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Many countries have introduced evaluations of university research, reflecting global demands for greater accountability. This paper compares methods of evaluation used across twelve countries in Europe and the Asia-Pacific region. On the basis of this comparison, and focusing in particular on Britain, we examine the advantages and disadvantages of performance-based funding in comparison with other approaches to funding. Our analysis suggests that, while initial benefits may outweigh the costs, over time such a system seems to produce diminishing returns. This raises important questions about its continued use. [ABSTRACT FROM AUTHOR]