Virtuous and Vicious Cycles in the Contributions of Public Research Universities to State Economic Development Objectives

Abstract

State governments are increasingly dichotomizing support of public research universities, selectively enhancing technology-based academic research initiatives while gradually withdrawing support for general educational infrastructure. This dichotomization is based on a narrow perspective of the contributions that universities make to state economic growth, the interdependence of targeted and general support, and the unpredictability of correctly identified university-based scientific and technological advances that contribute to localized economic growth. The trend also runs the risk of generating vicious cycles whereby states lose relative position, especially to states with research-intensive private universities. The trend also reduces the affordability of higher education and contributes to pressures to earmark federal academic research and development funds.