David Strangway04 May 2013 Issue No:270
Universities in Canada are almost entirely public and funded by
provincial governments. They are able to charge tuition fees, but this
is also controlled by government. This means that there is very little
incentive for real innovation, let alone differentiation.
Differentiation is important for innovation in a university system, but is very difficult to achieve in the Canadian system. In a number of countries there are excellent public and private universities side by side, leading to a built-in incentive for differentiation and innovation. One need only consider the United States, Mexico, Japan, and Korea, among many other nations.
Some countries have followed the German Von Humboldt model of the university, in which the research agenda sets institutional objectives.
In some countries – but not Canada – the Cardinal Newman view of the university, which provides a broad education, has thrived. This can be seen in the liberal arts and sciences universities and colleges often found in the United States. These are great universities or colleges for undergraduates and they produce a disproportionate number of great scholars.
The global ranking tables focus almost entirely on the research activities of universities. Even the Macleans rankings published annually in Canada focus on research and do not consider the student perspective.
The incentive to rise in the rankings is all about research reputation. This drives Canadian universities (and others) to be ever more homogeneous.
In Canada the research-granting agencies make contributions to the research projects they support, but they do not cover the full cost of the research. In the US the full costs of research are covered on the principle of not-for-profit but also not-for-loss. This has been a powerful tool for differentiation.
In the Canadian context, the more research undertaken, the more resources the university has to divert from undergraduate students to the graduate and research effort. Along with decreasing funding over many years on a per student basis, this movement to always favour the research agenda has led to a sharp decline in undergraduate education quality.
Philanthropy has the potential to broaden the financial base of universities. As in many countries, philanthropy in Canada has until recently been at a very low level. This only started to change in a real way in the mid-1980s.
Of course, philanthropy has been a major driver of innovation in the US for a very long time. But Canada has only in the past few years found that this is a major source for driving new activities. Two specific Canadian examples illustrate what can be done.
Philanthropy and fundraising
The University of British Columbia, or UBC, owned 500 hectares of land from its earliest days in the 1920s. Only a portion of this land had been occupied by the university and by student residences. The city of Vancouver had grown out to meet the campus.
In the 1990s it became clear that UBC was sitting on some very valuable land suitable for housing. A development company was formed and directed by real estate experts. UBC sold long-term leases to property developers.
To date this trust has raised over C$500 million (US$496 million) that has been added to the endowment fund. And there is still significant opportunity ahead. This endowment permits UBC to support academic activities.
In the 1980s a major fundraising campaign was started. In 1985, the endowment funds of UBC stood at C$80 million. Canada was only at this point ready for the move into major philanthropy. By 1994 the campaign was completed, with a total of C$270m having been raised.
At the time this was the largest ever fundraising campaign in Canadian history. It was a real turning point in Canadian philanthropy. Many newly endowed chairs and buildings were supported by these new funds, enriching academic activities.
In 2012, UBC launched a new fundraising campaign. This time the target was C$1.5 billion. Much of this has already been achieved.
In the space of 25 years philanthropy in Canada has grown from being almost non-existent to constituting a major source of innovation. Today the UBC endowment is well over C$1 billion and rising steadily. In Canada this is exceeded only by the University of Toronto.
Quest University Canada
The second example is the founding of Quest University Canada, or QUC. This small university opened its doors in 2007. It was designed from the outset to focus entirely on undergraduate students and thus to differentiate itself from all other universities in Canada.
QUC was from the beginning set up as a liberal arts and science university offering only bachelor degrees. It operates on the premise that knowledge has no academic boundaries (no academic discipline departments) and no geographic boundaries.
The small town of Squamish in British Columbia supported the venture by zoning the land that was acquired to permit the development of 1,000 units of market housing. Some land was sold at the beginning to provide start-up and planning funds.
Foundations also provided support in those early days. A very significant donor who believed in the concept provided C$100m for the campus construction. This was protected against the land asset, which can in future only be used for charitable purposes. In due course, the land asset will become an endowment for the university.
This university is now graduating its third class, but has received no public funding. Tuition is expensive since there is no government subsidy, but a large amount of the tuition supports a strong programme of student scholarships.
QUC is also different in its academic approach. Students take one course at a time that lasts for about a month. This provides intense participation in the classes as they meet three hours a day, five days a week. Classes are restricted to 20 students per class.
All students must take the first 16-month-long blocks, which are roughly half science oriented and half art and humanities oriented. This is a 21st century version of Cardinal Newman’s ‘Idea of a University’. All students live in residence. Faculty and students from 30 countries interact.
Perhaps most interesting is the fact that, without big expenditure on supporting research, the programme is able to be delivered on a per student basis for less than it would cost public universities.
There are few of the big ranking systems that focus on students and what and how they are learning. Best known is the National Survey of Student Engagement, or NSSE, that surveys 280,000 students at 750 universities in the US and Canada.
It is interesting to note that, in the five major categories of survey questions, QUC ranks well above all other Canadian universities. These categories are "level of academic challenge", "supportive campus environment", "active and collaborative learning", "enriching educational experience" and "intensity of faculty interaction".
Student demand is rising steadily as enrolment numbers approach 500 students. These are just two examples of innovation and differentiation. There are many examples around the world.
* David Strangway is former president of the University of Toronto, the University of British Columbia and the Canada Foundation for Innovation, and is founder of Quest University Canada. This is an edited version of a paper presented at the recent International Association of University Presidents semi-annual meeting in Guadalajara in March, titled “Global Trends and Latin American Higher Education Innovation”.
Differentiation is important for innovation in a university system, but is very difficult to achieve in the Canadian system. In a number of countries there are excellent public and private universities side by side, leading to a built-in incentive for differentiation and innovation. One need only consider the United States, Mexico, Japan, and Korea, among many other nations.
Some countries have followed the German Von Humboldt model of the university, in which the research agenda sets institutional objectives.
In some countries – but not Canada – the Cardinal Newman view of the university, which provides a broad education, has thrived. This can be seen in the liberal arts and sciences universities and colleges often found in the United States. These are great universities or colleges for undergraduates and they produce a disproportionate number of great scholars.
The global ranking tables focus almost entirely on the research activities of universities. Even the Macleans rankings published annually in Canada focus on research and do not consider the student perspective.
The incentive to rise in the rankings is all about research reputation. This drives Canadian universities (and others) to be ever more homogeneous.
In Canada the research-granting agencies make contributions to the research projects they support, but they do not cover the full cost of the research. In the US the full costs of research are covered on the principle of not-for-profit but also not-for-loss. This has been a powerful tool for differentiation.
In the Canadian context, the more research undertaken, the more resources the university has to divert from undergraduate students to the graduate and research effort. Along with decreasing funding over many years on a per student basis, this movement to always favour the research agenda has led to a sharp decline in undergraduate education quality.
Philanthropy has the potential to broaden the financial base of universities. As in many countries, philanthropy in Canada has until recently been at a very low level. This only started to change in a real way in the mid-1980s.
Of course, philanthropy has been a major driver of innovation in the US for a very long time. But Canada has only in the past few years found that this is a major source for driving new activities. Two specific Canadian examples illustrate what can be done.
Philanthropy and fundraising
The University of British Columbia, or UBC, owned 500 hectares of land from its earliest days in the 1920s. Only a portion of this land had been occupied by the university and by student residences. The city of Vancouver had grown out to meet the campus.
In the 1990s it became clear that UBC was sitting on some very valuable land suitable for housing. A development company was formed and directed by real estate experts. UBC sold long-term leases to property developers.
To date this trust has raised over C$500 million (US$496 million) that has been added to the endowment fund. And there is still significant opportunity ahead. This endowment permits UBC to support academic activities.
In the 1980s a major fundraising campaign was started. In 1985, the endowment funds of UBC stood at C$80 million. Canada was only at this point ready for the move into major philanthropy. By 1994 the campaign was completed, with a total of C$270m having been raised.
At the time this was the largest ever fundraising campaign in Canadian history. It was a real turning point in Canadian philanthropy. Many newly endowed chairs and buildings were supported by these new funds, enriching academic activities.
In 2012, UBC launched a new fundraising campaign. This time the target was C$1.5 billion. Much of this has already been achieved.
In the space of 25 years philanthropy in Canada has grown from being almost non-existent to constituting a major source of innovation. Today the UBC endowment is well over C$1 billion and rising steadily. In Canada this is exceeded only by the University of Toronto.
Quest University Canada
The second example is the founding of Quest University Canada, or QUC. This small university opened its doors in 2007. It was designed from the outset to focus entirely on undergraduate students and thus to differentiate itself from all other universities in Canada.
QUC was from the beginning set up as a liberal arts and science university offering only bachelor degrees. It operates on the premise that knowledge has no academic boundaries (no academic discipline departments) and no geographic boundaries.
The small town of Squamish in British Columbia supported the venture by zoning the land that was acquired to permit the development of 1,000 units of market housing. Some land was sold at the beginning to provide start-up and planning funds.
Foundations also provided support in those early days. A very significant donor who believed in the concept provided C$100m for the campus construction. This was protected against the land asset, which can in future only be used for charitable purposes. In due course, the land asset will become an endowment for the university.
This university is now graduating its third class, but has received no public funding. Tuition is expensive since there is no government subsidy, but a large amount of the tuition supports a strong programme of student scholarships.
QUC is also different in its academic approach. Students take one course at a time that lasts for about a month. This provides intense participation in the classes as they meet three hours a day, five days a week. Classes are restricted to 20 students per class.
All students must take the first 16-month-long blocks, which are roughly half science oriented and half art and humanities oriented. This is a 21st century version of Cardinal Newman’s ‘Idea of a University’. All students live in residence. Faculty and students from 30 countries interact.
Perhaps most interesting is the fact that, without big expenditure on supporting research, the programme is able to be delivered on a per student basis for less than it would cost public universities.
There are few of the big ranking systems that focus on students and what and how they are learning. Best known is the National Survey of Student Engagement, or NSSE, that surveys 280,000 students at 750 universities in the US and Canada.
It is interesting to note that, in the five major categories of survey questions, QUC ranks well above all other Canadian universities. These categories are "level of academic challenge", "supportive campus environment", "active and collaborative learning", "enriching educational experience" and "intensity of faculty interaction".
Student demand is rising steadily as enrolment numbers approach 500 students. These are just two examples of innovation and differentiation. There are many examples around the world.
* David Strangway is former president of the University of Toronto, the University of British Columbia and the Canada Foundation for Innovation, and is founder of Quest University Canada. This is an edited version of a paper presented at the recent International Association of University Presidents semi-annual meeting in Guadalajara in March, titled “Global Trends and Latin American Higher Education Innovation”.
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