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Enhancing Higher Education Quality: Governance and Funding Challenges

Explore governance and funding implications in tertiary education to enhance teaching, research, and overall quality. Analyze the impact on economic performance, skills demand, and educational investment trends. Learn about strategies for incentivizing teaching, improving student-staff ratios, quality assurance mechanisms, and balancing research funding. Discover how internationalization and autonomy can contribute to quality enhancement in education.

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Enhancing Higher Education Quality: Governance and Funding Challenges

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  1. Enhancing the quality of higher education: governance and funding challenges Stéphan VINCENT-LANCRIN OECD Centre for EducationalResearch and Innovation (CERI)

  2. Outline • Tertiary education and economic performance • Enhancing the quality of: • Teaching • Research • Funding and governance implications

  3. Tertiary education and economic performance • Labour productivity • Innovation in the economy • Researchers and R&D • Absorption of innovation • Lifelong learning • Absorption of innovation

  4. New demands of the modern economy • Technology-bias towards highly skilled people • Increasing need for non-routine cognitive skills in advanced economies • Interactive • analytical

  5. How the demand for skills has changedEconomy-wide measures of routine and non-routine task input (US) Mean task input as percentiles of the 1960 task distribution Source: Levy and Murnane

  6. Missions of higher education • Teaching • Research • Community services • Production of new knowledge • Transmission of knowledge • Transmission of critical thinking • Maintaining of old knowledge (culture, scholarship, libraries)

  7. Education / Teaching

  8. EU countries tend to invest less than OECD average as a % of GDP (2004)

  9. The US and Korea invest about twice as much in education per se as most EU countries (% GDP) (2004)

  10. Annual expenditures per student on tertiary education (Constant US dollars, PPPs)

  11. Change in expenditures on tertiary education (1995-2003)

  12. Household contribution to tertiary education expenditures (2003)

  13. The expansion in numbers may continue and put pressure on quality: projected tertiary enrolments in 2025 under recent trends (2005=100) Source: OECD, Higher Education 2030, Vol. 1 Demography (forthcoming)

  14. How much additional public budget (% of GDP) will be needed to keep current “quality” conditions in 2025(scenario 2, no productivity enhancement, current cost-sharing)

  15. Evolution of student/staff ratio according to recent trends in access (if staff stay at 2004 level)

  16. Changes in the number of 25-44 tertiary graduates relative to the US

  17. Tertiary Educational Attainment of the 25-44 population2005 and 2025 (trends of past 10 years)

  18. Quality of education • Teaching is the first and main function of Higher Education • BUT little incentives for teaching: bad teaching is often unnoticed, and good teaching, unrewarded

  19. Quality of education • Change the incentive structures • Reward and value good teaching as much as research • Assessment of tertiaryeducationlearningoutcomes • Differentiatedtertiaryeducationsector • Avoidacademic drift • Develop soft skillsduring first years of university • Impliesbetterstudent/staff ratio for the undergraduateyears (funding) • New pedagogies and productivityenhancements (e-learning?) • Internationalisation • Encourage outward and inwardstudentmobility

  20. Quality of education • Autonomy and accountability • Lift administrative burdens of public accountancy • Autonomy to hire and to someextent set wages • Quality assurance mechanisms • Risks: costly and burdensome • Objective: shoulddevelopquality culture • Performance-basedfunding • Important to have agreedtargets • Mix of input- and output-basedfundingworkswell • Importance of lifelonglearning • Not necessarily in tertiaryeducation • Examples: communitycolleges in the US

  21. Research

  22. Share of students enrolled in advanced research programmes (ISCED 6) (2005)

  23. Research

  24. « Public » research expenditures as a percentage of GDP (2005) Lisbon agenda target

  25. Number of (ISI) articles per million inhabitant

  26. Relative public research productivity Scientific articles per million inhabitants Public research as % of GDP

  27. Relative public research productivity Scientific articles per million inhabitants Public research as % of GDP

  28. Quality of research • Concentrate the funding? • A question of balance: project-basedfunding and block grants • Avoid short termfunding and « research to the assessment » • Relocate the excellent research? • World class universities, mergers, centres of excellence • To bebalancedagainstregional innovation • Avoidacademic drift

  29. Conclusions

  30. Conclusion • Researchis important, but educationeven more so • Fundingis important: level and type of allocation • More funding for tertiaryeducation(new cost sharing?) • Balance in fundingmechanisms, based on inputs and outputs • In research, beready to « lose » money • Competingwith Harvard willbedifficult… • But qualityis not just about money • Education: innovation in teaching, focus on graduation and not just entry • Research: beready to lose and waste money by fundingcontroversialresearch and researchers • Internationalisation contributes to qualityenhancement

  31. Stephan.Vincent-Lancrin@oecd.org Thank You www.oecd.org/edu/universityfutures

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