In 1983 a new funding program--PADCT ("Programa de Apoio ao Desenvolvimento Cientifico e Tecnológico")--was created in Brazil to stimulate the development of research projects related to what was established as technological priorities. In this paper 3 features of the Biotechnology/Health subprogram of PADCT were studied: a) to what extent productivity of the leaders of the research projects affected the way they were evaluated by the award panel, b) the conflict of interests that might result from the composition of the award panel, and c) the final impact of the program on science and technology. In our sample of 210 submitted projects, 62 were funded. The data suggest that the selection of projects did not ensure a better funding for the more productive research leaders. The presence on the award panel of at least one member from the same institution of a given project increased the chance of its approval but, after approval, it had no influence on the amount of funds granted. In a subsample of 21 scientists, support to 24 projects did not increase the productivity level and 4 products in a preliminary phase of development were reported. The issue of trying to solve problems in areas where there is no established scientific competence is discussed.