1. Financing of Research and Innovation in Europe’s Universities An EUA study funded by the European Commission, DG Research Principal researchers: Bernadette Conraths and Hanne Smidt Sodergard EUA workshop Research Management, Barcelona, 18-19 June 2004

2. …2… Aims of the study Provide an overview on main trends and developments in the financing of research and innovation in European universities, key players in the creation of a European Research Area (ERA) Focus on institutional issues and concerns which have been less researched up to now Present key findings to the EU Conference in Liège: « The Europe of Knowledge 2020: A vision for university-based research and innovation » (25-28 April 2004)

3. …3… Our methodology Four steps: Stocktaking Questionnaires to National Rectors Conferences (enlarged EU + CH, N, Iceland) on national context Survey of research oriented universities 42 sent, 39 returned, from 23 countries Areas covered: governance, strategy, funding and sources, allocation and expenditure, innovation, policies, priorities, management, staff, expectations; Follow-up interviews with 19 universities with focus on governance, management, innovation and culture change

4. …4… The Good News... The high response,in a tight time frame, indicates the high importance of the subject to the institutions their great readiness to collaborate and to contribute to the European level debate Common denominators: state of flux and change !

5. …5… Major Challenges (in guise of bad news...) Diversity A vast variety of systems, differing from country to country, region to region, institution to institution Data lack, incompatibility, fragmentation and major variances Terminology Language and definitions i.e. Funding sources, funding types, basic vs. applied research, innovation...

6. …6… Main (interrelated) change drivers More competitive grant funding (due to stagnating or shrinking government/public funds) The gradual granting of more autonomy to HE institutions accompanied by the pressure to diversify funding sources The steering of public research agendas through specific programmes

7. …7… Financial issues, cont. Relatively little overall change on average in the total income from main sources (public/ government, business, international, 1995-2001) Relatively stable government income, higher income from of other sources, but also high volatility Significant increases in institutional R&I expenditure Factors of highest impact in the next five years: Levels of external funding, change of sources, interinstitutional collaboration

8. …8… Financial issues International funding rather low (average 7%, max 29%) but high expectations for additional funding and collaborative opportunities (especially in CEE) scepticism towards “Brussels” bureaucracy and “one-size-fits-all”

9. …9… Key Findings cont. Business funding Low, with high variances (0 to 46 % - average 4%) Projects with industry ranked highest for strategies and instruments to support innovation (triple helix model of Sweden and Finland) collaborative research with industry ranked rather low when prioritising strategies for supporting research

10. …10… Institutional issues Governance Policies and strategies Funding and costing Innovation Management Staff / Human Resources Development

11. …11… Governance: a bottom-up-top-down development Structure change: More autonomy = accountability Equally high ranking for decentralised vs. centrally defined policy Centres of excellence More steering through Vice-Rectors for research, Councils, Committees Balancing institutional team work and individual researcher freedom Culture change: Collegial towards entrepreneurial Review of relations New negotiation ground Acceptance of more competition More risk and responsibility

12. …12… Policies and strategies: building critical mass and networks The race for critical scientific mass Research strong universities receive the bulk of funding Less strong universities need extended networks to build complementarity Internal funding to balance external funds (“solidarity effect”) Interdisciplinary projects Doctoral programmes / recruitment of scientific staff The issue of overhead charges Research Offices

13. …13… Funding and costing Funding Third party funding substantially increased More dynamics and proactive acquisition culture Dangers for long term sustainability Volatility Dependency Career development Skills issues Costing Unsatisfactory situation: Revenues don’t cover costs No cost transparency Review of research costs as part of an overhaul of the institutional accounting systems (EURAB) UK universities to charge 100% cost

14. …14… Innovation: High activity-low funding-no culture Many activities underway, many still in an early trial and error fashion (UK very advanced) Technical Universities have a special status Issue of “value chain” in-house or external Low funding, mostly university+public (regional, local) Innovation culture has a niche life in comprehensive universities Lack of concepts and strategy Little quality or performance evaluation

15. …15… Management: high need for professionalisation Skill development General urgent need for better support to research activities New funding reality needs different skills Communication, marketing, negotiation, project management... Waste of scientific capacity?? Research Offices Paradox: great need, low priority for training&development Quality and performance Vast majority of institutions uses the traditional quality and performance indicators, i.e.publications, citations, previous funding, Phd graduates, Little evidence of impact evaluation or process quality control

16. …16… Staff Issues: Growing scientific capacity in adverse conditions Attraction and development of Phd Students Aging academic community, doctoral programmes (CEE) Problems of retention and career development contracts, salaries, work conditions Lack of professional staff attraction and development

17. …17… Recommendations Data collection (national and European level) Inter-institutional cooperation in networks European funding sources (possibly through ERC) Reliable funding resources Improve management of research (skills, financial transparency, flexibility)

18. …18… Questions in guise of conclusion How much commonality of HE data and indicators do we need on a European level ? Which form of European cooperation can best enhance (and challenge) European HE autonomy and excellence in research ? Can and should a common ground for financing and costing be achieved ? How ? How to improve the management of research ? How to secure a European research career structure ?

19. …19… Questions in guise of conclusions, cont. How to introduce an institutional research strategy which encompasses both the individual researcher’s freedom and the institutional strategy How to obtain reliable funding streams from different levels while increasing competitive bidding How to improve/introduce the triple helix How to create an innovation culture throughout the universities (is innovation by definition related to the hard sciences?)