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Chalmers University of Technology CHALMERS UNIVERSITY OF TECHNOLOGY A foundation university International Seminar on Higher Education Novi Sad 28-30 October.

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Presentation on theme: "Chalmers University of Technology CHALMERS UNIVERSITY OF TECHNOLOGY A foundation university International Seminar on Higher Education Novi Sad 28-30 October."— Presentation transcript:

1 Chalmers University of Technology CHALMERS UNIVERSITY OF TECHNOLOGY A foundation university International Seminar on Higher Education Novi Sad 28-30 October 2005 Case study section 2, October 29 2005 Emerging Models of Institutional Autonomy Case study Sweden Dr Folke Hjalmers Senior adviser, Chalmers Industriteknik, Chalmers

2 Chalmers University of Technology HIGHER EDUCATION National structure HE institutions are state institutions/authorities, reporting to the government (Ministry of Education and Science) On behalf of the Government the National Agency for Higher Education supervises, promotes and assesses the quality of HE institutions. Quality audits. The government appoints the board of governors for the institutions. The rector is nominated by the board and appointed by the government The Higher Education Act and Ordinance states guidlines and restrictions

3 Chalmers University of Technology HIGHER EDUCATION National structure The system consists of universities, which have unrestricted right to award PhDs, and university colleges 13 state universities 16 state university colleges (regional) 1 foundation university (Chalmers) 1 private business school (Stockholm) 1 foundation university college (Jönköping) Some minor private institutions

4 Chalmers University of Technology CHALMERS UNIVERSITY OF TECHNOLOGY Basic facts A single engineering faculty Founded 1829 2150 MSEK ( 230 million) turnover 32% first degree and master programmes 68% research including doctoral programmes 2450 employees; 1630 teaching and research staff.

5 Chalmers University of Technology RESEARCH Research is carried out in the main engineering sciences as well as in technology related mathematical and natural sciences. Chalmers is organized in 16 departments. Onsala Space Observatory- a national research facility

6 Chalmers University of Technology EDUCATION Combined MSc and BSc programmes in engineering and architecture 4.5-5 years BSc programmes in engineering 3 years Nautical programmes, 3-4 years 25 different programmes. 9 different subject areas. Licentiate, 3 years and doctoral programmes, 5 years (in all departments) International MSc programmes in engineering, 1,5 years (around 20 programmes) Continuing development programmes for professionals

7 Chalmers University of Technology EDUCATION Number of students 2004 1050 doctoral students 6000 students in the combined MSc and BSc programmes 1525 students in the BSc programmes 600 students from 80 countries in the international MSc programmes

8 Chalmers University of Technology CHALMERS AS A FOUNDATION UNIVERSITY The government offered all universities the possibility 1991 Three universities among others Chalmers accepted the offer One backed out and one university college (Jönköping) was added of political reasons Chalmers and Jönköping were chosen The transformation took place 1994 Political goals: Autonomy and pluralizm Institutional goals: Increased capability to adapt to new demands from society.

9 Chalmers University of Technology FOUNDATION Definition According to the Swedish Foundation Act 1996 a foundation is definied as an asset, owned by itself. Responsible for the matters of the foundation must be a board. The mission, purpose and aim of the foundation is limited by an basic foundation document, edited by the founder.

10 Chalmers University of Technology SEMI-PRIVATE FOUNDATION- OWNED UNIVERSITY Founded by the Swedish State. The legal form is private: foundation and limited company The relation to the government is based on contracts, one longterm (15 years) and several short terms (1-3 years). The contracts garantees funding for education and research on the same principles as for the state universities.

11 Chalmers University of Technology OVERALL ORGANISATION OF CHALMERS THE FOUNDATION CHALMERS UNIVERSITY OF TECNOLOGY CHALMERS UNIVERSITY OF TECHNOLOGY Ltd 100 % share holder Board appointed by the Government Board appointed by the Foundation Teachers, students and unions are represented on the Board

12 Chalmers University of Technology THE FOUNDATION BOARD 8 members appointed by the Government Chairman appointed by the Government, vice chairman by the board Background of appointed members: 4 political experience, 1 industry, 1 finance, 1 litterature, 1 science Rector member ex officio One member elected by the teachers and one by the students.

13 Chalmers University of Technology ORGANISATION OF THE FOUNDATION Board: Decides on policy, budget and annual financial report. Get quartely reports from the subsidiaries. Executive committé: Chairman, vice chairman, rector, director. Coordination, specially issues between the Foundation and the University. Director: Responsible for the current matters of the Foundation, reporting to the Board. Head of the Foundation Office.

14 Chalmers University of Technology CHALMERS UNIVERSITY OF TECHNOLOGY A university but run as a limited company The board is appointed by the foundation The board has 17 members and 3 deputy members Teachers, students and unions are represented on the Board. 7 of the members are external. The board appoints the rector. The board is responsible for the overall planning The rector has all overall operating resonsibilty; he is also CEO of the limited company

15 Chalmers University of Technology The Foundation Chalmers University Chalmers University of Technology Ltd Chalmers Real Estate Ltd CHAMPS Ltd Lindholmen Science Park Chalmers Science Park Chalmers Innovation Chalmers Invest Ltd Directed foundations SSPA Sweden Ltd Chalmers Industrial Technology CIT

16 Chalmers University of Technology ECONOMY Contract with government. Result related funding for education and basic funding for research (like the state universities). 49%. Contributions from research councils and EU. 21 % Research income from agencies, companies et al. 22 % (+financial 1%) Yield from foundation capital. 7 %

17 Chalmers University of Technology FOUNDATION CAPITAL Foundation capital 1994 170 million Foundation capital, Dec 2004 187 million Spent 1994-2004 233 million –Owner undertakings 62 million –Renewal funding 150 million –Interaction funding 22 million

18 Chalmers University of Technology FOUNDATION INVESTEMENTS Focal areas Environmental Sciences. Biosciences. Information Technology Microtechnology. Comment: All strategic areas based on close cooperation with the Göteborg University, the sister university to Chalmers in Göteborg

19 Chalmers University of Technology FOUNDATION INVESTEMENTS Interaction Principal for the Chalmers Innovation Foundation. Venture Capital – Chalmers Invest Ltd Shareholder Lindholmen Science Park Ltd Co-founder of a Science Center in Göteborg

20 Chalmers University of Technology FOUNDATION INVESTEMENTS Fundraising Funder of the first fundraising-campaign at Chalmers (and in Swedish HE) 1996-1999. Economic result: 35 million Continued support for basic fundraising and ALUMNI-activities. Cost/income: 1:10 + spinnoff.

21 Chalmers University of Technology ACADEMIC STAFF Academic freedom (= state and Magna Charta) General duties. Agreements with unions. IPR owned by the teachers (=state) Security of employment. (=state) Salaries. State and market. Right to be represented in all the decisionmaking bodies of Chalmers University

22 Chalmers University of Technology STUDENTS Nationally coordinated admission Must be members of a student union Right to be represented within all decision- and advisory bodies of the university. Disciplinary matters handled by at disciplinary committée. Majority of external judges. No appeal, but possibiliy to complaint to the Board. The Students´ Ombudsman is commissioner for the individual student.

23 Chalmers University of Technology PUBLIC ASPECTS The board of the Foundation is appointed by the government Full public transparance. Documents of the university are public, as for the state universities Public quality and economic auditing

24 Chalmers University of Technology INCREASED POSSIBILITIES Compared with Swedish state universities Financing. Own equity. Use of the capital market. Investments. Can invest in buildings. Recruitment of staff. Chalmers owns the process. Academic career structure. Chalmers has its own. Internal organisation. Internal decisions. Creating new organisations. Chalmers can start foundations, limited companies etc. Partnership. Chalmers can make legal agreements in all araes with partners outside the university.

25 Chalmers University of Technology IMPORTANT AREAS TO CONSIDER AT A TRANSFORMATION Relations to the political system - long term funding Academic values vs business orientation Management skills Attention on rights for students Participation for the faculty Balanced influence from donors and industry Relations to other national universities

26 Chalmers University of Technology EXPERIENCES Overall the experiences are very good – the system with a foundation and a university run as a limited company has worked well; in the first model there was just a foundation We succeeded to handle the important questions; one example of less funding The foundation has succeeded to develop Chalmers; some of the early investments could have been more focused The investment in buildings have lowered the costs It has been possible to organize Chalmers without looking on the higher education act


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