As someone teaching in higher education, I’d say that you can certainly incentivize the students to learn "understanding", although I agree that a lot is up to the student.
Some basic examples:
- Don’t give test and exam questions that are too similar to examples and problems in the text book and homework. Then they’ll know that learning to generalize is a better pay-off than memorizing the textbook problems, and may choose to change their strategy when studying for exams.
- Reduce the amount of curriculum. By studying in depth instead of in breadth, you have time to focus on how things really work instead of just rushing through material on a surface level, and in my experience that improves understanding more. (But I know many disagree with me on this one.)
- Focus on problem solving as part of the lectures (student-active learning). I’m not an extremist, like some advocating that we shouldn’t lecture at all, but the pedagogical literature is pretty clear that small doses of lectures interspersed with problem solving enhances understanding.
- Try to teach intuition and conceptual models, not just facts. For example, as a student, I really struggled understanding eigenvalues and eigenvectors because our linear algebra textbook defined it by Αv = λv but made no attempt at explaining what it means intuitively and geometrically. Similarly, integration by parts has a simple and beautiful geometric interpretation that makes it obvious why this is correct, but we were only taught the opaque symbolic version in my calculus classes. When I teach myself, I try to lean on such visualizations and intuitive pictures as much as possible, as I think that really enhances «understanding»; not necessarily being able to cough up a solution to a problem you’ve seen before as fast as possible, but being able to generalize that knowledge to problems you haven’t seen before.
But who knows, maybe I’m just biased by how I myself perceive the world. I know there are some people who for example eschew geometric pictures entirely and still do very well. My experience is that most students seem to appreciate the things listed above though.