Higher education and the economy

3.19 The relationship between higher education and the economy is taken as a given, and the visiting team found little hard evidence or research to support evidence of productivity effects, or concern to collect any such evidence. The assumption is exemplified in the following statement:

‘Germany, a land lacking in abundant natural resources, is one of only few countries in the world which is existentially reliant on that "raw material called education". Without an efficient system of science and education, the Federal Republic of Germany would not have been able to achieve the economic and cultural status which it enjoys today and nor would it be able to maintain it. Indeed, in the present-day world, this status must define and prove itself more than ever before in the field of international comparison’ (Universities in Germany, ed. Bode, Becker and Klofat)

3.20 The extent and nature of this economic contribution is not therefore a significant topic of discussion: although some examples were offered where higher education does appear to have been crucial, including: the creation of the technology centres, focused on Fachochschulen and Berufsakademie; institutions set up as part of a regional strategy; and the attraction of inward investment on the basis of high levels of skilled people. However, more broadly, there is a greater emphasis on simply having a generally well-educated populace.

3.21 One Fachochschulen visited had a dense network of industrial collaboration including:

• five-yearly sabbaticals for staff to work in industry;
• final year student projects;
• the appointment of staff from industry;
• sustained contact with graduates including an ‘Association of Friends’ including graduate and heads of their employing enterprises and placement organisations;
• congress of the departments to consider feedback about teaching.

3.22 However, there are also examples of emerging industrial concern at the lack of relevance of some German higher education to the economy and in particular, the absence of any obvious facility to deliver lifelong learning, as evidenced by:

• establishment of new institutions (Berufsakadamie) designed specifically to work jointly with industry;
• the absence of any facility for supporting lifelong learning, especially in universities;
• increasing industrial investment in overseas research and development;
• increased high level training being set up internally within corporate is to deliver high level development for staff, again as an alternative to using existing higher education resources.

3.23 Perceptions of higher education appear to have been very important for German economic growth during the post-war period but parts of the system are increasingly seen as inflexible in responding to the changing needs of the economy, post unification, and in the context of contemporary technology. There are some who want to see a closer relationship between higher education and industry, and more responsiveness by universities in particular. This is exemplified by the establishment of the Fachhochshulen and now the setting up of the Berufsakadamie, new institutions in Baden Wurttemburg.

3.24 This reflects a view that significant parts of higher education are becoming increasingly out of touch, for example in the balance of subjects (the number of engineering students are reported to be declining significantly), but also that higher education is having to deal with the lack of alternative opportunities for young people who might be better advised to follow a different path. To this extent, the higher education system is inescapably part of the wider economy and is bearing some of the brunt of labour market rigidities. There is no obvious interest in delivering continuous profession development to industry.

Teaching and learning

3.25 The Framework Act for Higher Education (1976) defines the purpose of study as:

‘teaching and study are to prepare students for a profession in a certain sphere of activity, imparting to them the particular knowledge, skills and methods required in a way appropriate to each course so as to enable them to perform scientific or artistic work and to act responsibly in a free, democratic and social state governed by the rule of law’

3.26 This emphasis, and the legacy of the Humboldt principles described above, inform the organisation and funding of higher education and research. For example, there appears to be no discussion, as has been had in the United Kingdom, about the extent and the nature of the relationship between research and teaching, which is taken as a given especially in the universities.

3.27 Teaching methods, and the absence of guidance about choice of university and careers, seem to place very high demands on the ability and motivation of students to organise and manage their own learning to the point at which they submit themselves for a diploma, which often requires a dissertation prepared over several months. Although it was not possible to test this on the visit, it would appear that the intellectual demands of degree courses are also high, partly because of the length of study. A relatively high number of those with a diploma appear to go on for doctoral study.

3.28 Although the Higher Education Framework Act specifies that university studies are expected to be completed in four years, the average length of study is now considerably in excess of this. This has led to concerns about the cost and efficiency of the system, as well as the relatively late age at which graduates enter the labour market. It is thought to be one of the reasons why increasing numbers of those with the Arbitur are choosing to enrol at Fachochschulen rather than at university.

3.29 The German system does not equate easily to the dominant Anglo Saxon model of higher education. The German diploma is intended to combine professional qualification with academic qualification and the idea of ‘undergraduate’ education has been unknown, although a small number of projects are now underway to develop BA and MA qualifications in some institutions.

3.30 The lack of comparability between the German and the Anglo-Saxon model, together with the demands of the language, appears to be affecting the number of overseas students choosing to study in Germany. Concern about the international currency of their system does seem too to be leading more German students to study abroad for part if not all their higher education. The German administrators and policy-makers met on the visit were striking in the priority they gave to this concern, not predominantly because of immediate lost export revenue but because of concerns about lost influence with future international managers and the impending isolation and reduction in the quality of German research and scholarship.

3.31 There appears to be little attention paid to the potential of IT in teaching and learning. One commentator stated that Germany was 10 – 15 years behind the USA in using IT. This is seen as changing more as a result of student pressure than institutional change and institutions seem rather unsure how to start. The Wissenschaftsrat is currently beginning to promote a discussion on the use of IT in Germany.

3.32 Teaching in universities is largely by traditional lecture methods. Drop out rates and changes of subject are high, especially from universities (29-31 per cent in 1993-94). The academic standing of the university diploma is high but there are some who consider it not appropriate to a mass higher education system and/or over-qualifying people whilst under-preparing them for work. University students are expected to fend for themselves, with little apparent tutorial or other support for their learning and no interim feedback on their progress. At its best, the university system appears to produce people of strong intellect and determination. Teaching in the Fachhochschulen seems to take place in smaller groups. They and the Berufsakademie involve considerable amounts of work-based learning and practical projects in conjunction with employers.

3.33 Some of those met consider that the best way of tackling the links between higher education and the labour market is to increase university graduate’s abilities to deal with ideas and theories and therefore to have high general rather than specific abilities. These people would be unhappy at a perceived ‘chasing after modernism’ rather than concentration on the traditional academic strengths. Others met want to see more relevance in university studies without losing their intellectual rigour.

3.34 There is general agreement about the intrinsic link between teaching and research, both in universities and Fachoschulen (although the research in each is different).

Quality and standards

3.35 There is no national system of quality assessment in Germany. However, in 1996 the Wissenschaftsrat issued recommendations on the quality of teaching following a pilot programme involving 11 Fachhochschulen and Universities. The Wissenschaftsrat recommended a system based on internal self-assessment and external assessment by peers.

Research

3.36 The Framework Act for Higher Education defines the purpose of research as

‘research at higher education institutions shall serve the purpose of gaining scientific knowledge and of laying the scientific foundations for and furthering the development of teaching and studies. Research at institutions of higher education may, according to the function of the institution concerned, cover any scientific field as well as the practical application of scientific findings, including the impact which such application of scientific findings may have’

3.37 There is a strong policy to support research in higher education: for example, one Federal Ministry publication states that

‘the obligations of university professors include representing their disciplines in research and teaching; and the two activities should make roughly equal claims upon their time’

3.38 There is a view about the distinctive nature of higher education research, and particularly research in universities, as opposed to research elsewhere, because

• it is seen as intimately connected to teaching and therefore with the training of the next generation of scholars and scientists;
• it provides the personnel for extra-university research;
• it covers the fullest range of disciplines and maximum scope for interdisciplinary research.

3.39 Nonetheless, there are signs of tension between those who wish to retain a strong separation of higher education research and its application and those who would give greater priority to applications, even in the University setting.

3.40 Research is organised and funded in part through

• the Science Council (Wissenschaftsrat), which advises on science policy, attempts to anticipate developments in research and has recently embarked on a progressive review of the quality of research carried out in the "blue list" research institutions and some of the other research bodies. The Science Council also offers advice (usually accepted) about new higher education building programmes considered by the Federal government and Lander;
• the funding body (Deutsche Forschungsgemeinschaft, DFG).

3.41 There is a heavy concentration on research in Universities, where professors are required to pass a qualifying examination before they can be appointed. The main emphasis in this examination is the ability to undertake independent research.

3.42 Part of the budget of Universities is assumed to be allocated for research (although there appears to be no way of accounting for the amount or for its use). Professors are required to undertake teaching which leaves a significant time for research (a period is typically 45 minutes).

3.43 Research at Fachhochschulen is restricted in subject by the subjects offered and in type, being more applied. Very few DFG funds are awarded to these institutions. Only recently have Fachochschulen graduates been able to progress to DPhil studies.

3.44 Outside the Universities, there is a range of research institutions funded by the Federal government and Lander and in receipt of funds from the DFG. These employ significant numbers of staff (76,000 compared to 104,600 staff in universities considered to be engaged in research in 1992). The institutions include the

• blue list (82 institutions specifically promoted by the Federal and Lander governments);
• Max Planck Society institutes, often founded around a small team of researchers and sometimes closed down when the team is disbanded;
• applied science institutes (Fraunhofer).

3.45 Total research funding is reported to be DM 81.5 billion in 1993, including private funding by industry, of which the Federal government contributed 21 per cent; the Lander 17 per cent; business 59 per cent; private funding 0.5 per cent and foreign investment two per cent. Research in universities is thought to be about 18 per cent of total German research activity. There are growing concerns that more research outside Universities is being moved overseas.

3.46 The DFG allocates funds on a competitive basis, using extensive peer review. Some projects are set up to promote research in particular areas. Some of these are long term and involve collaboration between research teams and Universities, in part to maximise the use of expensive equipment. Peer review is managed though a panel of peers elected by the German professoriate. The DFG had a budget of some DM 1.7 billion in 1993 (over 60 per cent from the Federal government).

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