Institutional research funding was support allocated for financing high-level research and development, and related activities (research themes) of an institution involved with the aforementioned activities. The aim was to ensure the consistency of the research and development of an R&D institution, and to upgrade, supplement and maintain the infrastructure necessary for this purpose

Therefore, it was the function of institutional research funding to ensure the stability of financing research and development in an R&D institution by funding high-level research. The funded research themes should guarantee the consistency and sustainability of a research field in Estonia.

The awarding of institutional research funding was based on the provisions of the Organisation of Research and Development Act, which entered into force in 2012, and regulation number 73 “Conditions and procedure for applying for, awarding and amending the amount of institutional research funding”  of the Ministry of Education and Research.

The evaluation of the institutional research funding applications was organized by the Estonian Research Council. The assessment was performed by the Estonian Research Council’s evaluation committee by means of international peer review.

As of 2016, no new institutional research funding grants have been awarded.