InformEd-States-Working-Paper_PBF-Research-Incentives
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InformEd-States-Working-Paper_PBF-Research-Incentives
Working PaperInformEd States HIGHER EDUCATION POLICY INITIATIVEA clearinghouse for policy analysis, original research, data, and rigorous evidence on InformEd-States-Working-Paper_PBF-Research-Incentives the equity and effectiveness of state higher education funding policies.DISPARATE IMPACTS OF PERFORMANCE FUNDING RESEARCH INCENTIVES ON RESEARCH EXPENDITURES AND STATE APPROPRIATIONSXiaodan Hu, Justin c. Ortagus, Nicholas Voorhees, Kelly Rosinger, Robert KelchenWorking Paper 2021'01 June 2021Introd InformEd-States-Working-Paper_PBF-Research-IncentivesuctionPublic four-year universities in the United States, which are subsidized by government appropriations, typically have institutional missions cenInformEd-States-Working-Paper_PBF-Research-Incentives
tered on a combination of research, teaching, and service (Rhoten & Calhoun, 2011). The research function of higher education is critically important Working PaperInformEd States HIGHER EDUCATION POLICY INITIATIVEA clearinghouse for policy analysis, original research, data, and rigorous evidence on InformEd-States-Working-Paper_PBF-Research-Incentivestate policymakers look to colleges and universities to foster research activities as a way to improve innovation and economic development within their individual states, and a growing number of states have begun to increase their financial commitment to efforts designed to expand the research capaci InformEd-States-Working-Paper_PBF-Research-Incentivesty of their public colleges and universities (Toutkoushian & Paulsen, 2016).Performance-based funding (PBF), which has grown in popularity and is currInformEd-States-Working-Paper_PBF-Research-Incentives
ently used by two-thirds of states, ties a portion of a public college or university’s level of state appropriations to institutional outcomes (OitaguWorking PaperInformEd States HIGHER EDUCATION POLICY INITIATIVEA clearinghouse for policy analysis, original research, data, and rigorous evidence on InformEd-States-Working-Paper_PBF-Research-Incentives and degree production, but an increasing share of PBF systems are focusing specifically on a given institution's research activities (Rosinger et al.. 2020). Research metrics for PBF-adopting states have varied over the years but often include institutions' research expenditures from externally fun InformEd-States-Working-Paper_PBF-Research-Incentivesded grants and broad measures of research and development (R & D)InformEd States MGHEB GDMC.AT»OM POUC* rMCDATlVi:expenditures. Slightly fewer than haInformEd-States-Working-Paper_PBF-Research-Incentives
lf (19) of the 41 states that have adopted PBF over time have included research-oriented metrics within their PBF formulas (authors’ calculations).ResWorking PaperInformEd States HIGHER EDUCATION POLICY INITIATIVEA clearinghouse for policy analysis, original research, data, and rigorous evidence on InformEd-States-Working-Paper_PBF-Research-Incentivesexpenditures and outcomes in alignment with the institutional missions of public research universities (Burke, 1998; Miller, 2016; Snyder & Boelscher, 2018). But PBF can increase the tension between policymakers' desire to hold institutions accountable and the financial realities of already under-re InformEd-States-Working-Paper_PBF-Research-Incentivessourced colleges or universities (Boland. 2020; Hillman & Corral. 2018).Due to the unequal funding distribution of public higher education, minority-sInformEd-States-Working-Paper_PBF-Research-Incentives
erving institutions (MSIs), in particular, often receive insufficient resources to maximize their research capabilities and are left with limited finaWorking PaperInformEd States HIGHER EDUCATION POLICY INITIATIVEA clearinghouse for policy analysis, original research, data, and rigorous evidence on InformEd-States-Working-Paper_PBF-Research-Incentivesunding systems in which already-advantaged institution types receive a disproportionate share of funding and underfunded institutions, such as MSIs, are asked to continually do more with less (Hagood. 2019; Hillman & Corral. 2018; Li et al., 2018; Ortagus et al.. 2020) and have a higher share of fun InformEd-States-Working-Paper_PBF-Research-Incentivesding at stake in PBF systems (Jones et al., 2017). For MSIs, the unique mission of these institution types related to serving targeted student populatInformEd-States-Working-Paper_PBF-Research-Incentives
ions is often overlooked in PBF metrics (Gasman et al., 2017).While a large body of previous research has focused on the intended and unintended conseWorking PaperInformEd States HIGHER EDUCATION POLICY INITIATIVEA clearinghouse for policy analysis, original research, data, and rigorous evidence on InformEd-States-Working-Paper_PBF-Research-Incentives activities have a substantive impact on institutional behavior but have yet to be studied in the academic literature. To examine the impact of PBF with research incentives on the behaviors of public four-year colleges and universities with a focus on MSIs, this study is guided by the following rese InformEd-States-Working-Paper_PBF-Research-Incentivesarch questions:1To what extent do PBF research incentives influence the level of research expenditures at public four-year institutions?2To what extenInformEd-States-Working-Paper_PBF-Research-Incentives
t do PBF research incentives influence the total state appropriations received by public four-year institutions?3Does the influence of PBF policies wiWorking PaperInformEd States HIGHER EDUCATION POLICY INITIATIVEA clearinghouse for policy analysis, original research, data, and rigorous evidence on InformEd-States-Working-Paper_PBF-Research-Incentivesincentives featured less prominently than student-oriented measures of institutional performance in early PBF policies, emphasizing states’ strategic investment in degree completion over institutional prestige indicators (Burke 1998; Toutkoushian & Danielson, 2002). However. PBF policies have linked InformEd-States-Working-Paper_PBF-Research-Incentives a portion ofIníormEd StatesMC-MFa RDUCATìQM PO. JCV IMmATP/Tstate appropriations to research outcomes for certain institutions since the 1990s. RoughInformEd-States-Working-Paper_PBF-Research-Incentives
ly two-thirds of States that operated early PBF systems included a resitarch metric for at least one institution (Burke & Serban, 1998; Dougherty & NaWorking PaperInformEd States HIGHER EDUCATION POLICY INITIATIVEA clearinghouse for policy analysis, original research, data, and rigorous evidence on InformEd-States-Working-Paper_PBF-Research-Incentivese, every university in Honda’s State University System is able to choose whether or not to include research expenditures as one of its ten performance metrics (Cornelius & Cavanaugh. 2016: Snyder & Fox. 2016). PBF policies in other states, such as Kansas. Maine, and Montana, have Lied stale appropri InformEd-States-Working-Paper_PBF-Research-Incentivesations Io research activity for a small subset of four-year institutions within each stale (Snyder & Boelscher, 2019).Research Expenditures at PublicInformEd-States-Working-Paper_PBF-Research-Incentives
Four-Year InstitutionsThe level of institutional expenditures on research activities plays a pivotal role in the extent Io which a college or universiWorking PaperInformEd States HIGHER EDUCATION POLICY INITIATIVEA clearinghouse for policy analysis, original research, data, and rigorous evidence on InformEd-States-Working-Paper_PBF-Research-Incentives, 1998: Eid. 2012). and other important outcomes related to institutional efficiency and effectiveness (Powell et al.. 2012: Robst. 2001). For example, research and development expenditures in higher education in European countries were positively related to innovation (Pegkas et al., 2019). Guisan InformEd-States-Working-Paper_PBF-Research-Incentives(2005) pointed out that research expenditures at universities in the U.S. greatly contribute to regional development and solidifies a comparative advaInformEd-States-Working-Paper_PBF-Research-Incentives
ntage relative to the majority of European regions and countries.The lex-el of a given institution's reliance on research expenditures is largely depeWorking PaperInformEd States HIGHER EDUCATION POLICY INITIATIVEA clearinghouse for policy analysis, original research, data, and rigorous evidence on InformEd-States-Working-Paper_PBF-Research-Incentives of research expenditures than public colleges and universities (Blasdell et al.. 1993). Moreover, private universities have accelerated their spending on research activities ami have experienced corresponding advantages in institutional prestige over the years (Lail & Rosen, 2016), including when i InformEd-States-Working-Paper_PBF-Research-Incentivest comes to recruiting faculty (Alexander, 2001; Rippner & Toutkoushian, 2015). By analyzing the Higher Education Research and Development (HERD) surveInformEd-States-Working-Paper_PBF-Research-Incentives
y data collected by the National Science Foundation (NSF). Britt (2013) noted that institutions' research and development (R&D) expenditures are derivWorking PaperInformEd States HIGHER EDUCATION POLICY INITIATIVEA clearinghouse for policy analysis, original research, data, and rigorous evidence on InformEd-States-Working-Paper_PBF-Research-Incentivesty of R&D funding was spent in disciplines of medical sciences and biological sciences by a small group of research universities.The second Morrill Act of 1890 provided funding lor many Historically Black Colleges and Universities (TIBCUs) Io be established as land-grant colleges, while other MSTs a InformEd-States-Working-Paper_PBF-Research-Incentivesn* granted MSĨ status by the U.S. Department of Education based on their student composition (Cunningham et al.. 2014). However, MSls have been underfInformEd-States-Working-Paper_PBF-Research-Incentives
unded in ways that restrict their ability to expand their research expenditures and build their research capacity (Gasman & Commodore, 2014). Tn 2010,Working PaperInformEd States HIGHER EDUCATION POLICY INITIATIVEA clearinghouse for policy analysis, original research, data, and rigorous evidence on InformEd-States-Working-Paper_PBF-Research-Incentivesent, which was only a quarter of the amount (S6.2O2) spent by non-MSIs (Cunningham et al., 2014). Prior research attributes these wide disparities in funding to unequal state funding mechanisms, including performance-based funding (Hillman & Corral, 2018; Jones et al., 2017; Li et al., 2018), and in InformEd-States-Working-Paper_PBF-Research-Incentivessufficient support from federal R & D funds (Boland & Gasman, 2014; Matthews, 2011; National Center for Science and Engineering Statistics, 2021). InInformEd-States-Working-Paper_PBF-Research-Incentives
recent years, a glowing number of MSIs have sought to increase their research capacity as a way to mimic the research-intensive, prestige-seeking univGọi ngay
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