Measuring the value of higher education
1 November 2000
Science meets parliament starts at the top, but it’s vital that the community as a whole – from business people to farmers to families – gets the message that investment in education and research is the key to prosperity.
Dr Carolyn Allport, National President of the National Tertiary Education Union (which represents 25,000 staff, most in universities) said that scientists had to start by explaining what innovation means to people for whom science remains a mystery.
`Innovation touches all of us. It’s about new knowledge, new ideas and new ways of doing things – but it doesn’t come for free. To build innovation, we have to invest in infrastructure and people. That means seeing public expenditure in universities as an investment for the whole community, not a cost to be borne by a few.’
Dr Allport said that the contribution universities make to innovation could be described in the following ways:
Universities build knowledge by undertaking independent research in the public interest. 80% of basic research in Australia happens in universities, and it’s this research that can lead to international breakthroughs in public health and communications technology. The social rate of return of research in higher education is high because of spillover benefits to other parties, not just private investors funding the R&D, and this strengthens the argument for public investment. However, the amount of basic research undertaken in Australia is falling, along with public and private investment in R&D.
Universities add value to knowledge by combining research with postgraduate and undergraduate education. This builds a scientifically literate workforce and community. The Business-Higher Education Round Table estimates the value of improved human capital at $9billion annually. But enrolments in key enabling science – such as physics, chemistry and mathematics – have been falling and departments are being cut.
Universities disseminate knowledge through the creation of a skilled, internationally mobile workforce. Domestic R&D is also an important way of accessing knowledge from overseas and building valuable international linkages.
Universities deliver returns on public investment. Recent research by economists at the University of Melbourne argues that the rate of return to the community as a whole from higher education outstrips the return to the individual. The Business-Higher Education Round Table estimates that `spillover’ benefits of university research amount to $2.3billion annually.
`University staff and students are doing their bit, but we need the support of Government and the community. Science meets parliament is a call to action: let’s see some leadership from our politicians on this vital issue.’