Steering and funding of universities of applied sciences

Universities of applied sciences get most of their funding from the Government. This means that state funding and other government-led steering activities have an impact on universities of applied sciences. State funding is allocated to both universities and universities of applied sciences as a single entity based on what are called funding models. There are different funding models. Their purpose is to improve the quality, impact and productivity of higher education institutions.

SAMOK seeks to influence the funding model of universities of applied sciences to ensure that the students’ perspective is taken into account in it better. To us, it is important that the quality of education and student well-being and feedback are taken into consideration in the funding model.

The model allows the core funding divided between the higher education institutions to be allocated as a single entity. The higher education institutions then decide on the internal allocation of funding independently according to their own strategic choices. State funding for universities of applied sciences is EUR 954 million (2023), and state funding for universities is EUR 1,999 million (2023).

In addition to core funding, universities of applied sciences receive funding from other sources. This is called external funding. Universities of applied sciences receive external funding from foundations, businesses, the European Union and Business Finland, among other sources. Higher education institutions also receive strategy-based funding. For more information about the funding model, please visit the Finnish Government’s website.

Universities of applied sciences are also steered by other measures, such as steering by information. This emphasises the autonomy and social responsibility of higher education institutions. Individual universities of applied sciences allocate their funding and develop their operations as they see fit.