Chapter 3: External research income

External research income declared for 2013 indicative funding calculations

3.12For 2009 to 2011, the total ERI declared by the 21 TEOs participating in the ERI measure was $1.23 billion. Table 3.2 shows the ERI declared in each of these three years, the changes from year-to-year, and the weighted three-year averages used to allocate PBRF funding for this measure.

Table 3.2: External research income 2009 to 2011

TEO 2009 Change 2009 → 2010 2010 Change 2010 → 2011 2011 PBRF-weighted total (numerator)
University of Auckland $149,595,526 0.10% $149,747,687 -3.94% $143,852,139 $146,777,089
University of Otago $87,018,665 3.50% $90,064,602 1.74% $91,628,400 $90,389,610
Massey University $53,244,095 5.01% $55,911,764 -3.26% $54,087,511 $54,599,487
Victoria University of Wellington $32,595,392 -1.71% $32,038,397 7.53% $34,451,981 $33,328,738
University of Canterbury $36,746,477 -30.38% $25,582,559 7.70% $27,552,720 $28,242,227
Lincoln University $20,937,208 8.83% $22,785,129 11.66% $25,441,610 $23,836,181
University of Waikato $20,608,092 -9.79% $18,589,606 11.04% $20,642,355 $19,918,753
Auckland University of Technology $7,795,524 -27.87% $5,623,292 69.45% $9,528,866 $7,901,914
Otago Polytechnic $727,370 52.91% $1,112,234 1.56% $1,129,559 $1,063,167
Te Whare Wānanga o Awanuiārangi $477,510 77.32% $846,732 18.27% $1,001,457 $868,711
Wellington Institute of Technology $153,185 112.52% $325,556 61.26% $524,977 $399,411

Table 3.2: External research income 2009 to 2011 – continued

TEO 2009 Change 2009 → 2010 2010 Change 2010 → 2011 2011 PBRF-weighted total (numerator)
Unitec New Zealand $516,996 -14.17% $443,738 -56.97% $190,925 $328,320
Eastern Institute of Technology $232,339 22.58% $284,791 -38.17% $176,093 $222,574
Christchurch Polytechnic Institute of Technology $161,119 60.89% $259,231 -40.94% $153,106 $191,452
Manukau Institute of Technology $190,493 -19.09% $154,124 -38.74% $94,413 $129,724
Waikato Institute of Technology $194,061 -94.07% $11,500 656.52% $87,000 $76,634
Whitireia Community Polytechnic $27,301 892.92% $271,082 -15.37% $229,416 $213,682
Bethlehem Institute of Education $70,400 41.16% $99,379 51.00% $150,067 $120,376
New Zealand College of Chiropractic $9,647 328.58% $41,345 168.39% $110,967 $71,402
Open Polytechnic of New Zealand -   $87,504 57.62% $137,920 $99,586
Northland Polytechnic $24,000 -100.00% -   - $3,600
Total $411,325,401 -1.71% $404,280,252 1.70% $411,171,482 $408,782,639

Universities

3.13The $1.22 billion in ERI declared by universities formed 99.13 percent of the grand total for 2009 to 2011. The remaining TEOs reported just under one percent of the total ERI, amounting to $10.71 million over this three year period.

3.14Between 2009 and 2011, all but two universities increased the amount of ERI they each received, with the University of Canterbury and the University of Auckland undergoing respective decreases of 25.02 and 3.84 percent for this measure in 2010 and 2011.

3.15Only two of the universities (the University of Otago and Lincoln University) were able to make successive increases in ERI over the 2009 to 2011 period, with the remainder increasing in one period and decreasing in the other. The largest percentage variation occurred at the Auckland University of Technology with a decrease of 27.87 percent between 2009 and 2010, followed by a 69.45 percent increase between 2010 and 2011. However, as Auckland University of Technology generates markedly less ERI than the other universities, its proportion of change is much higher than the rest of the sector.

Other TEOsTop

3.16Large percentage swings on lower baselines commonly occur outside the university sector. Across the ITPs, changes in the amount of ERI funding ranged from as much as an 892.92 percent increase (at Whitireia Community Polytechnic between 2009 and 2010), to a 100 percent decrease (Northland Polytechnic between 2009 and 2010).

3.17Only Otago Polytechnic and Wellington Institute of Technology were able to make consecutive increases on this measure over the three year period. The former generated the most ERI of the ITPs for all three years, receiving $1.13 million in 2011. With consecutive increases of 112.52 percent and 61.26 percent across 2009 to 2010 and 2010 to 2011, Wellington Institute of Technology generated the second largest ERI for the sector in 2011 ($524,977), overtaking Unitec New Zealand which saw successive reductions in this measure.

3.18Across the wānanga and PTEs, the three providers to participate – Te Whare Wānanga o Awanuiārangi, Bethlehem Institute of Education, and New Zealand College of Chiropractic – all reported consecutive increases in ERI in the three year period. Te Whare Wānanga o Awanuiārangi achieved a substantial increase across each year, growing its reported ERI by $523,947 (109.72 percent) between 2009 and 2011.

2011 final and 2012 final allocationsTop

3.19Between the final 2011 and final 2012 allocations, funding for the ERI component remained the same. TEOs’ shares of this pool are determined by their relative success in attracting ERI over the previous three year period.

Table 3.3: Final 2011 and final 2012 funding allocations – ERI measure

TEO ERI Final 2011 ERI Final 2012 Change($) Change(%)
University of Auckland $13,743,207 $13,817,320 $74,113 0.54%
University of Otago $8,279,778 $8,267,427 -$12,351 -0.15%
Massey University $4,732,732 $4,975,401 $242,669 5.13%
Victoria University of Wellington $2,944,408 $2,970,948 $26,540 0.90%
University of Canterbury $3,011,603 $2,757,902 -$253,701 -8.42%
Lincoln University $1,997,286 $2,035,199 $37,913 1.90%
University of Waikato $1,820,769 $1,776,951 -$43,818 -2.41%
Auckland University of Technology $701,081 $608,199 -$92,882 -13.25%
Otago Polytechnic $41,985 $77,730 $35,745 85.14%
Unitec New Zealand $101,043 $59,177 -$41,866 -41.43%
Te Whare Wānanga o Awanuiārangi $28,936 $57,431 $28,495 98.48%
Eastern Institute of Technology $14,847 $22,221 $7,374 49.67%
Christchurch Polytechnic Institute of Technology $27,271 $20,268 -$7,003 -25.68%
Whitireia Community Polytechnic $6,687 $14,529 $7,842 117.27%
Manukau Institute of Technology $12,481 $14,185 $1,704 13.65%
Waikato Institute of Technology $20,173 $9,595 -$10,578 -52.44%
Bethlehem Institute of Education $6,710 $7,920 $1,210 18.03%
Open Polytechnic of New Zealand $3,738 $5,342 $1,604 42.91%
Northland Polytechnic $5,171 $2,255 -$2,916 -56.39%
Carey Baptist College $97 - -$97 -100.00%
Total $37,500,003 $37,500,000 -$3 0.00%

UniversitiesTop

3.20In the university sector, four providers received increases in final ERI funding between 2011 and 2012, with Massey University undergoing by far the largest increase in both percentage and dollar terms (up $242,669 or 5.13 percent). In monetary terms the University of Canterbury sustained a reduction of a similar order ($253,701).

Other TEOsTop

3.21The ITP sector’s final ERI funding decreased between 2011 and 2012. Despite some fairly significant percentage changes at individual TEOs, most were relatively small in monetary terms. Unitec New Zealand again experienced a sharp drop on this measure, down $41,866 or 41.43 percent in 2012 on its final 2011 ERI allocation (having decreased by 34.57 percent between 2010 and 2011). Conversely, the majority of ITPs increased their ERI over this period, with Otago Polytechnic achieving the most significant improvement (up 85.14 percent or $35,745 on its 2011 ERI allocation).

3.22Te Whare Wānanga o Awanuiārangi almost doubled its ERI funding in this period to reach $57,431 in 2012. The only PTE to receive an ERI allocation for 2012, Bethlehem Institute of Education, generated an additional 18.03 percent or $1,210.

2012 final and 2013 indicative allocationsTop

3.23The total PBRF-weighted ERI earned by TEOs was $401.71 million for the 2012 final allocation, rising by $7.08 million or 1.76 percent to $408.78 million for the 2013 indicative allocation. Table 3.4 provides detail of these allocations.

Table 3.4: Indicative 2013 funding compared to final 2012 funding – ERI measure

TEO Ratio 2012 Final Funding
2012
Ratio 2013 Indicative Funding 2013 Ratio Difference Change($) Change(%)
University of Auckland 36.85% $13,817,320 35.91% $14,137,948 -0.94% $320,628 2.32%
University of Otago 22.05% $8,267,427 22.11% $8,706,561 0.07% $439,134 5.31%
Massey University 13.27% $4,975,401 13.36% $5,259,164 0.09% $283,763 5.70%
Victoria University of Wellington 7.92% $2,970,948 8.15% $3,210,310 0.23% $239,362 8.06%
University of Canterbury 7.35% $2,757,902 6.91% $2,720,364 -0.45% -$37,538 -1.36%
Lincoln University 5.43% $2,035,199 5.83% $2,295,963 0.40% $260,764 12.81%
University of Waikato 4.74% $1,776,951 4.87% $1,918,626 0.13% $141,675 7.97%
Auckland University of Technology 1.62% $608,199 1.93% $761,133 0.31% $152,934 25.15%
Otago Polytechnic 0.21% $77,730 0.26% $102,407 0.05% $24,677 31.75%
Unitec New Zealand 0.16% $59,177 0.08% $31,625 -0.08% -$27,552 -46.56%
Te Whare Wānanga o Awanuiārangi 0.15% $57,431 0.21% $83,677 0.06% $26,246 45.70%
Eastern Institute of Technology 0.06% $22,221 0.05% $21,439 0.00% -$782 -3.52%
Christchurch Polytechnic Institute of Technology 0.05% $20,268 0.05% $18,441 -0.01% -$1,827 -9.01%

Table 3.4: Indicative 2013 funding compared to final 2012 funding – ERI measure – continued

TEO Ratio 2012 Final Funding
2012
Ratio 2013 Indicative Funding 2013 Ratio Difference Change($) Change(%)
Whitireia Community Polytechnic 0.04% $14,529 0.05% $20,582 0.01% $6,053 41.66%
Manukau Institute of Technology 0.04% $14,185 0.03% $12,495 -0.01% -$1,690 -11.91%
Waikato Institute of Technology 0.03% $9,595 0.02% $7,382 -0.01% -$2,213 -23.07%
Bethlehem Institute of Education 0.02% $7,920 0.03% $11,595 0.01% $3,675 46.40%
Open Polytechnic of New Zealand 0.01% $5,342 0.02% $9,592 0.01% $4,250 79.57%
Northland Polytechnic 0.01% $2,255 0.00% $347 -0.01% -$1,908 -84.62%
Wellington Institute of Technology 0.00% - 0.10% $38,472 0.10% $38,472  
New Zealand College of Chiropractic 0.00% - 0.02% $6,878 0.02% $6,878  
Total 100.00% $37,500,000 100.00% $39,375,000 - $1,875,000 5.00%

UniversitiesTop

3.24The university sector’s share of indicative ERI funding increased for 2013, with its overall rise of approximately $1.8 million absorbing almost all of the five percent growth in the ERI funding pool.

3.25Auckland University of Technology achieved the greatest change percentage-wise, up 25.15 percent ($152,934) on its 2012 allocation, although again on a significantly lower baseline than the rest of the sector. Likewise Lincoln University also made significant gains, up 12.81 percent ($260,764).

3.26The highest increase in dollar terms was realised by the University of Otago, the second highest funded TEO which increased its 2012 allocation by $439,134 (5.31 percent) to $8.71 million in indicative ERI for 2013. The University of Auckland saw a reduction in its ratio of almost one percentage point following the 2012 QE and a relatively modest 2.32 percent change in indicative funding for this period. However, the University of Auckland was still set to retain a margin of approximately $5.4 million more ERI funding than the University of Otago for 2013.

Other TEOsTop

3.27Outside of the universities, other providers’ total share of indicative ERI for 2013 remained similar to 2012, with an overall increase of $74,279. While there are some significant percentage shifts, these are generally very small in monetary terms.

3.28The largest changes were seen by Te Whare Wānanga o Awanuiārangi and Unitec New Zealand in the wake of the 2012 QE. Where the 2013 allocation grew for the former by about 46 percent ($26,246), it reduced for the latter by a similar amount (with the ITP down 46.56 percent or $27,552).