Assessing Inefficiencies in Public Finance Allocation for Research Projects in China: Evidence from National Natural Science Foundation and Social Science Fund Projects

Abstract

This study investigates the inefficiencies prevalent in the allocation of public finance for research projects in China, focusing on evidence derived from projects funded by the National Natural Science Foundation (NNSF) and the Social Science Fund (SSF). Despite significant investments in research and development (R&D) by the Chinese government, concerns persist regarding the effectiveness and efficiency of resource allocation, particularly in the context of publicly funded research initiatives. Through a comprehensive analysis of project outcomes, funding allocation mechanisms, and performance metrics, we assess the extent to which inefficiencies manifest in the NNSF and SSF projects. Utilizing quantitative data analysis techniques and qualitative insights from project evaluations, we identify common challenges, such as funding misallocation, bureaucratic hurdles, and project delays, that contribute to inefficiencies in public finance utilization. Moreover, we explore the implications of these inefficiencies for research productivity, knowledge dissemination, and societal impact. By shedding light on the underlying factors driving inefficiencies in public finance allocation for research projects, this study provides valuable insights for policymakers, funding agencies, and researchers seeking to enhance the effectiveness and accountability of public R&D investments in China's evolving innovation ecosystem.