Prof. zlatan car, ph.d. University of Rijeka Performance based evaluation and HE funding methods in EU Member States Prof. zlatan car, ph.d. University of Rijeka TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

Education Funding Methods in the European Union The higher education financing models in EU: public funding, funding from their own sources and funding from different international funds (EUA, 2011, 2012). The quality of higher education is directly interdependent with the financing of higher education. The percentage of resources from GDP for higher education and scientific research activity varies from country to country and represents only one of the indicators of the quality of higher education. Equally important is the distribution of resources and the focus on specific consumption goals. It is important that the macroeconomic movement (movement of appropriations in GDP) follows the analysis of the distribution of funds in the micro-region (institution level). TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

Education Funding Methods in the European Union The presence of different sources of funding and diversity in their representation among European countries is high. Systematization of sources of financing recognizes two basic categories: public funding and financing from other sources. Public funding is focused on national and local budgets (depending on the territorial structure and fiscal system) Funding from other sources includes: tuition, financing through the provision of services (counseling, libraries, property income, etc.), financing from contracts with private sector, funding from donations, financing from investment activities and financing from EU funds. Prof. dr. sc. Zlatan Car TREND 2019, Kopanik 11-14.02. TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

Sources of financing and funding higher education institutions Public funding Total amount/budget per item Funding towards goals Funding by projects/programmes Financing through a contract EU funds and other international sources Project financing Financing through tenders Other Business sector Trainings Contract researches Donations, conferences Students Tuitions, registration fees Foundations Donations, project financing Alumni Fees, services, donations Prof. dr. sc. Zlatan Car TREND 2019, Kopanik 11-14.02. TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

Sources of financing and funding higher education institutions The sources of HE funding in the EU countries have the following distribution: 72.8% public funding, 9.1% student participation, 6.5% financing in cooperation with the private sector, 4.5% funding through donations, 4.1% financing through the provision of services, 3.0% international public funding. TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

Sources of financing and funding higher education institutions Croatia belongs to a group of countries where expenditure on higher education amounts to slightly more than 4% of GDP. This group includes Czech Republic, Slovakia, Italy, Hungary, Bulgaria and Spain. The countries of the European Union that are most prevalent in education are Belgium, Cyprus, Finland and Sweden. The following table shows that there are significant differences in the percentage of allocations for the tertiary level of education in the EU countries. TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car Time 2008 2009 2010 2011 2012 2013 2014 2015 2016 Country   Austria 5,26396 5,73025 5,70048 5,59227 5,4804 5,54711 5,44898 5,45304 .. Belgium 6,63898 6,55238 Bulgaria 4,22437 4,28575 3,86346 3,56303 3,50203 4,06197 Croatia 4,27013 4,38925 4,24051 4,14873 4,5626 Cyprus 6,72402 7,20622 6,58025 6,56238 6,43176 6,37621 6,37674 Czechia 3,74455 4,17128 4,06446 4,27214 4,25086 4,09089 3,99462 5,78885 Denmark 7,47605 8,44888 8,55955 8,48486 7,23782 8,49443 7,63485 Estonia 5,51751 5,95415 5,527 5,01738 4,71293 4,83838 5,47941 5,2159 Finland 5,84677 6,48518 6,54071 6,48201 7,19254 7,15848 7,15156 7,09183 France 5,45351 5,74618 5,69251 5,5183 5,45642 5,50028 5,51206 5,46424 Germany 4,40954 4,88048 4,91368 4,8078 4,93331 4,93497 4,93113 4,81341 Greece Hungary 4,97793 4,96436 4,76895 4,60079 4,17353 4,20373 4,63195 4,57936 Ireland 5,44452 6,13522 6,04341 5,82037 5,7511 5,31576 4,88844 3,76971 Italy 4,40287 4,53631 4,35239 4,14407 4,16472 4,07525 4,08036 Latvia 5,40538 5,57353 5,08098 4,937 6,59439 6,98544 5,28294 5,33721 Lithuania 4,83454 5,57741 5,29903 5,12027 4,76683 4,61284 4,48818 4,21805 Luxembourg 4,09041 3,99439 3,91548 Malta 5,57061 5,17037 6,45489 7,79155 6,51956 7,87982 7,23914 5,26747 Netherlands 5,09227 5,49579 5,5558 5,52617 5,47565 5,59188 5,52931 5,39942 Poland 5,04044 4,9891 5,06843 4,82012 4,81181 4,94011 4,91107 4,81454 Portugal 4,70213 5,56214 5,40289 5,12129 4,9464 5,27787 5,12325 4,88294 Romania 4,03672 3,48629 3,04409 2,94604 3,12851 3,10645 Slovakia 3,52674 4,01094 4,11588 3,96231 3,90921 4,08666 4,23068 4,64978 Slovenia 5,10609 5,56859 5,56251 5,56563 5,64783 5,43782 5,29444 4,91156 Spain 4,50094 4,86771 4,81912 4,86633 4,43188 4,32834 4,2799 4,27701 Sweden 6,39073 6,85779 6,62199 6,49112 7,65619 7,71774 7,68125 7,55132 United Kingdom of Great Britain and Northern Ireland 4,93553 5,13067 5,77046 5,67333 5,61871 5,69342 5,63148 5,54179 Data extracted on 01 Feb 2019 10:15 UTC (GMT) from UIS.Stat TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

Education Funding Methods in the Croatia The higher education system in Croatia is mainly funded from the public sector. In Croatia, the allocation of funds to higher education institutions from the state budget is largely based on the amount from the previous budget year, increased by the percentage of growth that is usually consistent with GDP growth. Such mechanism is not the most adequate one since it does not allow mid-term and long-term planning, nor the setting of strategic goals. TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

Education Funding Methods in the Croatia The control of the execution of the budget is carried out from the Ministry of science and education and it is based exclusively on the so-called "Input criteria". Some of the entry criteria are: the quota of regular students studying at the expense of the state budget the number of employees the size of buildings of higher education institutions rental costs, etc. Since the allocation of the state budget is based on previous years, there are no calculations of the level of public investment on study programs or fields of science. TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

Public funding challenges Public funding increases the student population and seeks to increase the share of highly educated people in the total population, while reducing the public funding of teaching and scientific research activities. The conditions of globalization and internationalization of higher education, and the pressure to reduce public funding increase the challenges to higher education institutions in the financing of their activities. Financing from public sources becomes more complex and requires more management powers and responsibilities, but still represents the main source of funding in the European Union. TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

The impact of performance based evaluation on HE Public funding Public funding in most cases is based on full amounts where higher education institutions take responsibility for the internal resources allocation. According to the research of the European University Association (EUA) in the majority European countries apply some of the variation of the full amount. The amount is, as in Croatia, determined by certain formulas - number of employees, number of students, etc., but with a trend of increasing the use of performance based evaluation criteria which emphasizes a competitive approach to acquisition of the funds. TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

The impact of performance based evaluation on HE Public funding In the context of higher education, there are three ways of allocating budgetary resources: allocation in full amount, allocation based on formula, Allocation based on performance. Assignment in an total amount the negotiations between the higher education institutions and the ministry the "agreed" character doesn’t vary depending on the spending and achievements. Assignment in full the amount does not recognize the need for specific financing and primarily relies on the level of funding of previous periods. TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

Performance-based research funding in EU Member States Most EU Member States have implemented Research Performance Based Funding systems. The rationales for the implementation of RPBF systems include: providing incentives for improving research performance, and the concentration of resources in the best performing organizations. Public research funding Project funding Organizational level funding Block funding Variable/competitive TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

Performance-based research funding in EU Member States Member States funding allocation systems must have the following characteristics: Research must be assessed Research evaluation must be ex post Research output and/or impact must be evaluated Part of the governmental allocation of university research funding must depend on the outcome of the evaluation The performance based funding system must be a national or regional system TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

Performance-based research funding in EU Member States Country classification according to the type of Performance Based Funding System: funding allocation based solely on the basis of education related metrics or assessments (without research output considerations), funding allocation based on formula on quantitative metrics and funding allocation on the basis of peer review based assessment exercises TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

Performance-based research funding in EU Member States The main criteria on which such assessments are based: Education metrics Historical criteria Bibliometric indicators (counts of publication, impact of the journal, citation analysis) Other formula elements (PhD graduates, patents, project funding, business funding, gender/diversity, internationalisation) Peer review Performance contracts TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

Performance-based research funding in EU Member States Countries which haven’t implemented some form of performance based funding: Bulgaria, Cyprus, Greece, Hungary, Ireland, Luxembourg, Malta, Romania and Slovenia Different way of output assessment in the different countries: countries mainly bases its funding allocation formula on the collection of quantitative metric countries that rely more on peer review TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

Dominant assessment approach for the allocation of Performance Based funding in the EU28 TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

1 Bulgaria did have a RPBF system in its education law for several years, but this appears not to have been implemented. In the new law however, a RPBF system has been introduced again (see Annex). 2 Hungary The introduction of a RPBF system in Hungary is foreseen (see annex) 3 Luxembourg has only a single university, it was not considered to have a RPBF system to allocate organisational level funding between universities. However its performance contract has many of the trappings of RPBF systems. 4 Latvia has used assessments to change the allocation of its funding of PROs. For universities it has recently implemented a RPBF system, this is not yet reflected in this overview table but annex 1 provides more detail. 5 In Romania some steps have been taken to design an institutional funding system linked to performance assessment, in practice this is not yet implemented. (see also country annex). 6 In Germany the organisational level funding of universities is mainly provided at the regional (Laender) level. These have increasingly included quantitative assessment criteria and/or performance contracts, but the nature of their funding allocation procedures differ from state to state (Van Daalen, 2014) 7 Belgium (Wallonia): for the Special Research Funds, the education-metrics based system will still be partially linked to the historical distribution among universities during a transition period (2014-2016). For the concerted research actions, there is also a transition period with performance criteria being gradually introduced into the funding allocation formula from 2016 onwards. 8 In 2009, Czech Republic introduced a research performance-based methodology to allocate research funding. This methodology, based exclusively on quantitative indicators, was modified for the period 2013-2015 and introduced some peer review assessment elements.. After 2016, bibliometric informed peer review should become the main mode of assessment (Shrolec &Szkuta, forthcoming) 9 Estonia does have performance contracts for universities for which universities are assessed on a number of education metrics. This does not concern the allocation of research funding. 10 Poland used to base its funding formula partially on historical considerations. Since 2015 however, this variable has been removed (Klincewicz, forthcoming). See annex for more detail. TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car Table shows the share of Project vs. Organisational level funding (Public Funding of Research (PREF) project carried out by a consortium led by CNR CERIS on behalf of DG JRC of the European Commission) TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car Percentages of Institutional and project funding out of total GBARD. Source: PREF, 2014. Reference year is 2013 for AT, ES, UK and 2015 for FR. Spain figure does not include regional funding. Due to methodological issues, the data provided for FR, LU, and PT differ from data reported by Eurostat (Lepori 2017). From: Performance-based research funding in EU Member States—a comparative assessment Sci Public Policy. Published online June 13, 2018. doi:10.1093/scipol/scy041 Sci Public Policy | © The Author(s) 2018. Published by Oxford University Press.This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited. TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

Performance-based research funding in EU Member States Conclusion Great variations in public research funding allocation systems in Europe. Many methodologies adopted and the assessment criteria and metrics considered. The involvement of peers/experts remains the preferred approach to research assessment for many analysts who sometimes doubt the ability of bibliometrics to provide a good and complete assessment of the output of research systems. TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car

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References Alexander, S., 2015. RIO Country Report 2014: Luxembourg, Editor: European Commission, Joint Research Centre, Institute for Prospective Technological Studies, Publications Office of the European Union Doolan, K. Dolenec, D. i Domazet M., 2012. Hrvatski sustav financiranja visokog obrazovanja u europskom kontekstu: komparativna studija. Zagreb: Institut za razvoj obrazovanja 2. File, J. Farnell, T. Doolan,K. Lesjak, D. i Šćukanec, N., 2013. Financiranje visokog obrazovanja i socijalna dimenzija u Hrvatskoj: analiza i preporuke. Zagreb: Institut za razvoj obrazovanja. Jonkers, K. & Zacharewicz, Z., 2016. Research Performance Based Funding Systems: a Comparative Assessment, European Commisssion, JRC SCIENCE FOR POLICY REPORT TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car