The Challenge of Establishing World-Class Universities Jamil Salmi Fontainebleau 30 April 2009

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6 natural lab experiment: U. of Malaya vs. NUS early 1960s: 2 branches of University of Malaya today: NUS ranked # 19 UM only # 192

7 outline of the presentation defining the world-class university the path to becoming a world-class university

8 how do you recognize a world-class university? everyone wants one no one knows what it is no one knows how to get one

9 defining the WCU self-declaration

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12 vision of the University of Bath “to be a world class university, comprising an international community committed to partnerships with other world class institutions, inside and outside academia, to produce research of global significance and value and graduates with commitment and skills for life and work in the global community”.

13 defining the WCU self-declaration reputation rankings

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16 top 50 universities

Autonomy Academic Freedom Students Teaching Staff Researchers Research Output Technology Transfer Concentration of Talent Abundant Resources Favorable Governance Leadership Team Strategic Vision Culture of Excellence Public Budget Resources Endowment Revenues Tuition Fees Research Grants WCU Supportive Regulatory Framework Graduates Characteristics of a World-Class University Alignment of Key Factors Source: Elaborated by Jamil Salmi

18 concentration of talent teachers and researchers incoming students undergraduate / graduate students balance

19 weight of graduate students

20 concentration of talent teachers and researchers incoming students undergraduate / graduate students balance international dimensions

21 international dimensions foreign students –Harvard (19%) –Cambridge (18%) foreign faculty –Harvard (30%) –Oxford (36%) –Cambridge (33%)

22 abundant resources government funding –US spends 3.3% of GDP ($54,000 per student) –Europe (E25) only 1.3% ($13,500 per student) endowments

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24 US Institutions Endowments Assets (2006 million $) UK Institutions Endowment Assets (2002 million $) Harvard University28,916Cambridge4,000 Yale University18,031Oxford4,000 Stanford University14,085Edinburgh3200 University of Texas13,235Glasgow240 Princeton University13,045King’s200 Comparison of US and UK Endowment Levels

25 abundant resources government funding endowments research funding

26 impact of the crisis resources flows government policies

27 resources flows reduced government funding for teaching, research and student aid reduced resources for institutions as demand falls (new domestic and foreign students, dropouts)

28 resource flows (II) fewer resources from private sector (donations, contracts) fall in stock market values reduces value of endowments and pension funds

29 implications for governments increase scholarships and establish / strengthen student loan programs include tertiary education in economic stimulus plans –R&D –capacity building –entrepreneurship for innovation

32 favorable governance freedom from civil service rules (human resources, procurement, financial management) management autonomy –flexibility and responsiveness with power to act selection of leadership team independent Board with outside representation

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34 U. Of Malaya vs. NUS – talent UM: selection bias in favor of Bumiputras, less than 5% foreign students, no foreign professors NUS: highly selective, 43% of graduates students are foreign, many foreign professors

35 U. Of Malaya vs. NUS (II) – finance UM: $118 million, $4,053 per student NUS: $750 million endowment, $205 million, $6,300 per student – governance UM: restricted by government regulations and control, unable to hire top foreign professors NUS: status of a private corporation, able to attract world-class foreign researchers

36 France and Germany low in the rankings civil service status and mindset no tradition of competition

37 Germany “Excellence initiative” –competition –additional resources governance reform

38 France world rankings have forced to ask questions dual structure –“Grandes Ecoles” with best students, more resources and favorable governance, but no research –universities: “second best” students, but research vocation autonomy reform

39 outline of the presentation defining the world-class university the path to becoming a world-class university

40 the path to glory upgrading existing institutions mergers creating a new institution

41 upgrading approach less costly challenge of creating a culture of excellence focus on governance

42 mergers approach China, Russia, France, Denmark, Ireland potential synergies –1+1=3 clash of cultures

43 creating a new institution higher costs getting the right culture from the beginning

44 who takes the initiative? role of the State favorable regulatory framework funding role of the institutions leadership strategic vision culture of excellence

45 Clemson University land grant university focused on agricultural and mechanical crafts changing region strategic partnership with BMW to become premier automotive and sports car research U aims to become # 20

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50 evolution of Nokia income

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52 a word of caution  need for diversified tertiary education system  not all institutions can be “world-class”  a few select world-class research universities

53 a word of advice  what kind of institution?  time dimension  alignment

54 money is not enough  the most expensive universities in the world are not world-class  Washington U (Washington)  Kenyon College (Ohio)  Bucknell U (Pennsylvania)  Vassar College (NY)  Sarah Lawrence College (NY)

Autonomy Academic Freedom Students Teaching Staff Researchers Research Output Technology Transfer Concentration of Talent Abundant Resources Favorable Governance Leadership Team Strategic Vision Culture of Excellence Public Budget Resources Endowment Revenues Tuition Fees Research Grants WCU Supportive Regulatory Framework Graduates Characteristics of a World-Class University Alignment of Key Factors Source: Elaborated by Jamil Salmi