This paper provides a critical analysis of New Zealand's Performance Based Research Fund (PBRF). The first section sketches the development and implementation of the PBRF. The second section evaluates the scheme, concentrating on three themes: the relationship between privatization, competition and research performance; the standardization of research; and motivations for research. The paper acknowledges the thorough work completed by the Tertiary Education Advisory Commission and other policy groups in laying the foundation for the adoption of performance-based research funding in New Zealand. It is argued, however, that when viewed in its larger context, the PBRF constitutes a continuation of neoliberal trends already well established in New Zealand's tertiary education system.