Skip to main content

05 — Funding Model

05 – Funding Model​

How to Read This Chapter​

This chapter defines the financial structures needed to sustain labs, hubs, and the NCU using multi-stream funding models aligned with MEL, IGF, and capability growth.

5.1 Purpose of the Funding Model​

Funding must:

  • support stability,
  • ensure predictability,
  • enable growth,
  • align with performance,
  • provide diversification,
  • sustain governance and evidence systems.

5.2 What Must Be Funded​

5.2.1 Tier-0: Lab Funding​

Covers:

  • staffing,
  • IMM-P cycles,
  • research,
  • prototyping,
  • documentation systems.

5.2.2 Tier-1: Hub Funding​

Covers:

  • capability building,
  • portfolio management,
  • shared infrastructure,
  • MEL review,
  • domain-specific support.

5.2.3 Tier-2: Network Funding​

Covers:

  • governance,
  • MEL synthesis,
  • accreditation,
  • platforms,
  • transparency systems.

5.3 Funding Principles​

  • Diversification
  • Stability
  • Performance Alignment
  • Transparency
  • Reinvestment of Learning
  • Equity Across Labs
  • Outcome Orientation

5.4 Multi-Stream Funding Architecture​

5.4.1 Public Funding Streams​

  • national budgets,
  • program budgets,
  • innovation funds,
  • development banks.

5.4.2 Private Sector Streams​

  • partnerships,
  • sponsorships,
  • co-financed labs,
  • in-kind contributions.

5.4.3 Academic Streams​

  • research budgets,
  • grants,
  • student/faculty programs.

5.4.4 Philanthropic Streams​

  • foundations,
  • civil society,
  • challenge grants.

5.4.5 International Cooperation​

  • UN agencies,
  • regional bodies,
  • donor programs.

5.5 Challenge Funds​

Provide competitive, rapid funding for domain-specific experiments.

5.6 Pooled Funds​

Multi-party contributions into shared structures.

5.7 Performance-Based Funding​

Allocation depends on:

  • IMM-P execution,
  • IGF compliance,
  • scorecard results,
  • collaboration.

5.8 Funding Governance​

Funding flows must follow IGF decision tiers and transparency rules.

5.9 Long-Term Sustainability Models​

Options:

  • national budget integration,
  • multi-year cycles,
  • endowment funds,
  • PPP co-financing,
  • sectoral funding clusters.

5.10 Connection to Benchmarking​

Benchmarking ensures fair and evidence-driven funding decisions (Chapter 06).