| Abstract: | Germany consists of sixteen federal states (Länder). According to the Basic Law, the Länder are responsible for education, science, and culture. The Länder support the institutions of higher education financially, making the largest contributions to university funding (90 percent). Following the formulation of the "Incentives and Accountability" leitmotiv, substantial changes have taken place over recent years in relation to the financing of higher education. A change of paradigm occurred that involved movement from detailed input-oriented state control to an output-oriented form of global control. Currently, almost all the Länder are working with highly flexible institutional budgets and with indicator-based allocations of funds. A new salary scheme for professors, based on performance criteria, has been introduced. In some Länder, contracts between state and universities--which describe the performances expected of the institutions-- have been concluded. |
