This paper argues that portfolio theory provides a powerful tool to make research funding decisions. Yet it is not applied in practice, and the most common approach is merit-based funding. As decisions are generally delegated to specialised public organisations, this is possibly explained by the...

The "Quarterly R&I Literature Review" provides a brief summary of a selection of recent publications on R&I economics and policy. The aim of the Review is to inform policymakers on the latest findings from the literature that links R&I economics to R&I policy. The Literature Review, together...

Since 1984, the European Union (EU) invests in research and innovation (R&I) through the EU Framework Programmes (FP). This study sheds light on the added value of these long-term investments. To do so, the paper reviews the historical evolution of the FPs, presents the economic rationales for...

Financial aid to students in tertiary education can contribute to human capital accumulation through two channels: increased enrollment and improved student performance. We analyze the quantitative importance of both channels in the context of a student loan program (SOFES) implemented at...