Many commentators have insisted without empirical evidence that the heterogeneity of fuculty members promotes the research activities in universities. We have to examine whether or not this assertion would be valid and which element of heterogeneity may contribute to promoting research outputs. This article investigates the relationship between heterogeneity in educational background and research performance, then examines how the Science Research Grant has been allocated to faculties in economics. The result shows that the more heterogeneous faculty members are, the more the research outputs increase. The analysis also indicates that the research performance has been little considered in making decision for adoption while it has made significant effect on the amount of grant for the adopted subject.