Troubling Doubling

Posted by Geoff Davis at 07PM on 03/02/07 | Categories: Labor Market, NIH Crisis | 9 comments

Paula Stephan gave a great talk on the NIH doubling this week here at Harvard. Here are her slides.

To recap, shortly after the NIH's annual budget doubled from $14 to $28 billion, the number of new applications for R01 grants (the mainstay of life sciences research) increased dramatically, and as a result, acceptance rates for grants plummeted. Lots of people are upset about it.

One of the big questions is, who are all these new applicants? Paula presented evidence for the following scenario:

  • When the NIH announced their budget increase, a lot of institutions saw an opportunity to expand their life sciences divisions.

  • Universities started building new facilities, hoping to recoup their costs with the overhead from increased NIH grant money. Most of these new buildings were associated with medical schools.

  • Lots of new research space started coming online just as the doubling was winding down.

  • There has been an increase in hiring to fill all this new space. Most of the new hires have been MDs, not PhDs, and most of the positions are non-tenure track, soft money positions.

  • Now that the buildings have been completed, they have to be paid for. Both new and existing faculty are under increased pressure to bring in outside support. A typical arrangement: 3 years from the start of one's appointment to bring in one's full salary. The expectation in some cases is three R01s per investigator.

  • The increased pressure to bring in money is spurring everyone to submit more often. The percentage of applications from new investigators (people who have never received and R01) has remained roughly constant (~25%) throughout the doubling, so the new applications are coming from people across the board.

Paula also has some interesting data from the Survey of Doctorate Recipients about how the doubling affected careers for younger scientists. In brief:

  • The length of time people are spending in postdoctoral positions decreased modestly.

  • Job growth occurred. Most of the new jobs were outside of academia and in non-tenure-track academic positions.

  • The probability that a biomedical PhD holder aged 35 or younger has a tenure track job was the same in 2003 as it was in 1993.

  • New investigators (those who have never been a PI on an NIH grant before) receive more awards than before the doubling, but all the increase is in small grants (R03s and R21s). The total number of R01s awarded to new investigators has remained roughly constant.

The bottom line: $14 billion new dollars per year made things a little better for young scientists. When you consider that for $2.5 billion, you could double the salaries of all 50,000 postdocs in the US, you can see how small a share of the doubling went to younger scientists.

Now that grant acceptance rates are falling, things are likely going to be a bit rough for all the new hires. The bar has been set high for them at a time when total funding for the NIH is stagnant (actually decreasing in real terms). We'll probably see signs of a shakeout over the next few years.