Competition and Performance in European Higher Education: The Role of Funding Instruments

Higher education institutions face today a demanding and complex context in which they are asked to fulfill multiple roles. Many of these challenges have to be faced in a complex financial context in which traditional modes of funding have been transformed and public sources are not as generous as they often were in the past.Like in many other public services, in recent years it became a rather common statement that higher education institutions should be more efficient in the use of taxpayers’ resources, which had a clear impact in visible changes in the funding of public higher education in Europe. In this paper we will analyse the major trends in higher education funding in Europe and underline to what extent the current debates about higher education and its funding have been significantly influenced by economic considerations. We will identify some of the main issues that dominate the current debate around higher education’s funding, drawing some comparative insights from developments across Europe.