The contribution of higher education institutions to the South African economy

We present the direct and indirect contributions of higher education institutions in South Africa to certain macroeconomic indicators such as GDP and employment, with the ultimate purpose of establishing their importance for the country. Taking this a step further, funding of these institutions is crucial in order for them to continuously produce outcomes in terms of research and skilled graduates. Hence, we compare the South African research and development (R&D) expenditure with international best practice. Policy implications are also discussed, especially in the light of the new funding formula for universities to be announced by the Department of Higher Education and Training.