Abstract:Taking the panel data of funding scale, structure and research level of 24 first-class research universities of Russell University Group in the UK during the period of 2012-2021 as the research object, multiple regression analysis was used to measure the relationship between funding structure and research level of Russell University Group. The results show that the overall scale of funding of Russell University Group shows an upward trend, the structure of income and expenditure is relatively balanced, and the siphoning effect of research funding is significant; the OLS, fixed-effects and random-effects models indicate that the scale of funding and expenditure of Russell University Group, tuition fee income, government grants, and research contracts have a significant impact on the number of research outputs and the impact of scientific research; and the growth of employee salaries helps to improve the level of paper publication. Therefore, the construction quality of China's first-class research universities can be improved by expanding the sources of higher education public input funding, improving the research funding management mechanism and optimizing the staff welfare system.