Lithuanian approach to performance agreements · Lithuanian approach to performance agreements...

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Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance in Higher Education October 16, 2017

Transcript of Lithuanian approach to performance agreements · Lithuanian approach to performance agreements...

Page 1: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Lithuanian approach to performance agreements

GIEDRIUS VILIŪNAS

Vice-Minister for Higher Education and Science

Raising Performance in Higher Education

October 16, 2017

Page 2: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Performance of Lithuanian HE

Global Competitiveness Index 2017–2018: Lithuania 41 /137

Pillar 5: Higher education and training 29

5.01 Secondary education enrollment, gross %* 23

5.02 Tertiary education enrollment, gross %* 30

5.03 Quality of the education system 73

5.04 Quality of math and science education 45

5.05 Quality of management schools 81

5.06 Internet access in schools 16

5.07 Availability of specialized training services 42

5.08 Extent of staff training 32

Source: WEF

Page 3: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Performance of Lithuania HEGraduates in tertiary education, in science, math., computing, engineering,

manufacturing, construction, per 1000 of population aged 20-29

0

5

10

15

20

25

2013 2014 2015

Lithuania European Union (28 countries)

Source: Eurostat

Page 4: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Graduates employment6 months after graduation (2016)

Total

degrees

Employed

(including

students)

Students

(not-

employed)

Other

(unemployed

,

emigration..)

CollegesBachelor`s

degrees8888 69% 3% 28%

Universities

Bachelor`s

degrees12280 69% 9% 22%

Master`s degrees 7444 80% 1% 19%

PhD 286 n/d n/d n/d

Non-Degree

studies659 92% 0% 8%

Page 5: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

0

10

20

30

40

50

60

70

80

0

500

1000

1500

2000

2500

3000

3500

4000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

thous.

thous.

Population Birth rate Students admitted Linijinė (Birth rate) Linijinė (Students admitted)

Source: Statistics Lithuania, MOSTA

Demographic change 2000-2016

Page 6: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Students of Universities and Colleges

0

20000

40000

60000

80000

100000

120000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

University 1st cycle

College 1st cycle

University 2nd cycle

University integratedstudies

University 3rd cycle

Universiety residencyprogrammes

University non-degreeprogrammes

Page 7: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Graduates of Universities and Colleges

0

5000

10000

15000

20000

25000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

UniversityBachelorprogrammes

College Bachelorprogrammes

University Master‘s programmes

University Non-degree studies

Page 8: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Funding trends

0

50.000

100.000

150.000

200.000

250.000

300.000

2011 2012 2013 2014 2015 2016

Thous

Euro

HE expenditures for studies HE expenditures for R&D

Source: Statistics Lithuania

Page 9: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

State budget for universities and colleges in 2017 (total 228,40 Eur)

State budget for research and studies at universities in 2017Total – 190,6 mln. Eur

Education R&D Other

64 % (122,1 mln. Eur) 17,4 % (33,1 mln. Eur) 18,6 % (35,4 mln. Eur)

Vouchers, Scholarships

Scholarships R&D (basic funding)Economy and

administration Other fundsInvestments

(VIP)

56,00% 8,00% 17,40% 13,30% 3,30% 2,00%

(106,8 mln. Eur)(15,3 mln.

Eur)(33,1 mln. Eur) (25,4 mln. Eur) (6,2 mln. Eur) (3,8 mln. Eur)

State budget for research and studies in colleges in 2017Total – 37,8 mln. Eur

Education Applied activities Economy and administration

68,5 % (25,9 mln. Eur) 0,5 % (0,2 mln. Eur) 31 % (11,7 mln. Eur)

Vouchers, Scholarships

ScholarshipsApplied activities

(basic funding)Economy and administration

67,70% 0,80% 0,50% 31,00%

(25,6 mln. Eur) (0,3 mln. Eur) (0,2 mln. Eur) (11,7 mln. Eur)

Page 10: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Present funding model: student vouchers

0

5000

10000

15000

20000

25000

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018preliminary

Enro

lled

No of student vouchers Other

Source: ŠVIS

Page 11: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Limitations of student voucher system

o A merit-based system – the negative impact to social

divide

o Social inequality among students funded by the state

and self-paying students

o Because of negative demographic trends the smaller

HEI (regional) are suffering severe losses

o Dramatically increased number of study programmes

o Battles of marketing instead of battles of quality

Page 12: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Challenges of HE system

Negative demographic trends (by 2020, the number of students will decrease by

half comparing with 2010)

HEIs enroll unprepared students to escape financial loss

Small groups of researchers unable to compete at the international level,

scattered and ineffectively used research infrastructure

Small study programs duplicated in the same city in different universities and

colleges as a consequence of the study voucher system

Scattered financial resources, ineffectively used public funding (a

disproportionately large part of allocations dedicated to support HEIs’ physical

facilities and administration, with the salaries of the teaching staff being one of

the lowest in the EU)

Inefficient network of HEIs

Low international competitive ability

Page 13: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Government programme

Sustainable education

Civic young generation

who is aware of the role

of the nation and the

state

High quality education

accessible for all

Educational funding

based on public and state

needs

• To link the funding

model of HE and

research to the results of

research and studies

• To conclude

agreements with HEIs on

the professions and

number of graduates

based on quality and

relevance criteria, as

well as taking into

account the potential

and strategy of HEIs

• To strive for HE

lecturers to receive

adequate wages

• To reform admission

system to HE,

abandoning purely

academic criteria and

taking into account

individual preferences

when choosing the

educational institution

or form of learning

• To encourage

cooperation with social

and business partners

• To ensure that

graduates acquire the

special and general skills

necessary for their work

career, in particular

creativity, innovation

and entrepreneurship

• To use humanities and

social sciences more

effectively in study

programmes

Research for sustainable development

Sustainable human, sustainable society, sustainable education and

culture, sustainable economic and sustainable state governance

Integration of studies, research

and innovation for the

sustainable development of the

country

Smart specialization – for

innovations

• To improve the principles of

allocation of state budget

funds for R&D

• To increase the number of

international students

• To increase the number of the

3rd cycle students and

researchers employed in

business enterprises

• To establish professional

doctoral degree programmes

• To create a model for the

development of R&D

infrastructures with

transparent funding allocation

model including private and

public resources

• To promote applied research

that addresses key societal

challenges (poverty reduction,

demography, emigration,

gender equality, etc.), as well

as needs-based research

oriented to the national

interests;

• To promote innovative

training,

• To cooperation between HEIs,

state institutions, NGOs and

high-tech business enterprises

• To promote participation in

European and regional research

and innovation networks

Page 14: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

General framework of HE reform

1. Reducing inequalities in accessibility of HE: free of charge 1st cycle HE; improved student support system (loans and grants)

2. Improving the attractiveness of careers in research and higher education: concentrating investment in human capital; strengthening 3rd cycle studies; attracting talents from abroad

3. Rethinking the curriculum: duration and conceptual model of studies; duality of HE; skills agenda; adapting QA policies

4. HE funding reform: from input to output; performance agreements with HEIs

5. Optimizing the network of HE institutions: mergers; profiling; interoperability of universities, colleges of HE, PRIs and VET

6. Preconditions of excellence and relevance: boosting RDI investment; starting national HR monitoring system; improving national qualifications system; better coordination of RDI policies

Page 15: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Approaching the performance agreements

From input to output

Better articulation of societal and labour market needs

Better balance between academic autonomy and public responsibility

Meeting the needs of regional policy

Restructuring the balance between funding for studies, research and ‘3rd

mission’ (regional impact; strategic needs)

At least short-term financial stability to HEIs

Nurturing the culture of collaboration, responsibility and partnership among

academic community, public authorities, municipalities and industry

Page 16: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Concept of output-oriented funding via performance agreements

Funding Formula Subject of PA Risks

• Indicators of PA

• Funding allocation based on

historical data of the 3

years

• Strategic development

• Mission and objectives of

the HEI (for 3 years

contract)

• Profile of education and

research of the HEI

• Targets of HEI aligned to

objectives of the HE system

• Education

• Research

• ‘3rd mission’

• Strategic development

• Quality

• Matthew effect

• Narrowing of HEI activity

Page 17: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

General pattern of funds (current)

65,9%

14,8%

19,3%

Performance agreements (73,5%)

Education

R&D

Economy andadministration

18,7%

10,9%

9,3%

29,8%

31,4%

Others allocations (26,5%)

Study relatedinstitutions

State CapitalInvestment

MoES centralizedfunds

Research institutes

R&D

Page 18: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

R&D funding based on historical data

Two-stage R&D assessment:

1. formal assessment carried out by the Research Council of Lithuania yearly,

2. benchmarking exercise carried out by groups foreign experts once every five years.

Formal:

• points given for quantity and quality of publications, patents

• money gained from industry for R&D services

• money gained from international R&D programmes.

Benchmarking:

• quality of R&D (weighted as 0.65)

• social and economic impact of R&D (weighted as 0.20),

• long-term plans of R&D (weighted as 0.15)

Basic R&D funding :

• benchmarking exercise (60 %), and

• formal assessment (40 %)

Page 19: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Infrastructure and administration

Core part (stable & unified)

Student numbers

R&D performance

Unique infrastructure (eg. ‘big science’ facilities; botanical garden, etc.)

Page 20: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Education

Graduate numbers

Defining the ‘right’ numbers?

History?

Labor market forecast?

Strict and ‘loose areas’?

Drop-out rate?

Price of state-funded study place

Equalized?

Differentiated according to study field?

Agreed with particular HEI?

Monitoring and adjustment

Indicators?

Reward for good performance?

‘Penalties’?

Page 21: Lithuanian approach to performance agreements · Lithuanian approach to performance agreements GIEDRIUS VILIŪNAS Vice-Minister for Higher Education and Science Raising Performance

Student support

Concept of ‘free of charge 1st cycle studies’

Scholarships for low-income students

Student loans

Private HE?