OECD Education Working Papers No. 160 Collaboration, alliance, and merger among higher Jonathan Williams education institutions https://dx.doi.org/10.1787/cf14d4b5-en Organisation for Economic Co-operation and Development EDU/WKP(2017)9 Unclassified English - Or. English 17 November 2017 DIRECTORATE FOR EDUCATION AND SKILLS COLLABORATION, ALLIANCE, AND MERGER AMONG HIGHER EDUCATION INSTITUTIONS OECD Education Working Paper No. 160 Jonathan Williams, Consultant to the OECD Directorate for Education and Skills, Policy Advice and Implementation Division This Working Paper has been prepared on behalf of the Finland Ministry of Education and Culture, to support Vision for Higher Education and Research in 2030. 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This Working Paper has been authorised by Andreas Schleicher, Director of the Directorate for Education and Skills, OECD. ------------------------------------------------------------------------- www.oecd.org/edu/workingpapers -------------------------------------------------------------------------- Copyright © OECD 2017 COLLABORATION, ALLIANCE, AND MERGER AMONG HIGHER EDUCATION INSTITUTIONS Unclassified EDU/WKP(2017)9 │ 3 Acknowledgements The author would like to thank for guidance and feedback: Thomas Weko, Patricia Mangeol and Simon Roy of the OECD Directorate for Education and Skills; Maarit Palonen and Tomi Halonen of the Ministry of Education and Culture, Finland; and Harry de Boer, of the Centre for Higher Education Policy Studies. The author is grateful to Harry de Boer, Elise Miller and Akiyoshi Yonezawa for country case studies that helped to inform this work. This paper was prepared by Jonathan Williams, an external consultant to the OECD Directorate for Education and Skills. COLLABORATION, ALLIANCE, AND MERGER AMONG HIGHER EDUCATION INSTITUTIONS Unclassified 4 │ EDU/WKP(2017)9 Abstract Declining student numbers; growing fiscal pressures; and intensified international competition for prestige, research talent and funding, have increasingly made collaborations, alliances, and mergers among higher education institutions a priority for institutions themselves, and for the governments that support them. Collaborations, alliances and mergers among higher education institutions may seek to enhance academic performance, to achieve economic efficiencies, or to better align the network and performance of institutions to public needs. Institutional collaboration occurs less frequently and successfully in the design and delivery of instruction than in other domains, owing largely to the traditionally autonomous and solitary role of faculty in this area. Collaboration is much more common in research, engagement, and back-end administration and other supports, with research collaboration often offering the greatest performance gains, and administrative collaboration the greatest potential efficiencies. Targeted grants are the most common tool governments use to encourage institutional collaboration and consolidation, while more flexible quality assurance standards and the greater alignment of policy frameworks more generally can also make it much easier for institutions to collaborate. Evidence about the outcomes of collaborations, alliances, and mergers is limited, but indicates that these initiatives can strengthen institutional performance, produce efficiencies, improve resilience and enhance alignment to national priorities, although not for all institutions in all circumstances. Policymakers who succeed in promoting effective collaboration appear to strategically stimulate institutional initiative, support effective planning and implementation, secure stakeholder buy-in, concentrate resources, and achieve policy alignment. COLLABORATION, ALLIANCE, AND MERGER AMONG HIGHER EDUCATION INSTITUTIONS Unclassified EDU/WKP(2017)9 │ 5 Résumé De plus en plus d’institutions d’enseignement supérieur, ainsi que les gouvernements qui les régissent, favorisent la collaboration et la consolidation institutionnelles face à la réduction de la demande étudiante, le durcissement des contraintes fiscales, et l’intensification de la concurrence internationale pour le prestige, le talent et les flux de financement. Les collaborations, alliances et fusions peuvent chercher à améliorer la performance académique, réaliser des économies, ou aligner des activités institutionnelles aux besoins de la société. Dans l’enseignement, la collaboration est moins fréquente et réussit moins souvent que dans d’autres domaines d’activité institutionnelle, en grande partie du fait de l’autonomie et de l’isolement traditionnel des enseignants dans le supérieur. La collaboration avec partenaires externes est de loin la plus fréquente dans les domaines de la recherche et de la coopération. Elle semble offrir le plus grand potentiel de gains de performance dans la recherche, tandis que dans l’administration elle est plus prometteuse en termes de réalisation d’économies. Pour promouvoir la collaboration et la consolidation institutionnelles, les gouvernements se servent le plus souvent de mesures de financement ciblées, bien que des systèmes d’assurance de la qualité et l’alignement des différents cadres administratifs et politiques puissent également jouer un rôle facilitateur essentiel. Jusqu’à aujourd’hui, les résultats tangibles d’initiatives visant à développer les collaborations, alliances et fusions demeurent limités. La littérature suggère que ce type d’initiative peut renforcer la performance et la résilience institutionnelles, faire réaliser des économies, et améliorer l’alignement des activités des institutions sur les besoins de la société, mais ces objectifs ne sont certes pas réalisés dans tous les cas. Il semble que les initiatives gouvernementales qui réussissent le mieux dans ce domaine stimulent l’initiative institutionnelle, appuient les institutions dans la planification et la mise en œuvre des mesures, garantissent l’adhésion des parties prenantes, concentrent les ressources de façon stratégique, et alignent mesures et règlements pertinents à ces objectifs. COLLABORATION, ALLIANCE, AND MERGER AMONG HIGHER EDUCATION INSTITUTIONS Unclassified 6 │ EDU/WKP(2017)9 Table of contents Acknowledgements ................................................................................................................................ 3 Abstract .................................................................................................................................................. 4 Résumé ................................................................................................................................................... 5 Acronyms and abbreviations ................................................................................................................ 9 Executive summary ............................................................................................................................. 11 1. Introduction ..................................................................................................................................... 13 2. Collaboration and consolidation: What they are, where they occur .......................................... 14 2.1. Defining terms ............................................................................................................................ 14 2.2. Mergers ....................................................................................................................................... 15 2.3. Collaboration in teaching ............................................................................................................ 17 2.4. Collaboration in other domains of activity ................................................................................. 25 3. Gauging the impacts of collaboration and consolidation ............................................................. 29 3.1. Academic impacts of mergers ..................................................................................................... 29 3.2. Financial impacts of mergers ...................................................................................................... 31 3.3. Impacts of collaborations and alliances ...................................................................................... 32 3.4. The risks of collaboration and consolidation .............................................................................. 33 4. Policy measures to promote collaboration and consolidation ..................................................... 36 4.1. Why governments intervene ....................................................................................................... 36 4.2. How governments intervene: regulation-based policy instruments ............................................ 37 4.3. How governments intervene: funding instruments ..................................................................... 50 5. Approaches to overcome strategic challenges ............................................................................... 59 5.1. Stimulating institutional initiative ............................................................................................... 59 5.2. Supporting planning and implementation ................................................................................... 60 5.3. Securing stakeholder buy-in ....................................................................................................... 64 5.4. Concentrating resources .............................................................................................................. 67 5.5. Policy alignment ......................................................................................................................... 68 6. Conclusion ........................................................................................................................................ 70 Annex A. Policy profiles of collaboration and consolidation initiatives ......................................... 72 Australia ............................................................................................................................................... 72 Denmark: Concentrating universities and government research institutes .................................. 75 England (United Kingdom): Funding collaboration and innovation.............................................. 77 Finland .................................................................................................................................................. 78 COLLABORATION, ALLIANCE, AND MERGER AMONG HIGHER EDUCATION INSTITUTIONS Unclassified EDU/WKP(2017)9 │ 7 Flanders: “Associations” of universities and university colleges .................................................... 81 France ................................................................................................................................................... 83 Germany ............................................................................................................................................... 86 Ireland: Clusters and technological universities ............................................................................... 88 Japan..................................................................................................................................................... 90 The Netherlands .................................................................................................................................. 92 Norway: Mergers of universities and university colleges ................................................................ 95 Romania: Encouraging university mergers ...................................................................................... 97 Spain: The Campus of International Excellence programme ......................................................... 99 Sweden: Mergers ............................................................................................................................... 101 The United States ............................................................................................................................... 102 Wales: Concentrating universities ................................................................................................... 104 Annex B. Policy approaches to online learning and open educational resources ........................ 108 The development of online learning in the United States .............................................................. 108 Policy approaches to open educational resources ........................................................................... 114 References .......................................................................................................................................... 119 COLLABORATION, ALLIANCE, AND MERGER AMONG HIGHER EDUCATION INSTITUTIONS Unclassified 8 │ EDU/WKP(2017)9 Figures Figure 2.1. The Networks-Collaborations-Alliances-Mergers Spectrum .............................................. 14 Boxes Box 4.1. Should Finnish higher education institutions be permitted to award a degree in a field for which they offer less than a full study programme? ................................................................................ 44 Box 4.2. Should Finland permit mergers between universities of applied science and research universities? ................................................................................................................................... 48 Box 4.3. Funding for institutional collaboration in Austria, New Zealand and Nova Scotia ................ 53 COLLABORATION, ALLIANCE, AND MERGER AMONG HIGHER EDUCATION INSTITUTIONS Unclassified EDU/WKP(2017)9 │ 9 Acronyms and abbreviations AUD Australian Dollars ACE American Council on Education CAD Canadian Dollars CAE College of Advanced Education CAM Collaborations, Alliances and Mergers CC Creative Commons CCC California Community College CEAI Center for Education Attainment and Innovation CEI Campus de Excelencia Internacional CIHR Canadian Institutes for Health Research COMUE Communauté inter-académique d'universités et d'établissements CRN Collaborative Research Networks CSU California State University EFTSU Equivalent full-time student units EHEA European Higher Education Area ESG Standards and Guidelines for Quality Assurance in the European Higher Education Area EU European Union EUA European Universities Association EUR Euros FE Further education GBP British Pounds GRI Government Research Institute GW Government of Wales HEA Higher Education Authority HEFCE Higher Education Funding Council for England HEFCW Higher Education Funding Council for Wales ICT Information and Communications Technologies IdEX Initiative d'Excellence IMOS Integrated Marine Observing System IoT Institute of Technology JARA Jüluch-Aachen Research Alliance LCU Legea consorțiilor universitare COLLABORATION, ALLIANCE, AND MERGER AMONG HIGHER EDUCATION INSTITUTIONS Unclassified