4.2 Key enablers and challenges: When do peripheral educational institutions succeed and what stands in their way?
While it is important to recognise that peripheral regions might have very different demographic, industrial, institutional and policy contexts, the EDYNORA case studies provide important insights into the key conditions that enable – or hinder – the success of PHEIs. The following section describes the most critical enabling factors and challenges observed across the six cases. Although presented under separate subheadings below, enablers and challenges often intersect in practice.
Key enablers
Strong collaboration across sectors and levels. Effective collaboration among public authorities, higher education institutions, employers and civil society actors (the quadruple helix model) is a crucial enabler for PHEIs. Institutions where municipalities or regional governments are co-providers – contributing both funding and strategic direction – demonstrate stronger and more strategic integration with local economies. The presence of both formal mechanisms (such as advisory boards) and informal relationships (such as personal networks) has been critical in maintaining regional relevance, responding to local needs and fostering stakeholder ownership.
Political support at national and local levels. Political backing – both at the national and municipal levels – is vital for long-term planning and strategic development of PHEIs. National strategies promoting decentralised education, such as those in Denmark and Norway, have created new opportunities for innovation and regional experimentation. However, political priorities often shift and the sustainability of such initiatives depends on consistent, long-term commitment. As a result, the lasting impact of these efforts remains uncertain.
Securing long-term and stable funding and investments. Long-term financial sustainability requires access to stable and diversified funding, including a combination of national and municipal contributions, formal accreditation and, where applicable, private sector engagement. Over-reliance on short-term project funding can undermine institutional stability and strategic planning.
Hybrid models, flexible programmes and the 24/7 campus. Offering hybrid, flexible, practice-oriented and locally responsive models of education delivery has been an important enabler. With Nordic countries boasting a high level of digital connectivity, even in rural areas, hybrid education formats have significantly broadened access to higher education and enabled students in both urban and remote areas to pursue professional qualifications without needing to relocate. However, to be effective, these models must be carefully designed to ensure high quality, foster peer interaction and provide student support. Tailoring programmes to the specific needs of local students – including adult learners, part-time students and those balancing work and family obligations – is equally important. A concrete example is the provision of flexible opening hours, such as 24/7 campus access, which enables students to access learning spaces and resources outside of standard hours.
Strong link between labour market actors and educational programmes. Robust linkages with local and regional labour markets are essential for ensuring the relevance of educational programmes, enhancing graduate employability and improving student recruitment and retention. PHEIs establish structured collaboration with employers through project-based courses, internships and participation in advisory boards. These partnerships help align educational offerings with workforce needs and increase the likelihood of graduates remaining in the region after completing their studies. Furthermore, they are useful platforms for exchanging labour market insights, curriculum feedback and student evaluations. Several PHEIs are currently analysing the possibility of implementing methods of “life-long learning”, such as upskilling modules and short-course formats, which may offer one promising pathway for more agile responses to these evolving needs.
Student engagement and support. While many peripheral educational institutions across the Nordic Region report that attracting and retaining students is a significant challenge, several of the case studies provide important insights on how to overcome this barrier. Some campuses have made deliberate efforts to foster a vibrant student culture and community, with the aim of enhancing the overall student experience – for example, by employing a student community facilitator. PHEIs appear to benefit when they refrain from competing with larger student cities and instead embrace their small scale and see it as an opportunity to build intimate, responsive learning communities. By adjusting to the needs of the student group, many PHEIs report that they are selected by students who prioritise smaller, more close-knit communities, accessibility and strong student-faculty relationships.
Key challenges
Limited local flexibility and structural constraints. A recurring challenge for PHEIs – particularly regional or satellite campuses embedded within larger centralised universities – is limited local autonomy in decision-making. These governance structures are often designed with large, urban institutions in mind, making them ill-suited to the scale, structure and innovation needs of smaller or rural campuses. As a result, PHEIs may face significant barriers in developing locally relevant programmes and responding flexibly to regional labour market shifts. Even institutions with more formal autonomy, such as UNAK, report difficulties in adapting to local needs due to rigid national frameworks that limit curricular flexibility and local adaptation.
National funding models are not adapted to small institutions. The economic models for higher education in the Nordic countries tend to follow a “one-size-fits-all” approach – emphasising scale, efficiency, standardisation and top-down governance, while often failing to accommodate the specific needs and potential of smaller campuses. PHEIs are particularly disadvantaged by frameworks that prioritise scale and standardisation over contextual and place-based relevance and flexibility. This is also reflected in funding mechanisms, which are typically linked to student volume or research output, disadvantaging small campuses with niche or low-enrolment programmes.
Frequently shifting political priorities. While Denmark and Norway are increasingly focused on decentralisation of education and development of rural areas – reflected in growing national interest in relocating and establishing educational opportunities in peripheral areas – the policy environment that peripheral educational institutions must navigate is reported as one of the largest obstacles. Even in contexts where decentralisation is formally supported, PHEIs report that the absence of stable, long-term political commitments has led to uncertainty and unmet expectations. Political decisions at the national level can abruptly change the future of such local educational institutions, for better or for worse. These shifts directly affect the economic foundations of educational provision, leading to unstable financial baselines, which hinder long-term planning and innovation.
Labour market needs are difficult for small institutions to anticipate and address. While collaboration with industry and labour market actors is robust, the case studies reveal that small institutions rarely manage to meet fully the diverse and rapidly evolving needs of local labour market actors. In many regions, labour markets are fragmented or small, making it particularly difficult to offer a comprehensive range of programmes that align with demand across sectors, such as health, welfare, education, business and technology. This mismatch is especially evident in specialised or creative fields, where job opportunities are limited regardless of institutional efforts. As a result, PHEIs are often faced with the near-impossible task of providing a very broad spectrum of programmes to satisfy local needs – a challenge that is, in many cases, unfeasible. Limited resources and scale often restrict their ability to provide interdisciplinary or varied educational programmes, which can reduce their attractiveness to prospective students and diminish their capacity to respond effectively to regional skill demands.
While advisory boards, networks and partnerships are established to ensure that local educations “are responsive to changing needs of the local labour market”, the case studies highlight how difficult this task is in practice. Among the reasons are rapid shifts in local labour market needs, fluctuating number of students in the nearby area, along with limited resources and knowledge. Several case studies highlight difficulties in projecting and analysing future needs, as well as in providing high-quality educational programmes that can be adjusted to shifting demands. Additionally, even where programmes are well-aligned, smaller labour markets often lack sufficient internship placements and employment opportunities, which can hinder graduate retention.
Designing educational programmes tailored to local labour market needs requires highly flexible and responsive models of provision – a challenge that persists in Nordic countries outside the largest educational centres.
Provision of hybrid education might undermine a vibrant physical campus life. While hybrid models of education delivery offer significant benefits in terms of accessibility and flexibility, they often result in lower levels of campus engagement, which can weaken students’ sense of connection to the institution and the local community and unintentionally diminish campus life. This is particularly problematic in smaller towns, where attracting and retaining young people is already challenging due to limited local career opportunities after graduation and ongoing outmigration to larger cities.
Place attractiveness and fluctuating student numbers. Place attractiveness for students – such as access to affordable student housing, a vibrant campus environment and the overall appeal of the surrounding area – plays an important role in student retention and engagement. However, these conditions are challenging for many PHEIs to fulfil. For instance, housing that is affordable for students is often difficult to plan for in smaller urban areas, where the number of students often fluctuates. One case study referred to this as the “ketchup effect” of opening new programmes: in the first couple of years, students from various cohorts enrol, but the initial interest wanes over time and the student pool is depleted, making it difficult to sustain an active and attractive campus life.
Dependence on key individuals makes PHEIs vulnerable. It is evident in some of the case studies that the establishment and continued existence of PHEIs – particularly small institutions or campuses – are often highly dependent on a few individuals and their personal networks. These actors frequently play pivotal roles in maintaining strategic partnerships by securing funding and navigating institutional or political landscapes. While such leadership can be a strong asset, it also introduces a significant vulnerability. Many small campuses and institutions are vulnerable to changes in personnel, which can lead to fundamental and rapid changes in crucial organisational relationships and coordination. Such dependence highlights the importance of developing shared leadership models to strengthen continuity, reduce risk and build long-term resilience.