University governance in Finland: recent
developments and challenges
developments and challenges
Anita Lehikoinen,
director of the Education and Science Policy Department
director of the Education and Science Policy Department,
Ministry of Education, Finland
Minister of Culture and Sport
State Secretary
Minister of Education and Science
State Secretary y
State Secretary
Internal Audit Permanent Secretary
Communications and Public Relations International Relations
Department for Education and Department for Cultural Administration Department Department for Education and
Science policy
• Department Office
• General Education Division • Vocational Education Division
Department for Cultural, Sport and Youth policy
• Division for Cultural Legislation and Finance
• Division for Art Policy
Administration Department
• General Administration Division • Human Resources Division • Financial Planning Division • Vocational Education Division
• Division for Higher Education and Science
Higher Education Research
Cultural Export and Exchange Unit
• Division for Cultural Policy
Copyright Unit
• Sports Division
Financial Planning Division • Financial Administration Division • Information Management Division
• Youth Policy Division
Th
f th P
t ti
Themes of the Presentation
• Higher Education system in Finland
St
t
l D
l
t f Hi h
Ed
ti
• Structural Development of Higher Education
• University Reform
S
f
• Steering and Funding of Higher Education Institutions
• Science Policy
The Finnish Higher Education System
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 140 500
• All institutions run by the state
– Polytechnic sector (established in the mid-1990s) • 25 institutions
• Student enrollment 113 400
• 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
The whole HE system provides study places for 65 70% of an age
group
•
Annual intake of students approximately 56 000
A l b f i hi h h l d t 33 000 • Annual number of senior high school graduates 33 000
Key Features of the Finnish Higher Education
S
System
•
"Open and equal access" for all
•
An extensive network of HE institutions covering the whole country
– Regional equalityRegional equality
•
Tuition free system
HEI h d t d d d ti t iti f
– HEIs can, however, arrange made-to-order 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 programmes taught in foreign languages in non EU/EEA countries in master s programmes taught in foreign languages in universities and polytechnics
• Provisions concerning university degree programmes will be enacted by a Ministry of Education Decree. y
HEIs and
Sectoral
Sectoral
Research
I
tit t
Institutes
Universities (
blue
)
Polytechnics (
green
)
Sectoral research
Sectoral research
institutes (
red
)
Cohorts entering (upper) secondary education and
the first cycle of tertiary education in 2007 2025
the first cycle of tertiary education in 2007 - 2025
68000 64000 66000 62000 64000 58000 60000 56000 58000 52000 54000 52000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Th
f th P
t ti
Themes of the Presentation
• Higher Education System in Finland
• Structural Development of Higher Education
• University Reform
y
• Steering and Funding of Higher Education
Institutions
Institutions
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 withTo 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 di ifi ti f th f di t t
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.
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
•
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.
g
g
g
•
Sufficient size of higher education institutions to boost
cross-disciplinary education and research, generate new innovations and
improve student services
improve student services.
•
Close cooperation and partnerships will bring added value to
Aims and measures
Aims and measures
•
Measures are taken to make sure that the higher education
system covers the whole country
system covers the whole country.
•
With a view to better quality of education and research, activities will
be assembled into the main campuses.
Hi h
li
f
i
ill
h
h i
f hi h
•
High quality of operations will strengthen the impact of higher
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
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
– Clearer profiles and clearer institutional missions
– between higher education institutions
– between universities and polytechnics
ithi
i
iti
d
l t
h i
– within universities and polytechnics
Vision 2020
Vision 2020
•
Maximum of 18 polytechnics
p y
– 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 employersStrong and dynamic interaction with the region and its employers – Well-established, high-quality R&D in priority areas
M
i
f 15
i
i i
•
Maximum of 15 universities
– Intake of 17 500 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
•
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
Th
f th P
t ti
Themes of the Presentation
• Higher Education system in Finland
• Structural Development of Higher Education
• University Reform
y
• Steering and Funding of Higher Education
Institutions
Institutions
The New Universities Act (558/2009)
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 2009.
The public universities started to set up the new organs of the legal person – 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 2009.
•
The personnel and students transferred to the new universities
on 1 January 2010.
Means of the university reform in a nutshell
Status as legal persons
•
1.1.2010 universities became legal persons separate from the State,
g
p
p
,
either as corporations under public law or foundations under the
Foundations Act.
•
Corporation under public law (public university)
•
Corporation under public law (public university)
– A legal person under the Universities Act whose organs and their functions are laid down in legislation.
F
d ti
d
i
t l
(f
d ti
i
it )
•
Foundation under private law (foundation university)
– 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.
g
g
y
•
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
Aims of the university reform in a nutshell
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
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.
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 C it l ti ill t th
• Community relations will strengthen:
– 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 • 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 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, p • 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
The Universities Act won't change
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
•
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
Th
f th P
t ti
Themes of the Presentation
• Higher Education System in Finland
• Structural Development of Higher Education
• University Reform
y
• Steering and Funding of Higher Education
Institutions
Institutions
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
% f th % f th t t l 1 000 euro % of the external funding % of the total university budget Academy of Finland 174 748 21,2 7,2 Academy of Finland 174 748 21,2 7,2
Finnish Funding Agency for Technology and
Innovation, Tekes 105 635 12,8 4,4
Finnish enterprises 104 709 12,7 4,3
Other Finnish sources 316 990 38,4 13,1
EU funding 93 604 11,3 3,9
Foreign enterprises 14 093 1,7 0,6
Other international sources 14 987 1,8 0,6
Total 824 766 100 34 2
Total 824 766 100 34,2
Allocation framework
Allocation framework
•
Legal basis of the university funding
– Universites Act (558/2009) 49 § sets the frameworkUniversites Act (558/2009) 49 § sets the framework – MoE Decree (771/2009) elaborates details
•
Legal basis of the polytechnics funding
P t f th G t b id t li k d t i i lit f di – Part of the Government subsidy system - linked to municipality funding – Decree on the Financing of the Provision of Education and Culture
(806/1998 + amendments)
P bli
h f
di
t b
ll
t d th
h
titi
Performance Agreements Between MoE and HEIs
2010-2012
2010 2012
Structure of the agreement:
1 Aims Common to Higher Education System
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 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 M
it i
d E
l
ti
Quantitative targets for universities
2010-2012
UNIVERSITIES Actual Actual Target University Target
number 2007 number 2008 2007-2009 Offer 2/09 2010-2012 2010-2012 Bachelor degrees 5 879 13 876 10 170 13 904 13 815 Master degrees 13 884 21 825 14 518 15 244 14 893 PhD 1 526 1 526 1 594 1 755 1 624 PhDs 1 526 1 526 1 594 1 755 1 624
Number of pupils at the schools for practice of teachers
7 848 7 833 7 900 8 026 7 920
ECTS completed under teacher training guidance at the schools for practice
41 352 38 273 42 318 34 8901) 42 020
Foreign degree students 5 897 7 921 8 245 8 950
Exchange students (incoming & outgoing > 3 months)
9 254 9 799 11 325 11 615 11 200
Quantitative targets for polytechnics 2010-
g
p y
2012
POLYTECHNICS Actual numbers 2007 Actual numbers 2008 Polytech. Offer 2010-2012 Target set (MoE) 2010-2012 Polytechnic degrees 20 276 20 951 22 588 21 650Vocational teacher education 1 397 1 519 1 544 1 530
Polytechnic Masters 362 681 1 798 1 808
Polytechnic Masters 362 681 1 798 1 808
Foreign degree students 5 299 6 294 7 412 8 500
E change st dents (incoming 7 182 7 473 8 705 8 800
Exchange students (incoming & outgoing, > 3 months)
P f
i di
t
Performance indicators
1(2)
Ed
i
Education
•
Students (FTE) / teaching and research personnel
•
Masters' degrees/ 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 out
•
Percentage of graduates compared to drop-out
Performance indicators
2(2)
Performance indicators
2(2)
Research
Research
•
International publications / teaching and research personnel
•
Scientific publications (not including int. publ.)/ teaching and
research personnel
esea c pe so
e
•
Percentage of national competive funding from the university total
funding
•
Percentage of international research funding from the university total
g
g
y
funding
Internationality
y
•
Staff international mobility / teaching and research personnel
Societal interaction/impact
Societal interaction/impact
•
Percentage of complementory funding from the university total
funding
Core funding for universities from 2010
g
Government funding EUR 1.7 billion
Other education
and science
policy
Formula-based core funding based on the
quality, extent and impact 75%
Education 55%
policy
considerations
25%
quality, extent and impact 75%
Research and researcher education 45% Ex t e Ex t Quali t E dis c de v tent of a c 85% Quality a n e ffectiven e 15% tent of a c 75% ty and eff e 25% E ducatio n c ipline st 75% Strateg v elopme n c
tivities ess nd ctivities ectivenes
s n and ructure nt ic 25% s
Core funding for universities – Education
Core funding for universities Education
Quantity of
Quality and
Education
y
operations
85%
y
efficacy
15%
Cal
c
o
Ta
r
B
Mast
e
in th
e
Num
b
a
n
degr
e
tt
h
Quality of education and efficiency of study processes (80%)
-The Centres of Excellence in education (300 000 euro annually / centre)
c
ulated
n
o
f stude
30%
get nu
m
B
achelor
e
r's deg
e
MoE-U
n
agreem
e
35%
b
er of B
a
n
d Mast
e
e
es awa
r
h
e unive
r
35%
(300 000 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%)
n
umber
nts
n
iversit
rees set
and
m
ber of
y
e
nt
rsity
rded by
e
r's
a
chelor
Internationalisation (20%)-Student mobility from and to Finland (>3 months in duration)
- Nr of credits completed in foreign language instruction&earned abroad
y
Core funding for universities - Researcher training
Core funding for universities Researcher training
and research
Quality and
Research and researcher education
Extent of activities
75%
Quality and
impact
25%
N ti ll t d hT
e
res
e
Ta
rg
e
PhD
d
the M
a
g
Nu
m
Nationally competed research funding (60%)
- Academy of Finland funding
- AoF funding for Research Centres of Excellence
e
aching
e
arch p
e
years
50%
e
t num
b
d
egrees
oE-univ
g
reeme
n
25%
m
ber of
degree
s
25%
Excellence - Tekes funding Scientific publications (20%)- Number of refereed international publication
and
e
rson-
n
t
ersity
set in
b
er of
s
PhD
- Number of other scientific publicationsInternationalization (20%)
- Internationally competed research funding
- Extent of teacher and researcherExtent of teacher and researcher mobility (incoming+outgoing, min. 2 wks)
Core funding for universities
Other education and
Core funding for universities – Other education and
science policy considerations
Other education and science policy considerations
Education and discipline
structure 75%
Strategic
development 25%
- Disciplinary structure
Strategy of the university
-national education and science policy aims
- Special national duties
- Teacher training schools - Graduate schools
- National Library of Finland
policy aims
- concrete development goals, measures for attaining them, and means of monitoring
implementation of the strategy
- National Library of Finland implementation of the strategy -2010-2012 key development targets are internationalisation and
development of researcher career path
Funding formula of polytechnics
S f % f f %
State funding comprises approximately 60% of polytechnic funding. Additional 40% is allocated by municipalities to the polytechnic's operations.
Discretionary
Discretionary
government
grant
Government core funding
(A unit price per student* x Number of
students)
22 M€ in 2009
70 % (594 M€)students)
849 M€ in 2009
30 % (255 M€) ( ) •Calculated number of students by polytechnic’s different fields of education•Based on the number of
• Number of degrees
awarded by the polytechnic
• Average of past two
Project funding 19 M€
•Based on the number of
study places and number of students set in the MoE-polytechnic agreement
Average of past two years
Performance based f di 3 M€ funding 3 M€
Discretionary increase in unit price
Polytechnics:
Unit prices by field of education
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 2008
1 Humanities and education 1 039,5 204,7 1 244,2 10 670,56 10 264,27
2 Culture 8 412,0 1 381,2 9 793,2 10 870,42 10 456,63
3 Social sciences, business and
administration 17 017,0 4 389,8 21 406,8 6 066,07 5 832,62
4 Natural sciences 4 900,0 978,1 5 878,1 6 150,45 5 913,83
5 Technology, communication gy,
and transport 31 644,0 4 859,0 36 503,0 6 911,88 6 646,68
6 Natural resources and the
environment 3 104,0 687,9 3 791,9 8 407,78 8 086,43
7 Social services, health and
sport 20 555,5 5 815,4 26 370,9 7 714,53 7 419,20
8 Tourism, catering and domestic
services 5 435 5 1 224 0 6 659 5 6 876 75 6 612 87
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 • 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 financesThe 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 – The feedback procedure is used to steer and monitor the implementation of
E
l
ti
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.g
•
The HEIs, the National Union of University Students in Finland (SYL)
and the Ministry of Education are looking into possibilities for a
3.11.2010
External funding: Academy of Finland
External funding: Academy of Finland
•
Public financing and expert organisation for scientific
g
p
g
research
•
Competitive funding with external evaluation
•
Promotes
– High-quality scientific research – Diversity and renewal of research
I i l i
– 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)
3.11.2010
External funding: Tekes –
Funding Agency for Technology and
Funding Agency for Technology and
Innovation
•
Public financing and expert organisation for
technological research
•
Promotes
–
the competitiveness of Finnish industry and the service sector
Ai
•
Aims
–
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
–
