Financial decentralization and third-Mission outputs: A comparative study of Higher Education contexts in Brazil and the United States

Abstract

Third Mission (TM) drives universities to a purpose beyond their traditional role, especially in local socioeconomic and innovation ecosystems. To investigate the issue, we consider an exploratory and comparative study of two different governance systems of public universities (Southeast Brazil-region 1 and Texas-US-region 2). The comparison took into account data from international universities' rankings performance to address TM and the structure of financial sources to address financial decentralization. The available evidence seems to suggest a positive association between the level of financial decentralization and the capability of the system of HE to deliver TM outputs. Universities under decentralized governance structures, which permit more autonomy to manage their resources, presented better results in most selected TM indicators. These findings reinforce the general belief that the governance arrangements that allow exploring synergies within local business ecosystems are more appropriate for ensuring organizational changes in the direction of entrepreneurial action.