This article focusses on third party funding of research in German universities. The centralquestion is, whether funding data can function as suitable indicators for the measurement ofresearch performance of university departments. After a brief description of the importance andthe extent of third party funding in the German system of research funding, the quality of data isdiscussed and the funding indicator is compared with bibliometric indicators. Resultened, one cansay that in subjects where external funding of research is usual, the funding indicator points to thesame direction as other indicators do. Because of the peer review process involved in grantawarding, a funding indicator is in many subjects a suitable indicator to evaluate R&D impacts.
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