Financing of Research and Innovation in Europe’s

Universities

An EUA study funded by the European Commission, DG Research

Principal researchers: Bernadette Conraths

and Hanne Smidt Sodergard

EUA workshop Research Management, Barcelona, 18-19 June 2004

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Aims of the study

Provide an overview on main trends and developments in the financing of research and innovation in European universities, key players in the creation of a European Research Area (ERA)Focus on institutional issues and concerns which have been less researched up to nowPresent key findings to the EU Conference in Liège:« The Europe of Knowledge 2020: A vision for university-based research and innovation » (25-28 April 2004)

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Our methodology

Four steps:StocktakingQuestionnaires to National Rectors Conferences (enlarged EU + CH, N, Iceland) on national contextSurvey of research oriented universities 42 sent, 39 returned, from 23 countries Areas covered: governance, strategy, funding and sources, allocation and expenditure, innovation, policies, priorities, management, staff, expectations;Follow-up interviews with 19 universities with focus on governance, management, innovation and culture change

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The Good News...

The high response,in a tight time frame, indicates

the high importance of the subject to the institutions

their great readiness to collaborate and to contribute to the European level

debate

Common denominators: state of flux and change !

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Major Challenges (in guise of bad news...)

DiversityA vast variety of systems, differing from country to country, region to region, institution to institutionDatalack, incompatibility, fragmentation and major variancesTerminologyLanguage and definitions

i.e. Funding sources, funding types, basic vs. applied research, innovation...

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Main (interrelated) change drivers

More competitive grant funding (due to stagnating or shrinking government/public funds)

The gradual granting of more autonomy to HE institutions accompanied by the pressure to diversify funding sources

The steering of public research agendas through specific programmes

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Financial issues, cont.

Relatively little overall change on average in the total income from main sources (public/ government, business, international, 1995-2001)

Relatively stable government income, higher income from of other sources, but also high volatility

Significant increases in institutional R&I expenditure

Factors of highest impact in the next five years:Levels of external funding, change of sources,

interinstitutional collaboration

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Financial issues

International funding

rather low (average 7%, max 29%)

but high expectations for additional funding and collaborative opportunities (especially in CEE)

scepticism towards “Brussels” bureaucracy and “one-size-fits-all”

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Key Findings cont. Business funding

Low, with high variances (0 to 46 % - average 4%)

Projects with industry ranked highest for strategies and instruments to support innovation (triple helix model of Sweden and Finland)

collaborative research with industry ranked rather low when prioritising strategies for supporting research

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Institutional issues

GovernancePolicies and strategiesFunding and costing

InnovationManagement

Staff / Human Resources Development

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Governance: a bottom-up-top-down development

Structure change:More autonomy= accountabilityEqually high ranking for decentralised vs. centrally defined policyCentres of excellenceMore steering through Vice-Rectors for research, Councils, CommitteesBalancing institutional team work and individual researcher freedom

Culture change:Collegial towards entrepreneurialReview of relationsNew negotiation ground

Acceptance of more competitionMore risk and responsibility

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Policies and strategies: building critical mass and networks

The race for critical scientific massResearch strong universities receive the bulk of fundingLess strong universities need extended networks to build complementarityInternal funding to balance external funds (“solidarity effect”) Interdisciplinary projects Doctoral programmes / recruitment of scientific staff

The issue of overhead chargesResearch Offices

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Funding and costing

FundingThird party funding

substantially increasedMore dynamics and proactive

acquisition cultureDangers for long term

sustainabilityVolatility

DependencyCareer developmentSkills issues

CostingUnsatisfactory situation:Revenues don’t cover costsNo cost transparencyReview of research costs as

part of an overhaul of the institutional accounting systems (EURAB)

UK universities to charge 100% cost

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Innovation: High activity-low funding-no culture

Many activities underway, many still in an early trial and error fashion (UK very advanced)Technical Universities have a special statusIssue of “value chain” in-house or externalLow funding, mostly university+public (regional, local)Innovation culture has a niche life in comprehensive universitiesLack of concepts and strategyLittle quality or performance evaluation

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Management: high need for professionalisation

Skill developmentGeneral urgent need for

better support to research activities

New funding reality needs different skillsCommunication, marketing,

negotiation, project management...Waste of scientific capacity?? Research Offices Paradox: great need, low

priority for training&development

Quality and performance

Vast majority of institutions uses the traditional quality and performance indicators,

i.e.publications, citations, previous funding, Phd graduates,

Little evidence of impact evaluation or process quality control

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Staff Issues: Growing scientific capacity

in adverse conditions

Attraction and development of Phd StudentsAging academic community, doctoral programmes (CEE)

Problems of retention and career developmentcontracts, salaries, work conditions

Lack of professional staffattraction and development

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Recommendations

Data collection (national and European level)Inter-institutional cooperation in networksEuropean funding sources (possibly through ERC)Reliable funding resourcesImprove management of research (skills, financial transparency, flexibility)

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Questions in guise of conclusion

How much commonality of HE data and indicators do we need on a European level ?Which form of European cooperation can best enhance (and challenge) European HE autonomy and excellence in research ?Can and should a common ground for financing and costing be achieved ? How ?How to improve the management of research ?How to secure a European research career structure ?

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Questions in guise of conclusions, cont.

How to introduce an institutional research strategy which encompasses both the individual researcher’s freedom and the institutional strategyHow to obtain reliable funding streams from different levels while increasing competitive bidding How to improve/introduce the triple helixHow to create an innovation culture throughout the universities (is innovation by definition related to the hard sciences?)