Funding

In a context of constraint and competition for public resources, funding efficiency and accountability of public spending are highly important. Linking public funding to institutional performance is an idea that often features in discussions on university funding policy at both the national and European level. Policy makers often see performance-based funding as a useful tool in connecting funding to measurable indicators.

 The DEFINE project explored strategies for efficient funding of universities in Europe, and revealed that expectations towards performance-based funding are often too high and concluded that this funding mechanism should be used with caution and considered in the wider context. 

In 2022, EUA updated this work, focusing on the main mechanisms used to determine block grants received by universities, including the types of indicators used by public authorities currently or in upcoming reforms. 

Considering the constant activity around funding models in the past years, discussions focused on funding mechanisms and tools rather than objectives, and recurring questions around the “ideal” funding model, EUA found it necessary to lay out basic principles for the design of sound funding models.