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Projects are science goes practical - and they're provide some kind of benefit to you.
So you want them both :) As being on top in science race not only allow you to pick-up next tech to research but also increase speed of discovering projects from completed tech.
The answer to that is that you get a bonus based on the number or projects you're actively contributing to, both public and private. Watch your total research score as you switch a project on and off to get a simple proof of this!
This isn't necessarily obvious. But it is a motivation to have six slots (when tech permits) all active.
(Also, additional 'engineering' resource grants a 5% per unit bonus to your projects, so once you've got the slots unlocked it is attractive to pile on more sources of engineering.)
But with six slots working it's actually a pretty big bonus, so if you have six techs worth developing (and that's pretty much always true) it is an attractive option.
Silly that AFAIK the game doesn't explain why it's an attractive option though.
This stacks with the +50% (before diminishing) you can get from the normal Science Modules and Org Bonuses (like +% Military Science, etc).
Which means late game you can invest 1 pip into each Faction Project slot and often end up making more progress on EACH than you are on the 1-2 Global Projects you might have set to 3 pip investment.