BERKELEY, CA — The Center for Studies in Higher Education (CSHE) has released a new ROPS paper titled "Divergent Business Models in International Higher Education: A Transatlantic Comparison"The paper, authored by David B. Audretsch, Alice Civera, Michele Meoli, and Stefano Paleari, suggests that the United States’ long-standing preeminence in the sector is facing structural challenges related to economic sustainability and shifting global demand
Economic Sustainability of the U.S. Model
The authors identify a growing disconnect between the cost of American higher education and its economic returnSince the 1960s, the average cost of a four-year degree in the U.S. has more than tripled, significantly outpassing inflation and income growth
The study highlights several recent trends affecting the U.S. market:
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Enrollment and Interest: In the first months of 2025, global interest in U.S. graduate programs declined by 61%
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Student Inflow: International student enrollment decreased by 17% during the last academic year
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Economic Contribution: International students contributed approximately $42.9 billion to the U.S. economy in 2024-2025A 7% decline in enrollment resulted in a $1.1 billion reduction in overall economic impact
The paper draws a parallel to historic shifts in the U.S. automobile industry, noting that while academic standards remain high, the model has struggled to adapt to more cost-effective innovations from overseas competitors
Europe as a Differentiated Alternative
The research frames Europe not as a competitor seeking to replicate the U.S. system, but as an alternative business model defined by lower tuition fees and a deliberate strategy of internationalization
Key factors in Europe’s rising visibility include:
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Standardization: The Bologna Process has aligned degree structures across the continent, making European qualifications more transparent and comparable
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English-Language Instruction: The number of English-taught bachelor’s programs in Europe grew from 55 in 2009 to 2,900 by 2017
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Diversified Mobility: Europe relies more on intra-continental mobility and a broader range of origin countries, whereas the U.S. remains heavily dependent on students from Asia, particularly China and India
Conclusion: A Pluralized Global Market
The authors conclude that the global landscape is shifting from a U.S.-centric "monopoly on talent" toward a more diversified market where students evaluate cost, quality, and political stability across multiple regionsWhile elite U.S. research universities remain primary destinations for global talent, the broader sector faces an increasingly adversarial scholarly market