1. ACADEMIC CAPITALISM & THE NEW ECONOMY Sheila Slaughter & Gary Rhoades Johns Hopkins University Press September 2004

2. The new economy is a knowledge or information economy Electronic Computers Hardware Software Medical substances and devices Biotechnology Producer services Financial instruments Product design Entrepreneurial research Education

3. NEW OR KNOWLEDGE ECONOMOMY IS NEOLIBERAL Individual Private sector/market Marketization of state & nonprofits Competition Productivity based on technology Monetization & commodification of ideas & services

4. GLOBAL ORGANIZATION Neo liberal policies promote Global agreements (GATT, GATTS) Global trade adjudication offices (WTO) Strengthened protection for intellectual property Easy movement of highly educated workers Off-shore production

5. PUBLIC GOOD KNOWLEDGE REGIME  Low tuition, mass access  Basic research, few ties to corporations  State funding with block grants, non-federalized, non-marketized  Teaching as important as research  Public service and outreach critical component  Boundaries between state and private sector fairly firm

6. NEO-LIBERAL POLITICAL COALITIONS Bi partisan Congressional coalition More $ to production functions of the state Less $ to welfare functions Redefinition of state Privatization Commercialization Deregulation Reregulation

7. ACADEMIC CAPITALISM Generating external revenues, cutting costs, & raising rankings are key to colleges & universities Knowledge is commodity privately held & traded in global markets Universities & faculty derive income from knowledge, ranging from IP to university brands Universities & faculty compete for resources to fund knowledge production The boundaries between public and private blur Students are consumers

8. CIRCUITS OF KNOWLEDGE Knowledge no longer moves primarily within scientific/professional/scholarly networks Entreprenurial knowledge, application Knowledge is rarely disinterested Clincial trials, patents & licensing, branding Focused funding flows that privilege STEM fields Mission agencies Popular majors: professional, esp. business Preferential option for the market

9. INTERSTITIAL ORGANIZATIONAL EMERGENCE new organizations emerge to manage new activities related to generation of external revenue Technology licensing offices Economic development offices Trademark licensing offices Copyright licensing, sales & marketing Distance education Special services for students with disabilities

10. INTERMEDIATING NETWORKS intermediate between public, non-profit and private sectors Business Higher Education Forum University-Industry-Government Research Roundtable Internet2, Educause League for Innovation

11. EXTENDED MANAGERIAL CAPACITY TO ENGAGE MARKETS Executive compensation increases dramatically relative to faculty and non- professional workers 54 percent of all professionals are non-academic professionals Faculty are 47 percent of professionals Increasing numbers of non-professional jobs are outsourced or automated

12. EXPANDED MANAGERIAL CAPACITY Interstitial organizations become institutionalized Technology transfer Economic development IT Student services Foundations & fundraising Auxiliary enterprises Marketing Enrollment management Research support services

13. EXECUTIVE COMPENSATION REPORT: MA  The average disclosed pay for each employee amounted to more than $464,000.  The highest reported pay package for each school ranged from $345,000 (Clark University) to $6.4 million (Harvard)  The median inequality ratio between highest and lowest-paid employees across the schools analyzed was 22.2

14. At the Top Medicine $193,788 Computer Information Science $183,854 Veterinary Medicine $162,300 At the Bottom Social Work $97,960 Undergraduate Programs $96,358 Honors Program $93,897 At the Top Medicine $424,233 Law $295,308 Business $292,006 At the Bottom Library $167,506 Continuing Education $164,148 Honors Program $134,279 At the Top Chief Health Professions Officer $568,771 CEO of System/District $450,365 CEO of Single Institution $419,872 At the Bottom Chief Diversity Officer $140,820 Chief Audit Officer $131,338 Chief Admissions Officer $127,913 Senior Executives & Chief Functional Officers Ave Salary $228,738 2,560 in 198 Institutions Academic Deans Ave Salary $219,390 1,543 in 198 Institutions Associate/Assistant Academic Deans Ave Salary $130,403 2,588 in 198 Institutions

15. At the Top Head Football Coach $366,636 Head Basketball Coach $302,451 Athletic Director $265,146 Chief Research Officer, Med School $214,237 Chief Financial Officer, Med School $198,105 Vice Provost $189,280 At the Bottom Academic Evaluator $35,534 Lab Technician II $34,201 Residence Hall Manager $33,768 Child Care Center Teacher $32,421 Computer Operator, Entry $32,091 Security Guard $27,978 Salaries are unweighted and reflect actual 2009 dollars Source: CUPA-HR 2009-10 Mid-Level Administrative and Professional Salary Survey, Research Institutions (Very High and High Research)

16. CONSEQUENCES OF EXPANDED ADMINISTRATIVE CAPACITY  When so many resources are concentrated on administration the following occurs  Some faculty are paid a great deal, most are paid less  There are increasing numbers of lecturers and part timers  The gap between non-professionals and all other workers increases  More work is outsourced or automated

17. Source: NEA Higher Education Research Center, Update, Vol. 11, No. 3, September 2007.

18. SOURCE: U.S. Department of Education, National Center for Education Statistics, 1988, 1993, 1999, and 2004 National Study of Postsecondary Faculty (NSOPF:88;93;99;04). (This table was prepared August 2007.)

20. Does the All-administrative university realize “Market” Gains?  The promise of marketizing universities is that competition of various sorts:  For students  For grants  For donors  Fpr intellectual property  Will create a more efficient, effective and less costly university.  I argue that most $ are public, in other words, that the citizenry pays even as tuition rises

21. TECHNOLOGY TRANSFER Most patent income accrues to relatively few universities and patents Many universities spend more on technology transfer than they bring in Federal research funds support university intellectual property, yet “march in” rights on corporate licenses are never exercised Citizens pay for federally funded research, pay for state colleges & universities, pay for products of federally funded research, & pay increasing amounts for tuition

22. NEW CIRCUITS OF KNOWLEDGE: ON-LINE & DISTANCE EDUCATION Columbia University's Fathom a packaging and distribution system for member institutions to distribute/sell web- based courses and seminars University of Chicago, the University of Michigan system, the London School of Economics and Political Science, Cambridge University Press, the American Film Institute, RAND, the New York Public Library, and the Woods Hole Oceanographic Institution

23. DISTANCE EDUCATION University of Maryland's University College UMUC was created with private-sector investment, although in recent years it has received tens of millions of dollars in state appropriations--about $10 million per year in 1999 and 2000, $15 million in 2001, and $20 million in 2002

24. UMUC It’s greatest success has been in securing military funding to provide education to service men and women around the globe. Most recently, UMUC was awarded a Tri-Services Education contract from the U.S. Army, at a value of $350 million over ten years. By its own accounts, members of the military accounted for 47,000 enrollments in 2002, of a total of 87,000.

25. STUDENTS ARE CONSUMERS Marketing Enrollment management Early admissions Snap apps Students as captive markets & profit centers High status niche markets Food courts Recreation Centers Luxury dorms “ Wired ” dorms Selling student mailing lists to lending institutions

26. DEBT  2008, 67% of graduating students had debt  Average = $23,000 (increase of 24% from 2000)  Many more are in $40K + category Pell grant recipients, whose families usually make under $50K, are more likely to graduate with high debt  African American’s are most likely to graduate with high debt  Four out of five borrowers with high debt have private (non federal) student loans

27. SOME DEPARTMENTS CREATE NEW ECONOMY MAJORS & PROFIT CENTERS Distance education MBAs for high prices Stanford $80K Science MS with no thesis Profit centers created by academic professionals SALT Community College industry training Business school student consulting programs High priced short courses and summer courses

28. SOME PROBLEMS & POSSIBILITIES FOR ORGANIZING  Stratification/faculty  Problem: those that benefit from academic capitalism have no reason to organize  Possibility: organize the have nots at the level of colleges  Non-academic professionals  Problem: they are the majority & a number are aligned with administration  Possibility: organize categories whose jobs are threatened or neglected  Student services, academic advisement, human resources  Part-timers/lecturers  Problem: two tier work force that is likely to create tension over timw  Possibility: provide benefits, including pensions

29. Problems & Possibilities (con’t)  Classfied staff:  Problems: many universities are anti-union & and it manifests most clearly at this level  Possibilities: support from other organizing groups on campus  Although this has historically not been the case  Possibilities: tie organization and increased pay and benefits to the following campaigns:  Off-shoring  If manufacturing jobs are going overseas, need to build job base in US  Jobs, jobs, jobs  Executive compensation/non-profit status  If higher education is non-profit, and has elements of public good left, then excessive pay is unseemly, and the gap between executive pay and worker pay reduced