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SMA3 Metric: Institution-Specific (Economic Impact)

The institution-specific economic impact metric by itself is more like the differentiated contracts associated with SMA2 than all but the institutional strength/focus. As with institutional strength/focus this metric is another example of how SMA3 blends all three of Adam’s (2020) PBF program types, with this metric being the second contractual performance metric amongst the other performance set-asides or reservation-type metrics.

The institution-specific economic impact metric is the only metric where institutions both name the metric and the measure in SMA3, in contrast there were a total of 228 unique institutional metrics in SMA2.

This type of metric is not in use in any established PBF program except for Florida. Florida’s PBF program has both a board of governors choice metric, currently “percent of bachelor’s degrees without excess hours” (State University System of Florida, 2019) and a board of trustees choice, which is selected by each university’s governors or trustees.

Implementation of the institution-specific (economic impact) metric

Here’s links to the types of measures each university chose

Each institution nominated its own unique economic impact subject and measure, but some themes emerge from the subjects of each measure. What follows is the five themes that emerge from the 21 institutional impact measures, subthemes on students’ economic impact.

Theme: Co-op, internships, and experience related

Brock University, Laurentian University, Ontario Tech University, and Université de Hearst selected a subject that reflects students’ contributions to the local economy in the form of the talent they provided to key industries in the form of co-op and experiential education placements. The University of Waterloo has chosen “total earnings by co op students on work terms includes all reported earnings from employment in Canada and the United States, for the full 16 weeks of a co-op work term (stipends, travel allowances and other gratuities are excluded)” (University of Waterloo & MCU, 2020, p. 14). The first four highlight the contribution that students make to key industries in the local region, as well as the institutions’ past successes. Université de Hearst has placed the highest possible weighting on this metric across all five years, and their narrative speaks to their commitment to it. Placements would be affected by economic circumstances, but perhaps the relationship between the supply of students and the demand for placements is more manageable than the University of Waterloo’s selection of salary.

The University of Waterloo included a caveat in its narrative, which is perhaps the clearest admission that a target cannot be met across all SMA3 documents.

Subject to wider economic conditions, Waterloo expects this strong performance to continue. As acknowledged by MCU on the cover page to this agreement, the COVID-19 outbreak has had a significant impact on the Ontario economy, which is projected to continue over the coming years. As a measure of overall economic impact, total earnings by Waterloo co-op students are expected to reflect the general state of the Ontario labour market and economy. As such, co-op earnings are expected to contract before recovering to pre-COVID-19 levels. Together with the Ontario government, Waterloo is committed to ensuring its students are equipped with the skills and competencies required to make significant economic impacts while helping to rebuild and strengthen the Ontario economy.

(University of Waterloo & MCU, 2020, p. 14)

The University of Guelph made a similar statement to conclude its narrative.

Important elements of chart described below. Drawn from tabular data in SMAs.

The chart above depicts the placement-based metrics for Brock University, Laurentian, Ontario Tech University, and Université de Hearst. Brock University (2020) noted this metric’s alignment with the institution’s strategic plans’ priority to “enhance the life and vitality of our local community and beyond” (p. 14) resulting in the relatively high 20% weighting. Laurentian has also related its metric to several items in its institutional strategic plan. All four universities have tied the metric to activity in local regions.

Each university has used differing definitions.

Brock University’s (2020) definition is “annual count of Co-op student and practicum placements in the Niagara Region” (p. 14). Laurentian University’s definition is “number of student course registrations in co-ops, internships, placements, and practicums (local, national, and international)” (MCU & Laurentian University, 2020, para. 83).

Ontario Tech University’s definition is “the number of assessment-based student work-related placements placed in Durham/Northumberland Region” (MCU & Ontario Tech University, 2020, para. 75).

Université de Hearst’s definition is “number of registrants (FTE) in internships” (MCU & Université de Hearst, 2020, para. 79).

The second Co-op, internships, and experience related chart depicts the student total earnings metrics for the University of Waterloo’s (2020) related student “total earnings by students on co-op work terms” (p. 14).

Important elements of chart described below. Drawn from tabular data in SMAs.

The University of Waterloo’s narrative describes the University of Waterloo’s most recent economic impact study, which was completed by Deloitte, and indicates the total benefit to employers that have hired a co-op student was approximately $525 million in 2018–19, with a total contribution of $567 million to Canada’s GDP.

Theme: Economic impact on Ontario or region(s)

Lakehead University, Nipissing University, the University of Guelph, the University of Ottawa, Trent University, the University of Windsor, and Wilfrid Laurier University all selected subjects that measured the economic impact of a mix of the institutions’ current students, alumni, and staff on local economies or Ontario’s GDP.

Economic Impact on Ontario or Region(s). Highlights described below. Tabular data available in SMA documents.

Some institutions have distinguished between local students and those from outside the region who represent a financial flow into the region. This is ironically a distinction that likely has grown on paper during the COVID-19 related shift to remote learning. Students have greater opportunities to study at institutions outside of their home region without the need to relocate to the institution’s region, but this does not grow in terms of the real impact of student spending in the region. Lakehead selected both its current students and the impact of alumni on Ontario’s GDP, tying the logic of selecting this expansive measure to the impact of COVID-19.

Lakehead University’s (MCU & Lakehead University 2020) metric, “economic impact of Lakehead’s students, staff, faculty, research activity, operations, and alumni on the provincial economy, reflecting the importance of Lakehead’s local and regional role in Northwestern Ontario and Simcoe County” (para. 120). It measures the impact of Lakehead University on value-added GDP and was calculated using the Statistics Canada input–output model, but Lakehead University is the only institution to include all students and alumni. The University of Guelph’s “The direct economic impact of nonlocal student spending on Ontario’s GDP” (MCU & University of Guelph, para. 74). demonstrated the flow of funds into the Guelph region by noting that nonlocal students total more than 85% of the University of Guelph’s enrolment. Nipissing University’s metric is the “economic impact of students enrolled at Nipissing from outside North Bay based on the following Ontario average household expenditures: food, rent and public transportation” (MCU & Nipissing University, para, 73).

To calculate its current students’ economic impact, the University of Ottawa combined official registration data with Statistics Canada figures on expenditures for rent, food, and transportation to demonstrate that students from outside of Ontario spend more than $40M per year in the region (MCU & University of Ottawa, 2020, para. 82). The University of Ottawa’s definition states that “this metric quantifies annual spending by full-time out-of-province students who are living in Ontario” (MCU & University of Ottawa, 2020, para. 79).

Trent University used a similar approach to represent spending by full-time students who come to Trent’s Peterborough and Durham campuses from outside the City of Peterborough and the Regional Municipality of Durham (MCU & Trent University, 2020, para. 93). This measure uses the Statistic Canada independent Survey of Household Spending to indicate Trent University’s direct connection to the local economy.

In 2019 the University of Windsor (2020) contracted KPMG to conduct an economic impact study. The study assessed nonlocal students’ total expenditure in the local economy, which, in 2018–19, amounted to approximately $133 million (University of Windsor, 2020, p. 18). The University of Windsor used the study’s findings to calculate the economic impact of nonlocal students. Wilfred Laurier University uses its annual graduate outcomes survey to identify the number of students who graduate from Laurier who are staying to work in Ontario and multiply that by the average salary identified in the survey (MCU & Wilfred Laurier University, 2020, para. 91).

Theme: Institutional partners

OCAD University was alone in selecting the numbers of formalized partners with agreements that detail the exchange of mutually beneficial benefits between each party. Some of these partnerships include the city of Toronto and the University of Toronto. OCAD University’s gallery system is also part of these partnerships. OCAD University (2020) has further defined a partnership as a

contractual relationship with an organization outlined by a fully executed agreement with the university and which details the exchange of mutually advantageous benefits (e.g., cash, value in-kind of services or products, sponsorship, experience, access to talent, mentoring, research) with the exclusion of charitable gifts and business agreements.

(OCAD University, 2020, p. 16)
OCADu's Partnership growth and weighting.

OCAD University’s trajectory is above the institution’s target.

Theme: International student enrolment

International student enrolment can have a significant economic benefit to institutions and localities. International student tuition is unregulated in Ontario, where domestic tuition is subject to restrictions on the annual growth or even reductions, such as the January 17, 2019, 10% cut in regulated tuition announced by minister Fullerton. International tuition averages around twice as much as domestic tuition at Ontario institutions and represents an opportunity to recover revenue lost to inflation and tuition cuts. International students also represent a clear flow of finances from outside of a region into it. Algoma University embraced this assumption by noting in its narrative that it has been tasked by the government to look for operational efficiencies, but adds a caveat:

Algoma University's International student enrollment and metric weighting.

it is unlikely that AU can add significant capacity to support data gathering. We have, therefore, concluded that the effective metric for AU here is international student FFTEs, in recognition of the economic value they bring to the communities in which we operate. We will track and report on the number of enrolled international student FFTEs by campus/city location.

(MCU & Algoma University, 2020, para. 80)

Algoma University is confident in making its targets, leading its narrative by stating it “will use international student enrolment by FFTE for this metric, recognizing that there will be no prospect of any reallocation of funds even if, as expected, we perform well. We have placed a relatively high weight on this category” (Algoma University & MCU, 2021, p. 14). Algoma University’s SMA3 summarizes its measuring instrument as “Algoma University Enrolment Data Collection; Statistics Canada/Global Affairs Economic Impact Multiplied” (Algoma University & MCU, 2021, p. 14).

Algoma University’s target is below the most recent historical result, but historical results have experienced a lot of variance.

Theme: Invention disclosures per association of university technology licensing survey

Both McMaster University and Western University have chosen a measure of institutional science-based research activity, specifically new inventions created at these institutions by faculty and other researchers and the related licensing activity of technology transfer offices. The Association of University Technology (AUTM) licensing survey comprises 70 Canadian institutions, including universities and colleges, hospitals and research institutions, national laboratories, and third-party technology investment firms. AUTM is a Washington-based nonprofit organization supporting the development of academic research that works with more than 800 similar institutions (Oliva et al., 2018).

Invention disclosures. See following text for highlights and SMA3 documents for tabular data.

The chart above suggests an upward trajectory for both institutions, but both institutions have assigned a low weighting.

It is interesting that both McMaster University and Western University have chosen the same measure, and that they chose one that requires the successful negotiation of a license/option agreement, not just patents or other entries in public catalogues of discoveries. These technology transfers represent revenue for the institution; however, the knowledge benefits are not necessarily transferred to Ontario-based entities. The University of Toronto nominated “new invention disclosures” (University of Toronto & MTCU, 2017, p. 18) as a metric in SMA2.

The source for both university’s metrics is the AUTM Canadian Licensing Activity Survey. AUTM only provides nonnational-aggregate, institution-level, data to AUTM members for a fee of USD $50, or nonmembers for a fee of USD $375. McMaster University’s definition: The number of annual invention disclosures as reported in the AUTM Licensing Survey. Running total of licences and/or option agreements (where the dollar value is $1,000 or more) and where the agreement is still in full force and effect (i.e., where the term has not expired nor has the agreement been prematurely terminated).

Theme: Start-ups

Each institution uses its own method for tracking start-ups and most of them start with the institution’s own incubator, support programs, or similar catalyst systems. Carleton University, Queen’s University, Ryerson University, the University of Toronto, and York University selected variations on the number of start-up firms created by students and graduates. Each university has its own definition of start-ups, as follows:

  • Carleton University: “Number of companies founded with Principals directly connected to Carleton University . . . [which] will produce a detailed, comprehensive Carleton University Company Formation Impacts Database to track firms created by Carleton alumni, faculty, staff, and students” (MCU & Carleton University, 2020, para. 115).
  • Queen’s University:Number of startups incubated or supported by a program/service offered by Queen’s each fiscal year” (MCU & Queen’s University, 2020, para. 87).
  • Ryerson University: “Number of startups present as reported to Canada Accelerator and Incubator Program (CAIP)/Campus Linked Accelerators (CLA) programs, and equivalent reporting after conclusion of these funding programs” (MCU & Ryerson University, para. 94).
  • University of Toronto: “The number of start-ups being actively supported by incubators and campus-led accelerators across the University’s three campuses” (University of Toronto & MCU, 2020, p. 15).
  • York University: “A start-up venture is a for-profit, non-profit, or social enterprise created by a student, faculty member, alumni, or community member that obtains mentorship, education, or space from York University for a period of three months or equivalent” (MCU & York University, 2020, para. 85).

Ryerson University and York University had the same metric in SMA2, demonstrating consistency in self-determined metrics. Trent University did not continue its SMA2 start-up metric in SMA3. These institutionally determined metrics appear to be the only instances of start-ups as a metric in PBF programs, but many institutions with these types of catalyst systems report the number of start-ups created as a key performance indicator. All institutions assign a high weighting in the first year but decrease the weighting as others become active.

SMA3 startups. See previous paragraphs for highlights. SMA3 documents contain tabular data.

Adam, Edmund. “‘Governments Base Performance-Based Funding on Global Rankings Indicators’: A Global Trend in Higher Education Finance or a Global Rankings Literature Fiction? A Comparative Analysis of Four Performance-Based Funding Programs.” International Journal of Educational Development 76 (2020): 102197-. https://doi.org/10.1016/j.ijedudev.2020.102197.

Algoma University, and Ontario Ministry of Colleges and Universities. “2020-2025 Strategic Mandate Agreement: Algoma University [PDF],” 2021. https://www.algomau.ca/wp-content/uploads/2020/12/Signed-SMA3.pdf.

Brock University, and Ontario Ministry of Colleges and Universities. “2020-2025 Strategic Mandate Agreement: Brock University [PDF],” 2020. https://brocku.ca/vp-academic/wp-content/uploads/sites/65/Brock-University-SMA3-Agreement-August-31-2020-SIGNED-FINAL.pdf.

McMaster University, and Ontario Ministry of Colleges and Universities. “2020-2025 Strategic Mandate Agreement: McMaster University [PDF],” 2020. https://ira.mcmaster.ca/app/uploads/2020/11/McMaster-SMA3-Agreement-August-31-2020-SIGNED-FINAL.pdf.

Oliva, Novac, Maya Collum, and Nadine Weedmark. “AUTM Canadian Licensing Activity Survey: 2018.” Washington, DC, 2018. https://autm.net/AUTM/media/SurveyReportsPDF/AUTM_2018_Canada_Licensing_Survey_without_Appendix.pdf. Ontario College of Art and Design (OCAD) University, and Ontario Ministry of Colleges and Universities. “2020-2025 Strategic Mandate Agreement: Ontario College of Arts and Design (OCAD) University [PDF],” 2020. https://www.ocadu.ca/sites/default/files/assets/files/OCAD%20University%20Strategic%20Mandate%20Agreement%2C%202020-2025.pdf.

Ontario Ministry of Colleges and Universities, and Carleton University. “2020-2025 Strategic Mandate Agreement: Carleton University.” Ontario.ca, September 14, 2020. https://www.ontario.ca/page/2020-2025-strategic-mandate-agreement-carleton-university.

Ontario Ministry of Colleges and Universities, and Lakehead University. “2020-2025 Strategic Mandate Agreement: Lakehead University.” Ontario.ca, September 14, 2020. https://www.ontario.ca/page/2020-2025-strategic-mandate-agreement-lakehead-university.

Ontario Ministry of Colleges and Universities, and Laurentian University. “2020-2025 Strategic Mandate Agreement: Laurentian University.” Ontario.ca, September 14, 2020. https://www.ontario.ca/page/2020-2025-strategic-mandate-agreement-laurentian-university.

Ontario Ministry of Colleges and Universities, and McMaster University. “2020-2025 Strategic Mandate Agreement: McMaster University.” Ontario.ca, September 14, 2020. https://www.ontario.ca/page/2020-2025-strategic-mandate-agreement-mcmaster-university.

Ontario Ministry of Colleges and Universities, and Nipissing University. “2020-2025 Strategic Mandate Agreement: Nipissing University.” Ontario.ca, September 14, 2020. https://www.ontario.ca/page/2020-2025-strategic-mandate-agreement-nipissing-university.

Ontario Ministry of Colleges and Universities, and Ontario Tech University. “2020-2025 Strategic Mandate Agreement: Ontario Tech University.” Ontario.ca, September 14, 2020. https://www.ontario.ca/page/2020-2025-strategic-mandate-agreement-ontario-tech-university.

Ontario Ministry of Colleges and Universities, and Queen’s University. “2020-2025 Strategic Mandate Agreement: Queen’s University.” Ontario.ca, September 14, 2020. https://www.ontario.ca/page/2020-2025-strategic-mandate-agreement-queens-university.

Ontario Ministry of Colleges and Universities, and Ryerson University. “2020-2025 Strategic Mandate Agreement: Ryerson University.” Ontario.ca, September 14, 2020. https://www.ontario.ca/page/2020-2025-strategic-mandate-agreement-ryerson-university.

Ontario Ministry of Colleges and Universities, and Trent University. “2020-2025 Strategic Mandate Agreement: Trent University.” Ontario.ca, September 14, 2020. https://www.ontario.ca/page/2020-2025-strategic-mandate-agreement-trent-university.

Ontario Ministry of Colleges and Universities, and Université de Hearst. “2020-2025 Strategic Mandate Agreement: Université de Hearst.” Ontario.ca, September 14, 2020. https://www.ontario.ca/page/2020-2025-strategic-mandate-agreement-universite-de-hearst.

Ontario Ministry of Colleges and Universities, and University of Guelph. “2020-2025 Strategic Mandate Agreement: University of Guelph.” Ontario.ca, September 14, 2020. https://www.ontario.ca/page/2020-2025-strategic-mandate-agreement-university-guelph.

Ontario Ministry of Colleges and Universities, and University of Ottawa. “2020-2025 Strategic Mandate Agreement: University of Ottawa.” Ontario.ca, September 14, 2020. https://www.ontario.ca/page/2020-2025-strategic-mandate-agreement-university-ottawa.

Ontario Ministry of Colleges and Universities, and Western University. “2020-2025 Strategic Mandate Agreement: Western University.” Ontario.ca, September 14, 2020. https://www.ontario.ca/page/2020-2025-strategic-mandate-agreement-western-university.

Ontario Ministry of Colleges and Universities, and Wilfred Laurier University. “2020-2025 Strategic Mandate Agreement:  Wilfrid Laurier University.” Ontario.ca, September 14, 2020. https://www.ontario.ca/page/2020-2025-strategic-mandate-agreement-wilfrid-laurier-university.

Ontario Ministry of Colleges and Universities, and York University. “2020-2025 Strategic Mandate Agreement:  York University.” Ontario.ca, September 14, 2020. https://www.ontario.ca/page/2020-2025-strategic-mandate-agreement-york-university.

State University System of Florida. “Board of Governors’ Performance Funding Model (10 Metrics)  Questions and Answers,” June 2019. https://www.flbog.edu/wp-content/uploads/PBF-FAQs-10_metric_model-June2019.pdf.

University of Toronto, and Ontario Ministry of Colleges and Universities. “2020-2025 Strategic Mandate Agreement: University of Toronto [PDF],” 2020. https://www.utoronto.ca/sites/default/files/Toronto%20-%20SMA3%20Agreement%20-%20August%2031%2C%202020%20SIGNED%20FINAL_0.pdf.

University of Waterloo, and Ontario Ministry of Colleges and Universities. “2020-2025 Strategic Mandate Agreement: University of Waterloo [PDF],” 2020. https://uwaterloo.ca/institutional-analysis-planning/sites/ca.institutional-analysis-planning/files/uploads/files/waterloo_-_sma3_agreement_-_final_posted.pdf.

University of Windsor, and Ontario Ministry of Colleges and Universities. “2020-2025 Strategic Mandate Agreement: University of Windsor [PDF],” 2020. https://www.uwindsor.ca/president/sites/uwindsor.ca.president/files/university_of_windsor_-_sma3_agreement_-_august_31_2020.pdf.