Export Education Innovation Programme Strategic Overview

How Funding will be Targeted

1 Focus on offshore delivery

26. Provision of education services and products is seen internationally as a very significant growth area - possibly becoming more important that onshore export education over the next ten to fifteen years. While New Zealand has developed a strong onshore industry since the 1990's, our offshore involvement lags behind that of our competitor countries - and we have only a handful of institutions that could be said to be well-established in this area.

27. While not wholly excluding good proposals relating to other aspects of export education, the first four years of the programme will emphasise the development of New Zealand's involvement in offshore delivery of education. Priority will be given to projects that enhance the ability of New Zealand institutions to undertake offshore initiatives, and to directly assisting the development of such initiatives. This focus will be monitored and reviewed as the programme is implemented and knowledge increases.

28. Export education services are commonly categorised in four modes following a WTO model (with 1, 3 and 4 being "offshore"):

29. In practice delivery often involves a mix of two or more modes - for example a programme may involve an initial stage of study in an offshore campus of a New Zealand institution, supplemented by access to e-learning, followed by a stage of the student moving to New Zealand to continue their programme of study.

30. In addition to the trade in services there is also a trade in physical products such as text books and software, and a trade in consultancy services that New Zealand is active in.

31. Offshore initiatives can have direct economic benefits for New Zealand organisations, and can also act as a marketing presence and a gateway to study on-shore in New Zealand. In addition offshore activities are also very likely to have reputational/diplomatic benefits for the industry with some student source nations - for example China has expressed a desire to see more offshore involvement by New Zealand institutions. Successful high profile initiatives, can have useful diplomatic and marketing spin-offs through media coverage and ongoing visibility of a New Zealand presence (conversely of course, high profile failures can have a negative effect).

32. Anecdotally, some reasons for lack of involvement in offshore delivery include:

• Focus on growth opportunities in onshore development.
• Lack of information on opportunities, and how to develop them.
• Lack of information on obstacles and risks, and how to manage.
• Need for significant up-front investment and long lead-in times.
• Perception of high-risk and low/uncertain returns.
• Lack of fit/perceived lack of fit with domestic education objectives.
• Real and perceived obstacles relating to scale and resource availability (e.g. establishing "blended delivery" overseas may require expertise in identifying and working with overseas institutions, managing staff overseas and the development of e-resources and delivery platforms).

33. Offshore delivery could prove an area for significant expansion and development for New Zealand institutions, but it is also an area with significant costs and risks. Support under the EEIP could help institutions and groups identify and develop opportunities, and overcome obstacles while also helping to manage risk.

34. It should be emphasised that the EEIP is not intended to encourage inappropriate involvement in offshore education - for example where this would put domestic education outcomes under threat. Offshore education is not an area that all institutions should seek to become involved in. While some onshore delivery can be added relatively straightforwardly to domestic programmes, offshore delivery requires considerable forward planning and also skills not necessarily available in all institutions. It is usually more suited to larger institutions (and/or consortia) that already have established export education involvement and overseas experience. Offshore delivery may not fit with the domestic education goals or needs of some institutions, and it is not an activity that should be contemplated by any institutions with significant issues to address in their domestic operations.

2 Initial emphasis on China, other Asian markets and the Gulf

35. Initial emphasis will also be placed on improving knowledge of, and resources for, markets where New Zealand already has a presence and where significant future activity is envisaged and/or encouraged - for example at the 2004 Education New Zealand conference a representative of the Chinese government re-emphasised the message that China would like to see an increase in offshore partnerships with Chinese institutions. This message had previously been emphasised by the Chinese Minister and Vice-Minister of Education. Countries such as Singapore that are aiming to become regional educational hubs in Asia are also of particular interest.

36. Initial emphasis will be given to proposals focusing on China, other Asian countries and also the Gulf States. This emphasis will not be to the exclusion of quality proposals covering other areas, but would be used as a factor where funding is oversubscribed or otherwise making calls at the margin. This emphasis will be revisited in future, based on experience and further information.