Public Goods and Public Policy: what is Public Good, and who and what Decides?

Higher education is usually seen as serving the public good, especially when funded directly by the state, and because of the ‘social benefit efficiency gains and potential equity effects on opportunity and reduced inequality’ (McMahon, 2009, p. 255). Calhoun (2006, p. 19) argues that public support for higher education is only given and maintained according to its capacity, capability, and willingness, to ‘educate citizens in general, to share knowledge, to distribute it as widely as possible in accord with publically articulated purposes’

The dynamics of university units as a multi-level process. Credibility cycles and resource dependencies

This paper presents an analysis of resource acquisition and profile development of institutional units within universities. We conceptualize resource acquisition as a two level nested process, where units compete for external resources based on their credibility, but at the same time are granted faculty positions from the larger units (department) to which they belong. Our model implies that the growth of university units is constrained by the decisions of their parent department on the allocation of professorial positions, which represent the critical resource for most units’ activities. In our field of study this allocation is largely based on educational activities, and therefore, units with high scientific credibility are not necessarily able to grow, despite an increasing reliance on external funds. Our paper therefore sheds light on the implications that the dual funding system of European universities has for the development of units, while taking into account the interaction between institutional funding and third-party funding