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Formula-based research incentive plans at colleges and universities
Authors:Edgar J Ellyson  Ronald E Barr  Edwin R Bailey
Institution:(1) University of Missouri-Kansas City, USA;(2) Ohio University, USA
Abstract:Financial problems at colleges and universities have led many institutions to initiate extra efforts to obtain extramural funds. One such effort has been the establishment of formula-based research incentive plans. These plans generally utilize the recovery of indirect costs as the basis for allocating additional incentive funds to various areas as an encouragement to obtain additional extramural funds. Data from surveys conducted by the University of Missouri-Kansas City and Ohio University were combined with National Science Foundation reports to provide information about this relatively recent phenomena. The increasing popularity of these plans was shown in that a majority of institutions had such plans in effect during FY 1979. Analyses of the effectiveness of these plans showed no statistically significant differences between institutions with incentive plans and those without such plans, although mean federal research expenditures were approximately 20% greater at those institutions without these incentive plans. The evidence presented indicates that the receipt of federal research funds is not associated with the use of a formula-based research incentive plan.
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