Investments in higher education and research are touted as spurring economic development and prosperity for the surrounding state or region. But one recent study is challenging that concept, contending that the opposite could be true.
The study, by Michigan’s MacKinac Center for Public Policy a nonprofit, free-market research and educational organization was led by Richard Vedder, professor of economics at Ohio University. Looking at all 50 states over more than 20 years and using at least 1,000 data points, the study found that more state funding to higher education doesn’t necessarily lead to higher growth, and in fact correlates negatively with high growth rates.
The original article and about 20 comments pro and con can be found ONLINE @ https://insidehighered.com/news/2007/06/22/growth.
WSU Today asked several key leaders and business people associated with Washington State University for their take on the MacKinac study:
Brian Pitcher, chancellor, WSU Spokane:
At a high level I do not see the findings as particularly surprising. Economic development is a complex phenomenon where education is a major factor but not the only driver.
Gross state investments may increase the number of graduates, but they may not increase graduates in key “high-demand” areas critical for the current innovation economy.
A new line of research on economic development evidences that universities have multiple impacts on economic development, but the partnership of university/community needs to vary fitting the regional situation.
Therefore I would not be surprised if there is low correlation between gross higher education funding and economic development at the state level. Insightful research needs to study the impact that different universities have on various local economies.
Ron Mittelhammer, WSU Regents professor and director of the School of Economic Sciences:
The researchers are affiliated with an organization that has an agenda, and they have found results that support that agenda. Their results are at odds with a large body of other economists’ analyses on the subject, which the authors themselves admit. One such study was done at WSU a number of years ago. See ONLINE @ www.wsu.edu/NIS/EconomicImpact.html.
The authors allude to many models that were apparently run “in the background” and aren’t reported in the published account of their work. This calls into question why they chose their model over all the other models in the background.
Hal Dengerink, chancellor, WSU Vancouver:
Industry
around WSU Vancouver
has been very supportive. That is especially true of the high tech council that has supported our development of baccalaureate and graduate programs in engineering and computer science. They strongly believe that there is a shortage of such graduates and especially ones in this region.
The real point is that we need all levels of education and higher education to be supported. If funds only go to universities then technical education at the community colleges gets starved and we won’t have sufficient numbers of trained technicians. Focusing on only one sector is short sighted.
Vicki and Jeff Gordon, owners, Gordon Brothers Family Vineyards in Pasco:
Many times when there is increased funding for higher education
it is a result of increased demand.
The study assumes that people go to college to get a degree that is not necessarily so. Many people go to college to learn a trade, take computer classes, etc.
