> More prestigious private universities use a lot of government funding to fund widely cited research which is what makes them prestigious.
Just a correction, the unversities are NOT the ones that apply for, and receive funding from e.g. the NIH.
It is individual researchers that apply, and receive, funding. And this money goes towards their salary and research. No funding, no salary, no reseacher.
Universities don't themselves receive government funding.
This might be shocking to some, but when a researcher receiver a federal grant (for example), the university takes a significant cut which they refer to as Facilities and Administrative (F&A) costs [1]. The F&A covers the so-called "indirect" costs of conducting research on university facilities: buildings, utilities, admin and accounting, support staff for compliance with federal regulations, etc.
Each university has its own F&A rate, which can be as much as 60% of received federal funds [2]. This rate has historically trended upward.
Well, the university will take a big slice (sometimes ~40%) of what researchers get from the NIH as "overhead", and then spend it on admins. And if professors hire grad students, the university will take another big slice as "tuition" even if the grad students aren't taking any courses.
This is one reason I'm leaving academia – if I raise money outside of academia, I actually get to keep it.
Just a correction, the unversities are NOT the ones that apply for, and receive funding from e.g. the NIH.
It is individual researchers that apply, and receive, funding. And this money goes towards their salary and research. No funding, no salary, no reseacher.
Universities don't themselves receive government funding.