Open Access Article SciPap-887
Performance Based Financing of Universities – Case Study of Slovakia
by Miroslav Šipikal 1,* iD icon and Valeria Nemethova 2 iD icon

1 Národohospodárska fakulta, Katedra verejnej správy a regionálneho rozvoja, Ekonomická univerzita v Bratislave, Dolnozemská 1, Bratislava 852 35, Slovakia

2 Fakulta hospodárskej informatiky, Katedra štatistiky, Ekonomická univerzita v Bratislave, Dolnozemská 1, Bratislava 852 35, Slovakia

* Authors to whom correspondence should be addressed.

Abstract: Innovation and human capital play a crucial role in the economic development. Universities are one the main institutions influencing level of these factors, so states or other public institutions has spent substantial funds on their functioning. Due to political need to spend funds efficiently and effectively, for the last years previous, mainly trust based, funding regimes has been partially replaced by new ways of financing – performance based financing. These new forms have their own advantages and weaknesses, but they are used short time to be able to evaluate their longer term impacts. However, we could see how these forms change the distribution of funding. In this article, we empirically looked at different types of universities funding and compare how this funding affects different universities in case of Slovakia. We show that the different schemes lead to quite different allocations. More than type of funding is important how the criteria for funding are set up and how different sources are complementary to the needs of universities.

Keywords: Slovakia, Higher Education, University, Performance Based Financing, Project Financing

JEL classification:   H52 - Government Expenditures and Education,   I28 - Government Policy

SciPap 2017, 25(3), 887

Received: 1 September 2016 / Accepted: 23 October 2017 / Published: 5 December 2017