Government funding and national responsibilities for the University of Oulu defined for 2025–2028 – Funding to increase by approximately 10 million euros annually

The Ministry of Education and Culture (OKM) has released the agreed objectives and government funding allocations for universities for the period 2025–2028.

Eighty-one percent of state funding will be allocated to universities through a performance-based funding model, which has been slightly adjusted for the upcoming contract period. Of this funding, 44 percent is based on educational performance metrics, while 37 percent is determined by research performance metrics, calculated using data from the previous three years.

“According to the preliminary funding decision by the Ministry, the University of Oulu’s share of national performance-based funding is projected at approximately 9.5 percent, reflecting an annual increase of about 10 million euros. This is attributed to improvements in our performance as well as changes to the funding model,” explains the University of Oulu’s Rector, Jouko Niinimäki.

"The turnaround we have achieved together as a university in the effectiveness of our research activities is highly significant for the future prospects. It is also encouraging that the share of education has started to rise. Although an increase from 9 percent to 9.5 percent with slowly responding indicators may seem small, it represents a relatively large shift in the financial direction. A change of one-tenth of a percent means approximately 1.6 million euros in the university's annual government funding," Niinimäki explains.

Strategic funding to support research impact and facilitate studies

The strategic portion of government funding will support initiatives deemed strategically important for the University of Oulu’s future. The university will receive strategic funding a total of 67.2 million euros for 2025–2028. The share of strategic funding in the universities’ funding model is 5 percent less compared to the ending funding period, but the Ministry has decided to discontinue the national programme-based portion of strategic funding, which increases funding for initiatives aligned with each university’s own objectives.

“A significant portion of strategic funding will be directed towards strengthening our profile, renewing research, and increasing its impact. We are updating researcher training, promoting career development for early-career researchers, investing in researcher recruitment, and enhancing research infrastructures,” states Vice Rector for Research, Taina Pihlajaniemi.

As part of the strategic funding, support will go to a joint university project to establish a national ELLIS Institute. The institute aims to expand artificial intelligence activities in Finland and elevate the level of expertise within a European network.

In strategic educational development, the goal is to increase the proportion of students who complete their studies on time. Study pathways are being streamlined, and student guidance strengthened. Further support will foster both internationalisation among Finnish students and integration of international students into the region and Finland, even after graduation.

A sum of 1.2 million euros from the strategic funding will be allocated to initiatives improving community well-being.

“We are especially enhancing pedagogical support for teachers, which will also positively impact student well-being. Student welfare is being advanced through new forms of guidance and a well-being tutoring programme,” says Vice Rector for Education, Mirja Illikainen.

In addition, OKM has agreed with the University of Oulu on degree targets for bachelor’s, master’s, and doctoral qualifications. To address skills shortages, the university will focus on teacher training, medical education, and supplementary training for graduates with foreign degrees to ensure their competencies meet the requirements of the relevant authorities.

The University of Oulu aims to be a respected partner for international universities, research institutes, and companies in high-quality educational, research, and innovation projects, and to establish more impactful networks in selected target markets.

“With strategic funding, we aim to strengthen stakeholder cooperation within the faculties as a proactive and coordinated effort. Our goal is to open new partnerships, especially with large domestic enterprises and selected international market areas. Through partnerships, the university will enhance research, education, and global impact, adhering to principles of responsibility and shared values,” states Vice Rector for Cooperation, Arto Maaninen, who will assume the position of Rector in the beginning of 2025.

University’s national responsibilities remain unchanged

The University of Oulu’s national responsibilities for the upcoming contract period remain the same as before, covering Sámi language and culture teaching and research, the Sodankylä Geophysical Observatory (including space research), and research and education in micro-entrepreneurship. National responsibilities also include funding for the Kajaani University Consortium and the Teacher Training School. Funding for national responsibilities for 2025–2028 will total 43.3 million euros.

The Ministry will publish the university agreements on its website at a later date.

Read more about steering, financing and agreements of higher education institutions, science agencies and research institutes at the homepage of Ministry of Education and Culture

Last updated: 6.11.2024