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Science Policy Ministerial Meetings of South East Europe
                    Sarajevo, Bosnia and Herzegovina

Expert Meeting on Science, Technology and Innovation for South East Europe
                       Sarajevo, 22 November 2012



Contribution of Private Universities
 to Research and Higher Education
                 Dragan Domazet
     Rector, Belgrade Metropolitan University
       dragan.domazet@metropolitan.ac.rs


                                                                             1
Current Situation in Serbia: HE
 # of 1st Year students
         100,0%             19,3%                  18,1%                   17,5%
          80,0%                                    29,5%                   29,8%
                            30,9%
          60,0%
          40,0%
                            49,8%                  52,4%                   52,7%
          20,0%
           0,0%
                          2009/10               2010/11                 2011/12

          Students with free education                  Students in public HEI paying tuition fees
          Studehts in private HEI pazing tuition fees


• Half of students don’t get any public support for their education
• Tuition fees in public HEIs are much lower than the cost per student
  paid by the Government, and in private HEIs – this is an example of
  of unfair competition

                                                                                                     2
Current Situation in Serbia: R&D
• Good:
  – Private R&D and HEI legally have the same rights,
    responsibilities (accreditation) and access to public
    funding of R&D activities
• Bad:
  – Private R&D and HEI cannot use the academic
    compute network, and
  – Cannot use e-journals and digital libraries from the
    National Library
  – Only PhD students in public HEIs are getting (if any)
    public money for their tuition fees – PhD students in
    private HEIs have to pay their tuition fees

                                                            3
Some General Comments about
      Current State of R&D in SEE
• R&D has low impact on society and economy
  – No ROI for public money spent on R&D
  – In general, no new products and technologies based
    on previous R&D by national research projects
• Low public financing of R&D
  – But, are we sure that we will get the needed impact of
    R&D on national development if we increase research
    budgets, for instance, 5 times?
     • Not very likely, as our R&D systems are created “for
       researchers” not for national development
  – If so, probably it is better to save public money and
    invoke real reform of our national R&D systems

                                                              4
Some General Comments about
       Current State of R&D in SEE
• Research community achieved to be autonomous, isolated
  and practically irrelevant part of the society
   – “Give us more money and let us to do what we are interested
     for”
   – Mostly interested for basic research and publications
   – Criteria for getting new project grants, and for academic
     promotions (KPIs) motivate researchers to publish as much as
     possible – No evaluation of their impact on development
   – Use of very narrow performance indicators for researchers,
     research organizations and national R&D systems (# of
     publications)
   – “Project production industry” is mostly virtual, no real link with
     real industry


                                                                          5
What to do?
1. Change public financing of R&D and higher
   education (HE)
  –   Public support only for very focused national research priorities
2. Promote and build a competitive R&D&HE
   environment
  –   Only competition force us to perform better!
  –   Remove all monopolies, our heritage for socialistic era
3. Much more emphasis on market- and needs-
   driven R&D&HE
  –   Very focused national priorities – for needs
  –   Support of innovations – new products based on R&D
                                                                          6
How to do it?
     Change public financing of R&D
                                                     Public money
• R&D budget allocated to the ministry                  spent
  responsible for R&D, should be spent
  for:
   – Up to 30% for basic research, curiosity         100%
     driven research and R&D infrastructure
      • for PhD projects and development young
        researchers                                           Applied and
      • for long-term R&D inline with national               needs/market
        priorities                                            driven R&D
      • Research infrastructures
   – Minimum 70% for joint and co-
     financed programs and projects                  30%
                                                               Basic & free
      • with industry, local municipalities,                   research &
        special agencies, and line ministries                infrastructures
        (responsible for health, ICT, agriculture,     0%
        industry etc.)

                                                                           7
How to do it?
         Change public financing of HE
                                                % of students
• Financial support to students, not to
  HE institutions (HEI)                        100%
   – For education -HEIs are paid through                 Credits (loans)
     tuition fees only,
   – For other activities – from markets
• Top performing 10% of students get
  education grants – 100% paid tuition
  fees                                                    Grants
• All other students get combined:
                                               10%
   – education grants (vouchers)– based
     on performance
   – credits (loans) - to be paid back after         0%              100%   Level of
     graduation (5-10 years payback                                          public
     period, low interest rates)                                            support

                                                                              8
How to do it?
      Change public financing of HE
• Contract-based education
  – HEIs have contracts with future
    employers of students
  – Students get paid tuition,            HEI               Company
    scholarship and job upon
    graduation
     • They can loose of all it for low
       performance                                Student
  – Study programs are flexible and
    modified according to the
    needs of employers (as
    specified in the contracts)                 Public Funds
  – Public money should cover 50%
    of the tuition fee

                                                                 9
How to do it? Promote and build a
   competitive R&D&HE environment
• All R&D and HE organisations should have equal rights,
  but also should satisfy the same standards and
  requirements, no monopolies
   – Regardless they are public or private, profit of non-for profit
   – Project grants, access to research infrastructures, grants for
     research equipments
      • Positive example: Private HEIs get project and equipment grants in
        Serbia from the Ministry of Education, Science and Technology
        Development
      • Negative example: Currently, private HEIs in Serbia, may not use the
        academic computer network and cannot use e-journals and digital
        libraries of the national library (only public HEIs are allowed)


                                                                         10
How to do it? Much more emphasis
on market- and needs-driven R&D&HE
• R&D for needs:
  – Very focused national priorities established
  – Research grants and co-financing only R&D in line
    with these priorities
  – Financing of obtained results, not promises
• Market-driven R&D:
  – Only co-financed programs and projects (public
    money up to 50%) with business partners
  – Not only local, but global markets and partners

                                                        11
How to do it? Much more emphasis
on market- and needs-driven R&D&HE
• Market- and needs-driven HE
  – Public financing or co-financing of students only
     • according quotas of grants & loans specified per disciplines
       and categories of study programs (goal: relevant education)
     • For studies at HEIs with accreditation and efficient
       supervision (goal: quality education)
  – Quotas determined based on projected needs and
    labour market demands
     • Some are specified based on national needs, no market
     • Professionally determined needs and quotas
  – Support of contract-based education (HEIs and
    companies)

                                                                      12
An Example: BMU Initiative for Partnership
     in Global Software Devlopment
                                              Market Demand

     BMU FIT Niš   BMU Software Development Centre

                                                 Software
     Education         SW R&D                  Development
                                                 Business
                            Development expenses

     Scholarship
     Foundation
                                                     Dividents

                                              BMU SDC Shareholders




                                                                     13
Challenges
• Can we give priority to more general, national
  interests than to our private, organisational
  priorities?
• Can we understand that only performance and
  positive impact on society should be important,
  and not who is the founder (public vs. private) of
  the R&D or HE institution or whether it is for
  profit or not for profit?
• Can we abandon our mental inertia and
  ideological legacy from socialistic era?
                                                       14
My Recommendations
• Equal rights and responsibilities: In all R&D programs
  and HE, only performance should be taken into
  account, regardless of founders (public or private) or
  type of organization (profit or non-profit).
   – Access to infrastructures, project grants etc.
• No monopolies, as much competition as possible.
• Global and European dimension: Implement EU
  policies and world best practice. Think and act globally,
  but provide local impact.
• Support R&D for national development, not only for
  libraries
                                                           15

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Mr Dragan Domazet - Rector, Belgrade Metropolitan University, ‘’Contribution of Private Universities to Research and Higher Education”;

  • 1. Science Policy Ministerial Meetings of South East Europe Sarajevo, Bosnia and Herzegovina Expert Meeting on Science, Technology and Innovation for South East Europe Sarajevo, 22 November 2012 Contribution of Private Universities to Research and Higher Education Dragan Domazet Rector, Belgrade Metropolitan University dragan.domazet@metropolitan.ac.rs 1
  • 2. Current Situation in Serbia: HE # of 1st Year students 100,0% 19,3% 18,1% 17,5% 80,0% 29,5% 29,8% 30,9% 60,0% 40,0% 49,8% 52,4% 52,7% 20,0% 0,0% 2009/10 2010/11 2011/12 Students with free education Students in public HEI paying tuition fees Studehts in private HEI pazing tuition fees • Half of students don’t get any public support for their education • Tuition fees in public HEIs are much lower than the cost per student paid by the Government, and in private HEIs – this is an example of of unfair competition 2
  • 3. Current Situation in Serbia: R&D • Good: – Private R&D and HEI legally have the same rights, responsibilities (accreditation) and access to public funding of R&D activities • Bad: – Private R&D and HEI cannot use the academic compute network, and – Cannot use e-journals and digital libraries from the National Library – Only PhD students in public HEIs are getting (if any) public money for their tuition fees – PhD students in private HEIs have to pay their tuition fees 3
  • 4. Some General Comments about Current State of R&D in SEE • R&D has low impact on society and economy – No ROI for public money spent on R&D – In general, no new products and technologies based on previous R&D by national research projects • Low public financing of R&D – But, are we sure that we will get the needed impact of R&D on national development if we increase research budgets, for instance, 5 times? • Not very likely, as our R&D systems are created “for researchers” not for national development – If so, probably it is better to save public money and invoke real reform of our national R&D systems 4
  • 5. Some General Comments about Current State of R&D in SEE • Research community achieved to be autonomous, isolated and practically irrelevant part of the society – “Give us more money and let us to do what we are interested for” – Mostly interested for basic research and publications – Criteria for getting new project grants, and for academic promotions (KPIs) motivate researchers to publish as much as possible – No evaluation of their impact on development – Use of very narrow performance indicators for researchers, research organizations and national R&D systems (# of publications) – “Project production industry” is mostly virtual, no real link with real industry 5
  • 6. What to do? 1. Change public financing of R&D and higher education (HE) – Public support only for very focused national research priorities 2. Promote and build a competitive R&D&HE environment – Only competition force us to perform better! – Remove all monopolies, our heritage for socialistic era 3. Much more emphasis on market- and needs- driven R&D&HE – Very focused national priorities – for needs – Support of innovations – new products based on R&D 6
  • 7. How to do it? Change public financing of R&D Public money • R&D budget allocated to the ministry spent responsible for R&D, should be spent for: – Up to 30% for basic research, curiosity 100% driven research and R&D infrastructure • for PhD projects and development young researchers Applied and • for long-term R&D inline with national needs/market priorities driven R&D • Research infrastructures – Minimum 70% for joint and co- financed programs and projects 30% Basic & free • with industry, local municipalities, research & special agencies, and line ministries infrastructures (responsible for health, ICT, agriculture, 0% industry etc.) 7
  • 8. How to do it? Change public financing of HE % of students • Financial support to students, not to HE institutions (HEI) 100% – For education -HEIs are paid through Credits (loans) tuition fees only, – For other activities – from markets • Top performing 10% of students get education grants – 100% paid tuition fees Grants • All other students get combined: 10% – education grants (vouchers)– based on performance – credits (loans) - to be paid back after 0% 100% Level of graduation (5-10 years payback public period, low interest rates) support 8
  • 9. How to do it? Change public financing of HE • Contract-based education – HEIs have contracts with future employers of students – Students get paid tuition, HEI Company scholarship and job upon graduation • They can loose of all it for low performance Student – Study programs are flexible and modified according to the needs of employers (as specified in the contracts) Public Funds – Public money should cover 50% of the tuition fee 9
  • 10. How to do it? Promote and build a competitive R&D&HE environment • All R&D and HE organisations should have equal rights, but also should satisfy the same standards and requirements, no monopolies – Regardless they are public or private, profit of non-for profit – Project grants, access to research infrastructures, grants for research equipments • Positive example: Private HEIs get project and equipment grants in Serbia from the Ministry of Education, Science and Technology Development • Negative example: Currently, private HEIs in Serbia, may not use the academic computer network and cannot use e-journals and digital libraries of the national library (only public HEIs are allowed) 10
  • 11. How to do it? Much more emphasis on market- and needs-driven R&D&HE • R&D for needs: – Very focused national priorities established – Research grants and co-financing only R&D in line with these priorities – Financing of obtained results, not promises • Market-driven R&D: – Only co-financed programs and projects (public money up to 50%) with business partners – Not only local, but global markets and partners 11
  • 12. How to do it? Much more emphasis on market- and needs-driven R&D&HE • Market- and needs-driven HE – Public financing or co-financing of students only • according quotas of grants & loans specified per disciplines and categories of study programs (goal: relevant education) • For studies at HEIs with accreditation and efficient supervision (goal: quality education) – Quotas determined based on projected needs and labour market demands • Some are specified based on national needs, no market • Professionally determined needs and quotas – Support of contract-based education (HEIs and companies) 12
  • 13. An Example: BMU Initiative for Partnership in Global Software Devlopment Market Demand BMU FIT Niš BMU Software Development Centre Software Education SW R&D Development Business Development expenses Scholarship Foundation Dividents BMU SDC Shareholders 13
  • 14. Challenges • Can we give priority to more general, national interests than to our private, organisational priorities? • Can we understand that only performance and positive impact on society should be important, and not who is the founder (public vs. private) of the R&D or HE institution or whether it is for profit or not for profit? • Can we abandon our mental inertia and ideological legacy from socialistic era? 14
  • 15. My Recommendations • Equal rights and responsibilities: In all R&D programs and HE, only performance should be taken into account, regardless of founders (public or private) or type of organization (profit or non-profit). – Access to infrastructures, project grants etc. • No monopolies, as much competition as possible. • Global and European dimension: Implement EU policies and world best practice. Think and act globally, but provide local impact. • Support R&D for national development, not only for libraries 15