Project funding in german science and research

Project financing – funding sources, processes and challenges

Project financing in research – the process

The federal government, the German federal states and the European Union provide funding in many areas. Whether or not a project receives financing depends on various factors, such as the degree of innovation and prospects for success. The German government generally supports “specific R&D projects that advance the state of knowledge in key application areas and thus act as growth drivers in many industries.” These can be research projects conducted by universities, large-scale research institutions, R&D institutions or commercial enterprises. In addition, there are special programs for research and innovation funding in small and medium-sized enterprises (SMEs).

Research project planners who are interested in seeking government funding should first identify the various funding opportunities and seek advice if necessary. The German government’s Federal Funding Advisory Service on Research and Innovation is a good place to start.

The funding guidelines for each funding program are published as announcements in the Federal Gazette. They include the objectives, target groups, focal points and procedures. In urgent and exceptional cases, funding for projects outside the announcements is also possible. The funding sources are the Federal Ministries of Education and Research (BMBF), Economic Affairs and Energy (BMWi), Food and Agriculture (BMEL) and Transport and Digital Infrastructure (BMVI).

Funding procedures at the federal level, DFG and foundations

 The process for submitting a funding application to the BMBF is as follows:

• Identification of a suitable funding opportunity
• Only in the two-stage procedure:
• Submit a project outline, which includes:
• Reference to the funding program
• Explanation of the idea and partners involved
• Presentation of the exclusive knowledge the project entails 
• Designation of pre-existing research projects and findings on the subject 
• Estimate of project duration, required resources and costs
• Evaluation or recommendation of the project by the ministry/project sponsor
• Submission of application
• Review of the application
• Decision

The funding process at DFG flows just as it does at most other foundations: an application is followed by a review and then a decision. Each year, the DFG receives more than 13,000 proposals for individual funding – concrete ideas that are submitted by researchers for projects that are limited in scope and time. Ultimately, around one-third of these applications are approved and funded. In the area of individual funding, there were more than 17,000 active projects receiving financing in 2020, accounting for more than one-third of DFG expenditures.

In total, the DFG funded more than 31,750 projects to the tune of around 3.9 billion euros in 2022.
The more carefully and detailed a grant application is prepared, the better are the chances for success. The DFG also offers its own tips for applying.

Problems and solutions in research funding

Whether or not research proposals submitted by researchers receive financial support depends on the quality and findings of the research project. However, the prevailing system in Germany has been strongly criticised, including by the European Commission. Many consider the German system to be unsuitable due to its heavy reliance on a heavily quantitative evaluation method. The most important indicator for the evaluation of specific projects is the Journal Impact Factor (JIF – a rating that reflects the influence of a scientific journal) and the frequency with which researchers are cited in publications.

The European Commission is currently seeking a fundamental reform of this evaluation system. The aim is to evaluate scientists and their research on the basis of their actual merits and achievements and not on the basis of their publications. A European agreement is in planning, which is to be signed by the supporters of this reform, including research funding organisations, research institutions and evaluation authorities.

The reform is a complex and lengthy process that has its own sceptics. For example, the DFG and the Helmholtz Association, which are part of the core group of European scientific organizations taking part in the process and have closely followed the drafting of the text, have not joined the signatories. In their view, “key issues are unclear,” particularly the independence of science from politics and consequences of membership “in terms of reporting and self-commitment.”

Industry and its influence on research

There has also been much discussion about funding through corporations and the impact it has on research. Proponents of partnerships between academia and industry see the opportunities that arise for research. In many cases, it’s these third-party funds that make research possible in the first place. Others, however, believe that medical, science and technical subjects are favoured by industry and its foundations. They argue that areas such as environmental protection or social science subjects, by contrast, lack funding because they tend to be neglected when it comes to financing from the business community.

This not only leads to one-sided research, they argue, but also to accusations that companies are trying to influence research results, That, in turn, would jeopardize scientific independence, they say, and create a lack of clarity regarding the ownership of research findings.