From academic values to From academic values to stakeholder value?stakeholder value?

Kari RaivioKari Raivio

Chancellor emeritusChancellor emeritus

University of HelsinkiUniversity of Helsinki

OECD/IMHE Conference ”Does size matter?” Reykjavik 5.-OECD/IMHE Conference ”Does size matter?” Reykjavik 5.-6.6.20086.6.2008

ACADEMIC VALUES - HISTORYACADEMIC VALUES - HISTORY

Wilhelm von Humboldt 1810:Wilhelm von Humboldt 1810:– Unity of research and teachingUnity of research and teaching– Freedom of teaching and researchFreedom of teaching and research– Academic self-governanceAcademic self-governance– ””Ivory tower”Ivory tower”

John Henry Newman 1852:John Henry Newman 1852:– ””A University is a place where inquiry is pushed A University is a place where inquiry is pushed

forward,..discoveries verified and perfected, forward,..discoveries verified and perfected, and..error exposed, by the collision of mind with and..error exposed, by the collision of mind with mind, and knowledge with knowledge. Thus is mind, and knowledge with knowledge. Thus is created a pure and free atmosphere of thought, created a pure and free atmosphere of thought, which the student also breathes”which the student also breathes”

STAKEHOLDER VALUESSTAKEHOLDER VALUES

WHAT (WHO) IS A STAKEHOLDER?WHAT (WHO) IS A STAKEHOLDER?

DICTIONARY: STAKE: DICTIONARY: STAKE: ”prize in a contest” or ”an interest or ”prize in a contest” or ”an interest or share in an undertaking or enterprise” (Webster)share in an undertaking or enterprise” (Webster)

POTENTIAL UNIVERSITY STAKEHOLDERS:POTENTIAL UNIVERSITY STAKEHOLDERS:– STUDENTS (CURRENT AND ALUMNI)STUDENTS (CURRENT AND ALUMNI)– SOCIETY (GOVERNMENT, TAXPAYER)SOCIETY (GOVERNMENT, TAXPAYER)– PERSONNELPERSONNEL– FUNDING AGENCIES, SPONSORSFUNDING AGENCIES, SPONSORS– PRIVATE SECTOR PARTNERSPRIVATE SECTOR PARTNERS– REGIONAL AND LOCAL AUTHORITIESREGIONAL AND LOCAL AUTHORITIES

WHY ATTENTION ON UNIVERSITIES?WHY ATTENTION ON UNIVERSITIES?

KNOWLEDGE-BASED ECONOMYKNOWLEDGE-BASED ECONOMY– PRESSURE TO ”INNOVATE”PRESSURE TO ”INNOVATE”– DEMAND FOR SKILLED WORKFORCEDEMAND FOR SKILLED WORKFORCE

GLOBAL COMPETITIONGLOBAL COMPETITION– RESEARCH EXCELLENCERESEARCH EXCELLENCE– BRIGHTEST STUDENTSBRIGHTEST STUDENTS

RANKING LISTSRANKING LISTS

UNIVERSITIES – INSTRUMENTS OF ECONOMIC UNIVERSITIES – INSTRUMENTS OF ECONOMIC AND SOCIAL POLICY!AND SOCIAL POLICY!

EU - RESUSCITATION OF LISBONEU - RESUSCITATION OF LISBON(Wim Kok, 2004)(Wim Kok, 2004)

REALIZATION OF ”KNOWLEDGE SOCIETY”REALIZATION OF ”KNOWLEDGE SOCIETY”– RECRUIT TOP RESEARCH TALENTRECRUIT TOP RESEARCH TALENT– MINIMIZE BUREAUCRACYMINIMIZE BUREAUCRACY– IMPROVE UNIVERSITIESIMPROVE UNIVERSITIES– INDUSTRY-ACADEMIA (”IDEOPOLIS”)INDUSTRY-ACADEMIA (”IDEOPOLIS”)

R&D FIRST PRIORITYR&D FIRST PRIORITY– PUBLIC/PRIVATE INVESTMENTPUBLIC/PRIVATE INVESTMENT– TAX RELIEFTAX RELIEF– ERCERC– PUBLIC PROCUREMENTPUBLIC PROCUREMENT

SIX AREAS OF EMPHASIS SIX AREAS OF EMPHASIS HEADS OF STATEHEADS OF STATE (HAMPTON COURT 27.10.2005) (HAMPTON COURT 27.10.2005)

– RESEARCH & DEVELOPMENTRESEARCH & DEVELOPMENT– UNIVERSITIESUNIVERSITIES– DEMOGRAPHIC CHALLENGEDEMOGRAPHIC CHALLENGE– ENERGYENERGY– MIGRATIONMIGRATION– SECURITYSECURITY

UNIVERSITIES AS ENGINES OF UNIVERSITIES AS ENGINES OF ECONOMIC DEVELOPMENTECONOMIC DEVELOPMENT

EDUCATIONAL MISSIONEDUCATIONAL MISSION– BASIC TRAINING OF WORKFORCEBASIC TRAINING OF WORKFORCE– CONTINUING EDUCATION (LLL)CONTINUING EDUCATION (LLL)

RESEARCH AND INNOVATIONRESEARCH AND INNOVATION– EXPLOITATION OF OWN RESEARCHEXPLOITATION OF OWN RESEARCH– CONTRACT RESEARCHCONTRACT RESEARCH– KNOWHOW/CONSULTINGKNOWHOW/CONSULTING

MAJOR GENERATORS OF ECONOMIC ACTIVITYMAJOR GENERATORS OF ECONOMIC ACTIVITY– AS EMPLOYERAS EMPLOYER– AS PROCURERAS PROCURER– AS BUILDERAS BUILDER

STATUS OF EUROPEAN STATUS OF EUROPEAN RESEARCHRESEARCH

MAJOR SITES OF RESEARCH VARYMAJOR SITES OF RESEARCH VARY– UNIVERSITIES (UK, SCANDINAVIA, UNIVERSITIES (UK, SCANDINAVIA,

SWITZERLAND)SWITZERLAND)– RESEARCH INSTITUTES (FRANCE, RESEARCH INSTITUTES (FRANCE,

GERMANY, ”EASTERN BLOC”)GERMANY, ”EASTERN BLOC”) SUBSIDIARITY PREVAILSSUBSIDIARITY PREVAILS

– NATIONAL POLICIES DECISIVENATIONAL POLICIES DECISIVE– EU R&D FUNDING 1/11 OF AGRICULTUREEU R&D FUNDING 1/11 OF AGRICULTURE

IDENTICAL UNIVERSITY MISSIONS/ IDENTICAL UNIVERSITY MISSIONS/ QUALITY VARIABLEQUALITY VARIABLE

NUMBER OF SCIENTIFIC PUBLICATIONSNUMBER OF SCIENTIFIC PUBLICATIONS

SHARE OF 1% OF MOST HIGHLY SHARE OF 1% OF MOST HIGHLY CITED PUBLICATIONS 1997-2001CITED PUBLICATIONS 1997-2001

USAUSA 62.862.8 UKUK 12.812.8 GERMANYGERMANY 10.410.4 JAPANJAPAN 6.9 6.9 FRANCEFRANCE 6.9 6.9 CANADACANADA 5.8 5.8 ITALYITALY 4.3 4.3 SWITZERL.SWITZERL. 4.1 4.1 NETHERL.NETHERL. 3.8 3.8

AUSTRALIAAUSTRALIA 2.82.8 SWEDENSWEDEN 2.52.5 SPAINSPAIN 2.12.1 BELGIUMBELGIUM 1.71.7 DENMARKDENMARK 1.51.5 ISRAELISRAEL 1.51.5 RUSSIARUSSIA 1.31.3 FINLANDFINLAND 1.11.1 AUSTRIAAUSTRIA 1.01.0

RANKING OF UNIVERSITIES RANKING OF UNIVERSITIES (TOP 10 IN 2007)(TOP 10 IN 2007)

HARVARDHARVARD STANFORDSTANFORD UC BERKELEYUC BERKELEY CAMBRIDGECAMBRIDGE MITMIT CALTECHCALTECH COLUMBIACOLUMBIA PRINCETONPRINCETON U CHICAGOU CHICAGO OXFORDOXFORD

– (U. HELSINKI 73.)(U. HELSINKI 73.)

– SHANGHAISHANGHAI

HARVARDHARVARD CAMBRIDGE=CAMBRIDGE= OXFORDOXFORD== YALEYALE IMPERIAL COLLEGEIMPERIAL COLLEGE PRINCETONPRINCETON CALTECH=CALTECH= U CHICAGOU CHICAGO UNIVERSITY COLLEGEUNIVERSITY COLLEGE MITMIT

– (U. HELSINKI 100.)(U. HELSINKI 100.)

– TIMES H.E.S.TIMES H.E.S.

TOP EUROPEAN RESEARCH TOP EUROPEAN RESEARCH UNIVERSITIES UNIVERSITIES (”CROWN INDICATOR”,CWTS, LEIDEN 2006)(”CROWN INDICATOR”,CWTS, LEIDEN 2006)

1. OXFORD1. OXFORD 1.671.67

2. CAMBRIDGE2. CAMBRIDGE 1.631.63

3. ETH ZÜRICH3. ETH ZÜRICH 1.521.52

4. EDINBURGH4. EDINBURGH 1.481.48

5. UNIVERSITY COLLEGE LONDON5. UNIVERSITY COLLEGE LONDON 1.461.46

6. IMPERIAL COLLEGE LONDON6. IMPERIAL COLLEGE LONDON 1.451.45

7. HELSINKI7. HELSINKI 1.381.38

8. UTRECHT8. UTRECHT 1.371.37

9. AMSTERDAM9. AMSTERDAM 1.351.35

10. ZÜRICH10. ZÜRICH 1.331.33

WHY ARE U.S. UNIVERSITIES SO WHY ARE U.S. UNIVERSITIES SO DOMINANT?DOMINANT?

GENETIC ADVANTAGE – NOGENETIC ADVANTAGE – NO BETTER RESEARCHER TRAINING – NOBETTER RESEARCHER TRAINING – NO BETTER FUNDING – YESBETTER FUNDING – YES RECRUITMENT OF POSTDOCS – YESRECRUITMENT OF POSTDOCS – YES RECRUITMENT OF TOP SCIENTISTS – YESRECRUITMENT OF TOP SCIENTISTS – YES ””PURSUIT OF EXCELLENCE” - YESPURSUIT OF EXCELLENCE” - YES

– COMPETITIONCOMPETITION– CAREER DEVELOPMENTCAREER DEVELOPMENT– REWARDSREWARDS

ANNUAL EXPENDITURE PER STUDENTANNUAL EXPENDITURE PER STUDENTon educational institutions, in equivalent US dollars on educational institutions, in equivalent US dollars converted using PPPsconverted using PPPs

USD 0

USD 5 000

USD 10 000

USD 15 000

USD 20 000

USD 25 000

United States

J apan

EU

MONEY COUNTS – NOT % GDP MONEY COUNTS – NOT % GDP R & D FUNDING 2003R & D FUNDING 2003 (OECD, bn $ PPP)(OECD, bn $ PPP)

USAUSA 284.6284.6 JAPANJAPAN 114.0114.0 GERMANYGERMANY 57.0 57.0 FRANCE FRANCE 37.5 37.5 UKUK 33.6 33.6 KOREAKOREA 24.4 24.4 CANADACANADA 19.3 19.3 ITALY ITALY 17.7 17.7

SPAINSPAIN 11.011.0 SWEDENSWEDEN 10.410.4 AUSTRALIAAUSTRALIA 9.1 9.1 HOLLANDHOLLAND 8.8 8.8 BELGIUM BELGIUM 7.6 7.6 AUSTRIAAUSTRIA 6.4 6.4 SWITZERLANDSWITZERLAND 5.6 5.6 FINLANDFINLAND 5.2 5.2

Foreign-born scientists and engineers in Foreign-born scientists and engineers in U.S. S&E occupations, by degree level U.S. S&E occupations, by degree level and fieldand field

DILEMMAS OF EUROPEAN DILEMMAS OF EUROPEAN UNIVERSITIESUNIVERSITIES

ALL PRETEND TO DO EVERYTHINGALL PRETEND TO DO EVERYTHING BASIC BUDGETS LOW, DECREASINGBASIC BUDGETS LOW, DECREASING R & D FUNDING LOW, SCATTEREDR & D FUNDING LOW, SCATTERED TUITION INCOME LOW OR ZEROTUITION INCOME LOW OR ZERO ENDOWMENTS INSIGNIFICANTENDOWMENTS INSIGNIFICANT PRIVATE CAPITAL FLOW LOWPRIVATE CAPITAL FLOW LOW COMMERCIAL ACTIVITIES LIMITEDCOMMERCIAL ACTIVITIES LIMITED ””CIVIL SERVANT ATTITUDE”CIVIL SERVANT ATTITUDE”

IS COMMERCIALISATION THE ANSWER?IS COMMERCIALISATION THE ANSWER?

HOW CAN UNIVERSITIES MAKE HOW CAN UNIVERSITIES MAKE MONEY? MONEY?

COMPETITIVE RESEARCH FUNDINGCOMPETITIVE RESEARCH FUNDING DONATIONS (ALUMNI, FOUNDATIONS etc)DONATIONS (ALUMNI, FOUNDATIONS etc) EDUCATION MARKETEDUCATION MARKET KNOWHOW/CONSULTINGKNOWHOW/CONSULTING CONTRACT RESEARCHCONTRACT RESEARCH EXPLOITATION OF OWN RESEARCHEXPLOITATION OF OWN RESEARCH

– PATENTING/LICENSINGPATENTING/LICENSING– START-UP COMPANIESSTART-UP COMPANIES– COOPERATION WITH EXISTING COMPANIESCOOPERATION WITH EXISTING COMPANIES

Australia; 8,9

United Kingdom; 12.1 Germany; 11,4

J apan; 4,1

Russ. Federation, 3.2

Sweden; 1,2

Malaysia; 1,3New Zealand; 1.2

Austria; 1.5

Netherlands; 1

Other OECDOther non-OECD

Switzerland; 1,6I taly; 1.7

Belgium; 2

Spain; 2.5

France; 10.5

United States; 27,7

Borderless education:Borderless education:Where international students goWhere international students goPercentage of foreign tertiary students reported to the OECD who are Percentage of foreign tertiary students reported to the OECD who are enrolled in each country of destinationenrolled in each country of destination

According to the Shanghai rating, 17 of the world’s top 20

universities are in the United States

OUTCOME OF COMMERCIAL OUTCOME OF COMMERCIAL VENTURES OF UNIVERSITIESVENTURES OF UNIVERSITIES

CORPORATE SPONSORSHIP VANISHING, PRIVATE UPCORPORATE SPONSORSHIP VANISHING, PRIVATE UP

MORE FUNDING FOR ACADEMIC RESEARCH MORE FUNDING FOR ACADEMIC RESEARCH – BUTBUT licensing/royalty/startup income only 3% of licensing/royalty/startup income only 3% of

research budget of major USA universitiesresearch budget of major USA universities

SEVERAL STARTUP COMPANIES ESTABLISHEDSEVERAL STARTUP COMPANIES ESTABLISHED– BUTBUT life expectancy short, successes few, dependency life expectancy short, successes few, dependency

on public supporton public support

MORE PATENTING/LICENSING ACTIVITY – YESMORE PATENTING/LICENSING ACTIVITY – YES– BUTBUT most universities lose money (even in USA)most universities lose money (even in USA)

UNIVERSITY REFORM ?UNIVERSITY REFORM ?

ARE EUROPEAN UNIVERSITIES AILING ?ARE EUROPEAN UNIVERSITIES AILING ?

– YESYES – THE DIAGNOSIS IS RIGHT ! – THE DIAGNOSIS IS RIGHT !

IS COMMERCIALISATION THE ANSWER?IS COMMERCIALISATION THE ANSWER?

– NONO – THE MEDICINE IS WRONG ! – THE MEDICINE IS WRONG !

MORE ATTENTION TO STAKEHOLDERS?MORE ATTENTION TO STAKEHOLDERS?

– YESYES – BUT ACADEMIC VALUES NEED NOT BE – BUT ACADEMIC VALUES NEED NOT BE COMPROMISED !COMPROMISED !

MODERNIZATION AGENDA FOR MODERNIZATION AGENDA FOR UNIVERSITIESUNIVERSITIES (EU Commission 2006)(EU Commission 2006)

Diversity/specializationDiversity/specialization MobilityMobility Autonomy with accountabilityAutonomy with accountability Cooperation with private sectorCooperation with private sector Relevant studies/degreesRelevant studies/degrees Adequate funding (min. 2 % gdp)Adequate funding (min. 2 % gdp) Internal boundaries downInternal boundaries down Reward system/elitismReward system/elitism

ONGOING UNIVERSITY ONGOING UNIVERSITY REFORMS REFORMS

CANADA: MILLENNIUM PROJECTCANADA: MILLENNIUM PROJECT CHINA: TOP UNIVERSITIESCHINA: TOP UNIVERSITIES FRANCE: LEGAL & GOVERNANCE FRANCE: LEGAL & GOVERNANCE

REFORMREFORM GERMANY: ”EXZELLENZINITIATIV”GERMANY: ”EXZELLENZINITIATIV” SWEDEN: LINNAEUS GRANTSSWEDEN: LINNAEUS GRANTS

CORRECT PRINCIPLE: CORRECT PRINCIPLE: COMPETITION COMPETITION BASED UPON QUALITY !BASED UPON QUALITY !

IMPROVING INDUSTRY-ACADEMIA IMPROVING INDUSTRY-ACADEMIA RELATIONSHIPSRELATIONSHIPS

Creating fora for dialogue (esp. SME´s)Creating fora for dialogue (esp. SME´s) Active information exchangeActive information exchange Participation in university governanceParticipation in university governance Curriculum developmentCurriculum development InternshipsInternships Reform of doctoral training (generic)Reform of doctoral training (generic) Joint research for traineesJoint research for trainees Mobility of personnelMobility of personnel

ELEMENTS IN REDEFINING THE IDEA ELEMENTS IN REDEFINING THE IDEA OF THE UNIVERSITYOF THE UNIVERSITY

What is ”useful knowledge” ?What is ”useful knowledge” ? Engagement with society (and other Engagement with society (and other

stakeholders)stakeholders) Importance of humanities/social sciencesImportance of humanities/social sciences Age and diversity important, size notAge and diversity important, size not Academic environment vs. supermarketAcademic environment vs. supermarket Understanding vs. rote learningUnderstanding vs. rote learning Innovation: industry vs. universityInnovation: industry vs. university Time scale: industry vs. politics vs. university Time scale: industry vs. politics vs. university Freedom & autonomy vs. accountabilityFreedom & autonomy vs. accountability ””Product”: graduate vs. publicationProduct”: graduate vs. publication