ALTERNATIVE FUNDING MODELS FOR RESEARCH AND DEVELOPMENT: A COMPREHENSIVE SYSTEMATIC REVIEW
DOI:
https://doi.org/10.35631/IJLGC.1144001Keywords:
Public Funding, Research and Development Funding, R&D FundingAbstract
The growing complexity of societal challenges and the increasing costs and risks associated with research and development (R&D) have intensified scrutiny of traditional, project-based public funding models, which are criticised for rigidity, short-termism, and uneven distribution of resources. In response, a diverse set of alternative funding models has emerged, yet the existing evidence remains fragmented across disciplines, policy contexts, and methodological approaches. This study presents a systematic literature review that synthesises and critically evaluates scholarly work on alternative funding models for R&D, with a system-level focus on how funding is designed, allocated, governed, and experienced by research actors. Following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) protocol, a structured search was conducted using the Scopus as well as Web of Science databases, employing advanced keyword combinations associated with R&D and public funding. Following screening, eligibility assessment, and quality appraisal, 57 primary studies were retained for in-depth analysis. The findings are organised into four thematic areas: (1) funding mechanisms, allocation design, and performance effects; (2) equity, disparities, and the question of who gets funded; (3) governance, accountability, integrity, and regulatory constraints; and (4) institutions, innovation ecosystems, participation, and researcher-facing realities. Across these themes, the literature reveals persistent tensions between efficiency and inclusivity, accountability and flexibility, and strategic steering and academic autonomy. The review shows that alternative funding models—including hybrid public–private schemes, mission-oriented instruments, and participatory mechanisms—can generate benefits but also introduce governance and equity challenges depending on their design and institutional context. By reframing alternative funding models as interacting allocation logics and governance arrangements, this review advances a more integrated understanding of R&D funding systems and highlights priorities for future research on comparative effectiveness, long-term innovation outcomes, and system-level funding design.
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