What types of problems are grand challenges?

The notion of grand challenges has featured in research policy for over two decades, specifically in the design of funding for societally significant research topics. This paper analyses the historical background behind this phenomenon, showing how the United States and the European Union have approached it from dissimilar perspectives. Even though many challenge-focused funding programmes emphasise the social benefits of research, they represent wide differences of opinion concerning the inclusion of various forms of academic and non-academic expertise and knowledge, and what would be ideal outcomes. This facilitates the use of challenge-oriented notions in research policy in a manner that aligns with current political and strategic priorities, instead of being tied to more democratic and socially engaged forms of knowledge production. There is a pressing need for co-production and stakeholder engagement to genuinely address social challenges, which in turn calls for research policies that promote social responsibility and democratic principles, thereby fostering responsible research and innovation aligned with societal needs.