Peter Theil gives his take on science funding/peer review:
My libertarian views are qualified because I do think things worked better in the 1950s and 60s, but it’s an interesting question as to what went wrong with DARPA. It’s not like it has been defunded, so why has DARPA been doing so much less for the economy than it did forty or fifty years ago? Parts of it have become politicized. You can’t just write checks to the thirty smartest scientists in the United States. Instead there are bureaucratic processes, and I think the politicization of science—where a lot of scientists have to write grant applications, be subject to peer review, and have to get all these people to buy in—all this has been toxic, because the skills that make a great scientist and the skills that make a great politician are radically different. There are very few people who are both great scientists and great politicians. So a conservative account of what happened with science in the 20thcentury is that we had a decentralized, non-governmental approach all the way through the 1930s and early 1940s. At that point, the government could accelerate and push things tremendously, but only at the price of politicizing it over a series of decades. Today we have a hundred times more scientists than we did in 1920, but their productivity per capita is less that it used to be.
Thiel has a history of making controversial comments, and I don’t always agree with him, but I think that his point about the politicization of the grant process is interesting.