We empirically address the determinants of R&D performance in Palestinian R&D institutions using Ordinary Least Square (OLS) regression analysis. The results show that the number of technicians holding a Ph.D. degree is one of the most significant determinants of R&D outcomes measured by the number of research studies. We found that the increase in the number of researchers with a master degree negatively impact the research outcomes. One of the important results is that part-time researchers have better research performance than full-time researchers. Meanwhile, we find very weak performance of R&D sector in regards with patents, national and international prizes. We found that the funding mechanism for R&D in Palestine to be inefficient; neither of the research fund sources have an impact on the number of research studies (basic, applied or experimental research). Finally, we discover no crowding-out effect from government funding and funds from NGOs to private investment.