South Carolina could push universities to the center of economic development Sunday, March 02, 2003 As EDPros, we are going to have to explore the connections between higher education and economic development. In a brainpower economy, colleges and universities are our factories of the future. More states are focusing on the economic development potential of higher education. Kentucky and Arizona have undertaken reforms. New Jersey, Tennessee, Massachusetts all have major reforms in the talking stage. Governor O'Bannon's economic development program in Indiana puts universities in the middle. (Although last week, the Indiana House, in a dumb move, severely cut his proposal to securitize tobacco settlement funds.) In the months ahead, my bet will be on South Carolina as the state to watch when it comes to connecting higher education and economic development. The proposals under consideration are targeted enough that they may not touch off a political fire storm (unlike New Jersey and Massachusetts), but they are big enough to make a difference. Proponents of an ambitious plan propose to loosen regulation of the state's research universities: the University of South Carolina, Clemson University and the Medical University of South Carolina. If they are successful, they will break the political straightjacket that keeps these universities from creating dynamic technology-led innovations. The most significant proposals include: * Removing the three institutions from governance by the Commission on Higher Education, while creating a research coordinating council controlled by the boards of the three institutions. * Authorizing about $250 million of state bonded indebtedness to be shared by the three research universities, to be matched by private contributions. * Removing a $1,000 cap on bonuses allowed for research faculty. * Allowing private companies to conduct research on university property. Learn more about the South Carolina reforms. These reforms are squarely positioned as economic development initiatives. The Palmetto Institute, a private nonprofit, is pushing these reforms based on a recent report on the competitive position of the state economy by DRI. In addition, the new state economic development director has asked Michael Porter to develop a state-wide cluster analysis. Scheduled completion: mid-summer. Porter's work should provide another push to these reforms. If you feel uncomfortable venturing into this area, get some grounding by looking at your state's report card in higher education. posted by Ed Morrison |		This work is licensed under a Creative Commons License. links Some Background on EDPro Weblog The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it. One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information. So, spread the word...Share the knowledge. Tell a friend about EDPro Weblog. If you are using a news reader, here is the link to syndicate this site: Here's the link if you are a bloglines subscriber: Speaking and workshops on Open Source Economic Development As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking. Background on Ed Morrison Download some background information on me here.

The Web EDPro Weblog