1. 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 Prof. dr. sc. Zlatan Car

2. 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
Prof. dr. sc. Zlatan Car

3. 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
TREND 2019, Kopanik
Prof. dr. sc. Zlatan Car

4. 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
TREND 2019, Kopanik
Prof. dr. sc. Zlatan Car

5. 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
Prof. dr. sc. Zlatan Car

6. 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
Prof. dr. sc. Zlatan Car

7. 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 :15 UTC (GMT) from UIS.Stat
TREND 2019, Kopanik
Prof. dr. sc. Zlatan Car

8. 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
Prof. dr. sc. Zlatan Car

9. 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
Prof. dr. sc. Zlatan Car

10. 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
Prof. dr. sc. Zlatan Car

11. 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
Prof. dr. sc. Zlatan Car

12. 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
Prof. dr. sc. Zlatan Car

13. 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
Prof. dr. sc. Zlatan Car

14. 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
Prof. dr. sc. Zlatan Car

15. 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
Prof. dr. sc. Zlatan Car

16. 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
Prof. dr. sc. Zlatan Car

17. 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
Prof. dr. sc. Zlatan Car

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

19. 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 ( ). 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 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
Prof. dr. sc. Zlatan Car

20. 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 Prof. dr. sc. Zlatan Car

21. TREND 2019, Kopanik 11-14.02. Prof. dr. sc. Zlatan Car
Percentages of Institutional and project funding out of total GBARD. Source: PREF, 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, doi: /scipol/scy041
Sci Public Policy | © The Author(s) Published by Oxford University Press.This is an Open Access article distributed under the terms of the Creative Commons Attribution License ( which permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited.
TREND 2019, Kopanik Prof. dr. sc. Zlatan Car

22. 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
Prof. dr. sc. Zlatan Car

23. Thanks for your attention... You may now clap... –
If you have any further questions, my friend will answer them
TREND 2019, Kopanik
Prof. dr. sc. Zlatan Car

24. References
Alexander, S., 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., 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., Financiranje visokog obrazovanja i socijalna dimenzija u Hrvatskoj: analiza i preporuke. Zagreb: Institut za razvoj obrazovanja.
Jonkers, K. & Zacharewicz, Z., Research Performance Based Funding Systems: a Comparative Assessment, European Commisssion, JRC SCIENCE FOR POLICY REPORT
TREND 2019, Kopanik
Prof. dr. sc. Zlatan Car