University governance in Finland: recent
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1 University governance in Finland: recent developments and challenges Anita Lehikoinen, director of the Education and Science Policy Department, Ministry of Education, Finland 29 October, 2010
2 Minister of Education and Science State Secretary Minister of Culture and Sport State Secretary Internal Audit Permanent Secretary Communications and Public Relations International Relations Department for Education and Department for Cultural, Administration Department Science policy Department Office General Education Division Vocational Education Division Sport and Youth policy Division for Cultural Legislation and Finance Division for Art Policy Cultural Export and Exchange Unit General Administration Division Human Resources Division Financial Planning Division Division for Higher Education and Financial Administration Division Division for Cultural Policy Science Copyright Unit Information Management Division Higher Education Research Sports Division Youth Policy Division May 2010
3 Themes of the Presentation ti Higher Education system in Finland Structural t Development of Higher Education University Reform Steering and Funding of Higher Education Institutions Science Policy
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6 The Finnish Higher Education System The Finnish higher education system comprises two parallel sectors: University sector 16 research universities, including 4 Universities of Arts Student enrollment All institutions run by the state Polytechnic sector (established in the mid-1990s) 25 institutions Student enrollment Institutions partly funded by the state, partly by municipalities Regional development tasks Bachelor degrees (vocational and professional degrees) (Professional) Master s degrees in selected fields The whole HE system provides study places for 65-70% of an age group Annual intake of students approximately Annual number of senior high h school graduates
7 Key Features of the Finnish Higher Education System "Open and equal access" for all An extensive network of HE institutions covering the whole country Regional equality Tuition free system HEIs can, however, arrange made-to-order d degree education to citizens of non-eu/eea countries In addition, there will be a fixed-term trial of charging tuition fees to citizens of non-eu/eea countries in master's s programmes taught in foreign languages in universities and polytechnics Provisions concerning university degree programmes will be enacted by a Ministry of Education Decree. Tuition fees are conditional on a scholarship scheme.
8 HEIs and Sectoral Research Institutes t Universities (blue) Polytechnics (green) Sectoral research institutes (red)
9 Cohorts entering (upper) secondary education and the first cycle of tertiary education in Cohort, 19-21years Cohort, years
10 Themes of the Presentation ti Higher Education System in Finland Structural Development of Higher Education University Reform Steering and Funding of Higher Education Institutions Science Policy
11 Structural Development of Higher Education Government Programme stresses the importance to continue structural development of HEIs To enhance the HE network in order to create more prominent institutions with higher standards To ensure the quality and effectiveness of HEIs' research and teaching To allocate resources to top-level research and strategic priority areas The reform forms part of the European higher education reform Communication of the European Commission "Delivering on the Modernisation Agenda for Universities: Education, Research, Innovation" of May 2006 Development targets for higher education recommended in the thematic OECD review Internationalisation, clearer institutional missions and positions, and diversification ifi of the funding structure t
12 Aims and measures In terms of full-time students, the target size for a university is 3,000, for a polytechnic 2,500 and for a strategic alliance 8,000. The target intake in a degree programme is 40 at the minimum. Important special fields will adopt a system of admission in alternate years The department structure will be reformed with the aim of departments/units of at least five professors. In addition, universities and research institutes to create joint departments The number of higher education institutions will fall. The new higher education institutions to be larger and stronger. Sufficient size of higher education institutions to boost crossdisciplinary education and research, generate new innovations and improve student services. Close cooperation and partnerships will bring added value to education and research and open new opportunities for students.
13 Aims and measures Measures are taken to make sure that the higher education system covers the whole country. With a view to better quality of education and research, activities will be assembled into the main campuses. High quality of operations will strengthen the impact of higher h education institutions on society and on regions. Only strong HEI units are attractive as cooperation partners to other higher education institutions and players in the innovation system. Steps to this end The HEIs to determinate their strategies, profiles and priority areas in their renewed strategies by 2010 Clearer profiles and clearer institutional missions between higher education institutions between universities and polytechnics within universities iti and polytechnics
14 Vision 2020 Maximum of 18 polytechnics Intake in youth education of 22,500 students (in 2009 ~26 500) Flexible and profiled higher education units and structures Strong and dynamic interaction with the region and its employers Well-established, high-quality R&D in priority areas Maximum of 15 universities i i Intake of students (in 2009 ~19 500) Strong units and profiles; clear priorities in research Internationalisation and world-class research Four to five strategic university-polytechnic alliances Secured access to education and diverse education provision in the area Joint R&D and stronger (regional) impact
15 Themes of the Presentation ti Higher Education system in Finland Structural Development of Higher Education University Reform Steering and Funding of Higher Education Institutions Science Policy
16 The New Universities Act (558/2009) The Universities Act includes provisions on the mission, administration, operational funding and steering of universities, and matters relating to research and education, students and personnel. The reform took effect on 1 August The public universities started to set up the new organs of the legal person. The operations of universities as state accounting offices stopped on 31 December The personnel and students transferred to the new universities on 1 January 2010.
17 Means of the university reform in a nutshell Status as legal persons universities became legal persons separate from the State, either as corporations under public law or foundations under the Foundations Act. Corporation under public law (public university) A legal person under the Universities Act whose organs and their functions are laid down in legislation. Foundation under private law (foundation d university) it ) A legal person under the Foundations Act which is assigned the university mission in the Universities Act. The government will continue to be responsible for funding the public duties of the universities even though the universities are no longer within the State budget economy. The Ministry of Education will ensure by means of steering that university activities conform to the higher education policy aims set by Parliament and the Government.
18 Aims of the university reform in a nutshell Aims of the university reform Universities used to be organised as State accounting offices To give the universities a stronger financial and administrative status, they were made independent legal persons and supplied with sufficient capital. As legal persons, the universities will be better able to operate with the surrounding society. Having their own capital, the universities will have more scope for operating based on their own decisions. Efforts will be made to gain the commitment of other actors in society to support the universities' mission. Measures will be taken to ensure continued international competitiveness of the university system.
19 The Universities Act will change... Autonomy will strengthen: universities will have an independent legal status Universities will take the place of the State as employers: civil-service employment relationships will become contractual employment relationships Community relations will strengthen: th At least 40% of the members of the board of a public university (incl. the chairman) must be external to the university community The "external" members are elected by the university collegiate body, which may also decide to have an external majority on the board, if it so wishes. The board of a foundation university has 7 members, three of whom are nominated by the founding members of the university foundation The board is appointed by the multi-member administrative body of the university. Greater latitude with finances: donations, income from capital and business activities New universities: Aalto university (HUT, HSE, UIAH), University of Eastern Finland (universities of Kuopio & Joensuu) and the new Turku University (University of Turku, Turku School of Economics) Performance agreement procedure between MoE and universities will be lighter Charging of tuition fees on a trial basis for separate Master s programmes from students from outside the EU/EEA
20 The Universities Act won't change... The freedom of research, art and education Self-government and academic decision-making Research and higher education remain as the main tasks of the universities The State will guarantee core funding, taking into account the development of costs Education leading to a degree will continue to be free of charge Further information > Education > Education Policy > University reform
21 Themes of the Presentation ti Higher Education System in Finland Structural Development of Higher Education University Reform Steering and Funding of Higher Education Institutions Science Policy
22 Steering and funding of HEIs State funding for HEIs Universities 1,7 bn Polytechnics 0,9 bn + Public research funding (Academy of Finland & Tekes) 0,3 bn External funding for universities euro % of the % of the total t external university funding budget Academy of Finland ,2 7,2 Finnish Funding Agency for Technology and Innovation, Tekes ,8 4,4 Finnish enterprises ,7 4,3 Other Finnish sources ,4 13,1 EU funding ,3 3,9 Foreign enterprises ,7 0,6 Other international sources ,8 0,6 Total ,2 (2009, expenses)
23 Allocation framework Legal basis of the university funding Universites Act (558/2009) 49 sets the framework MoE Decree (771/2009) elaborates details Legal basis of the polytechnics funding Part of the Government subsidy system - linked to municipality i funding Decree on the Financing of the Provision of Education and Culture (806/ amendments) Public research funding to be allocated through h competition
24 Performance Agreements Between MoE and HEIs Structure of the agreement: 1. Aims Common to Higher Education System Verbal goals incl. statutory university/polytechnic missions, internationalization, student & HR issues as well as cost-efficiency and effectivness of operations Societal impact a priority in all universities' operational targets 2. Mission, Profile and Focus Areas of the HEI To reflect university's overall strategic plan as well as national HE and science policy goals To set appropriate strategic targets = to condense a message of the strategy into the essential To set university / field specific quantitative goals (7) Indicators (13) 3. Foremost Development Targets 1-5 projects per university linked to the implementation of the HEI's strategy 4. Financing The government funding in total 5. Monitoring i and Evaluation
25 Quantitative targets for universities UNIVERSITIES Actual Actual Target University Target number 2007 number Offer 2/ Bachelor degrees Master degrees PhDs Number of pupils at the schools for practice of teachers ECTS completed under teacher training guidance at the schools for practice ) Foreign degree students Exchange students (incoming & outgoing, > 3 months)
26 Quantitative targets for polytechnics POLYTECHNICS Actual numbers 2007 Actual numbers 2008 Polytech. Offer Target set (MoE) Polytechnic degrees Vocational teacher education Polytechnic Masters Foreign degree students Exchange students (incoming & outgoing, > 3 months)
27 Performance indicators 1(2) Education Students (FTE) / teaching and research personnel Masters' degrees/ teaching and research personnel Doctoral degrees/ professors Percentage of graduation after seven years studies Percentage of students who have passed more than 45 study credits Percentage of graduates compared to drop-outout
28 Performance indicators 2(2) Research International publications / teaching and research personnel Scientific publications (not including int. publ.)/ teaching and research personnel e Percentage of national competive funding from the university total funding Percentage of international research funding from the university total funding Internationality Staff international mobility / teaching and research personnel Societal interaction/impact Percentage of complementory funding from the university total funding Percentage of employed from graduates
29 Core funding for universities from 2010 Government funding EUR 1.7 billion Other education and science Formula-based core funding based on the quality, extent and impact 75% policy considerations 25% Research and researcher education 45% Education 55% Strategic development 25% Education and discipline structure 75% Quality and effectivenesss 25% Extent of activities 75% Quality and effectiveness 15% Extent of activities 85%
30 Core funding for universities Education Education Quantity of operations 85% Quality and efficacy 15% Calc culated number of stude nts 30% B Maste in the er's deg e MoE-Un agreeme 35% niversity ent Tar get num Bachelor mber of and rees set Numb an degre tth ber of Ba nd Maste ees awar he univer 35% achelor er's rded by rsity Quality of education and efficiency of study processes (80%) -The Centres of Excellence in education ( euro annually / centre) -Percentage(%) of degree students who complete at least of 45 ECTS in a year - % of degree students graduating (Master's) within 7 years of enrolment Internationalisation (20%) -Student mobility from and to Finland (>3 months in duration) - Nr of credits completed in foreign language instruction&earned abroad - Nr of international degree students
31 Core funding for universities - Researcher training and research Research and researcher education Extent of activities 75% Quality and impact 25% Te rese eaching earch pe years 50% Targe PhD d the M ag et numb degrees oe-univ greemen 25% and ersonber of set in ersity nt Num mber of PhD degrees 25% Nationally competed research funding (60%) - Academy of Finland funding - AoF funding for Research Centres of Excellence - Tekes funding Scientific publications (20%) - Number of refereed international publication - Number of other scientific publications Internationalization (20%) - Internationally competed research funding - Extent of teacher and researcher mobility (incoming+outgoing, min. 2 wks)
32 Core funding for universities Other education and science policy considerations Other education and science policy considerations Education and discipline structure 75% Strategic development 25% Strategy of the university -national education and science - Disciplinary structure policy aims - Special national duties - Teacher training schools - Graduate schools means of monitoring - National Library of Finland implementation of the strategy - concrete development goals, measures for attaining them, and key development targets are internationalisation and development of researcher career path
33 Funding formula of polytechnics State funding comprises approximately 60% of polytechnic funding. Additional 40% is allocated by municipalities to the polytechnic's operations. Government core funding (A unit price per student* x Number of students) 70 % (594 M ) Calculated number of students by polytechnic s different fields of education Based on the number of study places and number of students set in the MoEpolytechnic agreement 849 M in % (255 M ) Number of degrees awarded by the polytechnic Average of past two years Discretionary increase in unit price Discretionary government grant 22 M in 2009 Project funding 19 M Performance based funding 3 M *) unit prices are calculated every four years on the basis of actual costs
34 Polytechnics: Unit prices by field of education Calculated number of students Average price of field of education Average price of field of study Field of education youth adults total in 2009 in Humanities and education 1 039,5 204, , , ,27 2 Culture 8 412, , , , ,63 3 Social sciences, business and administration , , , , ,62 4 Natural sciences 4 900,0 978, , , ,83 5 Technology, communication and transport , , , , ,68 6 Natural resources and the environment 3 104,0 687, , , ,43 7 Social services, health and sport , , , , ,20 8 Tourism, catering and domestic services 5 435, , , , ,87
35 Monitoring From 2010 universities close the books according to the accounting legislation financial statement is a public document The HEIs must provide the information requested by the Ministry for the purpose of evaluation, development, statistics and other information needed for monitoring and steering insofar as this information is not otherwise available. The HEIs have to present correct information on their performance and finances in a way that enables their progress be evaluated against the set goals. Development is annually monitored through indicators which gauge effectiveness and quality The universities must manage their finances efficiently and use their resources to good effect The Ministry of Education gives feedback to the HEIs on their activities and development needs during the agreement period. As a rule, more comprehensive feedback is given during the intervening years between negotiations. The feedback procedure is used to steer and monitor the implementation of higher education policy objectives during the agreement period.
36 Evaluation The HEIs are responsible for the quality of their education, research and other activities, and for their continuous development and utilisation. The quality of performance is indirectly taken into account in the MoE indicator targets and in the monitoring of their attainment. Regular evaluations and external audits of quality assurance systems are undertaken to enhance the quality and impact of the educational, research and artistic activities of the universities. The findings of the evaluations are published. The evaluations are organised by the Finnish Higher Education Evaluation Council (FINHEEC), and the Academy of Finland. The findings of the evaluations are published. The HEIs, the National Union of University Students in Finland (SYL) and the Ministry of Education are looking into possibilities for a university student feedback system
37 External funding: Academy of Finland Public financing and expert organisation for scientific research Competitive funding with external evaluation Promotes High-quality scientific research Diversity and renewal of research International co-operation Research Councils within Academy of Finland Biosciences and Environment Culture and Society Natural Sciences and Engineering Health Budget 309 million euro (2009)
38 External funding: Tekes Funding Agency for Technology and Innovation Public financing and expert organisation for technological research Promotes Aims the competitiveness of Finnish industry and the service sector To diversify production structures, increase production and exports, and create a foundation for employment and social wellbeing. Finances R&D in companies but also in research institutes and universities R&D in companies, but also in research institutes and universities Budget 650 million euro (2009)
39 Distribution of research funding in universities Budgetary External funding funding 439 M 433 M 50 % 50 % Finnish Distribution of external funding, 433 M Academy of Finland 32% Tekes, 18% Other public, 17% Ow n funds, 3 % Enterprises, EU, 9 % Foundations, 5 % 12% Total 872 M (2005) Other foreign, 4 % Source: Statistics Finland
40 Breakdown of investment in R&D in 2006 by sector (% of GDP) Enterprises Universities Public Sector Total OECD USA U.S.A EU Japan Canada Finland Source: OECD
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