The Volkswagen Foundation funds over €100m worth of scientific and research projects a year. In 2018, it announced that it would use lotteries to help decide which projects to fund; apparently, that process has been a success.
Nature also published an interesting review last year on other funders’ experiments with lotteries:
“It just takes a lot of angst out of it,” says Don Cleland, a process engineer at Massey University in Palmerston North, New Zealand, and a member of the team that oversees the SfTI fund. Given the money to fund 20 projects, an assessment panel doesn’t need to agonize over which application ranks 20th and which comes 21st, he says. They can just agree that both are good enough to be funded and then put them into the hat. “We actually do have a hat,” Cleland says.
This fits alongside what I was writing recently about using lotteries when hiring people. If there’s no way to make a rational, informed decision, then lotteries can be a useful answer.