Reforming Higher Education for more Innovative Universities in Europe Pedro Teixeira CIPES and Faculty of Economics – U. Porto Empowering European Universities – Maastricht – 22nd-23rd June 2012

Changing Times in European Higher Education

Markets and European Higher Education: Massification and Complexification; Cost-disease and Rising costs of Higher Education; An adverse Political Economy; From an expanding to a mature sector; Changing purposes about Higher Education

A Changing Landscape in European Higher Education

From Systemic to Institutional Changes: Changing Public-Private Mix Different Forms of Competition Manipulating Supply and Demand Forces Fostering Institutional Autonomy Developing Quasi-Markets

Markets and Marketization in Higher Education

Markets in Higher Education: Efficiency, Effectiveness, and Economy; Public Vices vs. Private Virtues; Government Failures and Market Failures; Higher education as a peculiar good; Externalities and Informational problems; Customer-cum-input;

The Marketization of HEIs: From Systemic to Institutional Changes

From Systemic to Institutional Changes: Funding Human Resources Governance Management

From Systemic to Institutional Changes – Funding: Diversification of structure of revenues Performance-based and contractualized public funding Fees and Students as paying customers Differentiation and selectivity

From Systemic to Institutional Changes: - Human Resources: Growing autonomy Decline of civil service ties Assessment of performance and Differentiation of pay Impacts on overall motivation and levels of satisfaction Levels of commitment and non-visible institutional activities

From Systemic to Institutional Changes – Governance and Management: A corporate-market approach to governance and decision-making Reduction of collegiality The role of external stakeholders and their internalization Students as stakeholders vs. customers Legitimacy of decision-making: academic vs. managerial HEIs as quasi-economic organizations

Concluding remarks: Eppur si Muove?

Transforming European HEIs Changing responsiveness Short term vs. long term responses Financial and Academic sustainability A differentiated impact across countries, disciplines, groups A more diverse and stratified landscape Combining Efficiency and Cohesiveness