The 2026 State of the Sector Survey shows that financial constraints are the most frequently reported challenge for think tanks worldwide (On Think Tanks, 2026). But funding does not fully explain how think tanks experience their operating environment.
The survey also found that think tanks face political pressure, government attitudes, regulation, shrinking civic space, and the conditions under which evidence is produced and used. These issues affect whether think tanks can conduct research, communicate their findings, and engage with policymakers. Understanding their sustainability therefore requires looking beyond finances.
Think tanks do more than produce research. They bring evidence into public debate and help policymakers make sense of it. Whether they can do this depends not only on their staff and resources, but also on the space in which they work. Academic freedom, civic space, freedom of expression, and relations between government and civil society all influence what can be researched, discussed, and used in policy. +
Difficult operating conditions are widespread
The 2026 State of the Sector Survey shows that more think tanks describe their operating environment as difficult than easy. This pattern appears across regions, regime types, and organisational models.
A slightly higher proportion of think tanks in liberal democracies report that it is easy to operate. However, the proportion finding it hard to operate is higher in every category of the V-Dem Regimes of the World classification. +
The pressures facing think tanks, in other words, are not confined to a particular political system. They appear across the sector, although their form and intensity may differ.
This raises an important question: do think tanks’ perceptions reflect measurable changes in the countries where they operate?
Broad democracy measures tell only part of the story
To explore this question, we combined results from the 2026 State of the Sector Survey with data from the Varieties of Democracy Project. +
We first examined changes in the Liberal Democracy Index and the Electoral Democracy Index between 2020 and 2025. These broad measures showed little association with think tanks’ assessments of their operating conditions.
This finding does not mean that democracy is unimportant. It suggests that broad changes in democratic performance may not capture the conditions that think tanks experience most directly in their daily work.
We therefore looked more closely at the institutional environment surrounding research and policy engagement.
For this analysis, we developed the Think Tank Enabling Environment Index, or TTEE. The index combines five V-Dem variables: academic freedom, freedom of expression, freedom of association, civic space, and rule of law. These dimensions have been identified as relevant to the work of research and policy organisations. +
The TTEE is designed to capture the conditions affecting how think tanks can produce knowledge, disseminate evidence, engage with stakeholders, and contribute to public policy debates. The TTEE is not intended to serve as another general measure of democracy
The results showed a pattern. Think tanks operating in countries where the TTEE improved between 2020 and 2025 were more likely to report favourable operating conditions. This relationship held even after controlling for perceptions of the funding environment.
Academic freedom and civic space stand out
Not every part of the enabling environment was associated with think tanks’ assessments in the same way.
Two dimensions stood out: academic freedom and the strength of civil society, measured through V-Dem’s Core Civil Society Index. These showed the strongest and most consistent relationships with how think tanks described their operating environment.
Where academic freedom and civic space improved, think tanks were more likely to report favourable conditions. Where these indicators deteriorated, more organisations said that operating in their country was difficult.
Funding remains a central concern, but it is not the only one. Results suggest that think tanks also respond to changes in the freedoms and civic conditions that enable research and public engagement.
These results align with previous research: knowledge production and policy engagement depend on intellectual freedom and an independent civic space. + Changes in these conditions quickly affect how they work.
Broader democracy indicators are useful. However, they may not reflect issues that may have a more immediate effect than shifts in regime classifications or national rankings. +
Think tanks appear to be particularly sensitive to changes in the ecosystem that enables evidence to be produced and used, even when broader democracy indicators remain relatively stable.
What this means for funders and policymakers
The 2026 State of the Sector Survey shows that think tanks are working in less predictable conditions. Funding remains their main concern. However, many also report difficulties related to the political climate, government attitudes, regulation, and the conditions that shape how evidence is produced and shared.
The findings suggest that supporting think tanks requires more than financing organisations or strengthening their internal capacity. Those investments may have limited effects when academic freedom and civic space are under pressure.
Think tanks need freedom to do research, communicate findings, exchange ideas, and take part in public debate. Without these conditions, even well-funded and capable organisations may find it difficult to fulfil their role.
Organisations that monitor the health of evidence ecosystems should therefore consider civic space, academic freedom, and the strength of civil society alongside conventional democracy measures. These indicators may provide earlier and more relevant signs of the challenges facing think tanks and other organisations that produce knowledge.
Looking beyond funding does not make financial sustainability less important. It provides a fuller account of what think tanks need to operate and contribute to public policy
