1. From academic values to stakeholder value? Kari Raivio Chancellor emeritus University of Helsinki OECD/IMHE Conference ”Does size matter?” Reykjavik 5.-6.6.2008

2. ACADEMIC VALUES - HISTORY Wilhelm von Humboldt 1810: Wilhelm von Humboldt 1810: –Unity of research and teaching –Freedom of teaching and research –Academic self-governance –”Ivory tower” John Henry Newman 1852: John Henry Newman 1852: –”A University is a place where inquiry is pushed forward,..discoveries verified and perfected, and..error exposed, by the collision of mind with mind, and knowledge with knowledge. Thus is created a pure and free atmosphere of thought, which the student also breathes”

3. STAKEHOLDER VALUES WHAT (WHO) IS A STAKEHOLDER? WHAT (WHO) IS A STAKEHOLDER? DICTIONARY: STAKE: ”prize in a contest” or ”an interest or share in an undertaking or enterprise” (Webster) DICTIONARY: STAKE: ”prize in a contest” or ”an interest or share in an undertaking or enterprise” (Webster) POTENTIAL UNIVERSITY STAKEHOLDERS: POTENTIAL UNIVERSITY STAKEHOLDERS: –STUDENTS (CURRENT AND ALUMNI) –SOCIETY (GOVERNMENT, TAXPAYER) –PERSONNEL –FUNDING AGENCIES, SPONSORS –PRIVATE SECTOR PARTNERS –REGIONAL AND LOCAL AUTHORITIES

4. WHY ATTENTION ON UNIVERSITIES? KNOWLEDGE-BASED ECONOMY KNOWLEDGE-BASED ECONOMY –PRESSURE TO ”INNOVATE” –DEMAND FOR SKILLED WORKFORCE GLOBAL COMPETITION GLOBAL COMPETITION –RESEARCH EXCELLENCE –BRIGHTEST STUDENTS RANKING LISTS RANKING LISTS UNIVERSITIES – INSTRUMENTS OF ECONOMIC AND SOCIAL POLICY!

5. EU - RESUSCITATION OF LISBON (Wim Kok, 2004) REALIZATION OF ”KNOWLEDGE SOCIETY” REALIZATION OF ”KNOWLEDGE SOCIETY” –RECRUIT TOP RESEARCH TALENT –MINIMIZE BUREAUCRACY –IMPROVE UNIVERSITIES –INDUSTRY-ACADEMIA (”IDEOPOLIS”) R&D FIRST PRIORITY R&D FIRST PRIORITY –PUBLIC/PRIVATE INVESTMENT –TAX RELIEF –ERC –PUBLIC PROCUREMENT

6. SIX AREAS OF EMPHASIS HEADS OF STATE (HAMPTON COURT 27.10.2005) –RESEARCH & DEVELOPMENT –UNIVERSITIES –DEMOGRAPHIC CHALLENGE –ENERGY –MIGRATION –SECURITY

7. UNIVERSITIES AS ENGINES OF ECONOMIC DEVELOPMENT EDUCATIONAL MISSION EDUCATIONAL MISSION –BASIC TRAINING OF WORKFORCE –CONTINUING EDUCATION (LLL) RESEARCH AND INNOVATION RESEARCH AND INNOVATION –EXPLOITATION OF OWN RESEARCH –CONTRACT RESEARCH –KNOWHOW/CONSULTING MAJOR GENERATORS OF ECONOMIC ACTIVITY MAJOR GENERATORS OF ECONOMIC ACTIVITY –AS EMPLOYER –AS PROCURER –AS BUILDER

8. STATUS OF EUROPEAN RESEARCH MAJOR SITES OF RESEARCH VARY –UNIVERSITIES (UK, SCANDINAVIA, SWITZERLAND) –RESEARCH INSTITUTES (FRANCE, GERMANY, ”EASTERN BLOC”) SUBSIDIARITY PREVAILS SUBSIDIARITY PREVAILS –NATIONAL POLICIES DECISIVE –EU R&D FUNDING 1/11 OF AGRICULTURE IDENTICAL UNIVERSITY MISSIONS/ QUALITY VARIABLE IDENTICAL UNIVERSITY MISSIONS/ QUALITY VARIABLE

9. NUMBER OF SCIENTIFIC PUBLICATIONS

11. SHARE OF 1% OF MOST HIGHLY CITED PUBLICATIONS 1997-2001 USA62.8 USA62.8 UK12.8 UK12.8 GERMANY10.4 GERMANY10.4 JAPAN 6.9 JAPAN 6.9 FRANCE 6.9 FRANCE 6.9 CANADA 5.8 CANADA 5.8 ITALY 4.3 ITALY 4.3 SWITZERL. 4.1 SWITZERL. 4.1 NETHERL. 3.8 NETHERL. 3.8 AUSTRALIA2.8 AUSTRALIA2.8 SWEDEN2.5 SWEDEN2.5 SPAIN2.1 SPAIN2.1 BELGIUM1.7 BELGIUM1.7 DENMARK1.5 DENMARK1.5 ISRAEL1.5 ISRAEL1.5 RUSSIA1.3 RUSSIA1.3 FINLAND1.1 FINLAND1.1 AUSTRIA1.0 AUSTRIA1.0

12. RANKING OF UNIVERSITIES (TOP 10 IN 2007) HARVARD HARVARD STANFORD STANFORD UC BERKELEY UC BERKELEY CAMBRIDGE CAMBRIDGE MIT MIT CALTECH CALTECH COLUMBIA COLUMBIA PRINCETON PRINCETON U CHICAGO U CHICAGO OXFORD OXFORD –(U. HELSINKI 73.) –SHANGHAI HARVARD HARVARD CAMBRIDGE= CAMBRIDGE= OXFORD= OXFORD= YALE YALE IMPERIAL COLLEGE IMPERIAL COLLEGE PRINCETON PRINCETON CALTECH= CALTECH= U CHICAGO U CHICAGO UNIVERSITY COLLEGE UNIVERSITY COLLEGE MIT MIT –(U. HELSINKI 100.) –TIMES H.E.S.

13. TOP EUROPEAN RESEARCH UNIVERSITIES (”CROWN INDICATOR”,CWTS, LEIDEN 2006) 1. OXFORD1.67 2. CAMBRIDGE1.63 3. ETH ZÜRICH1.52 4. EDINBURGH1.48 5. UNIVERSITY COLLEGE LONDON1.46 6. IMPERIAL COLLEGE LONDON1.45 7. HELSINKI1.38 8. UTRECHT1.37 9. AMSTERDAM1.35 10. ZÜRICH1.33

14. WHY ARE U.S. UNIVERSITIES SO DOMINANT? GENETIC ADVANTAGE – NO GENETIC ADVANTAGE – NO BETTER RESEARCHER TRAINING – NO BETTER RESEARCHER TRAINING – NO BETTER FUNDING – YES BETTER FUNDING – YES RECRUITMENT OF POSTDOCS – YES RECRUITMENT OF POSTDOCS – YES RECRUITMENT OF TOP SCIENTISTS – YES RECRUITMENT OF TOP SCIENTISTS – YES ”PURSUIT OF EXCELLENCE” - YES ”PURSUIT OF EXCELLENCE” - YES –COMPETITION –CAREER DEVELOPMENT –REWARDS

15. ANNUAL EXPENDITURE PER STUDENT on educational institutions, in equivalent US dollars converted using PPPs

17. MONEY COUNTS – NOT % GDP R & D FUNDING 2003 (OECD, bn $ PPP) USA284.6 USA284.6 JAPAN114.0 JAPAN114.0 GERMANY 57.0 GERMANY 57.0 FRANCE 37.5 FRANCE 37.5 UK 33.6 UK 33.6 KOREA 24.4 KOREA 24.4 CANADA 19.3 CANADA 19.3 ITALY 17.7 ITALY 17.7 SPAIN11.0 SPAIN11.0 SWEDEN10.4 SWEDEN10.4 AUSTRALIA 9.1 AUSTRALIA 9.1 HOLLAND 8.8 HOLLAND 8.8 BELGIUM 7.6 BELGIUM 7.6 AUSTRIA 6.4 AUSTRIA 6.4 SWITZERLAND 5.6 SWITZERLAND 5.6 FINLAND 5.2 FINLAND 5.2

18. Foreign-born scientists and engineers in U.S. S&E occupations, by degree level and field

19. DILEMMAS OF EUROPEAN UNIVERSITIES ALL PRETEND TO DO EVERYTHING ALL PRETEND TO DO EVERYTHING BASIC BUDGETS LOW, DECREASING BASIC BUDGETS LOW, DECREASING R & D FUNDING LOW, SCATTERED R & D FUNDING LOW, SCATTERED TUITION INCOME LOW OR ZERO TUITION INCOME LOW OR ZERO ENDOWMENTS INSIGNIFICANT ENDOWMENTS INSIGNIFICANT PRIVATE CAPITAL FLOW LOW PRIVATE CAPITAL FLOW LOW COMMERCIAL ACTIVITIES LIMITED COMMERCIAL ACTIVITIES LIMITED ”CIVIL SERVANT ATTITUDE” ”CIVIL SERVANT ATTITUDE” IS COMMERCIALISATION THE ANSWER? IS COMMERCIALISATION THE ANSWER?

20. HOW CAN UNIVERSITIES MAKE MONEY? COMPETITIVE RESEARCH FUNDING COMPETITIVE RESEARCH FUNDING DONATIONS (ALUMNI, FOUNDATIONS etc) DONATIONS (ALUMNI, FOUNDATIONS etc) EDUCATION MARKET EDUCATION MARKET KNOWHOW/CONSULTING KNOWHOW/CONSULTING CONTRACT RESEARCH CONTRACT RESEARCH EXPLOITATION OF OWN RESEARCH EXPLOITATION OF OWN RESEARCH –PATENTING/LICENSING –START-UP COMPANIES –COOPERATION WITH EXISTING COMPANIES

21. Borderless education: Where international students go Percentage of foreign tertiary students reported to the OECD who are enrolled in each country of destination According to the Shanghai rating, 17 of the world’s top 20 universities are in the United States

22. OUTCOME OF COMMERCIAL VENTURES OF UNIVERSITIES CORPORATE SPONSORSHIP VANISHING, PRIVATE UP CORPORATE SPONSORSHIP VANISHING, PRIVATE UP MORE FUNDING FOR ACADEMIC RESEARCH MORE FUNDING FOR ACADEMIC RESEARCH –BUT licensing/royalty/startup income only 3% of research budget of major USA universities SEVERAL STARTUP COMPANIES ESTABLISHED SEVERAL STARTUP COMPANIES ESTABLISHED –BUT life expectancy short, successes few, dependency on public support MORE PATENTING/LICENSING ACTIVITY – YES MORE PATENTING/LICENSING ACTIVITY – YES –BUT most universities lose money (even in USA)

23. UNIVERSITY REFORM ? ARE EUROPEAN UNIVERSITIES AILING ? ARE EUROPEAN UNIVERSITIES AILING ? –YES – THE DIAGNOSIS IS RIGHT ! IS COMMERCIALISATION THE ANSWER? IS COMMERCIALISATION THE ANSWER? –NO – THE MEDICINE IS WRONG ! MORE ATTENTION TO STAKEHOLDERS? MORE ATTENTION TO STAKEHOLDERS? –YES – BUT ACADEMIC VALUES NEED NOT BE COMPROMISED !

24. MODERNIZATION AGENDA FOR UNIVERSITIES (EU Commission 2006) Diversity/specialization Diversity/specialization Mobility Mobility Autonomy with accountability Autonomy with accountability Cooperation with private sector Cooperation with private sector Relevant studies/degrees Relevant studies/degrees Adequate funding (min. 2 % gdp) Adequate funding (min. 2 % gdp) Internal boundaries down Internal boundaries down Reward system/elitism Reward system/elitism

25. ONGOING UNIVERSITY REFORMS CANADA: MILLENNIUM PROJECT CANADA: MILLENNIUM PROJECT CHINA: TOP UNIVERSITIES CHINA: TOP UNIVERSITIES FRANCE: LEGAL & GOVERNANCE REFORM FRANCE: LEGAL & GOVERNANCE REFORM GERMANY: ”EXZELLENZINITIATIV” GERMANY: ”EXZELLENZINITIATIV” SWEDEN: LINNAEUS GRANTS SWEDEN: LINNAEUS GRANTS CORRECT PRINCIPLE: COMPETITION BASED UPON QUALITY !

26. IMPROVING INDUSTRY-ACADEMIA RELATIONSHIPS Creating fora for dialogue (esp. SME´s) Creating fora for dialogue (esp. SME´s) Active information exchange Active information exchange Participation in university governance Participation in university governance Curriculum development Curriculum development Internships Internships Reform of doctoral training (generic) Reform of doctoral training (generic) Joint research for trainees Joint research for trainees Mobility of personnel Mobility of personnel

27. ELEMENTS IN REDEFINING THE IDEA OF THE UNIVERSITY What is ”useful knowledge” ? What is ”useful knowledge” ? Engagement with society (and other stakeholders) Engagement with society (and other stakeholders) Importance of humanities/social sciences Importance of humanities/social sciences Age and diversity important, size not Age and diversity important, size not Academic environment vs. supermarket Academic environment vs. supermarket Understanding vs. rote learning Understanding vs. rote learning Innovation: industry vs. university Innovation: industry vs. university Time scale: industry vs. politics vs. university Time scale: industry vs. politics vs. university Freedom & autonomy vs. accountability Freedom & autonomy vs. accountability ”Product”: graduate vs. publication ”Product”: graduate vs. publication