Higher Education and Research Funding: Some trends and their impact on the university

Frans van Vught(with some help by Ben Jongbloed)

Conference"De toekomst van de financiering van de wetenschap“ June 4, 2013

Contents

1. Resources for HE and R&D2. HE and R&D system performance3. HE funding: models, trends & goals4. Lessons learned

Expenditure on education core services, R&D and ancillary services in tertiary educational institutions as a percentage of GDP (2009)

Source: OECD (2012)

Expenditure on tertiary education institutions as % of GDP

1995, 2000, 2005, 2009

Source: OECD (2012)

R&D spending by country, 2012

Netherlands • $13.7B Gross Expenditure on R&D 2012 • #17 globally • 1.9% of GDP spent on R&D

R&D spending as % of GDP, 2000-2010

Sweden

DKDE

BNLUK

EUavg

Source: OECD. MSTI

Denmark

Sweden

Switzerla

nd

Finland

Netherla

nds

Austria

Canada

Australia

Portugal

Israel

Norway

Germany

France

United Kingdom

Ireland

Belgium

United State

sJapan

Korea

Czech

RepSpain

Italy

EU 27OECD

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

Higher Education R&D as a % of GDP (2011 or latest available year)

Source: OECD, MSTI

Population that has attained tertiary education (2010)Percentage, by age group

Source: OECD (2012)

The U21 Ranking of National Higher Education Systems 2012

The position of a system is measured by variables under four main headings:

(a) Resources, (b) Regulatory Environment, (c) International Connectivity and (d) Output.

source: University of Melbourne, 2013

Publications per 100 (fte) researchers, 2010

Source: VSNU

Share (%) of international co-publications (left axis)

Impact score (right axis)

In terms of resources and performance, the picture for Dutch HE & R&D looks pretty good

but…

…effects of financial crisis still to come that may impact on the level of funding

and…

…changes taking place in the composition and method of funding

The story so far….

Graph 3: Four funding systems centralised (regulated) approaches

Q1

Q2

input outcome

orientation orientation

Q4

Q3

decentralised (market) approaches

The changing funding context

Funding sources of the 200 most research-intense universities in Europe

Gov’t: most important

(57%)

Industry: 6%

Non-profit org: 3%

(source: De Dominicis, 2011)

International policy-focus on HE system structures and institutional profiles

Germany Excellence Initiative (2006)

France Poles de Recherche et d’Enseignement Supérieur (2008)

Wales Sector restructuring (2011)

Ireland Structural system change (2012)

Denmark Mergers (2007)

Finland Mergers (2010)

Australia Categorisation of provider types (2011)

US States Profile funding models (2010)

The Netherlands

Performance contracts (2012)

All of this to:

• allow room for diversification of institutional missions, incorporating “3rd mission”

• increase networking and enhancing the role of universities in innovation-driven economic growth

• create critical mass and specialisation / profiling

• encourage collaboration and partnership

Two main types of funding

DNKIS

RNZL

AUT (2...

DEUCHE

NLDNO

RCZE

CANPO

LIR

LAUS

BELKO

R0

20

40

60

80

100

Government funded, institution-based Government funded, project-based%

Government funding of R&D in HE by type of funding, 2008

The trend internationally is towards a greater emphasis on competitive mechanisms, both in institutional and in project funding modes. Reflecting that:

• Research excellence is driven by competition• Research excellence drives innovation• Cross-cutting, collaborative research networks are

critical to innovation

International trend: competitive funding

• Internationalisation is a key aspect of success in research

• Articles that have co-authors residing in more than one country are more highly cited!• NL-based researchers’ ability to move internationally

and to collaborate with non NL researchers are key drivers of the NL’s leading global position in terms of research impact

• The Dutch universities are clearly internationally focused• 45% of Dutch PhD students are non-NL nationals.• 25% of all Dutch research staff are non-NL nationals

Some facts and lessons (pt.1)

• It’s all about linkages and openness• stimulated by EU2020, EU-project funds• Open Access, Open Courseware and Open Data

Storage • In NL: PPPs, Topsector policy, Centres of Excellence

in hogescholen

• The university is transforming into a network university• Consortia, mergers, alliances • Leiden Delft Erasmus alliance

Some facts and lessons (pt. 2)

Internationalco-publicationsNational co-publicationsOne address

Publication-output per university, by collaboration type 2007-2010

Leiden Ranking of University-Industry Research Collaboration

(in brackets: position worldwide in UIRC ranking)

Connected, innovation-oriented universities

• Connections provide …• Resources and higher impact• New research perspectives and research agenda

• Combine Exploration and Exploitation• Strengthen teaching and student experience• Respond to innovation-oriented policies &

programmes (EU-‘Grand Challenges’, Topsectors)• Seize opportunities in emerging scientific fields

(bio, nano, ict, …)

Universities increasingly are hybrid organisations:

Non profit & Entrepreneurial

Funding of Research: three ingredients

1. stable, core institutional funding ensuring scientific autonomy and a broad coverage of disciplines;

2. a competitive element, providing ex post rewards for good research performance and ex ante budgets based on agreed objectives; and

3. an ‘innovation’-oriented component, to pre-finance new cutting-edge and/or explorative research developments;

Impact on the (Erasmus) university

• Dealing with multiple funding streams• Dealing with multiple stakeholders• Need for strategic research management– Focus on profile– Risk of ‘mission overload’

• Need to adopt a structured approach to stakeholder management– Connectivity (collaboration & internationalisation)

is key

Thank you for your attention

Contact details

Email: f.a.vanvught@utwente.nlWeb: www.utwente.nl/cheps