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being in the bulls eye Coping with public disinvestment – diversifying revenue sources

being in the bulls eye Coping with public disinvestment – diversifying revenue sources. Globalization ”The bulls eye” Knowledge societies – increased demand Fiscal austerity – budget constraints. The challenge for universities:. Funding of the triple helix A -- education

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being in the bulls eye Coping with public disinvestment – diversifying revenue sources

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  1. being in the bulls eye Coping with public disinvestment – diversifying revenue sources THE UNIVERSITY OF AARHUS

  2. Globalization ”The bulls eye” Knowledge societies – increased demand Fiscal austerity – budget constraints THE UNIVERSITY OF AARHUS

  3. The challenge for universities: Funding of the triple helix A -- education B -- research C -- knowledge transfer THE UNIVERSITY OF AARHUS

  4. 104 Law, economics etc. Danish, history etc. 102 Medicine 100 Comp sci, physics Chem, biology ect. 98 Odontology Language, culture etc. 96 Engineering Pharmacology 94 Veterinarian 92 Math, statistics etc. 90 1997 1998 1999* 2000 2001* 2002 2003 2004 2005 2006 Source: FL95-03. *1999 and 2001 are calculated. 2004-2006 VTU information and includes graduation bonus. Deflated using net-price index Public funding of higher education (A) Indexed development in selected taximeters for HE in Denmark THE UNIVERSITY OF AARHUS

  5. Public funding of R&D 2000-2006/2010 (B)for DK budget Act. 2007 + three years THE UNIVERSITY OF AARHUS

  6. Financing knowledge transfer (C)public and private funds for • Stimulating demand (targetted incentives, insertion, matching ….) • Meeting demand for pay (contract research, consultancies, grants to special projects ….) • Organizing supply (TTO, external service units ….) • Exploitation of intellectual property (University Press, legalizing IP ….) • Public – private structural partnerships (foundations, science parks, incubators, project hotels, innovation camps, consultancies etc.) THE UNIVERSITY OF AARHUS

  7. New funding compact for Denmark’s universities • Public funding for education follows productivity (quality and quantity- new taximeter) - A • Public funding for research, 50% direct, 50% in competition including overhead (60%) - B • Funding of demand and supply in knowledge transfer system (private: proof of concept, innovation, joint ventures, …; public: monitoring, analysing, strategic research, governmental support, …) – C • Each funding element will aim at full cost financing, and at large, multi-year grants or contracts THE UNIVERSITY OF AARHUS

  8. THE UNIVERSITY OF AARHUS

  9. New legal framework for Danish universities • New University Act (2003, revised 2007) • Self-governing institutions with external Boards • Further increase in autonomy and accountability (auditing by private firms such as PWC) • Development contracts with the Government (Ministry of Science, Technology and Innovation ) • New management structure with the Rector being CEO-like (selection not election) • Merging / inclusion of national institutions and laboratories as of January 1, 2007 THE UNIVERSITY OF AARHUS

  10. The Globalisation Fund in Denmark • Expected yearly increase in funding of education, research, innovation and entrepreneurship 2007: 300 mill € 2008: 600 mill € 2009: 900 mill € 2010: 1.200 mill € 2011: 1.350 mill € 2012: 1.500 mill € THE UNIVERSITY OF AARHUS

  11. A snapshot of University of Aarhus THE UNIVERSITY OF AARHUS

  12. Ranking • One of Denmark’s three elite Universities competing for 66% of the country’s research - AU’s ambition is to count for 25% of the total • Produces 2000 bachelors, 2000 kandidates/masters, 250 ph.ds per year - AU’s ambition is 3000, 3000 and 500 • Research university of international class (ref. THES etc.) • AU nr. 3 in Scandinavia, 57 in Europe, 105 in the World • Science 1 in Scandinavia • Health sciences 2 i Scandinavia • Economy 25 in the World • Political Science 5 in Europa THE UNIVERSITY OF AARHUS

  13. University of Aarhus • 21,000 students (2010: 30,000) • 9,886 academic bachelors degree students • 10,290 kandidat/master degree students • 870 Ph.D. students • 5,000 staff (2010: 2,500) • 3,000 academic • 2,000 technical • 5 faculties (2010: 7 and one National Lab), 29 institutes, 73 research centers • 1 campus, 350,000 sqm buildings (2010: 4-5 campuses) THE UNIVERSITY OF AARHUS

  14. Income and expenditures University of Aarhusannual balance 0.5 billion €, 0.125 competitive research funding (2010: expected balance 0.8 billion €) THE UNIVERSITY OF AARHUS

  15. University of Aarhus Research FoundationAUFF • Rector of AU is chairman of AUFF • Endowment (market value) 0.5 billion € • Annual balance of business 0.9 billion € • Annual research grants to AU research 10 million € • Annual investment in AU real estate 10 million € • Current annual direct and indirect support of AU activities approx 6% THE UNIVERSITY OF AARHUS

  16. University of Aarhus Research Foundation THE UNIVERSITY OF AARHUS

  17. AU supporting the ”new deal” in Denmark(proactive globalisation policy and knowledge society as the prerequisite for sustaining the wellfare state) • Engaged in liaison activities with society • Prioritized participation in national program committees • Accepted the role of the mass (elite) university • Redefined the ”Humboltian” tradition to also include innovation, contracted research, knowledge transfer besides the research based education THE UNIVERSITY OF AARHUS

  18. The challenge -- is not funding but competing for the most advanced human capital THE UNIVERSITY OF AARHUS

  19. Universities in the bulls eye thanks for the invitationrektor@au.dk THE UNIVERSITY OF AARHUS

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