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The Historic NIH Decision that will change the Landscape of Research 584

Tariq Daouda, 6 j.
1 min de lecture.

The Historic NIH Decision that will change the Landscape of Research

Tariq Daouda, 6 j.
The NIH is the single major granting institution for research in the world and it has decided to cap the administrative overhead to 15%. This decision might forever change the organisation of major universities. To understand how university funding works in the US, when a researcher gets a grant, a significant part of that money (think 50% to 100%) usually goes to the administration of the university and not directly to research. For example if the administrative overhead is 60% on a grant of 1M$, either the research gets 40% (400k$) of the money and the university administration 60% (600k$), or the organism has to pay 1.6M dollars. This is what the NIH has been doing so far, creating a huge competition of for NIH grants. The NIH was the only organism that gladly paid the administrative overhead, while other institutions would cap it or completely refuse to pay it. Now the NIH will no be so accommodating. The huge administrative overhead is explained by the fact that over the year, administrative personnel in major universities has grown to far outnumber faculty, researchers and clinicians. Administrations at universities tend to follow extremely rigid and complex processes for almost anything. Most decisions and actions are regulated through a slow, rigid and scrutinizing process, either through a deep chain of command or through commissions that are slow to gather and have to debate every decision. This has been ongoing for a while at major universities because of virtually no negative feedback loop. The university could always raise the administrative overhead to pay for any new administrative processes it decides to implement. Major universities also do other things than research, and teaching. They are gigantic institutions with gigantic ramifications. Now more than ever, universities cannot afford to lower the standards on research. Because if they do, their faculty will not be less eligible for grants, and they might even loose the 15% that the NIH has promised to pay. The most likely outcome is swift lay offs of administrative personnel and the termination of many programs that are not conducive to outstanding research. Then, they will start doing more fundraising towards private donors, some of which already refuse to pay administrative overheads, requiring their money to go directly towards research. Institutions will also get closer to the industry, and will try to promote more startups, and spin-offs. But that will require major changes in administrative processes, money allocation and a lot more flexibility on intellectual propriety.
x.com/NIH/status/188800475939695...

The Historic NIH Decision that will change the landscape of Research

Tariq Daouda, 6 j.
The NIH is the single major granting institution for research in the world and it has decided to cap the administrative overhead to 15%. This decision might forever change the organisation of major universities. To understand how university funding works in the US, when a researcher gets a grant, a significant part of that money (think 50% to 100%) usually goes to the administration of the university and not directly to research. For example if the administrative overhead is 60% on a grant of 1M$, either the research gets 40% (400k$) of the money and the university administration 60% (600k$), or the organism has to pay 1.6M dollars. This is what the NIH has been doing so far, creating a huge competition of for NIH grants. The NIH was the only organism that gladly paid the administrative overhead, while other institutions would cap it or completely refuse to pay it. Now the NIH will no be so accommodating. The huge administrative overhead is explained by the fact that over the year, administrative personnel in major universities has grown to far outnumber faculty, researchers and clinicians. Administrations at universities tend to follow extremely rigid and complex processes for almost anything. Most decisions and actions are regulated through a slow, rigid and scrutinizing process, either through a deep chain of command or through commissions that are slow to gather and have to debate every decision. This has been ongoing for a while at major universities because of virtually no negative feedback loop. The university could always raise the administrative overhead to pay for any new administrative processes it decides to implement. Major universities also do other things than research, and teaching. They are gigantic institutions with gigantic ramifications. Now more than ever, universities cannot afford to lower the standards on research. Because if they do, their faculty will not be less eligible for grants, and they might even loose the 15% that the NIH has promised to pay. The most likely outcome is swift lay offs of administrative personnel and the termination of many programs that are not conducive to outstanding research. Then, they will start doing more fundraising towards private donors, some of which already refuse to pay administrative overheads, requiring their money to go directly towards research. Institutions will also get closer to the industry, and will try to promote more startups, and spin-offs. But that will require major changes in administrative processes, money allocation and more a lot of flexibility on intellectual propriety.
x.com/NIH/status/188800475939695...