The document discusses recent developments in higher education in Finland, including challenges and trends affecting policy. It outlines Finland's higher education system and notes plans to reform universities and polytechnics. The polytechnic reform aims to give polytechnics more autonomy and flexibility to meet regional needs through new funding and operating license models beginning in 2014, with full state funding and merged legal structures planned for 2015.

1. K.U.Leuven Association – FUAS
Opening the workshop
October 2-3, 2013 Tikkurila
President Outi Kallioinen, LUAS,
Chairperson of FUAS
presidents’ collegium

2. Various challenges at the same time  growing uncertainties, unexpectedness of
change and low predictability
Recent developments within the Finnish economy
2

3. Global innovation in 2013
STI and HE
Policy
The changing context of STI policies
• Government budgets are under pressure
• Restoring growth and competitiveness
• Innovation policies have to be relevant,
coherent, and inclusive
• Needs to climb the value-added ladder
• Relevant learning outcomes and quality
• Needs of older student cohorts in HE
• New approaches to funding HE
• Responsive, nimble, outward-looking and
well-connected HEIs
Addressing societal and global challenges
• Green growth and environment
• Aging and heath
• Innovation for development
Changing instruments – a new policy mix
• Tax incentives
• Demand-side policies
• Entrepreneurship
• Clusters and smart specialisation
• Patents and IP markets
• ICT infrastructure
• Public support for basic research
Rising the effectiveness of public sector research
• Commercialisation of public sector research
• Open science
• Internationalisation
• Cross-boundary collaboration
• Management and funding: university autonomy, competitive funding
• National STI strategies
• Governance: high level STI policy councils
• Evaluation at all levels
Source: Based on STI Outlook 2012. OECD 2012. 3

4. 4
Seven mega-trends will transform the HE sector
Drivers of
change
Democratisation of knowledge and access
• Open science, citizen science
• Broadening of access to higher education
• Increased participation in emerging markets
Digital technologies
• Bringing the university to the device – MOOCs
and the rise of online learning
• Bringing the device to the university – the use
of digital technologies in campus-based learning
• Blended learning
Integration with industry
• Scale and depth of industry-based learning
• Research partnerships and commercialisation
• Industry as competitors in the certification and
delivery of content
Global mobility
• Emerging markets becoming global-scale competitors in the
international student market
• Academic talent increasingly sourced from emerging markets
• Emergence of elite, truly global university brands
Contestability of markets and funding
• Fiercely competitive domestic and
international student markets
• Challenges to government funding
• Competing for new sources of funds
Knowledge society
(economy)
• Evidence-based policy
• Innovation necessity
• Governance of STI
Grand Challenges
• Climate Change, Aging Population,
Sustainable Energy
• Strategic Research
• Transformative Research and
Education
• Collaboration & Profilisation
Developed from ”University of the future”, Ernst &
Young 2012

5. Selected higher education facts
about Finland
 Population of 5,4 million
 Higher education institution
network covers the
populated parts of the
country
 14 universities (six in the great
Helsinki area)
 25 polytechnics/ UASs
 Student enrollment
altogether ca. 275 000
University (blue)
Polytechnic (green)
Research institute (red)

6. Development Plan: Higher education
 Higher education network is still too fragmented, structual development to be
continued
 starting in 2013, an art university will be created though a merger of the Sibelius Academy, the Academy of Fine
Arts and the Theatre Academy
 to enhance the quality and efficiency of higher education, measures will be taken to promote joint use of facility
services and teacher resources across institutional boundaries
 Polytechnics/UASs to be reformed
 the steering of polytechnics based on financing and statutes will be reformed from the beginning of 2014 to
expedite their structural reform and to improve the quality and impact of their operations.
 operating licences of polytechnics will be revised from the beginning of 2014
 greater regional impact and more close links between polytechnics and regional development and working life
 Quality education expedites entry into the labour market
 the reform of higher education admissions and study structures by the end of 2015 in order to expedite entry into
higher education
 first-time applicants' chances of being admitted to be improved
 Promotion of researcher training and research careers
 the annual target for the number of doctorates is 1,600.
 universities will shift the focus from researcher training to the development of researcher careers (tenure tracks)
 Measures will be taken to improve conditions for basic research in universities
and for innovation and product development in polytechnics/UASs in particular
 Great emphasis on internationalisation of HEIs

7. The Polytechnic Reform in Finland

8. POLYTECHNIC REFORM IN THE GOVERNMENT´S
PROGRAMME
 ”The legislation concerning funding and administration of
polytechnics will be amended.
 The responsibility for the basic funding of polytechnics will be
transferred to the state in its entirety, and they will be turned into
independent legal organisations.
 The operating licenses of polytechnics will be renewed highlighting
the quality.”

9. AIMS OF THE POLYTECHNIC REFORM
 To give the polytechnics a stronger position to meet the changes
and challenges of the working life, society and regions
 As independent legal persons polytechnics will have more
independent status and more flexibility to better react and
response to the needs of the surrounding society
 Stronger strategic competence, profiling, focus area choises,
stronger leadership and ability to decision making
 To enhance the quality and effectiveness of teaching and RDI
 To strengthen their role within the system of innovation
 To ensure international competitiveness of the polytechnic system

10. FIRST PHASE OF THE REFORM
 In the first phase the operating licences and the educational
responsibilities of polytechnics will be revised.
 At the same time the Act on the Financing of Education and Culture
will be amended in regard polytechnics so that the grounds and
criteria for financing will take into consideration the polytechnics´
statutory operations in their entirety, with emphasis on quality, impact
and efficiency.
 the financing system to be made more performance-based
 the institution-specific funding will be primarily determined on the basis of
degrees awarded, the quality and efficiency of study processes and R&D
 The first phase of the reform takes effect on 1 January 2014
(amendments to legislation) concerning:
new funding model
new operating licences
updated educational responsibilities

11. REVISING OPERATING LICENCES
 The present operating licences expire 31.12.2013.
 Government will decide on the new operating licences coming into
effect 1.1.2014.
 The criteria for granting the licences
 demand for education
 economical and functional preconditions for organising the regulated
tasks duly; taking into account quality, impacts and effectiveness
 Educational responsibilities will consist of degrees and degree titles
 MoE will not decide on the degree programmes any more
 Aim of the reform of the educational responsibilities is to strengthen
the autonomy of the polytechnics and to build larger educational
entities.

12. Polytechnics core funding from 2014

13. SECOND PHASE OF THE REFORM
 The polytechnics and the organisations running them to merge into
one legal person, and juridically all the polytechnics become limited
companies
 the governance model to be streamlined so that the polytechnics only have
one, joint governing board
• The responsibility for core funding to be entirely transferred to the
state
 according to the timetable of the government transfer reform
 The second phase of the reform is expected to take effect on 1 January
2015