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European universities are experiencing increasing financial pressures. Given that governmental budgets are cut, they have to additionally rely on further sources of funding. Multi-party funding, however, is not easily managed and poses serious challenges on academic research. This study explores the question “What tensions result from multiple-party funding, what are possible consequences of the different funding strategies and—transferring the findings to the university context—how can universities establish and manage multiple-party funded research?” We conducted a qualitative single case study in a non-university research center (NRC). NRC has gone through the process of increasing financial pressure and now relies on multiple sources of financing that have to be managed concurrently. Our results discuss opportunities and threats and reveal core tensions related to multiple-party funding activities. Adopting a paradox lens allows us to transfer the insights from this case to the university context. We systematically discuss consequences for universities and academic research and suggest approaches of actively managing tensions via strategies of accepting, differentiating and integrating. We thereby contribute to the discussion how to establish and manage third-party funded research for European universities.

Multiple-party funding: tensions and related consequences for academic research in Europe