Third-mission policy goals and incentives from performance-based funding: Are they aligned?

In competitive knowledge-based economies, policymakers recognize the importance of universities’ engagement in third mission activities. This article investigates how a specific policy approach to encourage third mission engagement—the use of performance-based funding to reward universities’ success in this domain—aligns with the broader goals of third mission policy. Considering the case of the UK, the first country to have implemented a system of this kind, we analyse how the system has come into being and how it has evolved, and we discuss whether its implementation is likely to encourage universities to behave in ways that are aligned with the goals of third mission policy, as outlined in government documents. We argue that the system encourages universities to focus on a narrow range of income-producing third mission activities, and this is not well aligned with the policy goal to support a complex innovation ecosystem comprising universities with different third mission objectives and strategies. The article concludes by proposing possible avenues for achieving greater alignment between incentives and policy goals.

Can the state empower communities through localism? An evaluation of recent approaches to neighbourhood governance in England

‘Empowerment’ is a term much used by policy-makers with an interest in improving service delivery and promoting different forms of neighbourhood governance. But the term is ambiguous and has no generally accepted definition. Indeed, there is a growing paradox between the rhetoric of community empowerment and an apparent shift towards increased centralisation of power away from the neighbourhood in developed economies. This article explores the literature relating to empowerment and identifies two broad conceptions which reflect different emphases on neo-liberalism. It goes on to discuss two models illustrating different levels of state intervention at the neighbourhood level and sets out evidence from two neighbourhood councils in Milton Keynes in central England. In conclusion, it is argued that those initiatives which are top-down, state-led policy initiatives tend to result in the least empowerment (as defined by government), whereas the bottom-up, self-help projects, which may be partly state-enabled, at least provide an opportunity to create the spaces where there is some potential for varying degrees of transformation. Further empirical research is needed to test how far localist responses can challenge constraints on empowerment imposed by neo-liberalism.