This paper demonstrates how the application of New Public Management (NPM) and the accompanying rise of academic capitalism in allocating research funds in the German academic field have interacted with a change from federal pluralism to a more stratified system of universities and departments. From this change, a tendency to build cartel-like structures of allocating symbolic capital resulting in oligopolistic structures of appropriating research funds has emerged. This macro level structure is complemented by the strengthening of the traditional oligarchic structures (...) of research, carried out by an increasing number of assistants under the direction of a professor on the meso level. The outcome of this institutional setting is a significant gap between the appropriation of research funds according to the allocation of symbolic capital and the production of knowledge in publications. The application of NPM therefore needs to be explained more as a result of the normative pressure of a globally established model of “rational” administration, and less as a result of its functional effectiveness. This is demonstrated by an empirical analysis with simple and multiple regressions using data on the allocation of research grants and publication records of German chemistry departments. (shrink)