1. Growth strategies – Czech ambition and OECD experience 11 January 2006 La Muette, Paris Sigurd Höllinger S. H. OECD 11/1/06 “Universities can perform if they are allowed to” Austrian Federal Ministry of Education, Science and Culture Minoritenplatz 5 A-1014 Vienna Tel:++43 1 53120 6000 Fax:++43 1 53120 6929 sigurd.hoellinger@bmbwk.gv.at

2. S. H. OECD 11/1/06 0Are the Austrian reforms best practice? 1Reform goals 2Reform principles 3Weaknesses of previous reforms 4Autonomy 5The new state-university relationship 6Measures taken between 2002–2005 7Change processes between 2002–2005 8Performance agreements 9Strengthening basic research 10Academic freedom 11Going forward 12Universities Act 2002: chart

3. 0Best practice? Possible example of best practice Interim report Changes to existing institutions: -Long traditions -Legacies of the past -National specificities New model: European and international S. H. OECD 11/1/06

4. 1Reform goals Enhancing research and teaching performance Improving the universities’ efficiency Universities as European players in research and teaching; international competitiveness S. H. OECD 11/1/06

5. 2 Reform principles Most sweeping reforms for 150 years No half-measures Autonomous in place of state controlled universities New legal framework Self-managed change processes More competition and cooperation Study law remains preserve of state Confidence in universities’ ability to renew themselves under the new conditions of complete autonomy World class performance achievable S. H. OECD 11/1/06

6. 3Weaknesses of previous reforms Blurred responsibilities of universities and the state Power without responsibility Reversal of effects of the legal system Participation based on misconceptions about grassroots democracy Rule, not goal-driven approach S. H. OECD 11/1/06

7. 4Autonomy S. H. OECD 11/1/06 Demanding autonomy more comfortable than practicing it Uniting decision-making and responsibility Autonomy of the organisation can impinge on individual freedoms Academics put their own freedom first Influence through performance agreements: educational obligations, state’s ability and willingness to pay

8. 5The new state-university relationship S. H. OECD 11/1/06 Partnership, not sovereign authority Legal duty of the state to finance higher education Performance agreement between the university and the state Draft agreement drawn up by the university New recruits employees of the university — no more civil servant status

9. 6Measures taken between 2002–2005 S. H. OECD 11/1/06 Universities University councils, rectors and vice-rectors appointed, senate elected New organisation charts Development plans New accounting system Draft performance agreements International contacts stepped up Ministry in conjunction with universities Intellectual capital report Indicator-linked budget component (20%) Activity reports Budgets for first performance agreement period (2007–2009)

10. 7Change processes between 2002–2005 S. H. OECD 11/1/06 Early stages of extended processes visible, but legacies of the past stil apparent Act increasingly accepted: -Awareness of opportunities for individuals and universities -But resistance to change and rectors from some senates Cultural change in the right direction: -More goal-driven approach -Increased emphasis on performance -Management by rectorates accepted and critically monitored -University councils no longer seen as an “alien presence” — accepted as useful management bodies

11. 8Performance agreements S. H. OECD 11/1/06 Three-year term Rector submits draft agreement Approval of university council required Overall budget for three-year period established one year in advance Informal discussions beforehand (recommendations of Austrian Science Board, government proposals, last performance report, financial statements) Based on development plan Failure to agree: first arbitration, then option for both sides of bringing an action in the constitutional court Additional resources: competitively awarded grants from national, European, international research funds, as well as contract research

12. 9Strengthening basic research Research driven by scientific curiosity High risk of failure PhD programmes along Bologna follow-up process lines replacing traditional doctoral studies Research freedom for all academic staff, regardless of age and status More research driven teaching alongside traditional educational obligations More funding competitively awarded Stringent quality control “Austrian Institute of Advanced Science and Technology (AIST)” to be founded S. H. OECD 11/1/06

13. 10Academic freedom Academic freedom for all university members All academic staff have right to choose research field: third-party funded and contract research No compulsion to perform work that conflicts with conscience Scientific curiosity welcomed S. H. OECD 11/1/06

14. 11Going forward No return to old habits Asset formation as means of strengthening autonomy Buildings not transferred to university ownership Universities tenants of buildings owned by a profit oriented, government owned company Student admissions: Court of Justice of the European Communities created new conditions, open access dead Low, flat-rate university fees successfully introduced: not a satisfactory system for universities that have prospered under autonomy Correction of small defects of reform legislation needed S. H. OECD 11/1/06