  This paper discusses how public research organizations consume funding for
research, applying a new approach based on economic metabolism of research
labs, in a broad analogy with biology. This approach is applied to a case study
in Europe represented by one of the biggest European public research
organizations, the National Research council of Italy. Results suggest that
funding for research (state subsidy and public contracts) of this public
research organization is mainly consumed for the cost of personnel. In
addition, the analysis shows a disproportionate growth of the cost of personnel
in public research labs in comparison with total revenue from government. In
the presence of shrinking public research lab budgets, this organizational
behavior generates inefficiencies and stress. R&D management and public policy
implications are suggested for improving economic performance of public
research organizations in turbulent markets.
