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Higher Education Modelling

Development, Application and Perspectives


Michaela Gläß

This book deals with the feasibility analysis of market-oriented Higher Education Institutions based on the data of international field survey. The topics under examinations require the use of qualitative methods: guideline-oriented open expert interviews in different countries for data collection, content analysis of the survey data, and proposal of a Balanced Scorecard application in the Higher Education Institution management. Based on the elements of New Public Management methodology the author elaborates a detailed development plan usable as a model to restructure a Higher Education Institution to cope with the challenges of the Future.

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4 Results and Discussion


4.1 The Education Sector as an Industry

Eurostat, the Statistical Office of the European Communities, has classified Higher Education as an industry in its second revision of the NACE report on statistical classification of economic activities in the European Community. The report states that “an economic activity is characterised by an input of resources, a production process and an output of products (goods or services).”89 The evaluation criteria state that the value added is an important criterion for the evaluation. Value added can be substituted by “number of staff involved in the different economic activities of the unit” and “time worked by staff attributable to the different activities of the unit.” However, “precautions have to be considered when input-based substitute criteria are applied. The proportionality between wages and salaries or employment, on the one hand, and value added on the other is not reliable if the labour intensity of the various activities is different.”90

According to the Federal statistical office, the government spent 10.6% of its budget on education in 2010. In 2005, that percentage was 10.1%. The latest numbers by Eurostat indicate that the EU spent 5.07% of the GDP on education. Germany spent 4.55% of its GDP. An However, other European countries fare better in that statistic. The Nordic countries are particularly generous concerning education. Norway (247), Denmark (186) or Sweden (165) have all exceptionally high indices. Germany’s neighbours also fare better: France (124), the Netherlands (146), Austria (135), Switzerland...

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