In December, the government presented the 2020 Research Bill. In this blog post, we review the effects it will have on the balance between education and research within the operations of higher education institutions. 15 years ago, the state invested approximately the same amount of resources in education and research, but since then, research resources have increased significantly and are today 50% greater than education appropriations. The Research Bill does not contribute to reversing this development, but will rather reinforce the imbalance between education and research. At the bottom of this blog post, we summarize SFS's conclusions. We will return to the blog with a more general analysis of the Research Bill later.
Once per term of office, the government presents a research bill, which brings together the government's thoughts on higher education policy and sets out a direction for the next four years. In terms of form, research is the focus, but the bill usually concerns the whole of higher education policy and also issues of higher education and collaboration are usually included as an important part. The bill is presented in the middle of the term of office, and at the end of 2020 it was time again. In December, the government presented its research bill, "Research, freedom, future – knowledge and innovation for Sweden".
This post is about how the research bill affects the balance between research and education. From a student perspective, the research bill is important for students for several reasons and we will return to other aspects in later posts. But we will begin by commenting on the balance between research and education, which is one of the research-related issues that SFS has focused on most during the last four-year period.
What is the balance between research and education??
Before we go into the content of the bill itself, however, we can say something about what the balance between research and education is about and why it is important for students.
Research is crucial for higher education to maintain high quality. It may seem that students are only influenced by the educational activities: Teachers, educational premises, study places, etc. But what all higher education has in common is that it is based on scientific or artistic foundations and proven experience. That it should be that way is even included in the definition of higher education as written in the Higher Education Act. The content of the education needs to be designed taking into account the state of research and students should become familiar with scientific methods in their field. This requires, among other things, that the teachers in the university are themselves researchers. In addition, there are often resources, such as laboratories or machines, which are shared in various ways between researchers and students. In order for universities to be able to organize education, it is not enough to have educational resources. They also need to invest resources in research.
From a research policy perspective, it is also not desirable to have too strong a bias towards research. The basic mission of universities can be described as creating, refining and disseminating knowledge, and this is what makes universities contribute to the general development of society. However, the work of disseminating knowledge is largely dependent on educational activities. Through education, students gain knowledge within their field of study, which they then take with them into working life and other parts of society. Researchers certainly interact with the surrounding society in many different ways, but the students and education are still the most crucial for the knowledge to reach out. If an institution of higher education has a very large research activity in relation to the number of students in the education, there is a risk that the knowledge that the research generates is not taken further and is useful in more areas of society.
A major but less visible problem with having too much funding in either direction is how it affects the internal priorities of higher education institutions. When funding for services becomes more dependent on research resources than educational resources, research automatically gains higher status in recruitment and promotion to both academic positions and leadership positions. It also affects the internal allocation of resources, where the pursuit of external research funding risks undermining the educational mission regardless of academic teachers' own interests. The effect of the educational funding per student de facto decreasing each year while research funding increases each year also sends the signal to academic teachers and leaders that funding primarily through education is not a long-term sustainable strategy for maintaining the same staff strength.
It is worth noting that higher education institutions cannot reallocate resources between research and education, but the funds must be used for their stated purpose. This means that a higher education institution with large education funds cannot decide on its own that teachers should have time for their own research. That time needs to be financed with funds that are already intended for research from the beginning.
It is not always easy to say what is the right division between education and research. Balance means that both branches of activity need time and resources. Sometimes it may be justified to spend more resources on education in a field or at a particular university, but if the teachers are not active researchers with enough research time, the quality of education will suffer. Similarly, it may be more justified to spend more resources on research, but if a university only conducts research and no education, there is a risk that knowledge will be stuck within academia and not spread.
Displacement over 20 years
Research resources have increased significantly more than education funding for several years. The diagram below shows that funding during the early 00s developed at about the same rate, but that research funding took off around 2006 while education funding remained at the same level.
Figure: Total income of higher education institutions and income from undergraduate and graduate education, and research and postgraduate education, 1999–2019, billions of SEK (2019 prices).Source: UKÄ annual report 2020.
In 2006, research funding amounted to SEK 33 billion and education funding to SEK 30 billion. After that, research funding increased and in 2019 it was SEK 45 billion, an increase of 50 percent. During the same period, education funding only increased by 3 percent in constant prices and amounted to SEK 31,3 billion in 2019. The figures refer to the universities' total income, which includes both government funding, project funds and fees.
This is a development that has been ongoing under several different governments. Although it does not automatically mean an imbalance, it is important to discuss what happens in the long term. When the government presents the direction for higher education policy for the next four years, it will therefore be interesting to see how it affects this development.
In fact, this development means a redistribution of resources at the national level from education to research. The space for research reform is currently being created by the erosion of education, which is unfortunate and risks creating major problems, now and in the long term. This will be particularly problematic in the coming years when the government capital of higher education institutions is now decreasing and there are few saved full-year achievements left.
Estimate for 2020
The statistics on long-term developments only extend to 2019. To assess the research bill, we need to start from what is happening in 2020. UKÄ compiles the data based on the figures reported by the higher education institutions and unfortunately there is no ready data for 2020 yet. We can make a rough estimate of the higher education institutions' increased revenue in 2020 based on the state budget. The state budget changed the appropriations for education and research as follows:
| 2019: | 2020: | Change: | |
| Educational grants | 23 880 | 24 572 | + 693 |
| Research grants | 29 281 | 30 417 | +1 136 |
| -Of which bass notes | 16 545 | 17 527 | + 982 |
| -Of which other research OU16 | 8 225 | 8 427 | + 203 |
| -Of which Vinnova: R&D (ap.1) | 2 929 | 2 845 | -84 |
| -Of which Form: Research | 948 | 956 | +8 |
| -Of which Forte: Research | 634 | 662 | + 28 |
Table: Appropriations 2019 and 2020, SEK million, 2020 prices. Appropriations that can be used for both education and research are not included. This applies, among other things, to parts of appropriation item 2:63 and items 2:64-67.
The table shows that government funding for research increased by SEK 1,249 million and education funding increased by SEK 785 million between 2019 and 2020.
We can therefore estimate the universities' revenue in 2020 as follows:
| Revenue 2019 | Increase in state budget 2020 | Estimated revenue 2020 | |
| Education | 31 273 | + 693 | = 31 965 |
| Research | 44 997 | +1 136 | = 46 133 |
Table: Estimated income of higher education institutions, SEK million in 2020 prices.
This should be seen as a somewhat generous estimate. Due to the corona pandemic, the number of fee-paying third-country students is decreasing, which affects the income of higher education institutions separately from the state budget. The government has also assessed that the corona pandemic has led to lower private contributions to research. However, the latter is happening with a certain lag and is likely to be more noticeable in 2021. We currently do not know more about how large these effects actually are for 2020 and they are therefore not included in the estimate.
Resources in the research bill
In the research bill, the government describes how it intends to develop higher education policy in the coming years. This also includes the issue of new appropriations. It is not an exhaustive description and the government may take the initiative to allocate additional appropriations that are not included in the research bill. However, it is normal for such intentions to be stated in the bill.
To determine how the balance between research and education is affected, we need to consider two factors. First, it concerns how much resources are allocated, and secondly, what other measures are described to ensure that the educational and research activities of the higher education institutions are more closely linked and strengthen each other.
The first question, which concerns resource allocation, is actually about the state budget. The research bill cannot allocate more resources than there is room for in the state budget decided by the Riksdag. This means that the changes in appropriations included in the research bill can also be found in the government's budget bill, which was presented in September and hammered through by the Riksdag later in the autumn. But the appropriations are spread across different parts of the budget.
Only through the research bill will a clearer overview be provided and we will get a picture of how the money in the state budget is intended to be used.
In total, an increase in research funding by SEK 3,4 billion is proposed already in 2021, which will gradually increase to SEK 3,75 billion in 2024. This includes, among other things, a gradual increase in the universities' base funding, which when fully expanded corresponds to SEK 900 million in 2024. There will also be an increase in research funding through the state research councils, which will increase by approximately SEK 632 million in 2021 and will increase by a total of SEK 1,230 million by 2023. Within the framework of these funding to the research councils, a new national research program for mental health will be financed, among other things. Funds for research infrastructure of SEK 400 million will also be allocated, as well as an investment in centers of excellence of SEK 40 million in 2021, both of which will be distributed through the Swedish Research Council. All in all, the increases are distributed as follows:
| 2021 | 2024 | |
| Bass attack | +1 220 | + 900 |
| Other grants directly to universities and colleges | + 50 | + 53 |
| The Swedish Research Council | +1 110 | +1 505 |
| Vinnova | + 545 | + 614 |
| Forms | + 257 | + 360 |
| High | + 105 | + 180 |
| RISE | + 95 | + 75 |
| Space Agency | + 10 | + 30 |
| Financial market research | + 10 | + 30 |
| Total | +3 402 | +3 747 |
Table: Distribution of increased research funding. Figures in millions of SEK.
The state appropriations for education at the basic and advanced levels increased at the same time by SEK 2,174,486 between 2020 and 2021. With our estimate of the revenues for 2020, this means that the higher education institutions' revenues in 2021 will be distributed as follows:
| Estimated revenue 2020 | Increase BP20+FOI prop | Estimated income 2021 | |
| Education | 31 965 | +3 402 | = 34 139 |
| Research | 46 133 | +2 174 | = 49 535 |
This means that research funding is 45,1% higher than education funding in 2021. This is a marginal change compared to 2019 when research funding was 45% higher than education funding.
However, there is a measure to even out the balance at some of the higher education institutions where the need is greatest. So far in this text we have dealt at an aggregate level without taking into account differences between higher education institutions. However, some higher education institutions have a large proportion of research in relation to their education, while other higher education institutions have many students and relatively few research resources. Previously, each higher education institution was guaranteed a research grant of 12,000 SEK for each full-time student.
With the research bill, the lowest level of basic funding will be increased to SEK 17,500 per full-year student starting in 2021. At the time of writing, the increase has not been distributed, but according to our calculations, it will affect a total of eight state universities that currently have lower basic funding per full-year student.
| Number of full-year students (HST) in 2019 | Base allocation 2019 (SEK thousand) | Basic allowance/HST | New base grant with 17,500/ HST | Increase (thousands of SEK) | Increase % | |
| University of Borås | 5 749 | 75 418 | 13,1 | 100 611 | 25 193 | 33,4% |
| Dalarna University | 6 007 | 77 958 | 13,0 | 105 129 | 27 171 | 34,9% |
| University of Gävle | 6 042 | 99 249 | 16,4 | 105 739 | 6 490 | 6,5% |
| Halmstad University | 5 616 | 69 613 | 12,4 | 98 281 | 28 668 | 41,2% |
| Kristianstad University | 5 621 | 63 851 | 11,4 | 98 373 | 34 522 | 54,1% |
| University of Skövde | 3 624 | 51 159 | 14,1 | 63 413 | 12 254 | 24,0% |
| High school west | 5 125 | 63 919 | 12,5 | 89 679 | 25 760 | 40,3% |
| Södertörn University | 6 940 | 84 761 | 12,2 | 121 446 | 36 685 | 43,3% |
Table: Change in research funding for state universities that currently have lower base funding is SEK 17,500 per full-time student. SFS calculation.
Mälardalen University College has also had less than SEK 17,500 in basic funding per full-year student. However, the government has announced that Mälardalen University College will be granted university status. With that decision, the government proposed to increase research funding. This is an increase that would have occurred anyway, regardless of the increase in the minimum level. Therefore, Mälardalen University College is not included in the list.
As can be seen from the table above, a number of universities will receive a significant increase in their research funding. This is important so that teachers at these institutions have the opportunity to conduct research. It will likely lead to quality improvements in the programs concerned.
At the system level, however, this change is marginal. In total, it is an increase of SEK 195 million. This corresponds to approximately 1,3% of the total basic appropriations or 0,4% of the universities' total research revenues. It will not leave any major imprint on the balance between research and education at the national level.
Other instruments for research connections
There is another question about how the research bill affects the balance between research and education. There are political tools for how research funds can be more useful in education and vice versa. If the government chooses to use some of these tools, the balance between research and education could increase even if the resources continue to be distributed as before.
Perhaps the most debated issue in this area in recent years concerns a consolidated appropriation. This was proposed by the Steering and Resources Inquiry at the beginning of 2018. The idea of a consolidated appropriation means that higher education institutions would be allowed to redistribute money between the branches of activity on their own. They would therefore be able to use research funds for education or education appropriations for research. Many were positive, but many were also concerned that higher education institutions would invest too much in a short time and neglect one of the branches of activity. There was disagreement within the higher education sector. After the research bill was presented, everything indicates that the government will not proceed with the proposal.
However, there are other ways to ensure that research grants benefit education. One solution that SFS has proposed is for the government to instruct the state research councils to set higher requirements for educational connections in the research they finance. In 2019, the research councils distributed nearly SEK 12 billion in research funds, and that amount has increased. These funds are distributed after application in a competitive manner. In theory, the research councils have the possibility to set requirements that research should be carried out in close connection with education. The government could instruct the councils to work more in this direction.
The research bill does not contain any measures in this direction. This reinforces the idea that there has been no political will to redress the balance in the operations of higher education institutions.
Conclusions
As we mentioned, it is not obvious what the right balance is between education and research. However, it is problematic to allow more and more bias in research without discussing the consequences it has at the system level and for education. The research bill does not in itself entail any major further shift. However, it can be seen as another lost opportunity to redress the balance and take responsibility for ensuring that the branches of activity strengthen each other.
Admittedly, there is an effort to ensure that the most education-intensive higher education institutions catch up. Higher education institutions are guaranteed at least 17,500 SEK in basic funding for each full-time student. However, the effect will be marginal since most higher education institutions already reach that level.
Our concern is that the increasing imbalance will lead to more researchers choosing to do research full-time and not contribute to the education. There is also a risk that there are too few educated people in other sectors who have the right skills to participate in research and translate it into practical use in society. In that case, the research efforts will not be of maximum benefit.
At the same time, there is a shortage of graduates at the undergraduate and graduate levels in many sectors, and resources could have been spent on developing those programs instead. In such a situation, research investments become the wrong priority.