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Petrick, Faculty Administrative Fellow, Office of Economic & Workforce Development, PSU
To fully appreciate the changing role of the University in regional economic development, two
traditional notions must be revisited. First is the notion that the economic potential of a region lies in a
cluster of interrelated firms and associated institutions linked through a common industrial sector. A
recent study by McKinsey and the World Economic Forum1 captures this historic cluster-like approach
and its impact on innovation. Two of the three drivers of innovation historically in their study – what
McKinsey has labeled heroic bets and irresistible deals – featured heavy government investment and
subsidies combined with key local advantages that spawn new sectors or attract new companies to the
region. While this has certainly been the case in the past, Michael Porter2 notes that the region’s
competitive advantage lies not in a set of interrelated firms, per se, but in the quality of the
microeconomic business environment.
McKinsey’s third type of innovation driver – knowledge oases – is described as a location with a critical
mass of talent, often anchored by a large research university or government lab. These knowledge
1
Andonian, Andre, Loos, Christopher, and Luiz Pires (2009) Building an Innovation Nation. McKinsey & Company.
http://whatmatters.mckinseydigital.com/innovation/building-an-innovation-nation.
2
Porter, Michael (2000) “Location, Competition, and Economic Development: Local Clusters in a Global Economy,”
Economic Development Quarterly, 14(1): 15-34.
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I.J. Petrick, Faculty Administrative Fellow, Office of Economic & Workforce Development, PSU
oases create hubs that can capitalize on breakthrough technologies that transition to the private sector.
Increasingly, these oases attract even more skilled knowledge workers. It is this talented “creative
class”3 that often differentiates a region’s ability to succeed in this global and increasingly innovation
driven economy.
Herein lies the second notion about the University role in regional economic development that needs
questioning – the university as a technology engine. While universities have played a role in developing
basic technologies, the transition of these technologies to the private sector requires financing and
resources often beyond the scope of the University. Instead technology transfer offices must seek
funding to support patent filings, and often have no or only limited seed monies available to go from
proof of concept to prototype. Bercovitz and Feldman4 have noted that “while universities are often
regarded as holding important assets that could be leveraged, the presence of a local university may be
necessary, but not sufficient, to guarantee that knowledge-based economic development takes place”
(p.175).
In point of fact, the university role needs to shift to an institutional economic engagement model where
economic development activities begin with a two-way dialog between the university and regional
community and industry leaders. Through this dialog, the region can develop a common sense of
purpose and goals that each participant, in turn, can embrace. Acting in partnership, the various
participants can create momentum, leverage the region’s resources, and launch sustainable economic
development programs. The University can become a catalyst for this dialog.
The remainder of this paper showcases several university approaches to regional economic
development. Where possible, success metrics are included. However, as this is an emergent
phenomenon, many of the examples are still in their infancy.
3
Florida, Richard (2004) The Rise of the Creative Class and Florida, Richard (2006) The Flight of the Creative Class.
4
Bercovitz, Janet and Maryann Feldman (2006) “Entrepreneurial Universities and Technology Transfer: A
Conceptual Framework for Understanding Knowledge-Based Economic Development,” Journal of Technology
Transfer, 31: 175-188.
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I.J. Petrick, Faculty Administrative Fellow, Office of Economic & Workforce Development, PSU
5
Roberts, Edward B. and Charles Eesley (2009) Entrepreneurial Impact: The Role of MIT, http://www.kauffman.org
7 April 2009 3
I.J. Petrick, Faculty Administrative Fellow, Office of Economic & Workforce Development, PSU
A distributed research model that brings university talent and facilities to a geographically
dispersed location
A linked research, training and services mission to build capabilities that support the
region’s unique needs and that leverage the region’s assets
A workforce development perspective that combines undergraduate and graduate training
as well as practical training in technology to support the targeted economic sectors
A comprehensive workforce development approach that embraces K-12 as well as adult
learners and retraining
A governance model that reflects an independent entity, with leadership and decision-
making input from key stakeholders at the region, state and federal levels.
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I.J. Petrick, Faculty Administrative Fellow, Office of Economic & Workforce Development, PSU
Experiential learning programs that link students at the undergraduate and graduate levels
to local/regional companies to solve market, technical and engineering problems;
On-campus technology incubation space, including a new facility in Farmington that is
collocated with UConn’s stem cell core labs;
Free access for local businesses to UConn’s electronic databases such as Factiva, LexisNexis,
Hoover’s, and more, chock full of critical business research information, accessible through
UConn’s libraries;
Business-oriented outreach programs, such as the Institute of Materials Science Associates
Program or the Bioservices program, which are designed to engage with and support
regional businesses.
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I.J. Petrick, Faculty Administrative Fellow, Office of Economic & Workforce Development, PSU
short- and long-term development strategies. Through their shared commitment to raising the quality
of life amenities, public-private investment has improved housing and revitalized local businesses. The
initial $8 million investment, partially funded by UIUC, for infrastructure enhancements has spurred
private sector investment. Key features of this redevelopment partnership include:
Public-private partnerships between UIUC, Urbana and Champaign which include shared
governance and shared action plans to develop and extend the University District
Shared investment between government, the University, and local developers
A shared commitment to place making and raising the quality of life for both city residents
and for University faculty, staff and students.
Washington State & its Thriving Technology and Small Business Economies
The state of Washington is unique in the U.S., being the only one with a trade surplus with China, and as
the manufacturing home to the U.S.’s biggest net exporter, Boeing. Yet over 55% of all Washington jobs
are in the small businesses sector. This creates an interesting challenge for Washington universities and
other economic development professionals – how to provide compelling services to both the very big
and mature firms as well as how to provide support for nascent activities. The multi-faceted approach
that the State and its various universities and other services take requires a significant amount of
coordination and collaboration, including public-private partnerships, and joint planning.
For example, Washington State University is comprised of four campuses that serve 39 counties. The
University is working to better link the small business sector with key resources at WSU, at other
universities and in the public sector. The WSU Economic Development Partners map6 is one step to
creating a one-stop information source for all economic development resources. Other ways to
encourage collaboration and provide access to Washington State University’s talent and research base
include their Skunk Works activity which was begun in 2007 as a virtual project space which is being
piloted by the WSU Center for Teaching, Learning and Technology. WSU’s intent is to reach out to those
constituents most distant from its physical locations and link them to key resources and problem
6
http://wsuwest.wsu.edu/map/
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I.J. Petrick, Faculty Administrative Fellow, Office of Economic & Workforce Development, PSU
solvers. Other WSU resources aimed at entrepreneurship and innovation include the Washington Small
Business Development Centers, the Washington Center for Real Estate Research, the Economic
Development Administration and the Innovation Assessment Center.
The University of Washington has strong capabilities in software development, integrate circuit design
and cancer treatment. In addition, its Michael G. Foster School of Business is world renown for its
executive education programs and its Center for Innovation and Entrepreneurship. UW’s Business and
Economic Development Center links students, faculty and staff from UW’s Business school to the
business and non-profit communities, forming a rich set of partnerships that reach across company
sizes.
International Examples
The role of universities in leading regional economic development is not only a U.S. interest. See for
example, Supporting the contribution of higher education institutions to regional development - reviews
and reports
http://www.oecd.org/document/35/0,3343,en_2649_35961291_35602979_1_1_1_1,00.html
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