Trust is expected to improve economic efficiency because private contracts and cooperative behaviour are facilitated through
lower costs of information, negotiation, control and enforcement. Following this economic argument, the efficiency of research
investments should be higher, the higher the trust relationship between funder and the receiver of the money is as costs for
information, negotiation, control and enforcement decrease. However, lower levels of trust will increase the likelihood for
demanding the regulation of activities to compensate for a lack of information, misconduct or fraud, increasing the costs
for control and enforcement in turn. In low-trust societies the expected harm of scientific activities is potentially high
and citizens demand more comprehensive regulation.
Keywords:EU Institution, Regulation, Trust, Economic and Social Cohesion