HypER: Literature-grounded Hypothesis Generation and Distillation with Provenance

Abstract: LLMs have demonstrated promising performance in research ideation across scientific domains. Hypothesis development, the process of generating a highly specific declarative statement connecting a research idea with empirical validation, has received relatively less attention. Existing approaches trivially deploy retrieval augmentation and focus only on the quality of the final output ignoring the underlying reasoning process behind ideation. We present $\texttt{HypER}$ ($\textbf{Hyp}$othesis Generation with $\textbf{E}$xplanation and $\textbf{R}$easoning), a small LLM (SLM) trained for literature-guided reasoning and evidence-based hypothesis generation. $\texttt{HypER}$ is trained in a multi-task setting to discriminate between valid and invalid scientific reasoning chains in presence of controlled distractions. We find that $\texttt{HypER}$ outperformes the base model, distinguishing valid from invalid reasoning chains (+22\% average absolute F1), generates better evidence-grounded hypotheses (0.327 vs. 0.305 base model) with high feasibility and impact as judged by human experts ($>$3.5 on 5-point Likert scale).