1. Challenger institutions: useful competition or unhelpful disruption? Professor Robin Middlehurst

2. Outline What are we talking about? Terminology, categories, data Wider comparisons - the particularities of English policy? Regulatory issues & ‘level playing field’? Disruptive innovation?

3. Terminology, categories, data ‘Alternative HE providers’: PAC report (2015) - APs = approx.140 institutions offering HE (no govt. grants but access to student tuition fee loans) Register of HE providers (2016) – AP = Non-profit or for-profit HE provider 124 APs with specific course designation + 7 with institution level SPCD (106 universities includes 7) Home Office Register (Tier 4 sponsors) – 211 private providers (+ ‘embedded colleges’ listed separately) QAA (in Reviews’ reports) – uses term ‘independent providers’ (c/f Study UK) Survey for BIS (2013) – identified 674 named privately funded HE providers operating in the UK UK HEIs operating overseas are ‘private providers’ in other jurisdictions c/f US definition of APs = separate HE provision not leading to credits or degrees Lack of clear categories or data – so how to accurately measure (or compare) contribution or impact of providers (or policy)?

4. Wider comparisons – peculiarities of England? Private HE - spectacular growth across the world in last 20 years (by 2010 – PHE estimated to hold 31.3% of global enrolment) – overwhelmingly growth is in developing countries & mainly NFP Latin America: 49% of HE enrolment (Brazil largest); Asia 36%; most of western Europe marginal PHE (16% enrolment) Drivers of growth globally are demographics & demand, economics & politics US PHE enrolment (NFP and FP) share steady at c 28% for decades – new demand has been to serve working adults + career enhancement (linked to FP growth to peak in 2010) Govt. policy in developed countries – typically for PPs ‘to complement’ existing HEIs (OBHE) c/f English (AP) policy - ‘business case’ (demographics/demand) or ‘market failure’ (gaps in provision) not clear Many APs are not new; many collaborate with HEIs; HEFCE-funded HEIs address demographics & demand (eg OU, new universities) What/where is the national need (eg niche areas – new industries?; demographics in cities – location of most APs?; faster/more flexible routes to qualifications?) Or is English need/demand different - eg for more open forms of innovation?

5. Regulatory issues & a level playing field? The field is not level & attempts to make it so are adding regulatory burden & cost to all providers (& this is likely to be passed on to students) The problems are: Policy objectives & outcomes have not been measured (PAC) ‘With no reliable data the reputation of all PHE colleges is tarnished by a few’ (PAC) International evidence does not appear to have been used (& previous research – UUK 2000; UUK 2010; HEPI 2011) The commonly agreed objectives of regulation (HEC; BR Task Group) do not appear to have been paramount in policy, ie: Protecting students, the taxpayer & the reputation of UK HE England should look closely at regulatory issues, approaches - in US, Australia - & Brazil (‘holistic’ incentives, controls, requirements)

6. But also deeper issues… … underneath the rhetoric is a debate between ‘so-called knights who serve the public interest & (perceived or real) knaves who are driven by self-interest’ (Kinser re US, also in England?)…. ….there are knights & a few knaves among all kinds of providers (& some students)…(NAO Report; also see CHEA-CIQG & UNESCO- IIEP work) ….and we do not yet have the systems or mind-set in place to focus on the right issues in this debate…(ex-Head of QAA Reviews) (Acknowledgement to Kevin Kinser, 2014)

7. Disruptive innovation & emerging models? Equity investors in US are shifting focus & looking at the ‘Ed-Tech’ market (OBHE) eg: Alternative curricula (competency-based) Alternative forms of assessment & credentials Professional education & WBL Personalised learning Tools to augment or streamline aspects of student experience Look also at large global networks of private universities like Laureate (investments) + PBC status; B-Lab accreditation – of interest in regulation? MOOC developments (eg growth of FutureLearn etc) Main competition for UK HE - international + from other players in ‘the business of borderless education’ (OBHE)