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Slaughter, Sheila, and Leslie, Larry L. 1997. Academic Capitalism: Politics, Policies, and the Entrepreneurial University. Reviewed by Jann Contento

 


Slaughter, Sheila, and Leslie, Larry L. 1997. Academic Capitalism: Politics, Policies, and the Entrepreneurial University. Baltimore, MD.: The John Hopkins University Press.

Xxi + 276 pp.
ISBN 0-8018-5549-7

Reviewed by Jann Contento
Arizona State University

April 29, 1998

Authors Sheila Slaughter and Larry L. Leslie examine changes in the nature of academic labor between 1970 and 1995. Academic labor is explored in relation to the globalization of the political economy. The authors cite globalization as a destabilizing agent influencing patterns of university professional work. A broad picture of the changes faced by faculty at public research universities is presented. The authors concentrate on universities in four English speaking countries, viz., Australia, Canada, the United Kingdom, and the United States, focusing on the first and the last.

The book is divided into two main parts and a conclusion. The first three chapters provide an introduction and overview. Chapter One is an introduction to the key concepts and theories. The term academic capitalism is defined as "any institutional and professional market or marketlike [sic] efforts to secure external moneys" (p.8). The emergence of academic capitalism is examined by tracing "the growth of global markets, the development of national policies that target faculty-applied research, the decline of the block grant as a vehicle for state support for higher education, and the accompanying increase in faculty engagement with the market" (p.11).

Chapter Two, "Academic Science and Technology in the Global Marketplace," considers the growth of a global economy and the development of higher education policies. The forces driving the restructuring of higher education are examined by looking at the political and economic implications of global markets for research universities. Three political economic interpretations of globalization are reviewed: "neoliberal political economics; liberal or post-Keynesian interpretations, and radical or post-Marxist" (p.14).

The data on which Slaughter and Leslie base their observations are national policy documents, white papers, and legislation from the four countries. The method employed is comparative analysis of documents. The authors find that policy makers at the level of the nation state are concentrating state monies on institutions of higher education. All four countries have developed national policies that promoted a shift from basic curiosity-driven research to commercial or strategic research.

Chapter Three includes the authors investigation of the financing of postsecondary education. Data are presented covering the twenty-five year period from 1970 to 1995. Slaughter and Leslie examine the resource dependence theory (Pfeffer and Salancik, 1978). National patterns of higher education finance reveal revenue shifts away from block grant funding sources to those that reflect a market base. Results of case studies indicate that academic capitalism is not confined to science and engineering. Results also indicate that faculty across a wide array of units engage in academic capitalism.

In Chapters Four through Six, Slaughter and Leslie present case studies of various higher education institutions. Qualitative analysis is used with interview data and quantitative analysis is used to examine cost- benefit ratios (p.16). Institutional statistics were also compared for patterns of external income generated by departments at various institutions.

In Chapter Four, "Advantages and Disadvantages of Academic Capitalism," resource dependence theory guides exploration of how successful academic entrepreneurs assess the advantages and disadvantages of their work. Using financial records and interviews, the authors find that faculty are willing to invest a great deal of professional energy in winning financial awards. A relatively small proportion of moneys was needed to change faculty behavior.

Chapter Five, "Technology Transfer Strategies as a Response to Resource Dependence," presents case studies of faculty involved with technology transfer as a form of entrepreneurial activity. Applied science faculty developed centers so they could augment their resources through academic capitalism. Some faculty and institutional leaders were sensitive to changes in the research approach employed at the level of the institution and the field. Applied scientists saw their entrepreneurial work as an extension of the research in which they were traditionally engaged.

Chapter Six, "Entrepreneurial Knowledge," explores changing faculty values, norms, and beliefs. Professionalization theory, sociology of science, and science innovation theories were employed to view the intersection of science and markets. Data from interviews revealed that faculty were changing their conceptions of knowledge more rapidly than were administrators. Faculty in high technology fields valued knowledge as much for its resource-generating capability as for the power of discovery.

In Chapter Seven, "Reprise: Academic Capitalism," Slaughter and Leslie suggest implications for the restructuring of postsecondary education. Patterns of professional work and emerging epistemologies of science are also apressed. Faculty have historically been more insulated from the discipline of the market by positioning themselves between capital and labor. As a subset of professionals, they were guided by ideals of service and altruism seeking not to maximize profits, but to place the interests of client and community first. The authors conclude that a better understanding of academic capitalism will foster and empower successful academic capitalists. However, they view with regret the demise of the concept of the university as a community in which the individual members are oriented primarily toward the greater good of the organization. The central theme of this book apresses the changing nature of academic work in response to the emergence of global markets. Universities are viewed as the central source of human capital. Academics are seen, as possessing the knowledge needed to fuel the postindustrial technological revolution. Changes in the global political economy have had an effect on higher education and research and development policies. These changes are seen as influencing the patterns of national higher education finance.

Slaughter and Leslie find that changes in national policy and declines in states share of support have spawned academic capitalism (p.74). The authors also suspect that reductions in rates of revenue increases have created internal institutional pressures to increase revenues elsewhere. They also believe that success in raising alternative revenues reduces pressures on government to remedy past funding deficiencies and encourages apitional state subsidy restriction. Their theory is supported by U. S. data on state appropriations for public higher education. Decline in state support is associated with compensatory increases in other public institutional revenue sources (p.87). A case is made that both the decline and conditional restrictions of government support threaten institutional autonomy and increase organizational turbulence.

According to the resource dependence theory, organizations survive to the extent that they are effective in acquiring and maintaining resources (Pfeffer and Salanick, 1978). Faculty employ academic capitalism to maintain research (and other) resources and to maximize prestige. The authors see the research component of academic work as the activity that differentiates among institutions, conferring high status and prestige.

Slaughter and Leslie are concerned with the ways in which national policies deal with access to higher education, curricula, research, and autonomy for the postsecondary sector. Policies, which emphasized knowledge as an economic commodity, were found to reinforce the importance of academic capitalism in universities. The authors found that three of the four countries studied are moving away from basic research toward academic capitalism. Canada is resisting this movement.

The financial records of two Australian universities were examined and representative project managers and staff were interviewed. The authors intent was to determine the impacts of entrepreneurs on the academic unit and university. Financial records provided a means for assigning dollar values for calculating a cost-benefit ratio. Results revealed that faculty confronted with reduction in campus moneys and increased competition for resources sought to alleviate resource dependence difficulties by winning external finances. The faculty legitimized their work as academic capitalists. Faculty claimed their efforts spilled over to their basic research without challenging the traditional status and prestige system. The moneys generated by academic capitalism in the two cases represent nearly 12 percent of total institutional income. It is suggested that as long as incentive programs are not at ops with faculty status and prestige systems, changes within segments of universities can occur with great ease.

As a result of government and university emphases on potential profit making research, a growth has occurred in institutionally affiliated technology centers. These centers view research technology transfer as a professional opportunity structure. Technology centers enable faculty to relate directly to external markets. Centers can also "change the knowledge base of fields, the organizational structure of the disciplines, and institutional resource allocation patterns"(p.176). The authors see centers as employing few faculty and larger numbers of professional officers, geared to entrepreneurial aims. The role of centers in the education of undergraduates remains unclear. Resource dependence theory leads the authors to expect individuals, center administrators, and research universities to develop strategies that would generate the greatest amount of resources for their institutions. The Australian centers studied provided evidence that supports these expectations.

The authors expect that faculty participating in academic capitalism would begin to move away from altruism and public service, toward market values. Based on the case studies in Australia, the authors discovered that "faculty did not think that creating knowledge for profit contradicted their commitment to altruism and public service. Instead they see the market as a mechanism for distributing their discoveries to society" (p.183). Faculty also developed extensive entrepreneurial knowledge to protect their autonomy, prestige, and expertise. The time spent acquiring this expertise, however, took professors away from their laboratories, their students, and university service.

Slaughter and Leslie believe that academic capitalism creates several risks for professors, administrators, and public universities. These risks include: business failure, product liability, failure to meet societal expectations of economic improvement and job creation, and neglecting the academic needs of students. In apition, if academic capitalism does not contribute to economic prosperity and growth, state and federal governments may shift spending priorities and curtail moneys for university research. If however, faculty prove success in raising institutional revenues, governments may curtail funding because institutions generate their own resources. In their concluding chapter, the authors explore the implications of their data and theory for the future of public research universities. The possibility of more reliable and predictable resources for universities can be realized if they assume the functions performed previously by industrial laboratories. However, a loss of faculty autonomy could result as external entities determine the direction of faculty research.

Taken as a whole, the book provides a valuable overview of the globalization of the political economy. Conclusions on how the economic market will affect the development of university professional work remains uncertain. The resource dependence theory offers advice to leaders of public research universities. " To ensure position of social legitimacy and political acceptance, organizations are dependent on their environment-making the external constraint and control of organizational behavior both possible and almost inevitable" (Pfeffer and Salancik, p.43). Slaughter and Leslie issue "a call for state action to ensure that universities permit market principles to operate internally" (p.241). The recommendation seeks internal monetary incentives with minimal government regulation on how the money should be spent. An endorsement of unrestricted government block grants appears to be the answer for preventing the evils of academic capitalism.

References

Leslie, L.L., & Brinkman, P. T. (1988). The economic value of higher education. New York, N.Y. : Macmillan.

Pfeffer, J., & Salancik, G. R. (1978). The external control of organizations: A resource dependence perspective. New York: Harper and Row.

About The Authors

Sheila Slaughter, Professor of Education at the University of Arizona, has published extensively on higher education policy in such areas as academic freedom, governance, intellectual property, and the commercialization of academic science and technology. A sample of the author’s associated work includes: 1987. New York State and the politics of public spending. Higher Education, 1990, 16, 173-97. Higher Learning and High Technology: Dynamics of Higher Education Policy Formation. 1993. Albany, N.Y.: State University of New York Press. Retrenchment in the 1980s: The politics of prestige and gender. Journal of Higher Education 1994, 64,250-82. Dirty little cases?: Problems in academic freedom, governance, and professionalization. In Academic Freedom: An everyday Concern, edited by Ernst Benjamin and Donald Wagner, 58-75. San Francisco: Jossey-Bass.

Larry L. Leslie, Professor of Higher Education at the University of Arizona, has also written on the social investment and economic value of higher education exploring rising costs and economic benefits of applied market models. A sample of the author’s related work includes: 1995. Toward Privatization of Public Universities. Tucson, Ariz.: Center for the Study of Higher Education.; 1996. What drives higher education management in the 1990s and beyond?: The new era in financial support. Journal of Higher Education Management,1996, 10, 5-16. Leslie, Larry L., and Paul T. Brinkman. (1988). The Economic Value of Higher Education. New York: American Council on Education and Macmillan.

About the Reviewer

Jann Contento is a doctoral student in the PhD program in Educational Leadership and Policy Studies at Arizona State University.

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