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In a global environment in which prospects for economic growth now depend importantly on a country's capacity to develop and apply new technologies, our universities are envied around the world. If we are to remain preeminent in transforming knowledge into economic value, the U.S. system of higher education must remain the world's leader in generating scientific and technological breakthroughs and in preparing workers to meet the evolving demand for skilled labor. Alan Greenspan Chairman, U.S. Federal Reserve Few institutions have more to offer in propelling economic development on both a national and local basis than our nations colleges and universities. As leading institutions in their communities, they are powerful drivers, technology centers, employers, developers, and investors. Richard M. Rosan Urban Land Institute Universities lie at the heart of successful, leading economies around the world. The role of Americas leading universitiesperhaps best exemplified by the University of Californiain yielding scientific knowledge, discovering breakthrough ideas, fostering innovations, seeding new companies and creating jobs and new streams of personal and corporate income is practically unparalleled in the world. Most people think of our universities as places for higher education and basic research, and they have traditionally served those public functions. Today, however, they also encompass much more. The public is often unaware of many of a universitys broader economic and social contributions to their community, its economy and their own prosperity and quality of life. The universitys far-reaching activities touch virtually every aspect of our daily lives and the prosperity of the communities we live in. Empirical evidence continues to flow to support our understanding of the crucial and growing roles that universities play in the economic vitality and competitiveness of their surrounding regions. Over the past five years, numerous research analyses and impact studies conducted across North America and in Europe have demonstrated the strategic role that well-resourced universities have on their regional economies.
The Role of Universities Today: Critical Partners in Economic Development and Global Competitiveness
Business leaders also recognize the essential contributions that universities make in providing their companies and their regional economies with a competitive advantage through highly skilled workers, advanced technology, unparalleled knowledge and practical know-how. Publicly and privately, many business leaders have expressed concern over the perceived negative impacts of reduced commitments to our universities. Corporations dont often sound alarm bells over cutbacks in university budgets but recently several leaders have raised concerns at public forums. Business leaders in the information technology industry, for example, are quite concerned about the reduced expenditures in public R&D, which they perceive to be jeopardizing the industrys competitiveness. If the U.S. cedes its leadership in IT there will not be a second chance, Microsoft CTO Craig Mundie recently warned.1 Why are they so concerned? Because government spending seeds university spending on basic research that finds its way into commercial productionand consumers homes ahead of competing regions. Information technology is in turn critical to the competitiveness of virtually every other industry, whether it be aerospace, biotech or digital media. There has been significant research on companies motivations to move or to remain and expand in a region. Many studies and surveys confirm that although many factors play a role, two of the most important appear to be access to a pool of specialized workers and the ability to benefit from knowledge spillovers from the concentration of research, innovation and specialization. As Californians, how can we capture the true value of training our friends and neighbors, those who will become our leading scientists and innovators tomorrow, those who will contribute lifetimes to research and innovation? How can we capture the value of fostering the next Intel or Chiron? And just as importantly, how do we take stock of the cost of the missed opportunity of maintaining national and international leadership in such strategic industries as information technology, telecommunications and biomedicineespecially when we will not get a second chance if we cede our position? How can we assess the costs of not properly funding the transfer of university technology today knowing that it willas it has over the past few decadesyield a significant return to Californians through the discovery of new technologies and products that vastly improve our quality of life and sustain our states economic growth? How does a university do all that?
Will the U.S. Fall Behind in Tech? Fortune.com. Oct. 22, 2002.
The Role of Universities Today: Critical Partners in Economic Development and Global Competitiveness
The Role of Universities Today: Critical Partners in Economic Development and Global Competitiveness
In these ways, todays best universities mean so much more to their communities future than just a place for smart kids and great scientists.