Research equity: Incentivizing high-risk basic research with market mechanisms

Abstract

Innovation in basic research is vital to scientific progress and technological development; however, such research finds insufficient support in the current research environment. To stimulate high-risk, high-reward basic research, this paper proposes a “research equity” funding model in which funders—such as government agencies and philanthropies—would pay researchers and institutions for completed research: The more valuable the research, the greater the reward. The valuation of completed research could be done with a novel “chess rating” method: A peer reviewer would be presented with a pair of research papers and would decide which of the two is of greater value, and a large number of comparisons would produce a numerical rating to inform payment. Payment based on research value would enable many of the qualities found in healthy markets. Initial capital for basic research would be provided by research institutions, which would be financially incentivized to invest in a diverse body of basic research that includes both low-risk, conservative research and high-risk, innovative research. Institutions would be motivated to demonstrate the value of completed research in their portfolios, which may accelerate recognition of important results. By motivating researchers and institutions to produce and promote valuable research, the research equity model could stimulate more rapid scientific discovery and progress. Notably, the research equity model could coexist with grant funding.