Grants don’t suffer from information disadvantages

The reality of the current grant system belies these three critiques. Part III describes the grant system as it functions today, with substantial emphasis on grants awarded by the NIH - perhaps the world's most prominent grant funder - to researchers at other institutions, and rebuts each critique. 18 First, the mechanics of grant application, review, and funding refute the narrative that grants are allocated by information-poor bureaucrats. The grant system uses a rigorous process of peer review to determine which proposals will be funded. Part of this process involves detailed applications, which requires potential grant recipients to share their own private information about the likely costs and potential value of the proposed research. The evaluation itself leverages the expertise of scientists with relevant experience and knowledge. And the entire process is coordinated by agency representatives who combine their own scientific background with knowledge about the innovation priorities of the NIH and the government more generally.