This paper gives an overview of the models of financing research at universities in Flanders, Belgium. The Flemish government installed parallel mechanisms to distribute financial means for scientific research at the universities: research is supported via the allocation of block grants to the universities based on specific interuniversity allocation keys on the one hand and via project-based funding allocated on competitive basis by public funding agencies on the other hand. The composition of the allocation key of both the Special Research Fund and the Industrial Research Fund and the impact of the research performance-based parameters of these allocation keys on the research policy of universities and on the peer-reviewed assessment of the quality of research proposals submitted to the Fund for Scientific Research – Flanders, one of the Flemish public funding agencies, are discussed.