I am planning on applying to an NSF (US) grant, but found that a similar idea to what I had in mind is already funded by a foreign institution.

I am curious what the Research-Gate community would suggest: Do I ignore / not mention the other grant and submit my proposal anyway, mention it as a way to bring more credibility to the problem, or just give up and try to think of something more original?

Since it's not a secret, here is the grant I found: http://gow.epsrc.ac.uk/NGBOViewGrant.aspx?GrantRef=EP/J004871/1

I was planning on building a long-term set of research projects around this and similar ideas as part of an NSF CAREER award (a grant to facilitate the long-term development of a scientists career by supporting a long-term and potentially career defining project).

My question is in essence a specific case of the question: How do I justify my research proposal versus other more established, better funded and equipped laboratories?

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