FHK Executive Board emphasises the urgent need for higher funding rates

If there is no significant increase in UAS funding, there is a risk of major financial difficulties, states the WPZ Research GmbH in their current study "Universities of Applied Sciences in a difficult framework". On the one hand, the study sheds light on the social significance of universities of applied sciences and, on the other, explains the consequences of the current high level of inflation if federal funding for universities of applied sciences were not significantly increased.

The following aspects are covered in the study:

1. Universities of Applied Sciences as an essential part of Austria's path to becoming an innovation leader

According to the WPZ, if this goal is to be achieved more quickly, there is no way around greater support for universities of applied sciences. This is because universities of applied sciences in particular have seen rising numbers of students and graduates over the last few decades and have overtaken all other higher education sectors, especially in the technology-intensive fields of study. They are also important providers of research and knowledge producers in managing the digital transformation. Furthermore, Austria's universities of applied sciences are strong in knowledge transfer, especially in science-business collaborations.

2. The financing of universities of applied sciences against the background of overall economic development

This chapter primarily discusses the gaping gap between the development of GDP and UAS funding as well as the rising costs due to inflation. Due to rising personnel costs, competition for teaching and research staff from professional practice is becoming increasingly fierce. It would not be possible to keep up with the current funding rates in the funding of study places at universities of applied sciences. In addition, universities of applied sciences are confronted with rising energy costs, maintenance costs for infrastructure, laboratories, equipment, etc. in order to finance ongoing operations.

3. Universities of Applied Sciences - the universities of applied sciences for highly qualified graduates

The increasing social demand for UAS graduates is associated with an increasing need for funding. The number of employees in teaching and research more than doubled between 2005 and 2019 and increased by a further 7.14% between 2019 and 2021. The growth rates are particularly evident among STEM graduates. In 2022, their share was already 43.57%.

4. Universities of Applied Sciences as actors for strengthening regional RTI systems

Universities of applied sciences are described here primarily as key factors in the development of regional innovation systems. In particular, the increasing number of highly qualified graduates they produce (their number increased fivefold between 2004 and 2022) and their high share of application-oriented, science-based research are mentioned. Universities of applied sciences would primarily address innovation-relevant needs and demand for qualifications and thus make a significant contribution to strengthening regional innovation ecosystems. It is precisely the spillover effects from which regional players such as industrial companies, service companies, NPOs, municipalities, etc. benefit.

5. The contribution of universities of applied sciences to social stability

Compared to universities, access is more open by social class and career prospects are better across all degree programmes. Access is more socially balanced at universities of applied sciences, which means that they make a significant contribution to reducing the importance of social background in tertiary education.

6. Attractiveness of universities of applied sciences in international competition

Finally, the WPZ study also refers to developments in neighbouring Germany. The budgets of universities of applied sciences there have recently been massively increased as part of major strategic offensives by the federal and state governments.

The study states that Austrian universities of applied sciences will fall behind in the competition for the best minds. According to the authors, there is a risk of highly qualified people migrating to neighbouring countries.

The WPZ study is available here available for download.

FHK President Ulrike Prommer comments: "Once again, a study has been published that confirms the FHK's call for an increase in subsidy rates. Both in the study recently conducted by ECO Austria (see OTS of the FHK of 11 August 2023) as well as in the present WPZ study, the importance and positive economic effects of universities of applied sciences are presented in detail. The need for better funding is also emphasised, especially in view of the current wave of inflation. Politicians must now act quickly and significantly increase the funding rates for university place funding in the next federal budget by 20%, as the federal states have already called for on several occasions."

In view of these developments, the FHK Executive Board reiterated its call for an inflation-related increase in the subsidy rates of EUR 201,000, i.e. EUR 101,000 as of 1 January 2024 and a further EUR 101,000 as of 1 January 2025, at its meeting on 21 September.