Striving for “World-Class Excellence”

Studies repeatedly show a strong correlation between educational attainment, social and economic health, and civic participation, for individuals and society (OECD, 2009). More critically, “In the new economy where knowledge is the source of wealth creation, human capital becomes as important as financial capital” (BIAC, 2008). For Castells (1996, p. 92), knowledge is stored primarily in a specialized form of human capital associated with universities and university-based research. Because innovation is the key to translating that knowledge into new products and services, nations increasingly compete on the basis of their knowledge and innovation systems—or, put more simply, on the performance and productivity of their higher education institutions (HEIs ² ). The correlation between economic and research performance is particularly strong in developing countries (Inglesi-Lotz and Pouris, 2012). As a result, higher education is not simply an “engine of development in the new world economy” (Castells, 1994, p. 14), but a beacon to attract capital, businesses, and talent. For emerging societies, the ability to retain talent is also critical (Kapur and McHale, 2005; Wildavsky, 2010). This intensification of competition between nations suggests why governments increasingly see investment in higher education and R&D as vital for ensuring sufficient indigenous talent and for providing the knowledge base essential for economic growth (Bernanke, 2011)—some with fewer and others with more enhanced resources. This also explains why global university rankings have assumed such significance, at a geopolitical level, in recent years.