The purpose of this paper is to discuss how funding systems influence higher education institutions and their strategies and core tasks.
Taking the results of a comparative study between Denmark, Norway and Portugal as a point of departure, the paper identifies and analyses the main features of these state funding systems, their strengths and weaknesses, and their impact on academia.
The system‐level analysis offers an illustration of a trend across Europe. The paper shows that mixed funding models have been implemented in all three countries.
Funding systems and their impacts do not come in neat packages. The systems demonstrate a mixed pattern of strengths and weaknesses. The impacts of the funding systems converge, although different mechanisms are employed. There are no clear cut differences in the perceived strengths, weaknesses and impacts of the two main types of funding systems – input‐based funding and output‐based funding – presented and discussed in the paper.
