, please see the UK Metascience Unit’s report . Coined after economist Zvi Griliches, ‘the Griliches Question’ explores the social and economic return on investment in R&D, a measure that has significant policy implications. The UK Government’s science, innovation and technology R&D budget will grow in real terms over the Spending Review period, totalling £58.5 billion from 2026 to 2027 to 2029 to 2030, with the current best estimate being that, on average, for every £2 of private R&D investment, £8 of net benefits is generated in the long run (DSIT R&D plans 2029/2030). Despite a substantial body of evidence on R&D returns, important questions remain about how best to measure these returns and how they vary across sectors, places, technologies, and funding mechanisms. This programme supports innovative and ambitious research projects to deepen our understanding and improve accuracy in measuring the return on investment in R&D. Given the importance of quantitative evidence in informing UK policy and investment decisions, proposals are encouraged to develop robust estimates and empirical approaches that can strengthen understanding of R&D returns and support evidence-based decision making. However, applicants may also draw on qualitative and mixed methods approaches where these can help address key evidence gaps, explain underlying mechanisms, contextualise quantitative findings, or contribute to a richer understanding of how R&D generates social and economic benefits. This funding opportunity aims to generate evidence that can support policymakers, funders and investors in making more informed decisions about the scale, targeting and allocation of future R&D investments. Some questions that can be explored through this grant, but are not limited to include: Estimating returns • how the return to R&D should be defined for the purpose at hand, including private vs. social returns and marginal vs. average returns, and which empirical objects best map these concepts • what the returns to public spending are and how these vary across different funding designs • what the social returns to corporate R&D are, including whether there is evidence of differential returns to applied research and development activities • the extent to which public and private R&D investments act as substitutes or complements Spillovers, welfare and policy • how knowledge spillovers flow across firms, sectors, and borders and whether new data sources or methods can improve our ability to trace them • the rate at which knowledge produced by R&D becomes obsolete and whether this varies across fields • how large the welfare gains from R&D are in domains where benefits are poorly captured by GDP • how public policy (e.g. tax incentives, program design, subsidies) affects the level and productivity of R&D investment Methodology • what accounts for the wide range of published estimates, and what refinements or reconciliations across approaches might narrow disagreement? • what approaches to decomposing returns across sectors, technologies, and investment approaches can provide decision-relevant insight on the various sources of overall returns? • how productivity impacts can be measured in ways that are robust to alternative specifications and research contexts? • how methodologies can better capture R&D activities, sectors, places and impac

This opportunity is open to organisations with standard eligibility. Check if your organisation is eligible . International researchers As UKRI is a lead funder for this funding opportunity, international researchers can apply as ‘project co-lead (international)’. You should include all other international collaborators (or UK partners not based at approved organisations) as project partners. Equality, diversity and inclusion We are committed to achieving equality of opportunity for all funding applicants. We encourage applications from a diverse range of researchers. We support people to work in a way that suits their personal circumstances. This includes: • career breaks • support for people with caring responsibilities • flexible working • alternative working patterns UKRI can offer disability and accessibility support for UKRI applicants and grant holders during the application and assessment process. Remit If you are unsure whether your proposed research falls within the remit of this funding opportunity, email a brief summary to EconomicROI@esrc.ukri.org and we will get back to you.

Click https://funding-service.ukri.org/OPP1311/apply/1340 to apply in the UKRI Funding Service. We are running this funding opportunity on the new UK Research and Innovation (UKRI) Funding Service so please ensure that your organisation is registered. You cannot apply on the Joint Electronic Submissions (Je-S) system. The project lead is responsible for completing the application process on the Funding Service, but we expect all team members and project partners to contribute to the application. Only the lead research organisation can submit an application to UKRI. To apply Select ‘Start application’ near the beginning of this Funding finder page. • Confirm you are the project lead. • Sign in or create a Funding Service account. To create an account, select your organisation, verify your email address, and set a password. • Answer questions directly in the text boxes. You can save your answers and come back to complete them or work offline and return to copy and paste your answers. If we need you to upload a document, follow the upload instructions in the Funding Service. All questions and assessment criteria are listed in the How to apply section on this Funding finder page. • Allow enough time to check your application in ‘read-only’ view before sending to your research office. • Send the completed application to your research office for checking. They will return it to you if it needs editing. • Your research office will submit the completed and checked application to UKRI. Please be aware that research office and finance teams undertake checks on hosting arrangements and financial eligibility. The ultimate responsibility for ensuring compliance with all opportunity requirements lies with the applicant. Where indicated, you can also demonstrate elements of your responses in visual form if relevant. When including images, you must: • provide a descriptive caption or legend for each image immediately underneath it in the text box (this must be outside the image and counts towards your word limit) • insert each new image on a new line • use files smaller than 5MB and in JPEG, JPG, JPE, JFI, JIF, JFIF, PNG, GIF, BMP or WEBP format Images should only be used to convey important visual information that cannot easily be put into words. The following are not permitted, and your application will be rejected if you include: • sentences or paragraphs of text • tables • excessive quantities of images A few words are permitted where the image would lack clarity without the contextual words, such as a diagram, where text labels are required for an axis or graph column. For more guidance on the Funding Service, see: • how applicants use the Funding Service • how research offices use the Funding Service • how reviewers use the Funding Service References References should be included within the word count of the appropriate question section. You should use your discretion when including references and prioritise those most pertinent to the application. Hyperli