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“Academic Capitalism”: Pros and Cons of the Development of Science and Higher Education
BESLI
Business, Economics, Sustainability,
Leadership and Innovations
Joint Scientific Journal
“Academic Capitalism”: Pros and Cons of the Development
of Science and Higher Education
Oleksandr O. Romanovskyi
Yuliia Yu. Romanovska
УДК 331.44 : 37.
JEL classification I21, I25, О31, Р
The environment of academic capitalism, which has covered almost the entire field of science and higher education, has both positive (PROS) and negative (KONS) influ- ences on them. Academic capitalism has sharply accelerated the commercialization of the results of applied research and development of universities and research institutes and has allowed these organizations and institutions to significantly capitalize on their intellectual capital. This gave impetus to the development of progressive innovations and outstanding inventions. For example, in the system of higher education there is an intensive innovative development, which, of course, can be attributed to the positive impact of academic capitalism on the development of material, technical, scientific and engineering potential of universities and colleges. On the other hand, the pursuit of profit and the general search for opportunities to commercialize R&D results, mainly the results of applied research and experimental development, leads to a significant reduction in demand and attention to the develop- ment of fundamental science and the search for basic scientific values. This leads to a slowdown in the production of new basic fundamental knowledge and a slowdown in the intellectual development of society. Many recent scientific publications have also criticized the impact of academic capi- talism on science and higher education. Excessive entrepreneurial activity of universities in the direction of profiting from the development and commercialization of applied research instead of purely scientific activities and basic basic research leads to the loss of the position of universities and colleges as “temples of science”. There may still be a small number of academic institutions of higher education and research that continue to conduct basic research that is difficult to commercialize but that is genuine “scientific knowledge,” or in other words, knowledge of humanity. This paper analyzes the innovative changes in the higher education system caused by the environment of academic capitalism. The negative impact of academic capital- ism on the sphere of higher education and science is also analyzed. Keywords: academic capitalism; entrepreneurial university; innovations in higher edu- cation; innovative development of higher education.
Economics and Management of Education
“Academic Capitalism”: Pros and Cons of the Development of Science and Higher Education
The environment of academic cap- italism has now engulfed almost the entire sphere of science and higher education. Perhaps there are still a small number of academic institutions of higher education and research that continue to carry out fundamental scientific research, which is difficult to commercialize, but which is true “sci- entific knowledge” or, in other words, the knowledge of humanity. Academic capitalism, which has become a reality, has dramatically ac- celerated the commercialization of the results of applied research and devel- opment of universities and research institutes. Allowed these organizations to significantly capitalize their intellec- tual capital, gave impetus to the devel- opment of innovations and inventions. In particular, an intensive innovative development is observed in the sys- tem of higher education, which, of course, can be attributed to the pos- itive influence of academic capitalism on the development of the material, technical, scientific and engineering potential of universities and colleges. This is PROS. On the other hand, the general pursuit of profit and commercializa- tion of R&D results, mainly the results of applied scientific research and ex- perimental development, leads to a significant decrease in demand and government attention to the devel- opment of fundamental science. This leads to a slowdown in the production of new basic fundamental knowledge and a slowdown in the intellectual de- velopment of society. This is CONS. Let us further consider some as- pects of innovation in the higher edu- cation system caused by the spread of market relations in the field of science and higher education (what belongs to PROS). Summarizing the results of a com- prehensive study of the phenomenon of academic (university) entrepreneur- ship [1–14], it should be noted that business institutions of higher educa- tion implement their activities in high- er education in the current market laws of the economic system, interact with
internal forces of society (respond to its challenges and inquiries) are under the influence of globalization pressure of the world community (as schemati- cally shown in Fig. 4 [1]). Innovations in the higher educa- tion system should directly lead to innovative changes. It is reasonable to consider HEI’s innovative activi- ty in the higher education system as an economic category related to the capitalization and commercialization of intellectual products – knowledge, technology, educational and scientific services, etc. Let’s consider further the types of such innovations in the higher educa- tion system that can lead to innovative changes, and their classification. These can be innovations of the following types: economic and market; techno- logical; organizational; structural and pedagogical; educational and peda- gogical (Fig. 1). Most of them are ei- ther directly or indirectly initiated by academic capitalism. Innovations of economic and market type (see Fig. 2) unite caused by scientific and technical and in-
dustrial and economic development of society and the spread of market economic relations in all areas of so- cio-economic activity of mankind, the commercialization of educational and scientific and technical activities of HEI and all higher education (innovations of economic and industrial develop- ment, depending on market require- ments). Economic and market innovations include such innovations that allow to reduce the budget funding for higher education and science to obtain the necessary resources not only for sur- vival but also for the prosperity of HEI:
- New forms and types of financing of education and crediting of edu- cational services, educational insti- tutions of various types, statutory (including – educational, scientific, scientific and technical, educational and cultural) activity of educational institutions; diversification of fund- ing sources; formation of various funds, grands, endowment institute.
- Commercialization of educational results (contractual forms of educa- tion, educational, consulting, expert and other services), scientific and scientific-technical activities (R&D, technology transfer) HEI, obtaining additional financial income from extracurricular activities (lease of property, organization of mass ac- tivities for local and regional com- munities, etc.).
- Participation of HEI in innovative socio-economic local, regional and national development, opening of new directions of business activity, enterprises and spheres of industry.
- Close cooperation with industry and business: joint implementation of R&D, targeted training, opening and supporting joint ventures, joint par- ticipation in joint stock companies.
- Active participation of HEI in: › business development; › education, training and prepara- tion of entrepreneurs of different types and leaders for industry and social sphere; › developing and lobbying the nec- essary regulations for the devel-
Fig. 1. Types of innovations in the higher education system that can lead to innovative changes
Innovations of economic and market type (Fig. 2)
Innovations of technological type
Innovations of organizational type (Fig. 3)
Innovations of educational and pedagogical type (Fig. 4)
Innovations of structural and pedagogical type
Types of innovations in the higher education system
“Academic Capitalism”: Pros and Cons of the Development of Science and Higher Education
Innovations of organizational type (Fig. 3) are:
- Planned, systematic, periodic, ur- gent, sudden, spontaneous, random innovations (innovations in the way they are implemented).
- Innovations local, mass, global, etc. (innovations in the scope of innova- tive solutions and activities).
- Innovations that correct, modify, im- prove, modernize, radical, revolu- tionary, etc. (innovations according to the degree of predicted changes).
Innovations of educational and pedagogical type (Fig. 4) are:
- Innovations in the educational pro- cess, training course, in the field of ed- ucation, at the level of the education system, in the management of the ed- ucational process (education), etc. (in- novations in the pedagogical process).
- Innovations in collective and group education, in individual types of ed- ucation (under the guidance of a teacher), tutoring, alternative, family education, etc. (innovations by types of interaction of participants in the pedagogical process).
- Innovations in the development of certain abilities of students, teachers, educators, namely: development and improvement of their knowledge, skills, abilities, competencies, etc. (innovative changes in the personal development of educational entities). - Innovations-conditions that ensure the renewal of the educational en- vironment, socio-cultural condi- tions, etc.; innovations-educational products (pedagogical tools, proj- ects, technologies, etc.); managerial innovations – new solutions in the structure of educational systems and management procedures that ensure their functioning (innovations in the functionality of the subjects of educa- tional systems). - Innovations in the activities of one teacher, methodological association of teachers, at school, in a group of schools, in the region, at the state lev-
el, at the international level, etc. Inno- vations in the activity of one HEI teach- er, faculty, all HEI, all HEI of the region, state, at the level of the system of in- ternational higher education (innova- tions on the scale of their distribution).
- Innovations that combine different types of pedagogical innovations in the education system and are inn ovations in educational institutions of a certain type, for specific pro- fessional and typological groups of teachers (innovations in socio-peda- gogical significance).
- Innovations that combine different types of pedagogical innovations in the education system (comprehen- sive educational and pedagogical in- novations).
Innovations of structural and pedagogical type are innovations in the formation of goals, objectives and content of education (teaching and education), in forms, methods, tech- niques, in learning technologies, in teaching aids, in the diagnostic system, in control, in evaluation of results, etc. (innovations in the structural elements of educational systems). Innovative information technolo- gies, information and innovation man- agement, as well as innovative mar- keting are widely used in the manage- ment of innovation in education and and uniting in the group of means and tools for innovation management in education (Fig. 5). They can take place in almost all types of the above ped- agogical innovations in the education system, which can lead to innovative changes to achieve new quantitative and qualitative parameters of educa- tion. Information technologies in edu- cation use computer technology, In- ternet and Intranet, remote methods of organization and management of educational activities, are used to de- velop a variety of information retrieval systems and information, advertising and marketing materials (using web design). Information management in educa- tion, based on the use of information technology, is a subsystem of decision-
Fig. 3. Innovations of organizational type in the higher education system
Innovations of organizational type in higher education
Innovations in the way they axe implemented
Innovations in terms of inno- vative solutions and activities
Innovations accoxdina to the degree of forecasted changes
Fig. 4. Innovations of educational and pedagogical type in the system of higher education
Innovations of educational and pedagogical type in higher education
Innovations in the pedagogi- cal process
Innovations according to the functional capabilities of the subjects of educational sys- tems
Innovations by types of inter- action of participants of peda- gogical process
Innovative changes in the personal development of edu- cational entities
Innovations in the scale of their distribution
Innovations in socio-peda- gogical significance
Complex educational and pedagogical innovations
“Academic Capitalism”: Pros and Cons of the Development of Science and Higher Education
making and aims to manage the pro- cesses of creation, processing and dis- tribution of information in the field of education. One of the main functions of information management in the field of education is to develop an organi- zational structure that would provide timely and objective information in the right place, at the right time and in a convenient way to make effective deci- sions. The introduction of information management in education is dictated by the following circumstances: sci- entific and technical development of society, integration and effective use of funds for development, application and effective use of information tech- nology (set of information resources, tools, methods and technologies that contribute to the effective manage- ment of educational activities), includ- ing – development and implementation of management decisions in the field of education; the need to integrate all the data that determine the efficiency and effectiveness of the education system as a whole and each of the educational entities (its components). Innovative management in edu- cation is a system of strategic man- agement of innovation processes in order to study the main directions of educational, scientific, technical and industrial activities and justify a set of
measures for the implementation of innovation strategy. Its tasks are:
- development of plans and programs of innovative activities in the field of education;
- development and implementation of a unified innovation policy in the field of education;
- training of scientific and pedagogical specialists and providing all areas of educational activities;
- providing educational activities with the necessary resources (material, labor, financial, information);
- planning and selection of the best projects of educational innovations (innovations) and control over its de- velopment;
- creation of special groups of man- agement and control over innovation activities in the field of education at all stages.
Innovative marketing in education ensures the effectiveness of the edu- cational system and educational insti- tutions in the market of innovations in education, aimed at forming or identi- fying demand for educational services in order to best meet market demands and needs of society. Innovative mar- keting is based on the use of new ideas for educational services and technolo- gies that best contribute to achieving the goals of the education system and individual educational institutions. Innovative marketing in education is a function of innovation manage- ment in education. It begins with the search for new ideas for educational services and technologies that can best meet existing and potential de- mand with their subsequent materi- alization and commercialization, and ends with the stage of saturating the life cycle of innovation. Carrying out of marketing researches is necessary for the purpose: studying of a con- juncture of the market of education- al services; identification of inquiries, tastes and preferences of consumers of educational services; forecasting the dynamics of demand for educa- tional innovations; developing a mar- keting strategy for innovation in edu- cation, etc.
The purpose of innovative mar- keting in the field of education is to achieve the final practical result of in- novation. It:
- focused on gaining a certain market share of educational innovations in accordance with the long-term goal for which the innovative project was developed;
- integrates research, production and marketing activities into the educa- tional management system;
- focuses on the long-term perspective, which requires marketing research, obtaining on their basis innovations that ensure highly efficient economic activity in the field of education;
- adapts to the requirements of poten- tial consumers of innovation in edu- cation with a simultaneous targeted impact on their interests.
Consider in more detail the content of innovations of the types discussed above, as well as some possible areas of practical innovation in education. Innovations of scientific and tech- nological progress. These may include:
- Use of information technologies in the process of innovation manage- ment of the education system (in- cluding HEI as a subject of the higher education system): information and innovation management, as well as innovation marketing.
- Organization of distance learning – implementation of distance courses (disciplines, subjects from the curricu- lum), automated control of students’ knowledge (testing), teleconferences and Internet conferences and semi- nars based on on-line information technologies, software platforms such as Blackbord, etc., use of local intranet communication systems, etc.
- Use of information technology in the educational process: learning web design and the use of IT technolo- gy in professional activities. Including: e-business (E-business), automation of research and design, automation of decision-making and production pro- cesses, information technology in busi- ness, management, marketing, etc. Organization of distance learning courses according to the scheme: invi-
Fig. 5. Means and tools for innovation management in education
Means and tools for innovation management in education
Information technology in education
Information management in education
Innovative management in education
Innovative marketing in edu- cation
“Academic Capitalism”: Pros and Cons of the Development of Science and Higher Education
HEI programs of other countries (UK, Germany, France, Spain, Scandinavia countries, Benelux countries, etc.).
- Combining Ukrainian standard cur- ricula with the curricula of leading foreign HEIs in order to integrate the best achievements of domestic and foreign higher education systems in a specific field of knowledge, science and technology.
- Democratization of the education- al process, providing students with greater opportunities for free choice of disciplines from the curriculum, expanding the list of disciplines of free choice of students and HEI in the curriculum.
- Involvement of student assets of HEI and the public in the process of im- proving the educational process and statutory activities of the institution.
Innovations in the scale of their dis- tribution. It is desirable to innovate in the activities of each individual teacher of a particular educational institution, and all educational institutions: in the region, at the state level, at the inter- national level (innovations and inno- vations in the activities of each HEI teacher, faculty, all HEI, all HEI region, state, at the level of the international higher education system). Innovations in socio-pedagogical significance. Important at the present stage of globalization of the world economy and social globalization pro- cesses is the creation of innovative in- ternational temporary teams of teach- ers. This primarily applies to Ukrainian HEIs. Invitation of well-known spe- cialists in various fields of knowledge, science and technology will improve the quality of the educational process, encourage students to learn English (international language of business, science and technology) and oth- er foreign languages, allow them to communicate freely with colleagues from abroad, read foreign literature in the original, independently study the world’s scientific and technological achievements. The complex or comprehencive ed- ucational and pedagogical innovations that combine different types of peda-
gogical innovations in the education system include:
- creation of innovative education- al institutions: virtual HEI; open HEI; international ( joint) institutions, in- cluding – institutions of international education;
- creation of international education programs – based on a combination of foreign and domestic curricula and programs with teaching disciplines in both native, national language and foreign (English or other) language;
- creation of innovative educational programs based on interdisciplinary and multidisciplinary curricula, new information technologies, distance and open learning, individualization and intensification of learning.
Innovations in the way they are im- plemented. It is advisable to carry out planned, systematic and periodic edu- cational innovations, namely:
- Introduce new technologies, develop new and improve basic educational technologies, organize the educa- tional process and research activities in HEI.
- Develop new forms, methods and content of education, respond flexi- bly to the demands of social devel- opment, the market of educational services, the requirements of eco- nomics and production.
Innovations in terms of innovative solutions and activities. Innovations should take place both in individual departments of educational institu- tions and in educational institutions as a whole. Innovations in public, munic- ipal and private HEIs contribute to the spread of innovations throughout the education system. As for innovations according to the degree of forecasted changes , all types of innovations that lead to the further development of science and technolo- gy, the formation of a modern special- ist of international level are necessary. Innovations of economic and indus- trial development, depending on market requirements, create new opportunities, forms and sources for further develop- ment and support of the education sys-
tem, its structural components, opening of new specialties, professions in educa- tional institutions, promote compliance of education, research and education. cultural services to the market needs of society. These include:
- Participation of private capital in the creation and financing of educational institutions of various levels, educa- tional and research programs, lend- ing to students and researchers.
- Creation of new (own) educational institutions for corporations, compa- nies, productions and enterprises in vocational training, advanced train- ing, provision of related professions.
- Creation of the latest training, re- search and production complexes (with the participation of various types of HEI, research institutions and industrial enterprises), technolo- gy parks, etc.
- Development of academic (univer- sity) entrepreneurship: interest and stimulation of teachers and scientists to carry out research, discoveries and inventions, disclosure of information on the results of R&D, their patenting and licensing for further practical im- plementation.
- Commercialization of educational re- sults: contractual forms of providing educational, consulting, expert and other professional services.
- Commercialization of the results of scientific and scientific-technical ac- tivity of HEI through: patenting and licensing of discoveries, inventions, other important results of R&D; technology transfer; formation and launch together with industrial en- terprises (business structures) of new companies (spin-off, spin-out, start- up), etc.
It is also worth emphasizing that these innovations can be of the fol- lowing types:
- Radical (basic) innovations – revolu- tionary changes in the development of technology and society, the for- mation of new industries.
- Increasing, modifying (improving) in- novations – improving the properties of existing equipment, technologies and services.
“Academic Capitalism”: Pros and Cons of the Development of Science and Higher Education
From the above we can conclude that innovation in higher education is a process of creating, implementing and disseminating in the practice of higher education new ideas, tools, scientific, pedagogical, organizational and mana- gerial and economic methods and tech- nologies, which increase the achieve- ment of structural components of the higher education system and its transi- tion to a qualitatively higher level. This activity is aimed at building a knowl- edge society with an innovation-orient- ed type of economy and is related to:
- formation and accumulation of new knowledge;
- use and commercialization of re- search and development results;
- transformation of scientific research and development, other scientific and technological achievements into new or improved products, tech- nologies, services introduced to the market, into new or improved tech- nological processes used in practice, or new approaches to social services;
- formation of intellectual and forma- tion of human capital;
- the use of new tools, methods and technologies to accelerate the eco- nomic growth of society.
In view of this, innovative activi- ties in the field of higher education, science, educational, scientific, educa- tional and cultural services have a so- cio-economic essence, combines a set of organizational, economic and social actions aimed at creating a knowledge society with innovation-oriented type of economy. Such innovative activi- ty is associated with the formation, capitalization and commercialization of intellectual products – knowledge, technology, educational and scientific services, etc. and is one that should develop faster, contributing to real re- form and renewal of education in ac- cordance with new requirements and demands of society and time. One of its most important components is the innovative activity of entrepreneurial universities, which is essentially “aca- demic” or university entrepreneurship, characteristic of the new capitalist en- vironment – “academic capitalism”.
Since the adoption by the US gov- ernment of the Bay-Dole Act (the Law on Patents and Amendments to the Trademark Act) on December 12, 1980, the era of rapid economic growth in the country began, which became a prerequisite for the phenomenon of “academic capitalism”. According to S. Slaughter and L. Leslie [2], the essence of “academic capitalism” is the trans- formation of scientific and teaching activities into a kind of entrepreneur- ship: the implementation of research projects is directly dependent on the receipt of cash subsidies from individu- al corporations. Within the framework of “academic capitalism”, the activities of research institutes and centers with- in the university structure are aimed at increasing the potential for public application of knowledge. The authors give the following interpretation of academic capitalism: “To conserve or increase resources, researchers and faculty had to increasingly compete for foreign dollars, which proved to be related to market-oriented research related to various applied, commer- cial, strategic and targeted research. And whether the money comes in the form of research grants and con- tracts, partnerships with industry and government, technology transfer, or in the form of attracting more students who can offer higher tuition fees. We call academic capitalism the market or market-like activity of a scientific and educational organization, as well as its employees to attract external funds” [2]. Note that the term “academic cap- italism” was first introduced in 1990 by E. Hackett [3] to denote important structural changes in science. “Academic capitalism” sets new directions for the development of modern higher education and mani- fests itself on three levels: institution- al, departmental, individual. Academ- ic capitalism at the institutional level is realized against the background of changes in the funding of higher ed- ucation institutions, the reduction of public funding and the need to find sources of additional funds. The study of academic capitalism at the depart- mental level is of interest because it
is here that various activities are car- ried out, employees adapt to new val- ues. At the individual level, within the framework of academic capitalism, there is a revision of the distribution of time between the main activities of the teaching staff: teaching, research, services [4]. S. Slaughter, G. Rhoades [5] note that as colleges and universities be- come more entrepreneurial in the post-industrial economy, they focus on knowledge less as a public good than as a commodity to be used for profit-making activities. The authors emphasize the more aggressive in- volvement of US free trade in the new knowledge-based economy, and note the significant efforts of colleges and universities to develop, market and sell research products, analyze the com- petition of services and consumers of goods in the private market. Following the changes in the poli- cy and practice of educational and sci- entific activities, revealing new social networks and schemes of knowledge creation and dissemination, as well as new organizational structures and expanded management potential for communication between free econom- ic zones and markets, the authors ex- press concern about the development of nonprofit basic science. Depicting the higher academic capitalist regime of knowledge formation and market- ing (i.e., teaching), which is expressed in the work of teachers, the activities of departments and administrative be- havior, they note the attraction of busi- ness interests and commercialization of knowledge over the so-called pure science. At the same time, they reveal internal contradictions in the regime of free economic activity, noting the new state of state subsidies, which become embedded in new revenue streams, as well as shifting the emphasis from ed- ucational and research services to stu- dent clients to attract resources from them. The authors understand the tra- jectory of American higher education from non-profit educational and re- search-oriented to commercially-ori- ented to generate profits from the widespread distribution of new goods
“Academic Capitalism”: Pros and Cons of the Development of Science and Higher Education
search requires immediate active and constructive intervention of respon- sible government bodies and institu- tions. The future of both fundamental science and basic knowledge of man- kind, as well as the intellectual and sci- entific and technical capital of society, depends on purposeful government actions. And this, in turn, is the neces- sary basis and foundation for the fur- ther development of all countries.
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Романовський О. О., Романовська Ю. Ю. ”Академічний капіталізм”: плюси та мінуси в розвитку науки й вищої освіти
Середовище академічного капіталізму, яке охопило майже всю сферу на- уки та вищої освіти, здійснює на них як позитивний (ПРОС), так і негативний (КОНС) вплив. Академічний капіталізм різко прискорив комерціалізацію ре- зультатів прикладних досліджень і розробок університетів та науково-дослід- них інститутів і дозволив цим організаціям і установам значно капіталізувати свій інтелектуальний капітал. Це надало поштовху розвитку прогресивних ін- новацій та видатних винаходів. Наприклад, у системі вищої освіти спостері- гається інтенсивний інноваційний розвиток, що, безумовно, можна віднести до позитивного впливу академічного капіталізму на розвиток матеріального, технічного, наукового та інженерного потенціалу університетів та коледжів. З іншого боку, гонитва за прибутком та загальний пошук можливостей ко- мерціалізації результатів НДДКР, переважно результатів прикладних наукових досліджень та експериментальних розробок, призводить до значного змен- шення попиту та уваги до розвитку фундаментальної науки та пошуку базо- вих наукових цінностей. Це призводить до уповільнення виробництва нових базових фундаментальних знань та уповільнення інтелектуального розвитку суспільства. Також у багатьох наукових публікаціях, що з’явилися останнім часом, підда- ються критиці наслідки впливу академічного капіталізму на сферу науки й ви- щої освіти. Надмірна підприємницька діяльність ВНЗ у напрямку отримання прибутку від розвитку та комерціалізації прикладних досліджень замість чисто наукової діяльності та основних фундаментальних досліджень призводить до втрати позицій університетів і коледжів як “храмів науки”. Можливо, все ще існує невелика кількість академічних закладів вищої освіти та досліджень, що продовжують проводити фундаментальні наукові дослідження, які важко ко- мерціалізувати, але які є справжніми “науковими знаннями”, або, іншими сло- вами, знаннями про людство. У даній роботі аналізуються інноваційні зміни в системі вищої освіти, ви- кликані середовищем академічного капіталізму. Також аналізується негативний вплив академічного капіталізму на сферу вищої освіти й науки. Ключові слова: академічний капіталізм; підприємницький університет; інно- вації у вищій освіті; інноваційний розвиток сфери вищої освіти.
