Australian higher education's interest in performance dates back to the 1960s but intensified during the 1990s, with the increasing focus on measuring outputs and outcomes rather than input. This development has been partly prompted by greater interest in quality assurance mechanisms and the recent advent of the Australian Universities Quality Agency (AUQA). Since 2002, the Commonwealth government has also placed university research funding on a performance-based footing. This study reports on an investigation into performance-based funding within an entrepreneurial university environment. Its particular focus is on Australian and US experiences and perceptions.