International perspectives on financing higher education

International Perspectives on Financing Higher Education International Perspectives on Financing Higher Education Edited by Josef C Brada Arizona State University, USA Wojciech Bienkowski Lazarski University, Poland and Masaaki Kuboniwa Hitotsubashi University, Japan Selection and editorial matter © Josef C Brada, Wojciech Bienkowski and Masaaki Kuboniwa 2015 Remaining chapters © Contributors 2015 Softcover reprint of the hardcover 1st edition 2015 978-1-137-54913-6 All rights reserved No reproduction, copy or transmission of this publication may be made without written permission No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988 First published 2015 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010 Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries ISBN 978-1-349-56388-3 ISBN 978-1-137-54914-3 (eBook) DOI 10.1057/9781137549143 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin Library of Congress Cataloging-in-Publication Data International perspectives on financing higher education / edited by Josef C Brada Professor of Economics, Arizona State University, USA, Masaaki Kuboniwa, Hitotsubashi University, Wojciech Bienkowski, Dean of the Faculty of Economics and Management, Lazarski University, Poland pages cm Summary: “The funding of higher education is under stress On the one hand, the benefits of universities for economic prosperity and growth are increasing as universities graduate more students; undertake a greater share of scientific research; and, through cooperation with business, stimulate the technological advance of the private sector At the same time, government funding of higher education is stagnating or even falling in many countries The book brings together the views of an international group of experts on the financing of higher education They examine funding trends in Asia, Europe and the United States and present practical proposals for the reform of university funding and operations and examples of successful ways of building links between industry and universities that can be mutually beneficial and supplement government funding of higher education”— Provided by publisher Education, Higher—Finance Education, Higher—Economic aspects Privatization in education Higher education and state I Brada, Josef C., 1942– editor LB2342.I587 2015 378.1'06—dc23 2015019837 Typeset by MPS Limited, Chennai, India Contents List of Figures and Tables vii Acknowledgments ix Notes on Contributors x Introduction Josef C Brada 1 Competing for Public Resources: Higher Education and Academic Research in Europe – A Cross-Sectoral Perspective Marek Kwiek Restructuring of the Higher Educational System in Japan Satoshi Mizobata and Masahiko Yoshii 25 Financing Universities and a Plea for Privatization Johan Gooitzen Wissema 50 Student Loans: The Big Debate Karina Ufert 68 The 2012/13 Reforms of Student Finances and Funding in England: The Implications for the Part-Time Undergraduate Higher Education Sector Claire Callender Higher Education Investment Fund: A New Approach for the Private Financing of Higher Education Dieter Dohmen 80 98 University-Industry and Business Cooperation: Global Imperatives and Local Challenges – An Example from Portugal Tatyana Koryakina, Pedro Nuno Teixeira, and Cláudia S Sarrico 111 Cooperation between a University and Industry – Good Practices Jakub Brdulak 135 v vi Contents Challenges in Research: A Strategic Approach Jan Andersen 147 Index 173 List of Figures and Tables Figures 2.1 Japanese educational system 27 2.2 Status quo of Japanese universities (2013) 28 2.3 Budgetary revenue of national universities (FY2013) 31 2.4 Number of high school leavers 34 2.5 Number of universities 35 2.6 National operational grants and share in MEXT budget 37 2.7 Grants-in-aid for scientific research 41 2.8 General revenue: selected national universities 42 2.9 General expenditures: selected national universities 43 2.10 General revenue: selected private universities 44 2.11 General expenditures: selected private universities 45 3.1 Schematic flow of finance to the Medieval University 56 3.2 Schematic flow of finance to the Second Generation University 57 3.3 The four flows of finance to present universities 58 3.4 Schematic flow of finance to the Third Generation University 60 3.5 The way of the technostarter 63 5.1 Part-time and full-time UK and EU undergraduate entrants to English higher education institutions and further education colleges, 2002/03–2013/14 88 Structure of an educational module developed by the university and a corporate partner 140 Cooperation between a university and a firm within a joint project 144 8.1 8.2 vii viii List of Figures and Tables 9.1 The annual budgets of FP7 and Horizon 2020 156 9.2 American Association for the Advancement of Science (AAAS) estimates of the development of government research funding in the United States 2013–17 158 Countries ranked by growth in number of peer-reviewed scientific articles 1997–2007 in percent 164 9.3 Tables 2.1 Share of students in disciplines (%, 2013) 30 2.2 World university ranking in economics and econometrics 31 4.1 Funding models for higher education 72 6.1 Direct expenses for and the returns to an expansion of higher education 102 Distribution of the rates of return of various investments in education 104 7.1 Evolution of human resources in R&D 116 7.2 R&D expenditure as a percentage of GDP (1982–2012) 116 8.1 Potential benefits from university and business cooperation 142 9.1 The growth in EU membership from 1957 to 2013 151 9.2 Thematic topics in the first Framework Programme and in the current Horizon 2020 Programme 152 6.2 Acknowledgments The contributions that make up this book were first presented at the conference “Financing Higher Education: In search of effective solutions based on best practices in North America, Europe, and Asia”, and we are grateful to all who participated in this conference for their comments and suggestions during the lively discussions that took place in the course of the conference We are also pleased to express our gratitude to those who provided financial support for the conference These included: • • • • • • Lazarski University Bank Pocztowy Poland The Kronenberg Foundation at Citi Handlowy Autostrada Wielkopolska The Foundation for Polish Sciences Mr Jacek Giedrojc The following served as Patrons of the conference: • • • • • • Polish Ministry of Finance Polish Ministry of Science and Higher Education Polish-American Fulbright Commission Polish Academy of Sciences Perspektywy Foundation Harvard Club of Poland We are also grateful to Mr Adam Figurski, without whose organizational and interpersonal skills the conference would not have been possible, and to Dr Yoshisada Shida for his capable assistance in the technical preparation of the chapters for publication ix 170 Jan Andersen if the priorities not entail financial priorities they are meaningless, because there have to be real consequences to the priorities established, such as setting aside special funding for some areas, or reducing funding of other activities The overall research strategy is the responsibility of the top-level management of the institution This part of the strategy is the basis for other strategies, such as a funding strategy and a recruiting and retention strategy I would also recommend institutions developing a research quality strategy and a publication strategy, either as part of a research strategy or as independent strategies, but the content of such strategies is outside the scope of this article The funding strategy should be based on the research strategy and aim at fulfilling this strategy A funding strategy should contain a definition of the funding needs, and the organization of the research support functions Funding strategies can be implemented at each level of the institution, at faculties, schools, and departments, defining tasks and roles of the academic side and the support side The best starting point for developing such strategies is normally a basic knowledge of the actual funding profile of the institution A recruiting and retention strategy is also based on the research strategy, and it should include considerations on how to improve mobility, how to spot talent, support to find funding for mobility, to identify and attract students and staff from abroad, to identify key obstacles to mobility, and to develop incentives to attract the best researchers A good example is the formation of the International Staff Mobility office at the University of Copenhagen, which takes care of all practical questions relating to becoming a new staff member at the University This service is co-located with the International House Copenhagen, established by the municipality of Copenhagen The objective is to remove obstacles and overcome prejudices about living in Denmark This leads to the concluding remark that all strategy work is done in context, and it is influenced by funding opportunities, the overall research context trends, and current approach to research in society As an example, the Danish Council for Strategic Research has decided to follow the Horizon 2020 research program in setting its own priorities, and, from what I know of other countries, this is also the case elsewhere in Europe So a strategy is not value free, but formulating such a strategy provides a competitive advantage because it makes Challenges in Research: A Strategic Approach 171 the institution aware of the potentials and opportunities for in the global academic environment 9.8 Final remarks It is trivial to say that we live in a changing world Changes are an immanent part of our daily work The challenge is to choose the proper means and ends to survive, develop, and eventually even succeed in this changing world It is my belief that formulating a strategy is the surest way to success The name of the institution is only a valid brand for the top ten or so universities in the world, and even they may not remain at the top in an increasingly competitive world Note The Lisbon goal did not succeed for a series of reasons, one of them being the nonbinding nature of the goals References N Bohr (1959) Open letter to the United Nations June 9th, 1950 (J H Schultz Forlag: Copenhagen, Denmark) V Bush (1945) Science, the Endless Frontier: A Report to the President (Washington, ( D.C: US Government Printing Office) EUA, T Estermann and E B Pruvot (2011) Financially Sustainable Universities II, European Universities Diversifying Income Streams (Brussels, Belgium: EUA Publications) European Commission (2008) A More Research-Intensive and Integrated European Research Area, Science, Technology and Competitiveness key Figures Report 2008–2009 (Brussels, Belgium: European Commission) http://ec.europa eu/research/era/pdf/key-figures-report2008–2009_en.pdf, Date accessed January 2, 2014 European Commission (2013) Fact Sheet on rules under Horizon 2020 (Brussels, Belgium: European Commission) http://ec.europa.eu/research/ horizon2020/pdf/press/fact_sheet_on_rules_under_horizon_2020.pdf Date accessed January 2, 2014 A Plume (2012) ‘UK Study Reveals that Internationally Mobile Researchers are Significantly more Productive’, The Academic Executive Brief, f Volume Issue 2012, pp 10ff, IssN 2212–0424 Elsevier, http:// academicexecutives.elsevier.com/sites/default/files/aeb0201_0.pdf Date accessed January 2, 2014 Statsministeriet (2011) Et Danmark der står sammen http://www.stm.dk/ publikationer/Et_Danmark_der_staar_sammen_11/Regeringsgrundlag_ 172 Jan Andersen okt_2011.pdf, (Denmark: Danish Prime Ministry, Copenhagen) Date accessed January 2, 2014 K Thorn and L B Holm-Nielsen (2006) ‘International Mobility of Researchers and Scientists Policy Options for Turning a Drain into a Gain’, United Nations University, Research Paper No 2006/83 O Waever (2013) Science, Technology and Society in the Light of Niels Bohr’s Thoughts, Niels Bohr Symposium 2013, http://bohr-conference2013.ku.dk/ about/idea/ Date accessed January 2, 2014 Index Note: Page numbers followed by ‘f’ f and ‘tt’ denote figures and tables, respectively AAAS (American Association For The Advancement Of Science), 158f academic entrepreneurialism, 10, 11 active labor market policies, 70 aging, in postindustrial societies, 15–16 agricultural universities, 51, 56 alternative income generation, universities, 62 education modernization, 63–4, 63f knowledge commercialization and collaboration with industry, 64 real estate management, 64–5 sponsoring and endowments, 65 American Association For The Advancement Of Science (AAAS), 158f Anglo-Saxon countries, 11 archaeological research, 61 arguments, privatizing and deregulating universities, 59–61, 60f Barr, Nicholas, 74 barriers, to university-industry and business cooperation, 122–3 cultural challenges, 125–8 financial pressures, 129–31 legal constraints, 123–5 managerial impediments, 128–9 Bell, Alexander, 51 BES (business enterprise sector), 117 Bloomberg, Michael, 55 Boerhaave, Herman, 50 Bohr, Niels, 165–6 Bologna process, 12 bonds, 106 Browne, Lord, 84, 85–6 business community(ies), Japanese education system and, 37 business enterprise sector (BES), 117 Canada, part-time higher education system, 81 Casimir, Hendrik, 51 Casimir effect, 51 Catholic University of Leuven, 53 Changing Patterns of Finance in Higher Education, 10 CHEPS (Center for Higher Education Policy Studies at Twente University, Enschede), 16 CIP (Competitiveness and Innovation Framework Programme), 155 collaboration, 111 see also university-industry and business cooperation commercialization, of university, 64 communication, 52 competition, 148 cross-sectoral, for public resources, see cross-sectoral competition for public resources, in Europe increased, for funding, 150–9 international challenges, 111 knowledge-based economy and, 111 173 174 Index Competitiveness and Innovation Framework Programme (CIP), 155 computer-based courses, 55 conflicts, intergenerational, 15–18 consilience, 3GU and, 53 Continuing Education (CE), 93 costs, student loans, 71–3 cost-sharing mechanisms, 11, 16 counterarguments, privatizing and deregulating universities, 61–2 creativity, 3GU and, 53 Cross-European Initial Training Networks, 167 cross-sectoral competition for public resources, in Europe, 6–20 increasing competition, 8–12 increasing intergenerational conflicts and, 15–18 knowledge production reconfigurations, 7–8 market perspective and increasing financial austerity, 10–12 new university-society contracts, 12–13 financial pressures, 14–15 ideological pressures, 14–15 social, political, and economic contexts, 13–14 overview, public revenues, constraints on, 16–18 cultural challenges, universityindustry and business cooperation, 125–8 DARMA (Danish Association of Research Managers and Administrators), 160 da Vinci, Leonardo, 50 DB Schenker, cooperation with WSE, 139–45, 140f, f 142tt, 144f ‘debt brake,’ 100 Delft University of Technology (TU Delft), 53–4, 64 Deloitte, cooperation with WSE, 139–45, 140f, f 142tt, 144f de-privatization, 14 deregulation, universities arguments, 59–61, 60f counterarguments, 61–2 dynamic steady state, 13 EARMA (European Association of Research Managers and Administrators), 160 econometrics, world university ranking in, 29, 31t economic contexts of new university-society contracts in Europe, 13–14 world university ranking in, 29, 31t economy(ies) information-based, 2, MOOCs effects on, 55 Edison, Thomas, 51 education additional funding sources need for, 99–101 special time in, 54–6 see also higher education; higher education system educational software, 55 6–3–3–4 educational system, in Japan, 27 Education Investment Fund (EIF) advantages, 106 basic elements, 105–6 interest payments and expectations, 107–8 investors, 108–9 rationale, 105–6 as special education sector fund or general education fund, 106–7 state cooperation, 108 education modernization, for alternative income in universities, 63–4, 63f EIF see Education Investment Fund (EIF) Einstein, Albert, 161 electorates, role in welfare state restructuring, 18 Index 175 elite education, elite universities subsidies, tuition fees, employment, knowledge-based economy and opportunities of, 70 endowments, at universities, 65 England part-time undergraduate students characteristics in, 82–4 2012/13 reforms of part-time undergraduate funding in, 84–7 part-time entrants, 88–9, 88f part-time tuition fees, 87–8 enterprising universities, 11–12 entrants, part-time, 88–9, 88f declining level, 93–5 fall in 2012/13 changes in student funding, 89–92 unintended consequences, 92–3 entrepreneurship, 111 see also university-industry and business cooperation ERASMUS program, 155, 167 ERC grants, 153 EUA (European University Association), 70–1, 155 university-based research funding, 112 Europe, challenges in research, see Research, challenges in cross-country variations in, 11 ‘Golden Age,’ massification, part-time higher education system, 81 universities and industry cooperation, 135–7 youth unemployment in, 2, 54 Europe, cross-sectoral competition for public resources in, 6–20 increasing competition, 8–12 increasing intergenerational conflicts and, 15–18 knowledge production, 7–8 market perspective and increasing financial austerity, 10–12 new university-society contracts, 12–13 financial pressures, 14–15 ideological pressures, 14–15 social, political, and economic contexts, 13–14 overview, public revenues, constraints on, 16–18 European Association of Research Managers and Administrators (EARMA), 160 European Commission, 12, 17, 69, 112, 153 European Framework Programs, 149, 150, 151–3, 152t, t 155, 159, 162 European Framework Programs for Research and Technological Development (RTD), 163 European Higher Education Area, 71 social dimension in, 73 European Loan Guarantee Scheme, 69 European Research and Development policy, 150 European Research Council, 57 European Standards and Guidelines for Quality Assurance in Higher Education (ESG), 137, 138, 139 European Union, 1, 76, 135, 167 development of, 150, 151t global competition and, 111 European University Association (EUA), 70–1, 155 university-based research funding, 112 Europe 2020 Strategy, 112, 148, 153 evolution effect of social priorities, 16 176 Index evolution – continued of science and technology system in Portugal, 113–19 human resources in R&D, 115, 116t R&D expenditure as percentage of GDP, 115, 116t expenditure structure Keio University, 43–4, 45f Kyoto University, 42–3, 43f Tokyo University, 42–3, 43f Waseda University, 43–4, 45f external stakeholders, 138 see also stakeholders Facebook, 145 finance/financing, universities, 56–7, 56f, f 57f–58 f f alternative income generation, 62 modernize education, 63–4, 63f professionalize knowledge commercialization and collaboration with industry, 64 real estate management, 64–5 sponsoring and endowments, 65 current model, 58–9 2GU, 56–7, 57f Medieval University, 56, 56f privatizing and deregulating arguments, 59–61, 60f counterarguments, 61–2 special time in education, 54–6 financial aspects, university reforms in Japan, 38–44 general structure, 38–41 structures of four top universities, 41–4 financial austerity, 7, 111 cross-sectoral competition for public resources in Europe, 10–12 financial pressures for new university-society contracts in Europe, 14–15 university-industry and business cooperation, 129–31 the first flow of finance, 56, 56f see also university(ies), financing First Generation University, see Medieval University Franklin, Benjamin, 51 full-time undergraduates, 83 Fundamental Law on Education, 27 fundamental research, 52 at 3GU, 53 funding, research growing complexity of, 148–9 overview, 169–71 see also research, challenges in funding, sources, 1, funding models, for higher education, 71, 72t funnel model, 63 future education, foundations for, 98 see also Education Investment Fund (EIF) Galileo Galilei, 50 Gates, Bill, 55 GDP (gross domestic product), 98, 111–12, 148, 150 of public funds, 16 R&D expenditure as percentage of, 115, 116t GEM (Global Entrepreneurship Monitor), 118 Germany, 99 additional funding sources need for education, 99–101 fiscal returns to higher education in, 101–5, 102t, t 104t see also Education Investment Fund (EIF) GI Bill, 51 Global Entrepreneurship Monitor (GEM), 118 Global Innovation Index, 118 globalization, 10 challenges, 111 knowledge-based economy and, 111 global leaders, emerging, 163–5 ‘Golden Age,’ in Europe, Index 177 government funding, 1, 2, GP (good practice) programs, 38 grant-in-aid for scientific research program, 38, 40, 41f grants, 32, 52, 58, 73–5 Japan, 32, 36–7, 37f, f 38–9 merit-based, 73 schemes, 74 vs student loans, 68 see also student loans; subsidy(ies) gross domestic product (GDP), 98, 111–12, 148, 150 of public funds, 16 R&D expenditure as percentage of, 115, 116t Haber, Fritz, 51 Haber-Bosch process, 51 Harvard Management Company, 65 Harvard University, 65 healthcare sector, cross-sectoral competition in Europe, 6–20 see also cross-sectoral competition for public resources, in Europe HIEs (higher education institutions), 137 higher education cross-sectoral competition in Europe, 6–20 see also cross-sectoral competition for public resources, in Europe distribution of benefits, funding models for, 71, 72t marketization of, private benefits, 2, public benefits, public funding for, intergenerational conflicts and, 15–18 return estimates, in Germany, 101–5, 102t, t 104t social benefits, higher education institutions (HIEs), 137 Higher Education Investment Fund, see Education Investment Fund (EIF) higher education system, changes in, 2–3 elite education, massification, 2–3, 6, 69–70 in Portugal, 119–21 restructuring, in Japan, see Japan, higher educational system restructuring Horizon 2020 Program, 150, 151, 152t, t 154, 155, 156ff, 162, 167, 170 human capital upgrading arguments, 16 Humboldt University, 50 IARU (International Alliance of Research Universities), 165 IBM Deep Blue computer, 54 Watson computer, 54, 55 ICCTI (Institute for International Cooperation in S&T), 115 ICESCR (International Covenant on Economic, Social and Cultural Rights), 70 Identifying Barriers in Promoting European Standards and Guidelines for Quality Assurance (IBAR), 135, 146 research on stakeholders and university cooperation, 137–9 ideological pressures, for new university-society contracts in Europe, 14–15 Imperial University, 26–7, 42, 47n1 income diversification, 112 Independent Review of Higher Education Funding and Student Finance, 85 industrial research labs, 51 industrial revolution, 2, 51 information-based economy, 2, innovation, 148 input financing, 3GUs and, 54 178 Index Institute for International Cooperation in S&T (ICCTI), 115 institutions, European transformations in, 7–8 interest payments and expectations, EIF, 107–8 intergenerational conflicts aging in postindustrial societies and, 15–16 and public funding for higher education in Europe, 15–18 internal stakeholders, 138 see also stakeholders International Alliance of Research Universities (IARU), 165 international competition challenges, 111 knowledge-based economy and, 111 International Covenant on Economic, Social and Cultural Rights (ICESCR), 70 internationalization process, 10 Internet, 54, 55 and communication, 52 Internet-enabled distance learning, 55 investors, of EIF, 108–9 Japan, labor market, Japan, higher educational system restructuring, 25–44, 27f budgetary revenue of national universities, 29, 31f, f 32 6–3–3–4 educational system, 27 financial aspects, university reforms general structure, 38–41 structures of four top universities, 41–4 grant-in-aid for scientific research program, 38, 40, 41f high school leavers, 33, 34f, f 35 history, 26–7 Meiji Restoration, 26–7 national operational grants and share in MEXT budget, 36–7, 37f overview, 25–6 postgraduate education, 29 status quo, 28–33, 28f, f 30t–31 t tt, 31f undergraduate education, 29 university ranking in economics and econometrics, 29, 31t university reforms beginning of, 33–5 financial aspects, 38–44 increasing number, 33, 35f in 2000s, 35–8 Japanese National Railways, 33 JSPS (Japanese Society for the Promotion of Science), 32, 40 Kagaku-kenkyuhi–joseikin, – 32 Kaisei School, 26 Kasparov, Garry, 54 Keio University expenditure structure, 43–4, 45f revenue structure, 43–4, 44f Keizo Obuchi, 36 knowledge, 12 knowledge-based capitalism, knowledge-based economy, 16 employment opportunities and, 70 globalization and, 111 international competition and, 111 knowledge commercialization, 64 knowledge development system, 51 knowledge production, in European universities, 7–8 knowledge transfer, 111 between research institutions, 112–13 see also university-industry and business cooperation knowledge triangle, 112 Kyoto University, 26 expenditure structure, 42–3, 43f revenue structure, 42, 42f Index 179 labor market, Japan, student loans and, United States, leaders, emerging, 163–5 legal constraints university-industry and business cooperation, 123–5 Legal Regime of Higher Education Institutions, 120 liberalization, 33 Lifelong Learning Programme (LLP), 137 LIFE-Plus program, 155 loans, see student loans managerial impediments, university-industry and business cooperation, 128–9 Marie Sklodowska Curie Program, 167, 168 marketization consequences, 11 of higher education, market perspective, cross-sectoral competition for public resources in Europe, 10–12 massification, of higher education, 2–3, 52, 69–70 Europe, see also student loans Massive Open Online Courses (MOOCs), 55 Mathew effect, 13 Medieval University, 50 financing, 56, 56f Meiji Restoration, 25, 26–7 merit-based grants, 73 see also grants Merton, Robert K., 13 Middle East Technical University of Ankara, 53 Ministry of Education, Japan, 32, 36–8, 47n7 general financial structure of higher education in Japan, 38–41 ‘National University Reform Enhancing and Promoting Projects,’ 39 ‘selection and concentration policy,’ 39 mobility challenges in research and, 165–9 dimensions, 167 of PhD students, 167–8 modernization, education for alternative income in universities, 63–4, 63f MOOCs (Massive Open Online Courses), 55 Morse, Samuel, 51 National Science Foundation in United States, 57 national university corporations (NUC), Japan, 35 ‘National University Reform Enhancing and Promoting Projects,’ 39 network universities, 3GU as, 53 Newton, Isaac, 50 new university-society contracts, in Europe, 12–13 financial pressures, 14–15 ideological pressures, 14–15 social, political, and economic contexts, 13–14 New Zealand, part-time higher education system, 81 Nippon Telegraph and Telephone Corporation, 33 NUC (national university corporations), Japan, 35 OECD (Organisation for Economic Cooperation and Development), 12–13, 16, 17, 18, 69, 80, 98, 105, 114 old-age pensions cross-sectoral competition in Europe, 6–20 on-line courses, 55 180 Index Open University in United Kingdom, 56 operational mode, of universities, 11–12 Organisation for Economic Cooperation and Development (OECD), 12–13, 16, 17, 18, 69, 80, 98, 105, 114 output financing, 3GUs and, 54 Paris Treaty, 150 part-time entrants, 88–9, 88f declining level, 93–5 fall in 2012/13 changes in student funding, 89–92 unintended consequences, 92–3 part-time tuition fees, 87–8 part-time undergraduate higher education sector characteristics of students in United Kingdom, 82–4 concept, 80 definitions, 81 falls in entrants in England, 89 2012/13 changes in student funding, 89–92 falling demand (unintended consequences), 92–3 overview, 80 policy challenges and questions, 82 2012/13 reforms of funding in England, 84–7 part-time entrants, 88–9, 88f part-time tuition fees, 87–8 significance of, 81–2 pensions sectors, cross-sectoral competition in Europe, 6–20 see also cross-sectoral competition for public resources, in Europe Pestieau, Pierre, 17 PhD students, mobility of, 167–8 philanthropic foundations, 2, Pierson, Paul, 17 political contexts, of new universitysociety contracts in Europe, 13–14 polytechnics, 119 Portugal higher education system, 119–21 R&D, key issues related to, 118–19 science and technology system evolution in, 113–19 Portuguese Science and Technology (S&T) system, 113–19 postindustrial societies, aging in, 15–16 private benefits, from higher education, 2, privatization benefits of, 62 consequences, 11 of Japanese national corporations, 33 of public services, 13 risk of, 62 universities arguments, 59–61, 60f counterarguments, 61–2 public benefits, form higher education, public healthcare, public infrastructure, public resources, cross-sectoral competition for, in Europe, 6–20 increasing competition, 8–12 increasing intergenerational conflicts and, 15–18 knowledge production reconfigurations, 7–8 market perspective and increasing financial austerity, 10–12 new university-society contracts, 12–13 financial pressures, 14–15 ideological pressures, 14–15 social, political, and economic contexts, 13–14 overview, Index public revenues, constraints on, 16–18 public revenues, constraints on European universities, 16–18 public services, privatization of, 13 pure loans, 74 R&D, 52 evolution of human resources in, 115, 116t expenditure as percentage of GDP, 115, 116t Portugal, issues related to, 118–19 see also research; research, challenges in Reaganomics, 33 real estate management, at universities, 64–5 2012/13 reforms, of part-time undergraduate funding in England, 84–7 part-time entrants, 88–9, 88f part-time tuition fees, 87–8 research at 3GU, 53 on stakeholders and university cooperation (IBAR project ), 137–9 university-business cooperation in, research, challenges in, 147–71 from control to service, 159–63 global leaders, emerging, 163–5 increased competition for funding, 150–9 mobility, 165–9 overview, 147–8 research funding complexity, growth in, 148–9 strategy outline, 169–71 research funding growing complexity of, 148–9 overview, 169–71 research institutions knowledge transfer between, 112–13 181 returns, to higher education in Germany, 101–5, 102t, t 104t revenue structure Keio University, 43–4, 44f Kyoto University, 42, 42f Tokyo University, 42, 42f Waseda University, 43–4, 44f Rome Treaty, 150 Salerno, Carlo, Scharpf, Fritz W., 15 Schmidt, Vivien A., 15 science and technology system, evolution in Portugal, 113–19 the second flow of finance, 57, 57f see also university(ies), financing Second Generation University (2GU), 50–1, 52 financing, 56–7, 57f ‘selection and concentration policy,’ Ministry of Education, Japan, 39 Service and Information Centre (SIC), Amsterdam, 145 Shigaku-joseikin, 32 SIFIDE (System of Tax Incentives for Research and Business Development), 117 social benefits, higher education, social contexts, of new universitysociety contracts in Europe, 13–14 sponsoring and endowments, at universities, 65 stakeholders barriers, 138–9 external, 138 internal, 138 and university, cooperation between (IBAR research), 137–9 state cooperation, with EIF, 108 state-funded services, status quo, of Japanese universities, 28–33, 28f, f 30t–31 t tt, 31f 182 Index student loans, 5, 68–77 categorization, 74 costs, 71–3 funding models for higher education, 71, 72t vs grants, 68 overview, 68–9 research on, 76–7 root cause of problem, 69–71 student support schemes, 73–5 as ultimate solution, 75–7 see also grants students, mobility of, 167–8 student support schemes, 73–5 see also student loans study design, university-industry and business cooperation, 121–2 subsidy(ies), 3–4, 32, 58 elite universities, university-business relations and, 4–5 see also grants; tuition fees tax-based European higher education systems, 14 tax-based public funding, The Telegraph, 65 Thatcherism, 33 7th Framework Program, 149, 154 the third flow of finance, 57, 58f see also university(ies), financing Third Generation University (3GU), 53–4 financing, 60, 60f third mission activities, 11, 136 Tobacco and Salt Public Corporation, 33 Tokugawa Shogunate, 26 Tokyo Commerce University, 47n2 Tokyo Medical School, 26 Tokyo University establishment of, 26 expenditure structure, 42–3, 43f revenue structure, 42, 42f transformations in European institutions, 7–8 public-sector services, welfare state, 14–15 TU Delft (Delft University of Technology), 53–4, 64 tuition fees, 1, 3, elite universities, part-time, 87–8 see also subsidy(ies) twenty-first-century COE (Center of Excellence) program, 38 two-track universities, 3GU as, 53 Uneihi–koufukin, 32 unemployment, in Europe, 2, 54 United Kingdom, see England United Nations University, 166 United States, AAAS estimates, 158f labor market, part-time higher education system, 81 Universiteit van Amsterdam, 145–6 university-based research funding, 112 university-business relations, university-earned income, 37 university(ies), 119 enterprising, 11–12 as foundations of national prosperity and competitiveness, funding sources, 1, income diversification, 112 massification, 2–3 operational mode of, 11–12 and stakeholders, cooperation between (IBAR research), 137–9 subsidies, 3–4 three generations of, 50 Medieval (First Generation), 50 Second Generation University (2GU), 50–1 Third Generation University (3GU), 53–4 Index trends to paradigm shift, 51–3 university(ies), financing, 56–7, 56f, f 57f–58 f f alternative income generation, 62 modernize education, 63–4, 63f professionalize knowledge commercialization and collaboration with industry, 64 real estate management, 64–5 sponsoring and endowments, 65 current model, 58–9 2GU, 56–7, 57f Medieval University, 56, 56f paradigm shift in, 51–3 privatizing and deregulating arguments, 59–61, 60f counterarguments, 61–2 special time in education, 54–6 university-industry and business cooperation barriers to, 122–3 cultural challenges, 125–8 financial pressures, 129–31 legal constraints, 123–5 managerial impediments, 128–9 benefits from, 142t European approach, 135–7 lessons for universities and policymakers, 131–2 overview, 111–13 Portuguese higher education system, 119–21 in research, science and technology system evolution, in Portugal, 113–19 study design, 121–2 Universiteit van Amsterdam, 145–6 between university and stakeholders, IBAR research, 137–9 WSE cooperation with Deloitte and DB Schenker in area of teaching, 139–45, 140f, f 142t, t 144f 183 University Institute of Work and Enterprise Sciences (ISCTE), 119 University of Berlin, 50 University of Cambridge, 53, 65 University of Coimbra, 119 University of Copenhagen, 147, 159, 166, 168, 170 University of Lisbon, 119 University of Phoenix, 56 University of Porto, 119 university reforms, in Japan beginning of, 33–5 budgetary revenue of national universities, 29, 31f, f 32 6–3–3–4 educational system, 27 financial aspects, 38–44 general structure, 38–41 structures of four top universities, 41–4 grant-in-aid for scientific research program, 38, 40, 41f high school leavers, 33, 34f, f 35 history, 26–7 increasing number, 33, 35f Meiji Restoration, 26–7 national operational grants and share in MEXT budget, 36–7, 37f overview, 25–6 postgraduate education, 29 ranking in economics and econometrics, 29, 31t in 2000s, 35–8 status quo, 28–33, 28f, f 30t–31 t tt, 31f undergraduate education, 29 value for money, Warsaw School of Economics (WSE) cooperation with Deloitte and DB Schenker in area of teaching, 139–45, 140f, f 142t, t 144f 184 Index Waseda University expenditure structure, 43–4, 45f revenue structure, 43–4, 44f Watson computer, of IBM, 54, 55 Watt, James, 51 welfare state transformations, 14–15, 18–19 electorates role in, 18 White Paper, 84 Williams, Gareth, 10 World War II, 25, 27, 51–2, 70, 148 youth unemployment, in Europe, 2, 54 Zumeta, William, 11 .. .International Perspectives on Financing Higher Education International Perspectives on Financing Higher Education Edited by Josef C Brada Arizona State University, USA... Congress Cataloging-in-Publication Data International perspectives on financing higher education / edited by Josef C Brada Professor of Economics, Arizona State University, USA, Masaaki Kuboniwa,... of higher education — Provided by publisher Education, Higher Finance Education, Higher Economic aspects Privatization in education Higher education and state I Brada, Josef C., 1942– editor