Pearls and Irritations

The obsession of universities with growth through international rankings that attract fee-paying overseas students has let Australia fall behind in its ability to create new, breakthrough scientific knowledge. Universities talk about “punching above their weight” in publication output, but they have generated only four breakthrough discoveries in the past 25 years.

The Australian university sector is increasingly prioritising financial growth through international student enrolments, raising concerns about social responsibility and academic integrity.

Over the last 25 years, journal article output has increased very substantially, but theory-building and groundbreaking scientific discoveries have declined, which can be connected to a decline in the commitment to basic research.

For many years, the Australian university business model has been driven by growth in income from student fees, particularly international student fees. This income is used to underwrite operations and fund research capacity and facilities.

In 2023, universities generated $39 billion in revenues, equivalent to 2.3 per cent of GDP.

The financial reality is that Australian universities are public corporations operating as government business enterprises and complying with Australian financial accounting standards.

They have Deductible Gift Recipient status, but very little income flows from charitable donations and bequests except in the health area.

As Government business enterprises, universities are driven by metrics, including operating margins and earnings before interest, tax, depreciation and amortisation (EBITDA), which are highlighted in their Annual Reports and Financial Statements.

As more people with business backgrounds are appointed to university governing bodies, the focus on growth may not align with society’s expectations.

Universities have come to rely on international students

The reliance on international student income has led to a substantial shift in the balance of universities’ revenue sources and their research priorities.

The contribution of international student income has more than doubled, from 12.2 percent in 2002 to over 26 percent of total university income in 2023.

Many see this increase as going beyond their social license.

Global university rankings incentivise universities to prioritise publication quantity, primarily journal articles, which can lead to a proliferation of narrowly focused, empiricist research.

This pressure to publish can distract from the development of transformative ideas and hinder the advancement of theory.

This irony highlights the importance of balancing the need for research with the need for scholarly publication.

Devastating consequences of publish or perish

Empiricism and micro theory that flow from the publish or perish syndrome have been shown to lead to the proliferation of “least publishable units” — small, incremental studies that add little to the broader theoretical understanding of a field.

Over the past twenty years, there has been massive growth in journal articles and a decline in the publication of scholarly books, which usually reflect more curiosity and deeper inquiry, but take longer to produce.

The increase in journal article output has been particularly impressive in Australia, where the Clinical and Life Sciences discipline dominates the overall publication output.

The decline in basic research in Australia has had devastating consequences for the country’s ability to produce breakthrough scientific discoveries.

This decline is due to the government and industry pushing for research to deliver immediate societal and economic benefits.

The decline in basic research has led to fewer transformative breakthroughs, a shift toward incremental innovation, and a weakening of Australia’s global research standing.

The decline also impacts industrial R&D by reducing the flow of foundational knowledge that fuels technological innovation, constraining Australia’s long-term competitiveness in high-tech industries and economic growth.

To mitigate these risks, Australia must balance basic and applied research, ensuring that pursuing fundamental scientific knowledge remains a priority while meeting short-term and commercial objectives.

Where are the real scientific breakthroughs?

The current research environment in universities may no longer be conducive to theory-building and breakthrough science.

Incremental and empiricist research can marginalise theoretical work, leading to a research landscape in which the most pressing theoretical questions remain under explored and the potential for breakthrough science diminishes.

This short-term focus hinders the pursuit of breakthrough science, which is more likely to emerge from high-risk, high-reward research that does not guarantee immediate publication success.

Since Federation and even before, Australian scientists and research organisations have made significant breakthrough discoveries in various fields, including immunology, quantum computing, burns medicine, astronomy, cellular biology, cellular biology, and chemistry.

Of the ABC’s “Hottest 100” Australian scientists, 20 have made breakthrough discoveries, defined here as “significant and original findings or innovations with a global impact”. But only four of these scientists have been active in the last 25 years.

The changing research environment has brought new opportunities for innovation and collaboration but also presents challenges, such as increased competition for funding and the need to navigate complex regulatory and ethical environments.

The emphasis on applied research and the commercialisation of research outcomes has led to a more globalised research landscape, and the Internet has transformed how researchers communicate.

However, there is now a much higher focus on ethical standards, data privacy, and research integrity.

The relevance of academic research to industry and government is crucial for translating knowledge into practical solutions.

But the current academic incentive structure in Australian universities may not align with these needs, with mass-produced empiricist research that lacks the depth and insight needed to drive innovation and inform policy.

Industries like technology and pharmaceuticals rely heavily on breakthrough science and theoretical advancements to maintain their competitive edge, while governments require theoretically informed research to develop policies addressing multifaceted societal issues.

A more balanced approach

The analysis suggests a shift in the university business model from purely financial to a balanced approach that values long-term academic and societal contributions.

This includes reassessing income generation through international student recruitment and redirecting resources towards supporting high-quality theory-based research.

It also suggests that universities seriously look for alternative and sustainable revenue sources.

Long-term strategic planning horizons are recommended to manage financial risks and adapt to government policy changes.

Interdisciplinary research should be encouraged to address complex societal issues.

The quality, originality, and societal impact of research should be prioritised.

Entrepreneurial activities should be expanded beyond research commercialisation, and much closer partnerships with government and industry should be fostered to co-create solutions for economic and societal challenges – including but not limited to climate change, renewable energy and sovereign capability.

The competition among universities for declining government funding, particularly for research, has led to what the Chief Scientist calls the “vegemite problem”, where limited resources are spread thinly.

To address this, small and regional universities could collaborate through a ‘Research System’ to build research scale and critical mass in areas where distinctive capabilities can be captured.

This could be piloted in Agricultural, Environmental and Rural Research in non-metropolitan universities, where small universities have strengths in several fields but are not able to leverage them to achieve sustainable world recognition.

 

The full article can be downloaded here.

This summary article was first published in @auManufacturig.com.au on 19 August, 2024