Why Universities Do Research?

July 5, 2010
Comment and Review, Institutions, Resources
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The title of this post is a question.

My colleague Mark Guzdial recently asked whether it makes sense for colleges and universities to do research:

I’m wondering now why universities do research — how does it make economic sense? Is it because it’s their raison d’etre? I don’t buy that, because that wouldn’t explain why so many smaller colleges and universities are increasing their research portfolio. Is it because a “hit” cancels out all the losses? One good piece of IP makes up for all the research that didn’t bear fruit? Or is it because a research portfolio is necessary for reputation surveys?

It’s a question that I try to answer in my new book.  Here are some of the facts.

  1. University research seldom pays for itself. Institutional data is hard to come by because accounting practices vary wildly from place to place, and there is wholesale mixing of revenue sources.  According to the Center for College Affordability and Productivity, for example, the historical trend at AAU institutions has been toward reduced teaching loads for faculty actively engaged in research. But that is a trend that flies in the face of increased enrollments. Additional instructors are needed for the classes that would otherwise be taught by faculty members engaged in sponsored research.  Costs like these are not recoverable, so research sponsors get an effective discount because faculty salaries do not reflect teaching productivity. Who makes up the difference? Most institutions tap a general fund to cover these costs — the same fund that is used for instructional budgets.  Reduced teaching loads are a tax on the cost of instruction, and it is just one of dozens of ways that cross-subsidies fund the research enterprise. I recently asked the vice president for research at a top fifty land grand college about their discount rate. He told me, “We spend $2.50 for every research dollar we bring in.“
  2. Institutional envy drives both behavior and investment. Presidents of public masters universities are motivated to define their institutional profiles to conform to a  “higher” Carnegie classification.  It is a phenomenon that Arizona State president Michael Crow calls institutional envy, and it drives the behavior of hundreds of colleges and universities. Sometimes institutional envy is simply the way that institutions climb the reputational pyramid.  Other times, it is the only way to make scarce resources stretch to fit expanding missions, because non-state, non-tuition revenues flow disproportionately to the universities at the top of the hierarchy. Public support for public masters universities declined by 15% from 2001 to 2006,  In that same period, tuition rose only 10%.  Gifts, endowments, grants, and research contracts are the only means available for closing the gap, but private giving has been in decline since 2001.  In fact, public university endowment income on a per-student basis is less than $600, which is essentially its pre-1987 level. That means federal and state research contracts have to generate enough income to keep fragile programs afloat. Since the 2008 market collapse, tuition increases have been used to try to stave off disaster, but,  according the Delta Project on Postsecondary Costs, Productivity, and Analysis, few of those dollars have benefited instruction.  In fact, once you remove discretionary spending,  instruction is dead last among the beneficiaries of increased tuition.
  3. You do not need a research program to prosper and innovate. The examples that come readily to mind are Williams College and Harvey Mudd College. Williams in particular eschewed the tug of becoming a research university in the wake of Daniel Coit Gilman’s 1876 launch of Johns Hopkins as a research institution in the mold of the great German research universities.  Harvey Mudd is a continuing experiment in how to keep a mission focused on students.   The University of Mary Washington in Virginia innovates around technology that keeps students and alumni closely bound to the university.
  4. Commercializing and licensing IP is a pipe dream for most institutions. Every tech transfer office knows the examples: Wisconsin’s vitamin D patent, Stanford’s rDNA patents.  But according to NSF’s John Hurt: “Of 3,200 universities, perhaps six have made significant amounts of money from their intellectual property rights.” John Preston, former head of MIT’s technology commercialization office is even more blunt: “Royalty income is such a horrible means of measuring success. Schools should instead focus on wealth and job creation, economic development, and corporate goodwill.”
  5. Research universities have conflicting incentives. They are in many ways inconsistent institutions. The legendary University of California president Clark Kerr used the term multiversity to describe the modern research university — it is a wonderfully clarifying word. What it means is that what we think of as monolithic institutions are actually loosely federated enterprises that all live together under the same brand.  A modern research university  consists of several undergraduate colleges,  one or more professional schools, many graduate schools, several intercollegiate athletic programs, hospitals, hotels, performing arts centers, technology commercialization offices, and distance education centers. Each component has its own network of stakeholders who demand success, even if it comes at the expense of another part of the university.

Viewed through this lens, Guzdial’s questions are even more interesting.  It frequently makes little economic sense for a university to conduct research. It may be part of the mission of a multiversity, but it is not the only mission — and there are plenty of examples to guide other choices.  If the dream of IP commercialization success drives  institutions to build their research programs, what about the data that predicts little chance of success? And if a university is concerned about reputational hierarchies, does building a research portfolio actually help?  Among the many components of a modern multiversity, few could survive without the instructional programs.  Academic programs, on the other hand, might do quite well without hospitals, theaters, or fancy football arenas. So, why should a university do research?

Let’s hear your thoughts.

A Sabbatical

February 28, 2010
Comment and Review
1 Comment

Abelard and Heloise surprised by Master Fulbert (Painting by Jean Vignaud)

I’ve been receiving email the last couple of weeks.  “Where are the WWC  posts?”  “Are you still writing on WWC?” The short answer is “yes,” but I am taking a short sabbatical to finish my book Abelard to Apple: The Fate of American Colleges and Universities in the 21st Century.  I like the idea of taking a sabbatical from writing to be able to write something, but it’s not an original idea.  I noticed that when New York Times columnists like Tom Friedman and Maureen Dowd go silent for a few weeks to finish a book, they say that they are taking a sabbatical, and I thought that I would also take a sabbatical. Maybe some their  marketplace magic will rub off on me.

What’s the book about?  It’s a WWC story about the challenges that face American higher education as the sudden appearance of abundant choices in university education erode the value of traditional colleges and universities.  I have written a little about this before.  My colleague Dick Lipton has an excellent post on what he thinks is the doomsday scenario for American colleges.

The appearance of Peter Abelard’s name in the title of my book always draws curious looks.  It is in part a metaphor for a long-lost approach to education in which the connection between students and teachers defined the learning experience.   But it is also a real part of the story of where our universities are heading because it is the starting point of an historical arc that might well lead to Liptons’s extinction event.

Peter Abelard is known today mainly because of his disastrous love affair with Heloise, but

Few teachers ever held such sway as Abelard now did for a time. Distinguished in figure and manners, he was seen surrounded by crowds — it is said thousands — of students, drawn from all countries by the fame of his teaching, in which acuteness of thought was relieved by simplicity and grace of exposition. Enriched by the offerings of his pupils, and feasted with universal admiration, he came, as he says, to think himself the only philosopher standing the world…Great as was the influence exerted by Abelard in the minds of his contemporaries and the course of mediaeval thought, he has been little known in modern times but for his connection with Heloise[1].

Abelard to Apple will be published in 2011 by MIT Press.  I will be back with new WWC posts in  few weeks.

References

[1] George Croom Robertson, M.A., Professor of Mental Philosophy and Logic at University College, London, 1867-1892, first editor of Mind, his articles have been republished under the title of Philosophical Remains.

Climate Change, Ivory Towers and The Journal of Irreproducible Results

December 8, 2009
Policy
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There’s a kerfuffle on the eve of the United Nations Climate Change Conference in Copenhagen. 1,700 email messages  that were supposed to be stored on a secure server somehow found their way to open servers and were rapidly picked up by bloggers and others, who jumped on the opportunity to use the sometimes embarrassing messages to discredit  the overwhelming consensus of climate scientists that the earth is warming at an alarming rate and that human activity is the most likely cause. Aside from the shocking coincidence of events — what are the chances that a massive, worldwide fraud would be exposed at the same time the conspirators are getting together to impose their new world order? — and the uproar among climate scientists — who are launching ad-hominem attacks at every skeptic who pokes his head above ground — are there other lessons to be drawn from this shameless bit of theater?  My Georgia Tech colleague, climate scientist Judith Curry, hit the nail on the head when she  pointed out that: (1) there is really nothing in the released messages that discredits published scientific results and (2) scientists are being incredibly counterproductive by retreating into their Ivory Towers and passing up the opportunity to educate and engage both skeptics and the public.  Her Open Letter to Graduate Students and Young Scientists should be required reading for everyone interested in how to keep worlds from colliding:

…even if the hacked emails from HADCRU end up to be much ado about nothing in the context of any actual misfeasance that impacts the climate data records, the damage to the public credibility of climate research is likely to be significant. In my opinion, there are two broader issues raised by these emails that are impeding the public credibility of climate research: lack of transparency in climate data, and “tribalism” in some segments of the climate research community that is impeding peer review and the assessment process.

For “climate science” you can substitute “innovation” and the message is the same. If you’ve circled the wagons and are shooting at anything that moves, the easy target is public understanding of not only science but innovation in general.  The American public is not interested in the long-term thinking required to make sense out of squabbles like this. There are simply not enough people like San Diego Florist Steve Boigon, who — according to the New York Times — downloads MIT physics lectures because he  finds that:

I walk with a new spring in my step and I look at life through physics-colored eyes.

Curry did not go after the easy targets. Instead, she talked honestly to students about the importance of climbing down from the Ivory Tower. The interactive relationship between basic science, technological innovation and public policy — what Donald Stokes calls Pasteur’s Quandrant —  is a hot topic these days, because  so many important societal issues can only be resolved at their intersection.

There’s a veil that conceals the inner workings of creative science and engineering  from the lay public, and attempts to lift it sometimes produce  bizarre reactions.  I was once struck speechless  at an all-hands meeting when one of my engineers stood to scold  the  CEO for making product decisions because he knew “nothing about electronics.”  A prominent member of my Board of Advisers at the National Science Foundation once countered criticism of his particularly cumbersome approach to software development by angrily proclaiming,  “Programming is like playing a piano.  Only virtuosos should do it!”  A world-renowned engineer once responded to an essay critical of his methods by widely distributing a letter entitled “On a Political Pamphlet from the Middle Ages.”  I was one of the young authors who was at the receiving end of that one.  When  outsiders try to lift the veil, the best course is to repair to the upper reaches of the Ivory Tower, hope that the hubbub goes away, and shoot down if it doesn’t.

It is a world view that is somehow wired into university training. The Medieval regalia, semi-religious icons,  and murmured  incantations that convey special status on the conferees reinforce the impression at every college commencement that something mystical has taken place. Science textbooks are uniformly silent on how science is done, presenting instead the subject as a linear, completed work — orderly in progression and tidy in its use of knowledge.  Nearly every engineering textbook guides  readers through well-rehearsed exercises to successful completion of design tasks. Why would anyone want to learn how to build a bridge that falls down?

Insiders, of course, know differently. What takes place behind the curtain is as important as the finished product.  Some of the best technical books ever written lift the veil.  Proofs and Refutations by Imre Lakatos describes  the centuries-long frustration of mathematicians  trying — and repeatedly failing —  to precisely define polyhedra.  The process led some of  the greatest mathematical results of all time. Why Buildings Fall Down by Mario Salvatori and To Engineer is Human by Henry Petrosky are both compelling arguments that progress in  engineering is inextricably tied to understanding engineering failure.  Insiders know that failure is part of the package.  That’s exactly what makes the most outrageous of the climate change attacks so improbable.

There is a sub-genre of humor devoted to obvious, boundlessly incompetent scientific failure, real or imagined.  The Journal of Irreproducible Results is perhaps the defining publication that holds technical vanity up to ridicule. An article entitled Peaceful Use of Nuclear Explosives helpfully noted that

Development of hydro power in the desert of North Africa awaits only the introduction of water

My personal favorite medical discovery was an announcement entitled The Incidence and Treatment of Hyperacrosomia in the United States:

Some very famous Americans  have indeed been afflicted with Acute Hyperacrosomia, among them Abraham Lincoln, George Washington and Lyndon Johnson.  Their condition is readily apparent upon comparison with normal individuals such as Napoleon Bonaparte, Truman Capote  and Dick Cavett…..Since the male population does express the condition to a higher degree, it falls primarily to the female population to objectively consider the risks of involving themselves with hyperacrosomic males…

The jokes are so well-known that Henry R. Lewis apparently had not second thoughts when he wrote The Data Enrichment Metho d:

The following remarks are intended as a non-technical exposition of a method which has been promoted (not by the present author) to improve the quality of inference drawn from a set of experimentally obtained data.  The power of the method lies in its breadth of applicability and in the promise it holds in obtaining more reliable results without recourse to the expense and trouble of increasing the size of the sample of data.

I have a hazy understanding of the data manipulation charges that climate skeptics are leveling at researcher, but I am pretty sure that The Data Enrichment Method was not involved.  There is also the issue of transparency that is specific to climatologists, but Curry handles that well. And then there are the charges that editors of journals were unduly influenced by political considerations.  Like the Inspector in Casablanca, I would be shocked — truly shocked — to hear that hundreds, perhaps thousands, of smart, educated, and highly ambitious people make decisions based on self-interest. The secret that Curry reveals is that it may be regrettable, but  it doesn’t matter in the long run.  Science is not an orderly, axiomatic progression of knowledge. It is a social process.

Even a brief peek under the veil would be enough to convince many fair-minded skeptics that if there were another, compelling, contradictory analysis of the same data, it would have by now appeared in a reputable scientific journal.  Why?  Because it would be a career-making result.  The article would write itself.  What editorial board could long resist publishing an epochal article?  History teaches that political manipulation is much more likely to focus on who gets priority as multiple groups rush to publish simultaneously.  It’s a to maintain a conspiracy when everyone is looking out for himself.  None of this means that everything that has been published is correct. It just means that it’s very unlikely that the shrill cries of  systematic fraud have any validity.



So strong is the urge to seek out systematic scientific fraud, that there is a magazine devoted to the subject. The Skeptical Inquirer (SI) is a kind of companion to The Journal of Irreproducible Results. It specializes in debunking academic myths and scientific hoaxes.  It has over the years exposed magicians, perpetual motion charlatans, creationists, and hundreds of scientific frauds.  Who are these crusaders?  They are the very power brokers that would have to be co-opted if the climate change conspiracy theorists were right.  Here’s a partial list of SI Fellows:

If there is  a less easily manipulated group under one banner, I have not seen it.

Judy Curry’s Open Letter does not only apply to climate scientists. It applies to every boardroom that squashes the discussion of how innovation takes place and every executive suite where technologists are too busy innovating to engage seriously with corporate management.  Of course, it also applies to the easy targets — facile business leaders who confuse near term planning with technical progress and are too quick to jump to the “bottom line” — but that discussion will have to wait for another post.

27,000 Alternatives

November 20, 2009
Institutions
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A few days ago, thanks to OpenStudy founder and colleague Ashwin Ram (follow @ashwinram on Twitter), I learned that abundance of choice in higher education is more than an abstract concept:

New Delhi, Nov 7 (IANS) More than 27,000 additional institutions of higher learning would be required to meet the targeted Gross Enrolment Ratio (GER) of 30 percent for 2020, Human Resource Development (HRD) Minister Kapil Sibal said here Saturday.

“This figure includes 14,000 colleges of general higher education, 12,775 additional technical and professional institutions and 269 additional universities,” Sibal said in a presentation during the meeting of the consultative committee for the HRD ministry here Saturday. [1]

27,000 is a very large number of new institutions, but it’s hard to say how much of the market will be served once they are operational.  Twelve percent of  Indian secondary school students go on to university studies compared with the thirty percent  goal of the new Indian government and the seventy percent ratio in many developed nations. That’s about 350 millions students.

The challenge for India is to create a system of higher education that breaks the bureaucratic licensing stranglehold that has led to widespread dissatisfaction with storefront operations.  It is clear that the new Indian system will combine the two features that I mentioned last week: value and cost.  Students will have the ability to choose both their institution and their course of study.  And because many graduates are today unemployable, the value of degrees from the new universities will have to be proved in the marketplace.  That’s good news for innovators who want to move India to a position of global leadership, and bad news for the old system that is in any event being dismantled.

The costs are staggering, so new business models are welcome.  The IT company Wipro has already started to co-brand degrees with top ranked technological universities like Birla Institute of Technology in Pilani and the Sipal has been very open about needing other creative forms of private investment to offset costs.

What does this have to do with American colleges and universities? Just as low-cost, high value service industries have migrated to India, the higher education market in the US will also start to buy more educational services there as well. India is already a destination of choice for some graduate students, and not only because of lowered costs, as Cambridge medical student James Gill reports in the Cambridge University Graduate Student Blog:

Doing a medical elective in India would in theory help me to better understand and relate to Indian patients as well as colleagues that I might work with in the future.[2]

“Well sure,” I hear you saying, “but that’s a medical student in the UK.   It’s not, say, a Nobel-prize-producing chemistry lab in the US.  That’s where the real value is.  Berkeley will never be vulnerable to a lower-priced operation.”  The University of California at Berkeley is the top ranked public university in the country, and so it was something of a jolt to read in today’s New York Times that a 32% increase in fees has over the past decade helped to triple the price tag for a degree from Cal and that

Among students and faculty alike there is a pervasive sense that the increases and the deep budget cuts are pushing the university into decline.[3]

The accompanying color picture is a chemistry lab at Berkeley.  Small wonder that the students who have protested the fee hike are questioning the University of California value proposition,  and especially whether their education can be obtained quicker and cheaper someplace else.  There will shortly be alternatives for some of them. 27,000 alternatives if everything goes according to plan for Mr. Sipal.

[1] http://www.sindhtoday.net/news/1/68995.htm

 

[2] http://www.societies.cam.ac.uk/cgcm/ElectiveReports/JamesGillIndia.html

[3] The New York Times, Friday November 20, 2009, page 1

An Abundance of Choices

November 13, 2009
Policy, Resources
1 Comment

Kalinga Raipur

I have in recent years — and for many different reasons — become a fan of Daniel Pink’s book A Whole New Mind.[1] Pink has a compelling framework for thinking about value.  First, can what I am trying to do be done better (or cheaper or faster) by a computer?  Second, is what I am offering in demand in an age of abundance? Finally, can what I am trying to do be done more efficiently elsewhere?

As readers know by now, I am working on a WWC book about higher education, and  I have found that that the question of value is central to understanding where American higher education is going. Simply put, when there are abundant choices for university education, will traditional universities offer enough value to be able to withstand the coming pressure of a global marketplace?

Here’s why I am concerned.  In any market with growing demand and abundant choices, there are only three ways to win: have an unassailable brand, offer the lowest prices, or offer the most compelling value.  Even better is to be able to win with both price and value. There is really only a handful — 70 at most — of global brands in higher education, so for most of the 3,000 or so accredited colleges — let’s call this the Middle —  it’s a matter of finding the right balance between cost and value.  Universities are profligate consumers of resources, so it came as no surprise to read in last week’s Chronicle of Higher Education that 58 private colleges have now joined the $50,000 club.  Public universities are not far behind.  If I am right about winners and losers in global marketplaces, the institutions in the Middle who are at most risk had better get the value equation right.  The problem is that most of them don’t have a very clear idea of their value.

That’s significant because  half of the world’s population has joined the free market economies in the last fifteen years. For the most part, these are countries with rich educational heritage, that also understand the value of a well-educated labor force.  The market for higher education is bubbling as new and established players alike  scramble to figure out how to reach hundreds of millions of students:

But the demand for higher education is continuing to increase with more and more students wanting a higher education today than ever before. How can we bridge the gap between increasing demand and decreasing government funding for higher education? The only option is to tap the private sector to participate in the funding and provision of higher education. The process of increasing private participation in higher education has already begun with a few states like Chhattisgarh and Uttaranchal having passed legislation to permit the setting up of private universities in their states. Indeed the private sector has been funding higher education in India for a long time, albeit on a very limited scale. The Birla Institute of Technology and Science at Pilani in Rajasthan, which is funded and run by the Birla Group Trust, became an officially recognised university as far back as 1964. Other institutions like the Manipal Group in Manipal in Karnataka have been running private colleges since 1953 and the Manipal Academy of Higher Education became a deemed university in 1993. Many other self-financing colleges were set up in the early 1990s and a few of them have now become deemed universities.[2]

The problem for American universities is that, since  few of them understand their value to traditional students, the chances are slim that they will figure out what the millions of new students want. I can tell you that it’s not football. Nor is it finding ways to “dumb down” an American degree.

acceptedposter

In fact the emerging markets are moving aggressively to close down storefront diploma mills.

2007_05_21_Liberia_Informer

To the extent that most universities in the Middle concentrate on classroom instruction, the business model of higher education is under tremendous pressure.  Although university level training and an aging population will continue to drive demand for classroom instruction, the experience of students in large, multi-section introductory courses is much worse than well-conceived and executed performances by world-class experts who have a passion for communicating their love of subject.

So if few instructors are equipped to compete with the zip of a star from ItunesU™ (see my Dancing with the Stars post) then how does the 21st Century university make itself valuable?  Universities must reinvent themselves as creative entities– and they must do it in a way that is smart public policy and is also economically sustainable.

That brings me back to Daniel Pink and what he sees as the elements of creativity:

  1. Design – Moving beyond function to engage the sense.
  2. Story – Narrative added to products and services – not just argument.
  3. Symphony – Adding invention and big picture thinking (not just detail focus).
  4. Empathy – Going beyond logic and engaging emotion and intuition.
  5. Play – Bringing humor and light-heartedness to business and products.
  6. Meaning – Immaterial feelings and values of products.

This is not a bad start for universities that want to redefine their value.   This was true in when the Medieval monk Peter Abelard  provoked his students to question orthodox thought, and it was true when Thomas Jefferson realized that a university education might result in peer groups that were specialized to the sciences.   Charles Vest realized that the value of an MIT education did not lie in the lectures and textbooks but in energy and intellect of the MIT community.   It is true that the most immediate way to experience a community is to live within it, but it is not the only way.   The technology of social networks and on line communities extends the reach of physical community beyond geographic boundaries.

To deliver on a vision like that American colleges and universities are going to need new leadership, because there doesn’t seem to be much  appetite for doing much more than nibbling around the edges.

[1] Daniel Pink, A Whole New Mind: Moving from the Information Age to the Conceptual Age, Riverhead Books, 2005

 

[2] Private Universities in India — Why? How? Education in India, http://prayatna.typepad.com/education/2005/06/private_univers.html