2014-global-go-to-think-tank-index-22012015_1

I. Dramatic Shifts in Funding Patterns: National, regional, and local governments have cut
their funding for public policy research while corporations and private foundations have limited
their grant-making to project-specific support. The 2008 economic crisis sparked a considerable
shift in sources of think-tank funding. According to Alejanro Chafuen’s “Think Tanks for
Freedom: A Snapshot of the U.S. Market,” foundations served as the largest source of support to
think tanks until 2011. Throughout the last three years, however, donations made by individuals
have replaced foundations as the most prominent source of funding. On average, corporations
contribute approximately 10 percent of the revenue granted to the institutes that participated
within Chafuen’s sample. This is down from 18 percent since 2000. Roughly half of the
organizations reported that individual donors are the largest source of support. Just 2 percent of
institutional funding can be attributed to sources other than individuals (48 percent) and
foundations (40 percent), most of which are magazine subscriptions to think tank publications. 69
Decreased funding and operating support has put think tanks at risk of supporting the status quo
in policy debate, rather than providing alternatives. 70 Nobel laureates Professor James Rothman
of Yale University, Professor Randy Sheckman of the University of California, Berkeley, and
Professor Thomas Suedhof of Stanford University say that government budget cuts threaten
research and undermine the overall outcomes of the institutions’ research. 71 Think tanks in
Central America, Central and South Asia, Sub-Saharan African and Central and Eastern Europe
have been particularly hard-hit by the economic downturn, both for economic reasons and
because many of these countries lack the local funding options available to think tanks elsewhere
because of a weaker culture of philanthropy. 72
Although diminished funding may perhaps jeopardize innovation with respect to policy research
and prescriptions, it is equally important to recognize that funding of any amount tends to
influence the particular research agenda that a think tank pursues. It is, therefore, critical that
policy institutes implement the systems and procedures necessary to safeguard the integrity and
independence of the work they produce. In addition to such internal measures, it is suggested that
think tanks maintain a wide variety and a large number of donors, so as to further avoid a
situation in which those whom comprise these policy institutes feel beholden to government or
other narrow special interests. 73 Think tanks are often viewed as non-partisan, non-biased
sources, though the sources of funding can influence a think tank’s focus. Kathleen Clark, a
professor at Washington University and political ethics expert said, “If you’re a lobbyist,
whatever you say is heavily discounted. If a think tank is saying it, it obviously sounds a lot
69 Alejanro Chafuen, Think Tanks For Freedom: A Snapshot Of The U.S. Market. Forbes. Feb. 2, 2013.
70 Euro Think Tank Summit Report, from Regional and International of 20 November 2012.
71 Elizabeth Lopatto, "American Nobel Winners Say Research Threatened by Cuts," Bloomberg, 8
October 2013, accessed 5 January 2014, http://www.bloomberg.com/news/2013-10-08/american-nobelwinners-fear-for-research-as-funding-cut.html.
72 Makoni, Munyaradzi. "African Think Tanks Feel Funding Pinch."ResearchResearch.com.
ResearchResearch Limited, 28 Jan. 2013. Web. 25 Oct. 2013.
73 McGann, James. “Think Tanks: Catalyst for Ideas and Action.” Diplomatic Courier.
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