This is a good thing. This is where the economy surplus went. Not to 5 days of leisure for everyone. But to jobs that keep us occupied, engaged, and motivated but aren't strictly required. The alternative is just either starving everyone to death, except for a few elite and their slaves, or everyone being bored out of their minds and wondering what the point of life is.
The funding for scientific projects comes from applying for grants from the government. Researchers must write proposals to demonstrate the value of their projects. After the project is completed, they are also required to submit a final report to verify that the project was indeed carried out as approved by the supervising authority.