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In CS this is just false. Nearly all of the CS research we fund could be done in inexpensive office space with no administrators. The one exception is DARPA-funded robotics research, and even then it's only a subset.

In wet lab disciplines the story is more complicated. But there are many possible configurations that are more efficient than the current university-as-gatekeeper system.

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You can do many kinds of research with minimal overhead, as long as everyone is self-employed and your funding comes with minimal restrictions and reporting requirements.

I did that for a couple of years as a CS postdoc on a private grant. I believe my overhead rate was 15-20%, which was mostly health and other insurances. To reach that, I did accounting and taxes on my own. I also had a loose affiliation with a university, so I didn't have to pay for office space or computing.

If you start using paid services, hire employees, and accept more restrictive grants, your overhead rate can easily climb above 50%.

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