Universities and the Education Revolution Professor Richard Larkins Chair, Universities Australia VC and President Monash University
Role of Universities in Prosperity Third largest earner of export dollars Human capital development --train the leaders, innovators and higher order skilled workforce of the future including teachers Do the research necessary for innovative industries transforming our manufactured exports compete on innovation and quality Do the research to allow us to mitigate and adapt to climate change, and to address health and security challenges
Relative neglect of universities since 1995 Progressive erosion of public funding Dangerous dependence on income from international students, especially from a limited range of countries and in a limited range of disciplines Underinvestment in capital infrastructure Low investment in R and D
Core funding 1989 2006 $6.500 $6.000 Funding gap in 2006 = $1.695b $5.500 $5.132b $5.000 $4.500 1989 CPI Indexed Actual $b $4.000 $3.437b $3.500 $3.000 $2.500 $2.000 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 $2.452b Year Source: DEST Triennium Funding Reports 1989-91 to 2004-06; Higher Education Report 2004-05 and 2005; ABS Consumer Price Index, Australia, March 2007 (Cat No. 6401.0)
Revenue per student $800 $600 560 $400 420 $200 207 229 84 Income Gap $0 ($200) ($400) ($600) -0-308 -41-309 -18-324 ($800) ($1,000) ($1,200) ($1,400) -1,000-921 -992-996 -1,058-1,112-1,200 ($1,600) Source: DEST Triennium Funding Reports 1989-91 to 2004-06; Higher Education Report 2004-05 and 2005; ABS Consumer Price Index, Australia, March 2007 (Cat No. 6401.0) 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Year
Public spend on tertiary education OECD average United States United Kingdom Turkey Switzerland Sweden Spain Slovak Republic Portugal Poland Norway New Zealand Netherlands Mexico Luxembourg Korea Japan Italy Ireland Iceland Hungary Greece Germany France Finland Denmark Czech Republic Canada Belgium Austria Australia Public Expenditure on Tertiary Education by Country as percentage of GDP. Source: OECD Education at a Glance 2007: OECD Indicators, table B2.4, p. 208. 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 Percentage of GDP
Changing funding sources, 1989-2004 100% 90% 80% 70% Other 60% 50% 40% 30% 20% State Fees & Charges HECS Commonwealth 10% 0% 1989 1992 1994 1996 1997 1998 1999 2000 2001 2002 2003 2004 Source: Prior to 1993, DEET National Commonwealth Report on Australia s HECS Fees Higher and Charges Education State Sector, Other May 1993 (Table 4.6) From 1993 onwards, DEST Selected Higher Education Finance Statistics
Monash University Fees versus Commonwealth Grants Scheme Millions ($) 350 300 Consolidated Commonwealth Gov't Operating Grants, HECS & Total Student Fees Revenue (1994-2006) Commonwealth Govt Operating Grants HECS Total Student Fees Income including FEE HELP 250 200 150 100 50 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Student: Academic staff ratios Have risen from 14:1 in 1994 to 20:1 in 2006 International comparators: Washington University, St Louis 2:1 MIT 4:1 University of Michigan 9:1 IITBombay 9:1 Sichuan University 10:1
Expansion of Higher Education in China Professor Li Xiao Phong 25 21 1998 2005 1998 2005 20 15 10 5 0 Unint: million 7 the number of students in universities
Gross Expenditure on R&D (2004-05) 4.49 3.89 2.90 2.98 2.78 2.62 2.42 2.45 2.48 2.25 2.13 1.52 1.61 1.73 1.76 1.77 1.86 1.98 1.10 1.12 1.17 1.26 1.33 1.41 Sources: OECD Main Science and Technology Indicators, 2007/1; ABS (8110.0) Research and Experimental Development, All Sector Summary 2004-05 3.33 3.48 Sweden Israel Italy Spain New Zealand Ireland China Czech Republic Norway Luxembourg Netherlands Australia United Kingdom Belgium Canada France Total OECD Austria Denmark Germany United States Iceland Switzerland (2004) Korea Japan Finland 5.0 4.5 4.0 3.5 3.0 2.5 2.0 % of GDP 1.5 1.0 0.5 0.0
Business Expenditure on R&D (2004-05) 3 2.5 2.19 2.35 2.46 2 1.5 1 1.88 1.75 1.53 1.36 1.16 1.03 1.07 0.95 0.81 0.54 0.58 0.5 0.37 0.26 0.17 0 Poland Slovak Republic Hungary Italy Spain Czech Republic Australia Netherlands Canada United Kingdom France OECD Average Germany USA Korea Japan Finland % of GDP Source: ABS Research and Experimental Development (8104.0)
Government s Investment in Research Funding Professor Liu Defu Billion US$ 120 100 80 60 40 20 0 Government R&D Investment in China 112.5 45 13 16 19.25 24.6 29.5 2001 2002 2003 2004 2005 2010 2020 2001 2002 2003 2004 2005 2010 2020 Time
Relative increase in research funding Sources: DEST Triennium Reports and Higher Education Reports 2001 to 2005; DEST Science and Innovation Budget 2006-07 Table 1.
The Education Revolution so Far Abolition of full-fee U/G places Halve HECS rates for science and maths courses Increase number of HDR scholarships 1000 mid-career fellowships Double number of Commonwealth learning scholarships Funding compacts Reviews of higher education and innovation
Minimum requirements for competitive sector 1. Proper indexation of CGS from 2009 2. Increase HEEF to $20b over 5-7 years 3. Full funding of research infrastructure costs 4. Creative use of compacts to encourage industry engagement, community development 5. Increased student support 6. Coordinated indigenous program