The long-term effect of research grants on the scientific output of university professors

A major source of research funding for university professors are competitive research grants. With focus on Luxembourg, we present results from a difference-in-difference analysis which show that research grants by the Luxembourg National Research Fund (FNR), the central research funding agency in Luxembourg, increase the scientific output of university professors by 31% which corresponds to one additional publication. We further show that the scientific output drops again around five years after the grant receipt. However, we find that those university professors who realize a quality increase of their journal publications in the years following the grant receipt benefit from a long-lasting publication quality effect.