PUBLIC FUNDING OF HIGHER EDUCATION INSTITUTIONS AND THE DEVELOPMENT OF INTELLECTUAL CAPITAL: CONTEMPORARY APPROACHES TO THE ALLOCATION OF FUNDS IN UKRAINE
DOI:
https://doi.org/10.32689/2523-4536/81-4Keywords:
public funding, allocation formula, higher education institution, quality assurance, intellectual capital, research performance, internationalisationAbstract
The article comprehensively rethinks the governance logic of public funding for higher education institutions in Ukraine under the transition from a maintenance-oriented model to a mixed model that combines baseline stability with performance incentives. The purpose of the study is to justify the conditions under which formula-based allocation of state funds safeguards institutional continuity and simultaneously contributes to the development of university intellectual capital. The object of the research is the system of public funding of higher education institutions, while the subject is the set of managerial, methodological and informational mechanisms through which the funding formula affects the human, structural and relational capital of universities. The methodology combines a critical review of studies, content analysis of regulatory documents and official communications, comparative analysis of international funding models, secondary analysis of open statistical and budget data for 2023–2025, and practical approbation based on a sample of Ukrainian universities. It is proved that the effect of formula funding depends not only on the absolute amount of resources but also on three conditions: a sufficient stabilisation component, a valid set of indicators, and independent verification of data. The international review shows that performance-based funding is useful only when it does not crowd out core funding and when it is aligned with quality assurance, research productivity, international cooperation and graduate employability. Based on the Ukrainian context of 2024–2025, the paper demonstrates that funding cuts or rigid freezing of allocations generate risks of losing human and structural capital, whereas moderate growth creates opportunities for developing laboratories, digital infrastructure, grant activity and external partnerships. An improved quality incentives matrix is proposed, linking formula indicators to specific effects on intellectual capital and to the risks of indicator distortion.
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