Bousted Globalisation Lecture 2010 Kuala Lumpur, January 14th 2010 The Globalisation of Higher Education and the Emergence of Asia David Greenaway, Vice-Chancellor, University of Nottingham Outline • The Global Context • The Global Market for HE Services • Drivers of the Globalisation of Higher Education • Alternative Globalisation Strategies • Globalisation and HE in Asia and Malaysia • Globalisation of The University of Nottingham Why is Higher Education Important? • Human capital fuels economic growth • Higher Education is fundamental to the creation of human capital, through: – teaching and learning – research and the creation of new knowledge (Technology Readiness Levels 1-3) – knowledge transfer and the application of new knowledge (TRLs 3-6) • Transmission of knowledge internationally • Impact on wealth creation and social harmony Globalisation of Higher Education • Globalisation, has been around for a very long time; we have just called it something else (international trade, international economic integration etc, etc) • Higher education has always been international (think of the great scholars of ancient history, the great international universities of the middle ages) “Higher education has always been more internationally open than most sectors because of its immersion in knowledge, which never showed much respect for juridicial boundaries”. Marginson and van der Wende (2009) • And, like globalisation more generally, falling costs of mobility and new technology are driving rapid change in transnational education The Global Market for HE Services Global Trends OECD (2009) estimates over 3 million students enrolled outside their home country in 2007 Over 120 million students study in Higher Education across the world Global proportion of all students studying overseas has only increased by 2% for the same period Students from Asia account for the vast majority of total internationally mobile students. Source: OECD (2007) Education at a Glance Number of National Students Studying Abroad China India Korea Germany France Turkey Japan United States Morocco Russian Federation Malaysia Canada Italy Kazakstan Uzbekistan Poland Greece Hong Kong, China Ukraine Indonesia Islamic Republic of Iran Viet Nam Pakistan Mexico Bulgaria Spain Romania United Kingdom 457,366 162,221 107,141 85,963 63,025 59,150 56,060 52,085 50,917 50,724 48,841 44,371 41,394 40,504 39,974 38,199 38,042 34,051 33,680 33,505 31,688 30,510 30,113 27,595 27,034 26,748 26,277 26,136 Number of International Students in the OECD Area United States United Kingdom Germany France Australia Canada Japan New Zealand Spain Italy Austria Sweden Belgium Switzerland Netherlands Korea Czech Republic Greece Denmark Turkey Portugal Ireland Norway Hungary Poland Finland Slovak Republic Mexico 595,874 351,470 258,513 246,612 211,526 132,246 125,877 64,951 59,814 57,271 43,572 42,796 41,351 41,058 37,815 31,943 24,483 21,160 20,850 19,257 17,950 16,758 15,618 15,110 13,021 10,066 2,010 1,892 Global Market Shares Drivers of the Globalisation of Higher Education Drivers of the Globalisation of HE • ‘Macroeconomic’ Drivers: – rapidly declining costs of mobility – spread of new technology – dramatic falls in communication costs • Non-economic / Policy Drivers: – promotion of cultural exchange – international development assistance – foreign policy instrument Drivers of the Globalisation of HE • Institutional: – market expansion – portfolio diversification – enriching the student experience – facilitating network creation – benchmarking – social learning and relationship building Globalisation Strategies HE Globalisation Strategies • As in other areas of international business: – Universities can enter foreign markets by different modes – mode of entry will be driven by fixed costs of entry and corporate strategy – different Universities adopt different strategies – almost all adopt low cost entry modes – a few follow-high cost entry modes Alternative Entry Modes • International student recruitment and mobility • Mobility of staff internationally • Creation of international networks • Bilateral partnerships • Cross border delivery – Distance learning – Partnerships (eg articulations, in country delivery) – Franchises – Greenfield development (campuses) Some Perspectives on Asia Some Metrics • Student Mobility – Asia dominates outward mobility of students – But is still a small host region • Research Excellence – International league tables are dominated by North America and Western Europe – But Asian Universities are emerging strongly • Investment – Many Asian Governments are investing heavily in HE Transnational Education in Malaysia • Malaysia is one of the oldest TNE providers globally • There are approximately 50,000 International Students in Malaysia • Attractors include: language, historical ties, openness, safety, location, price, Government policy • Composition of International Students is moving away from China and Indonesia towards South Asia and the Middle East • Partnerships are dominated by the UK (40%) and Australia (28%) Transnational Education in Malaysia • Malaysia has pioneered the establishment of branch Campuses • Malaysia has almost 50,000 students studying abroad (the UK has 26,000) • Malaysia’s international mobility rate is 6.1% (the UK’s is 1.1%) Enrolments in HE in China China household income Demand for HE in China China’s Research Metrics • Scientific outputs have doubled since 2004 • China now global No 2 in volume of scientific outputs • 6 of the top 20 most cited papers in Chemistry and Physics in 2008 by Chinese authors • UK and China are 2nd and 3rd respectively for citations in Engineering China’s Research Metrics • China will have the largest PhD output globally by 2010 • China’s focus on technology education spectacularly exceeds the West – 5% of US graduates are Engineers compared to 39% in China • UK collaborations continued to rise faster in 2008 than any other partner nation Some Nottingham Perspectives Nottingham’s Philosophy • Reciprocity – Give as much as we get – We achieve more multilaterally than unilaterally – UK can benefit from educating the worlds best • Commitment – Long-term, not just opportunistic – Investing for the future – Fundamentally British but locally embedded • Quality driven – Teaching and research dimensions • International responsibility How we do it……at Nottingham • Recruitment of highly-qualified international students • ‘Lone-scholar’ links • School-level collaborations – research networks and curriculum development • School level partnerships • Student mobility - internationalising the student experience • Universitas 21 activities Total Numbers of International Students 2004-05 2007-08 2009-10 UoN UK UoN China 5,778 7,342 8,000+ 254 2,837 4,500+ UoN Malaysia 890 2,924 3,500+ Total 6,922 13,103 16,000+ How We do it…….at Nottingham (continued) • International campuses: – The University of Nottingham, Malaysia Campus – The University of Nottingham, Ningbo, China Why Invest in International Campuses? • Pull factors – Market opportunities – a UK education without a UK price tag – Providing our students with an international experience – Contributing to employability – Opening new research opportunities – ‘Brand development’ • Push factors – Changing patterns of demand – Changing patterns of competition • Enabling factors – Government regulations, policy – Internal culture and our people The Concept • A UK style education – curriculum, pedagogy, systems, language, resources • The “Nottingham” experience – leadership from seconded staff • Multi-campus schools – academic units at the campuses are part of the School at the UK campus • Student exchange and mobility • International staff and international students • Creating research capacity • UK in origin and style but locally embedded Nottingham in Malaysia The University of Nottingham, Malaysia • Full campus, not a franchise, not validation • Joint venture private company • Main campus - ‘garden’ campus in Semeniyih • A city-centre site in Kuala Lumpur Schools Involved : Malaysia • • • • • • • • • • • Education English Language Chemical and Environmental Engineering Civil Engineering Mechanical, Materials and Manufacturing Engineering Mathematical Sciences Biosciences Computer Science Pharmaceutical sciences Business School Work, Health and Organisations University of Nottingham in Malaysia June 2003 Why Malaysia? • Significant alumni strength • Buoyant student numbers at Nottingham • Familiarity with the educational system and culture • Alignment with Malaysian strategies (eg 20/20 vision and 50th Anniversary year) • High level political commitment • Visionary and committed local partner Nottingham in China University of Nottingham Ningbo, China • Full campus, not a franchise, not validation • Joint venture company • A ‘garden’ campus in Ningbo Schools Involved : China • • • • • • • • • English Studies International Studies Civil Engineering Environmental Engineering Mechanical Engineering Computer Science Built Environment Business School Contemporary Chinese Studies Spring 2005 Why China? • China’s role in the world economy • Maintain position of Nottingham in China and in the study of China • Long Term Research and Development • Sponsorship opportunities • High level political support What Next for Nottingham? • Promote greater student and staff mobility • Extend range of undergraduate programmes on offer • Build Graduate Schools at both UNNC and UNMC • Enhance research capacity at UNNC and UNMC • Develop research to address national priorities • Build partnerships with other HEIs in both countries • Promote more international knowledge transfer Prospects for the Globalisation of Higher Education Short-term Threats to Further Globalisation • • • • • Global financial turmoil Increased uncertainty – economic and political Public expenditure pressures Intensified competition But, – Long-term prospects for further globalisation are promising Longer Term Prospects • Less than 2% of students in higher education globally are internationally mobile • Emerging economies offer enormous potential • Growth in investment in R and D • Diffusion of new technology • Increased competition The World’s 20 Most Globalised Countries (AT Kearney index) • • • • • • • • • • Singapore Switzerland United States Ireland Denmark Canada Netherlands Australia Austria Sweden • • • • • • • • • • New Zealand United Kingdom Finland Norway Israel Czech Republic Slovenia Germany Malaysia Hungary And 6 Countries Not In The Top 40 Most Globalised • • • • • • China India Indonesia Brazil Pakistan Russia These countries have a combined population of 3.2 billion, or 50% of the world’s total and 5 of them are in the world’s top 10 in terms of GDP Thank You and…. ………Questions? Conclusions • Long term perspective essential • Clear institutional leadership is essential • Importance of an underpinning Internationalisation strategy • Pre-planning market research is vital • Reputational risks are real Conclusions • The learning curve is steep • Give R and D a ‘local’ perspective • Allow time for growth: medium to long term • There is significant scope for further expansion and development Issues • Getting to start-up – Institutional leadership – Financial and legal considerations – Managing from a distance and locally – Quality control – Staffing – Understanding the educational context Issues (continued) • Risk Management – Financial – Reputational Issues (continued) • Sustainability – Convincing Schools to commit – Support and incentives to Schools – Enhancing research capacity – Developing partnerships – Managed growth and succession planning