My med school has a mandatory 3rd/4th year research requirement. I was discussing possible projects with the department chair of the specialty I want to pursue. He kept endorsing certain projects by whether or not they had RO1 funding. Is it a general rule that RO1 projects carry a certain cachet? Should this even factor into my decision making?
The department chair is trying to motivate you towards an academic career. As such, he wants to place you in laboratories with substantial stable funding. However, what he sees as ideal may not be what is ideal for you. Traditionally, this has been ones in which the PI holds an R01. These are the primary individual research project grants given by the NIH and are the existing "standard" by which many evaluate the academic success of a laboratory.
Currently, this distinction is dubious at best and its relationship to your needs as a medical student looking for a "scholarly" senior project is even more questionable. The reason it is dubious is that much federal support that is quite substantial does not use the R01 mechanism. It uses various program project type grants and project center grants which go to multiple investigators to fund thematically linked research. The total of these grants will exceed any usual R01. Additionally, in an era of tight funding, other mechanisms, for example funding from non-profit disease oriented groups (American Heart Association, Crohn's and Colitis Foundation, American Diabetes Foundation and many, many others) can be substantial and are almost always part of the funding mix of large labs.
Sometimes, labs that are new or have lost R01 support will be supported entirely via these non-R01 type of mechanisms. That does not mean the lab is collapsing (although it could
) but simply may reflect the current status of the lab or the work it is doing. With R01 funding at 8-10% there are plenty of great research projects funded by other means including private corporate funding.
How does this relate to you? Well, if you are a new graduate student looking to build a thesis project or a career in a lab, picking R01 funded labs would be a reasonable, but potentially inaccurate screen for a stable lab that will support your work. If you were looking for a mentor for a first faculty award, this might also be true. But, you are not, you want to complete a research requirement in the field of your interest and enhance your chances of matching where you want in that field.
In that case, you are better off picking a lab based on the type of work they do - does it interest you?, Is the PI interested in your contribution? Of course, consider the ability to complete a project that will meet the modest goals (not those of a PhD student) in time for you to write your report. A younger faculty member, someone not three layers of grad students and post-docs removed from you, etc might be the better choice. A big R01 funded lab might also be the best choice, but for your situation, it would be a secondary consideration.