Aalto University

Aalto University (Finland) is ranked 9^th in the 2019 QS Young University Ranking, the 22nd in the 2018 Times Higher Education Young University Ranking. It is also worth noting that the institution improved its position in the Times Higher Education World University Ranking: in 2015 Aalto was in the 251-275 domain, in 2019 it is the 181^st. In the U-Multirank, Aalto is “excellent” in 12, and “good” in 4 from the 31 available indicators. Aalto is worth to study for Hungarian experts because it has been converted from a state university to a private, foundation university – a transition that is in the focal point of the

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current Hungarian higher education reforms. Other remarkable achievements of the university are the following: The proportion of international academics was 4 % in 2010, but by 2016 it increased to 20%. One of the reasons was that the public servant status of academics was abolished in 2009. This increase of the proportion of foreign academics is more significant if we consider that their number increased from 230 to 386 in this period.

The university became truly international: the majority of study programmes are offered in English, for example, there were only 14 master programmes in Finnish in 2018. Emphasis is placed on internationalization. Emphasis is placed on research excellence. In 2016 23 ERC grants were in progress, and 8 ERC grants were finished by that time. The institution is successful in attracting EU funding (21 million EUR in 2016) and corporate financing (13 million EUR in 2016). (Financial Report 2016)

Among its best practices, the most noteworthy are the following. The institution had been transformed from a state university to a foundation university in 2009, and it had several positive effects on its performance and finances and has changed its career system radically. The other is the remarkable innovation ecosystem in and around the university.

From state to foundation university

The new Universities Act, adopted in 2009, has strengthened the independence, financial and legal autonomy of universities to enable institutions to meet social expectations better.

Accordingly, the legal status of the institutions was also re-regulated. The institutions were out of the state budget and could choose to operate as a public corporation or as a foundation university. Aalto chose the latter one together with Tampere University of Technology.

With the university becoming an independent legal person and empowered to make independent financial decisions, its financial capabilities have been expanded (borrowing, asset management). The new law has enabled universities to create financial endowments. The government promised half a billion euros to the Aalto University if it managed to collect 200 million euros from outside partners. The university has a significant corporate network because the smaller size of Finland resulted in that most larger companies have links to one of the predecessors of Aalto University. The University was able to mobilize their support; thus it received the promised government support although it was decreased because of the financial crisis between 2008 and 2012. According to the university's financial report for 2016, Aalto Foundation had 948 million euro at the end of 2016, with an investment return of EUR 8 million in 2016 that the university can also manage.

The other factor is that the foundation may have a share in other companies. The Aalto University also has more shares, which together with the University, make up the Aalto Group. The Group includes Aalto University Properties Ltd (100%), which is responsible for operating and developing the University's real estate, and Aalto Holding (100), which manages the affiliates and holdings of Aalto Foundation. The holding company manages, among others, Aalto Executive Education Ltd. (provides leadership training services and services), Sannas Manor Ltd. (conference hotel operation). The university also has many other companies, such as sports and event organization, accommodation, publishing, real estate development and innovation. The university also has a share in a shared education and research organization (Funidata), which is jointly owned and operated by Finnish higher education institutions. The results of the Aalto Group can also be used for the benefit of the University, amounting to EUR 12-13 million in 2016.

Human Resource Management

The change in legal status also allowed to introduce an independent human resource policy. The staff of the university ceased to have the status of a public servant, so that the university can pursue an independent HR policy. This is also linked to an increase in the proportion of foreign professors. A career system was developed that resembles the American tenure track system.

Table 3. Career system at Aalto University Assistant

Innovation ecosystem

By setting up the Aalto University, the Finnish government wanted to strengthen Finland's innovation potential by creating a model for an entrepreneurial university that supports innovation. Aalto University was built around a rich and diverse entrepreneurial ecosystem.

The results of this are well illustrated by the fact that 70-100 new startups are created in the Aalto ecosystem, and half of the Finnish startups are linked to Aalto University. The following examples illustrate some of the elements of the ecosystem:

• Aalto Design Factory is one of Aalto's most remarkable and well-known initiatives. Design Factory (DF) is a space that encourages free brainstorming and interaction between students, researchers, and partner corporations. The factory is based on the paradigm of open innovation, recognizing that innovative ideas are often formed not by formal structures but by informal conversations, so it is advisable to create a space where inspirational and informal, encounters are possible. Design Factory establishes the framework for this. Historically, DF has emerged from product design projects in 2008, but today, the projects are not primarily intended to meet specific corporate needs but to create innovative co-operative thinking and framing. As a result, of course, products are also made, for example in 2015-2016 a portable moisture regulator, wine alcohol reduction device or a new casino game.

• Projects initiated by students are not only supported by DF staff but also by university lecturers and business partners. This requires a different kind of role interpretation from the academics, which is also facilitated by leaving the traditional university framework. Students also require a different approach to working in DF: autonomy, responsibility, a culture of co-operation and thinking, that is, a number of transversal abilities that the university wishes to develop.

This model is also very inspiring for students who spend many hours at the factory. The factory also supports the preparation of theses and advertises courses for anyone. Not only does the Aalto University work with the Design Factory, but also other Factory, including Aalto Media Factory and the recently established Aalto Health Factory.

• Aalto Entrepreneurship Society (Aaltoes): One of Europe's largest and most active student-led entrepreneurial community founded in 2009 by active and former university students. They support student entrepreneurship and have been the cradle of projects such as the Startup Sauna Accelerator Program (formerly known as Aalto Venture Garage) or Slush, a meeting of startup founders and investors (which was organized in four cities in 2016: Helsinki, Singapore, Tokyo and Shanghai).

• Aalto Center for Entrepreneurship (ACE): ACE connects the university with other incubators, accelerators and investors in the ecosystem. Its main goal is to support the creation of new startups.

• Aalto Ventures Program: An organizational unit of the university that provides students with the teaching of business subjects and related services (eg technology transfer, product marketing, etc.). In the last four years, 2000 students have studied under the Ventures Program.

• Accelerator Partners: In addition to the already mentioned Startup Sauna, startups are supported by many other accelerator partners. These include the University's organizational unit, Aalto University Start-up Center, and ImpactIglu, Kiuas.

• Aalto University Developing Entrepreneurship: Provides further training for those who are already entrepreneurs.

• Startuplifers: offers trainee programs for startups in Silicon Valley and Asia. The program was created in 2011 by Aalto University students.

• Junction: one of Europe's largest Hackathons organized by Finnish students.

3. Summary

Based on the best practices presented above and collected at five other universities, can we suggest any general direction for innovative and market-oriented universities?