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The chapter evaluates the Slovak experience with impact of innovations in financing public higher education institutions. During the last decade, the government implemented an evolving funding formula for the higher education to steer universities towards outputs and outcomes desired by policy-makers. The Slovak experience shows that such innovations can lead to change in behaviour of the public institutions, including modification of internal structure and incentives. However, the impact of the new system has been uneven due to differentiated capacity of the universities to respond to different incentives.
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Beblavý et al. (2014) studied this question.
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