Export Education Innovation Programme Strategic Overview

The Government has announced funding of $0.5 million in 2004/05 and $1.0 million each year subsequently, to encourage and support innovation in export education. The Export Education Innovation Programme Strategic Overview and Operational Guidelines document attached outlines the purpose of this Export Education Innovation Programme, what funding will be used to achieve, the criteria for assessing funding applications and other matters relating to the governance and administration of the programme. As the fund is administered by the Education New Zealand Trust Request For Proposals for the fund are available at www.educationnz.org.nz

Executive Summary

Funding to support export education innovation

4. As part of its 2004 Budget package "Moving Forward in International Education" the Government announced funding for this initiative to encourage innovation in international education. Funding allocated is $0.5 million (GST incl) in 2004/05, and $1.0 million (GST incl) in 2005/06 and outyears.

High level targeting

Innovation - Funding is to be directed to support activities that are a significant change and development for an organisation on the previous way of doing things (innovation). Innovation in this context can cover development of new markets; new business models and structures; expansion into new modes of delivery; development of new educational programmes and products; or qualitative increases in scale of operation.
Offshore initiatives - During the first four years funds will be targeted mainly towards encouraging offshore education activities. New Zealand, when compared to its main competitor nations, has a heavy weighting towards onshore delivery of international education - students coming to New Zealand. Encouraging greater exploration of offshore opportunities will help open new markets and diversify risk. It also has benefits for the sustainability of the onshore education provision - by directly acting as a marketing presence and pathway to New Zealand for students, and by improving New Zealand's education diplomacy profile.
Asia and the Gulf - Funding will initially focus on supporting offshore activities in China, other Asian markets and the Gulf States. This recognises the current areas of activity and demand, but does not exclude proposals relating to other areas.

Activities to be funded

Funding - is available for directly supporting the development of innovative services and products by organisations or consortia - this can also encompass the development of new markets and the establishment of strategic alliances and consortia. As there is an element of private benefit, and to ensure sufficient commitment, funding under this category is a 50/50 co-payment basis of eligible costs, subject to a ceiling of $125,000 (GST incl) government contribution.

Funding criteria

5. While the programme is aimed at encouraging innovation and development in the more commercially focused aspects of international education, short-medium term financial criteria will only be one factor in assessing whether or not to support a project. Criteria considered will be:

Alignment with the high level targeting priorities of innovation, offshore education activity, and initial emphasis on China, other Asian countries and the Gulf States.
Benefits resulting from the project - e.g. short-medium term financial, longer term financial, marketing of New Zealand education, linkages to education diplomacy and overseas aid, benefit to other New Zealand export educators, and benefits to domestic education outcomes.
Likelihood of success of the project and the level of risk associated with it.
The proposal's fit with the applicants overall education and business strategies.

6. In assessing a project considerable emphasis will be given to the track record of organisations applying, and on their capacity and capability to undertake the proposed project. Funding will only be available for operating expenditure, not capital investment, and will be available for the development stages of projects only, not to assist or underwrite ongoing operation and business as usual.

Governance and management

7. Major decisions for the EEIP will be made by a Management Group comprising representatives of the Ministry of Education, New Zealand Trade and Enterprise and Education New Zealand. Education New Zealand will be responsible for day-to-day administration of the programme. An expert advisory body will assist the Management Group on the assessment of funding applications.

Risks and Risk management

8. Risks centre on:

ensuring there is adequate information and expertise to assess the efficiency and effectiveness of the programme.
ensuring information and knowledge generated through the programme is available to and used by the sector.
the possibility that the use of funds might be either too concentrated or too widely dispersed.
that funds are directed to activities that would have happened in any case ("deadweight loss"), or are directed away from more useful activities.

9. Robust governance and management structures and thorough processes and procedures will be central to managing the risks identified above. Work programmes will be developed and proposals and project outcomes assessed drawing on industry expertise and experience. Contracts will be specified in appropriate detail and regularly monitored against agreed progress points and milestones. Thorough protocols will be in place to manage any potential conflict of interest issues arising relating to the expert advisory body.

Timeline

10. The Management Group for the EEIP has been established, and the Expert Advisory Body is in place to assist with the assessment of funding applications.

11. A call for tenders for innovative industry projects is being issued in parallel to this revised version of the Strategic Overview and Guidelines document and is available at www.educationnz.org.nz. Please refer regularly to the Education New Zealand website (above) for further details.