Funding councils are to take action to prevent a repetition of the academic transfer market which developed last year as institutions built up departments for the research assessment exercise.
Research to be published in the new year by the Higher Education Funding Council for England shows that the transfer market was less active than publicity suggested - accounting for about 2 per cent of movement.
But Bahram Bekhradnia, head of policy at HEFCE, acknowledged that the publicity and a perception that institutions were playing tactical games were a potential threat to the credibility of the exercise. "We will want to look at ways of ensuring that institutions do not behave tactically and that credit is given to the place where work has been done, not just where a researcher happens to have been on the census date," he said.
Assessment panels were instructed to take account of the research environment as a whole, and not just the list of those in post on the census date of March 31 1996. Options for strengthening this approach in the next exercise could include classifying publications by their date of submission rather than publication.
Brian Fender, chief executive of the HEFCE, said three groups could be congratulated on the results. "Researchers have produced a remarkable improvement in quality, institutions have greatly improved their management of research and funding bodies can be very satisfied with their investment."
Gillian Shephard, secretary of state for education and employment, said the results showed "how fortunate we are to have a dynamic research base which is achieving world-class excellence in so many fields".
Gareth Roberts, chairman of the Committee of Vice Chancellors and Principals, said the outcome "shows that the quality of research in UK universities is extremely strong and is well placed to continue supporting the UK economy in an increasingly competitive international environment".
Professor Fender said that HEFCE would be giving departments rated 5 star more than those with a 5 rating. He also said it was highly unlikely that departments rated 2 in old universities would receive any research funding, but that some money would be found for those achieving that level in new universities.
There was disappointment in Scotland over the Scottish Higher Education Funding Council's decision not to differentiate between the two 5 grades. Nine Scottish departments won the 5 star grading.
Sir Graeme Davies, principal of Glasgow University, said it might be difficult to build a differential into SHEFC's funding formula, but suggested it should consider an ad hoc payment to recognise the departments' success. The SHEFC will not fund 1 or 2 rated departments.
Research assessment outcomes will provide valuable ammunition for institutions seeking university status. Roehampton Institute, Cheltenham and Gloucester College of Higher Education and Queen Margaret College, Edinburgh all scored average ratings and put in a higher proportion of members of staff for assessment than the bulk of the institutions given university status in 1992.