This document discusses the relationship between higher education and economic growth. It shows charts demonstrating a strong correlation between higher levels of educational attainment and higher personal income levels in US states from 1980-2005. The discussion then focuses on the role of higher education institutions in economic development through job training, workforce development, business leadership, applied research, and basic research. Different types of institutions like community colleges, four-year schools, and research universities play varying but important roles. Successful strategies include having a diverse portfolio of programs, world-class research universities, an educated workforce, support for entrepreneurs, and business-friendly policies and services. The overarching conclusion is that higher education is key to both personal economic growth and statewide economic growth.

1. Economic Growth and State Colleges and Universities

2. Agenda for Today’s DiscussionTwo Parts:Role Higher EducationWm. Sederburg, USHEEconomic Development Strategies Ann Millner, WSU

3. Educational Attainment and Income$50,0001980$43,000$36,000AKPersonal Income Per CapitaCT$29,000CANVNJWYHIMDNYILCOWADEMAMNVAORUSPAMIOHWIKSFLNHRITXIAAZOKINMO$22,000NEMTLAVTUTIDGAMENMNCTNWVKYSDNDCorrelation = 0.64SCALARMS$15,0001015202530354045Percent of Adults Age 25-64 with Bachelor’s DegreesSource: U.S. Census Bureau, Decennial Census’ and American Community Survey

4. Educational Attainment and Income$50,0001990$43,000CT$36,000NJNYMAMDAKPersonal Income Per CapitaHICADEIL$29,000NHVANVMNRIWACOPAFLUSOHMIKSNEORWIWYVTMOGAINIAMENCTXAZTNOKSD$22,000NDSCALIDMTKYLAUTNMWVARCorrelation = 0.76MS$15,0001015202530354045Percent of Adults Age 25-64 with Bachelor’s DegreesSource: U.S. Census Bureau, Decennial Census’ and American Community Survey

5. Educational Attainment and Income$50,0002000CT$43,000NJMANYMD$36,000CONHCAMNILWAVADENVPersonal Income Per CapitaAKUSPARIMIFLWIWYHIOHORGATXKSVT$29,000NEMOINNCIAMETNSDAZNDSCOKKYUTIDALLAMTNMARWV$22,000MSCorrelation = 0.80$15,0001015202530354045Percent of Adults Age 25-64 with Bachelor’s DegreesSource: U.S. Census Bureau, Decennial Census’ and American Community Survey

6. Educational Attainment and Income$50,0002005CT$43,000NJMAMDNY$36,000NHCOMNVAWYDECAILNVAKWARIPAHIUSPersonal Income Per CapitaFLWINEKSVTSDORMITXOH$29,000IANDMOINNCGAMETNAZOKALMTSCIDKYNMUTARWV$22,000MSLACorrelation = 0.83$15,0001015202530354045Percent of Adults Age 25-64 with Bachelor’s Degrees66Source: U.S. Census Bureau, Decennial Census’ and American Community Survey

7. Role of Higher Education

8. Importance of Post-secondary Ed.Job TrainingWorkforce DevelopmentBusiness LeadershipApplied ResearchBasic Research

9. Roles Related to Institution MissionJob Training – Specific education for industry needs and for individual “job ”Community Colleges & UCATCareer & Technical Education

10. Five Roles Related to InstitutionWorkforce DevelopmentEducate workers of the future for “careers”Liberal arts education + career pathwaysAll USHE institutions

11. Roles Related to Institution MissionBusiness Leadership & Entrepreneurial EducationProvide business leaders for tomorrow’s industrySmall business developmentBusiness Degrees, MBAs,& industry management

12. Roles Related to Institution MissionApplied ResearchInvestigate market needs and relate need to existing technologyUse of existing patents & international resourcesGraduate institutionsLand Grant University Tradition (USU)2007 Patent Report:901 Utah Patents

13. Roles Related to Institution MissionBasic research (USTAR)Discover new processes , technology and relationships High-risk/high payoff costs Technology transfer systemsUniversity of Utah is one of the top in the country with start up firms

14. Institutional DevelopmentSummaryCommunity Colleges – Job training & workforce developmentFour year institutions – regional stewards, entrepreneurial ed. Research – basic andapplied research – technologyEveryone – workforce development

15. Quick ObservationsDiverse Portfolio & StrategyEnvironment for Success

16. Ob. 1: Diverse Portfolio & StrategyNeed for a “diverse program portfolio” and strategyResearch – high yield, high riskRegional service entities -to grow new businesses based on marketsCoordinated Plan – GOED, DWS, USOE, UCAT & USHE

17. Ob. 2: Environment for SuccessWorld Class Research and development (UU & USU)Educated workforce at all levelsEntrepreneurial education on campusResources to assist entrepreneursSmall business centers on campusStrategies to retain & grow business Small Business Development Centers & MEPBusiness climate (taxes & services)

18. Fundamental TruthThe path to personal economic growth is through higher educationThe path to economic growth for the state is through higher education

19. QuestionsEconomic Growth and State Colleges and Universities