Higher Education’s Contribution to Economic Development Direct Impact: Mission-Based Contributions Education and Human Capital Development Creators of Knowledge and Sources of Innovation
Trang 1The Role of Public Regional Universities in Community and
Economic Development
December 6, 2005
Trang 2Higher Education and Economic
Devoting resources to higher education can accelerate
economic development and income growth
Areas in need of economic stimulus or that are growing economically demand greater higher educational services
Trang 3Presentation Outline
Public Purpose of Higher Education
The Role of Public Higher Education
Dimensions of Social and Economic Value
Higher Education’s Contribution to
Economic Development
PASSHE Economic Development
Best Practice Highlights
Questions
Trang 4Public Purpose of Higher Education
Focus on Students
(Maximizing Human Capital)
Post-secondary education provides students the opportunity
to increase their individual, social and economic value
Increased lifetime real income
Improved quality of life
Focus on Society
(Maximizing Social Welfare)
Increased productivity, real wealth, civic responsibility and
participation
Trang 5The Role of Public Higher Education
From the student’s perspective:
Public and private higher education have the similar objective
of providing high quality educational opportunities
The distinguishing characteristics of public higher education
are its degree of access and affordability
From society’s perspective:
P ublic higher education addresses a wide range of social and economic needs in addition to its primary purpose of ensuring access to a high quality, affordable education
Trang 6Dimensions of Social and
Economic Value
Generally, public universities:
Provide access to educational opportunities of quality
Trang 7Dimensions of Social and
Economic Value
Regional public institutions also:
Enhance the quality of life in communities (stewards of
place)
Represent long-term public investments that help ensure
regional stability (economic anchors)
Retain graduates and jobs within their respective service
regions
Attract private investment (wealth and/or job creation)
Stabilize regional economies, stimulate economic growth and preserve the value of regional economic/social assets
Trang 8Higher Education’s Contribution to
Economic Development
Direct Impact: Mission-Based Contributions
Education and Human Capital Development
Creators of Knowledge and Sources of Innovation
Indirect Impact: Operations
Purchasing and Procurement Activities
Preservation of Economic Infrastructure
Stable and Larger Tax Base
Indirect Impact: Outreach
Business Incubators
Entrepreneurial Assistance
Collaboration with Business and Government
Trang 9Direct Contributions to Economic Development
Mission-Based Contributions
Trang 10Mission-Based Contributions
Universities create economic value through education and
training
Salary Differentials
Compared with workers who have only a high school diploma,
those with post-secondary degrees are twice as likely to have a job
and, on average, command a significantly higher salary ($42,000
annually vs $28,000 in average annual salary)
Preserving Value
Continuing education is important to preserving the market value
of specialized education – particularly in professional fields
Continuing education and workforce development opportunities provide support for entrepreneurial activity – promoting the
creation and retention of jobs
Trang 11Percent Population 25+ with Bachelor’s Degrees or Higher
Source: U.S Census Bureau
Trang 12Mission-Based Contributions
Universities are creators of knowledge and are sources of
innovation that can provide the impetus for economic development
Applying knowledge and forming intellectual capital
Nearly two-thirds of National Association of State Universities and Land-Grant Colleges (NASULGC) have research parks or business
incubators (PASSHE has 5 university-based incubators)
Commercializing intellectual property
Over the past five years, NASULGC universities reported an
average of 11 start-up companies created (per university) as a result
of generated intellectual property
Scholarship, cultural and intellectual value
Regional public universities are a significant source of cultural
events programming, artistic and creative presentations
(Source: Stepping Forward as Stewards of Place, AASCU – May 2002)
Trang 13Indirect Contributions to Economic Development
Impact of University Operations
Trang 14Impact of University Operations
Investments in higher education help create sustainable economic development leading to higher economic growth
Purchasing and Procurement Activities
Annual budgetary expenditures (PASSHE: $1.2 billion operating
budget and more than 12,000 staff and faculty)
Many students work on campus and within the community
University, faculty, staff, student and visitor spending adds to the local economy
Universities provide a major stimulus to their state and regional economies, including generating an average return of up to $5 for
every $1 of state tax dollar invested
(Source: National Association of State Universities and Land-Grant Colleges - August 2001)
Trang 15Impact of University Operations
Preservation of local economic infrastructure
Universities serve as an economic anchor within the regional community – by their existence, ensuring a greater retention of
graduates and jobs within their service regions
For every job on a public university campus, another 1.6 jobs are
generated beyond the campus
(Source: National Association of State Universities and Land-Grant Colleges - August 2001)
Expanding and stabilizing regional and state-wide tax base
Trang 16Rural & Urban Counties Served by
PASSHE Universities
According to the Center for Rural Pennsylvania, a county is considered rural when its population density is below the statewide
density of 274 persons per square mile Urban counties had a population density of 274+, Calendar Year 2000
Trang 17MCKEAN Northern Tier (SL/CL)
POTTER Couders- port
TIOGA Mansfield
BRADFORD Sayre
SUSQUEHANNA Northern Tier
MONROE East Stroudsburg
VENANGO CLARION
WESTMORELAND Monroeville WASHINGTON
Southpointe
California
SON Punxsu- tawney CLEARFIELD
JEFFER-INDIANA
Johns town (IN) Cambria (CA)
-SOMERSET BEDFORD
CUMBERLAND
Shippensburg Carlisle
CLINTON Lock Haven
land
Northumber-Columbia Bloomsburg
DAUPHIN Dixon Univ Center
LANCASTER Millersville Lancaster
BERKS Kutztown Reading
LEHIGH
Allentown
CHESTER West Chester
DELAWARE Cheyney PHIL CH/KU
County Locations of State System Universities, Branch Campuses and Other Teaching Sites
PASSHE in 33 of 67 Counties
Trang 18Understanding Regional Economic Impact
Trang 19Indirect Contributions to Economic Development
University Outreach
Trang 20University Outreach
Incubators and other support for small business
development
Workforce incentive for firms to locate in region
Entrepreneurship as a career option and a skill set
Universities provide entrepreneurial education and assistance
Can be taught through higher educational institutions
Collaboration with business and government
Trang 21Economic Development Programs
and Initiatives
Business accelerators and/or entrepreneurial initiatives
Linking teaching and research to business opportunities
Collaboration with local business and industry
Small Business Development Centers
Collaboration with government
Partnerships with government agencies to provide services, training or other funding
Keystone Innovation Zone partnerships at five PASSHE universities
Trang 22Economic Development Programs
and Initiatives
Collaboration with Community and Non-Profit Groups
Partnerships linked to community and non-profits
Corporate Alliances
Specific and direct sponsorships or partnerships with area
businesses
Collaboration with Other Educational Institutions
Partnerships with local and regional educational providers
Workforce Development and Training
Programs that train students/employees for the workforce
(for example, all PASSHE universities are involved in WEDnetPA)
Trang 23PASSHE Economic Development
Best Practice Highlights
Trang 24Best Practice Highlights Bloomsburg University
Master’s of Science in Radiologist Assistance - workforce
development and training; providing a career path option for
radiologic technologists
California University
Government Agency Coordination Office – regional economic
development; assisting businesses in their provision of services to government
Cheyney University
Disadvantaged Business Enterprise – collaborating with business,
industry and government agencies; providing assistance to
disadvantaged businesses in securing PennDOT contracts
Trang 25Best Practice Highlights Clarion University
Support for Entrepreneurial and Existing Businesses – business
accelerator/entrepreneurial initiatives; helping new businesses
through critical start-up and growth stages
East Stroudsburg University
Center for Research and Economic Development Business
Accelerator – collaborating with business and industry and
business accelerator/entrepreneurial activities; building a more
diversified business base
Edinboro University
James F Drane Bioethics Institute – workforce development,
training and collaboration with education; supporting collaborative research on bioethics
Trang 26Best Practice Highlights
Indiana University
Management Services Group – regional economic development;
integrating student learning and entrepreneurship with
community interests
Kutztown University
Business Skills for Success – collaborative efforts with educational
and community/non-profit groups; providing enhanced
entrepreneurial education targets to a growing Hispanic business community
Lock Haven University
Small Business Development Center – collaboration with business
and industry/entrepreneurial activity; providing business
development assistance
Trang 27Best Practice Highlights Mansfield University
Tioga County Partnership for Community Health – regional
economic development and collaborative efforts with community or
non-profit groups; promoting community health and disease
prevention
Millersville University
The Corporate University – corporate alliances; providing high
quality executive and management development opportunities
Shippensburg University
Small Business Initiative in the Frehn Center for Management;
offering information and assistance to individuals and groups planning to start a new business
Trang 28Best Practice Highlights
Slippery Rock University
Regional Learning Alliance – workforce development and
training/collaborations with business and industry; meeting the training and education needs of businesses within 60 mile radius
in Northern Allegheny County
West Chester University
Institute for Education, Excellence, and Entrepreneurship –
collaboration with educational institutions, community
organizations and non-profits; mentoring entrepreneurial
educators
Trang 29www.PASSHE.edu