The Role of Public Regional Universities in Community and Economic Development December 6, 2005 Higher Education and Economic Development in Pennsylvania The Commonwealth is facing significant economic development challenges Per-capita income growth in Pennsylvania is below the U.S average, continuing a trend from the last decade 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 Presentation 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 Public 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 The 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: Public 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 Dimensions of Social and Economic Value Generally, public universities: Provide access to educational opportunities of quality and substance Stimulate intellectual growth and individual productive capacity Ensure a stable supply of knowledge and skills in high need areas Increase the size, diversity of skills and productivity of the labor force Dimensions 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 Higher 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 Direct Contributions to Economic Development Mission-Based Contributions Mission-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 Impact 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 Rural & 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 County Locations of State System Universities, Branch Campuses and Other Teaching Sites ERIE Porreco Edinboro MCKEAN Northern Tier (SL/CL) WARRENN Northern Tier CRAWFORD POTTER Coudersport TIOGA Mansfield BRADFORD Sayre SUSQUEHANNA Northern Tier VENANGO CLARION BUTLER (CA) Slippery Rock Cranberry(SL) MONROE East Stroudsburg Columbia Bloomsburg CLEARFIELD ARMSTRONG Northumberland INDIANA LEHIGH Johns town (IN) DAUPHIN Cambria Dixon (CA) Allegheny (CL) CCAC (IN) WASHINGTON CLINTON Lock Haven JEFFERSON Punxsutawney Univ WESTMORELAND Monroeville SOMERSET BERKS Kutztown Reading Center CUMBERLAND Shippensburg Carlisle Southpointe California Allentown BEDFORD LANCASTER Millersville Lancaster CHESTER West Chester PHIL CH/KU DELAWARE Cheyney PASSHE in 33 of 67 Counties Understanding Regional Economic Impact Indirect Contributions to Economic Development University Outreach University 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 Economic 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 Economic 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) PASSHE Economic Development Best Practice Highlights Best 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 Best 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 Best 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 Best 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 Best 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 Questions www.PASSHE.edu ... stable supply of knowledge and skills in high need areas Increase the size, diversity of skills and productivity of the labor force Dimensions of Social and Economic Value Regional public institutions... business Best Practice Highlights Slippery Rock University Regional Learning Alliance – workforce development and training/collaborations with business and industry; meeting the training and. .. 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