ECONOMIC DEVELOPMENT INITIATIVES OF THE PENNSYLVANIA STATE SYSTEM OF HIGHER EDUCATION

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1 ECONOMIC DEVELOPMENT INITIATIVES OF THE PENNSYLVANIA STATE SYSTEM OF HIGHER EDUCATION Thomas O. Armstrong* Office of the Chancellor, Dixon University Center Pennsylvania State System of Higher Education, Harrisburg, PA Lou Bohl-Fabian* Office of the Chancellor, Dixon University Center Pennsylvania State System of Higher Education, Harrisburg, PA Angela Smith-Aumen* Office of the Chancellor, Dixon University Center Pennsylvania State System of Higher Education, Harrisburg, PA Khalil Yazdi* Office of the Chancellor, Dixon University Center Pennsylvania State System of Higher Education, Harrisburg, PA ABSTRACT The Pennsylvania State System of Higher Education (PASSHE) 14 Universities are key partners for state and regional economic development. Their mission-based contribution to a higher education and economic development infrastructure is to increase human capital and create intellectual wealth. The economic development result creates tangible productivity and commercialization potential thereby enhancing income and profitability benefits. Furthermore, PASSHE provides entrepreneurial business assistance to increase the likelihood of business start-ups and expansions. Currently, PASSHE is undertaking five economic development initiatives: (1) Entrepreneurial Leadership Centers, (2) Internships, (3) Planning and Feasibility for University/Business, (4) Workforce, and (5) Technology Transfer and Commercialization Resource Network. These initiatives will enhance PASSHE s Higher Education and Economic infrastructure within PASSHE s Strategic Plan Goals to increase economic development throughout Pennsylvania. INTRODUCTION Higher education institutions contribute significantly to economic development by advancing human capital, increasing intellectual capital, and supporting physical capital each a key component for sustainable economic development over time (Stokes and Coomes, 1998; Armstrong, et. al., 2006; Resource Guide, August 2006). Involved in this support are the partnerships with other private and public organizations, which contribute to economic growth, by being major engines for economic development. The magnitude of higher education s contribution to overall economic development is captured by economic impact studies (e.g., Pennsylvania State University Economic Impact Statement 2003, October 18, 2004; Economic Impact of Independent Higher Education, March 8, 2005; Pennsylvania State System of Higher Education: Economic Impact on the Commonwealth of Pennsylvania, 2006). For example, the Pennsylvania State System of Higher Education s (PASSHE s) recent economic impact study estimated the System s annual impact upon the Commonwealth in FY was just under $4.47 billion, or about 1.0% of Pennsylvania s nominal 2004 Gross State Product. 1 PASSHE s total economic impact upon the Commonwealth grew in real terms from FY (previous data used in the last economic impact study) to FY by 98.5%-- far outpacing inflation of 23.8%, as measured by the Consumer Price Index. 2 PASSHE consists of 14 universities, four branch campuses, a number of regional learning centers and teaching sites, and the McKeever Environmental Learning Center. 3 As of fall 2006, 109,088 undergraduate and graduate students attended PASSHE Universities and 90% were in-state students. More than 250 degree and certificate programs in over 120 areas of study were offered. There were more than 620,000 PASSHE alumni, including over 405,000 who lived in Pennsylvania. About 82% of recent baccalaureate graduates remained in Pennsylvania after graduation for their first job and 73% of those who continued their education did so in Pennsylvania. PASSHE recognizes its economic development role where the use of strategic development assets can create induced impacts due to three key economic dimensions of a higher education and economic development (HEED) infrastructure (Paytas, Gradeck and Andrews, 2004; NGA Center for Best 83

2 Practices, 2004; Armstrong, et al., December 6, 2005; The Economic and Community Role of Public Regional Universities in Pennsylvania). 3 (1) Human Capital and Training, (2) Knowledge Creation and Commercialization, and (3) Entrepreneurial Business Assistance. The first dimension is the traditional function of all higher education institutions enhancing human capital and training of students. All higher education institutions, including the 14 PASSHE Universities, create value by training students and attracting highly skilled faculty and staff. One of the major sources of productivity growth is this high quality, well-educated labor force; these individuals are able to enhance and adapt to technological and knowledge innovations needed by companies that provide a major source of economic growth (Resource Guide, August 2006). Increasing human capital or the quantity and quality of schooling provides a positive source for economic growth (Barro, 2002; Hall, 2002). Furthermore, higher workforce productivity skills resulting from university s human capital training translates into higher average incomes (Sum, et al, October 2004). From the U.S. Census Bureau, the 2004 American Community Survey provided data showing a bachelor s degree college graduate in Pennsylvania earned an average of $42,404 annually, or 67.8% greater than graduates with only high school diplomas ($25,605). Moreover, a post-baccalaureate graduate or holder of a professional degree in Pennsylvania can expect to earn an average salary of $56,645, or 121.2% more than a high school graduate. Thus it can be argued that the higher the educational attainment within a county, the likelihood of higher per capita personal income and lower poverty rates. PASSHE Universities are well situated to provide the increase in education skills needed for a more productive and higher income workforce. The second dimension of a HEED infrastructure s impact upon economic development is the creation of knowledge and commercialization of innovation. All universities, including PASSHE, conduct research. This results in intellectual property that can generate new processes and products that form the basis for creating new firms. Effective economic development requires an organizational and physical infrastructure that fosters industry partnering for translating knowledge into commercialization possibilities such as research parks, business incubators and Pennsylvania s Keystone Innovation Zones (Armstrong and Yazdi, 2004). The final dimension that describes how PASSHE and higher education institutions contribute to economic development through a HEED infrastructure is the provision of entrepreneurial business assistance by promoting small business development and start-ups. Facilitation can occur through curricular offerings that focus on entrepreneurship, business planning, and management. Non-curricular outreach initiatives and assistance can occur by identifying entrepreneurial managers, angel funding, other financial seed funding, and technical assistance. By facilitating entrepreneurships, universities can create dynamic links between teaching, research, and business opportunities (NGA Center for Best Practices, 2004, Resource Guide, August 2006). The next section of this paper provides an overall summary of the number and frequency of economic development activities categorized by PASSHE, including the relationship of these activities to PASSHE s five Strategic Plan Goal Categories. Afterwards, PASSHE, through the Universities economic development contacts, determined areas within its HEED infrastructure for improvement and developed five initiatives for greater likelihood of sustainable economic development. Lastly, concluding comments are provided. PASSHE UNIVERSITIES ECONOMIC DEVELOPMENT ACTIVITIES In any modern economy, the primary role of higher education is to increase human capital and intellectual wealth, enhancing both the quality of life of citizens and ensuring economic prosperity. This is also true in Pennsylvania, and particularly so for the 14 state-owned regional public Universities that comprise PASSHE. While serving its public policy purpose, PASSHE does more than educate students the System and its Universities serve as regional economic anchors, stimulating economic development activity within their service regions and throughout the Commonwealth. PASSHE has undertaken an economic development inventory to catalog and broadly assess economic and workforce development activities for each of the PASSHE Universities and related entities from July 1, 2005 to June 30, The four development categories are: 1. Workforce / Collaboration with Other Education Institutions - Programs and processes that train and prepare students for the workforce. Partnerships and programs tied to local and regional educational providers (K-12, community colleges, other PASSHE Universities, satellite campuses, and other independent universities). 2. Collaboration with Business and Industry, Corporate Alliances, Business Accelerators and/or Entrepreneurial Activities - Partnerships with area businesses and industries to secure funding and grants, direct sponsorships and partnerships, as well as to provide input into the development of new academic programs. 84

3 3. Regional Economic and Collaboration with Government - University partnerships with regional economic agencies, businesses, and governments to promote economic opportunities and activities. 4. Community and Collaboration with Non-Profit Groups - Partnerships, programs, and services linked to community and regional groups and non-profits. PASSHE s four economic development categories span more than one HEED infrastructure area or economic dimension. Human Capital and Training is captured by Workforce /Collaboration with other Educational Institutions activities. Knowledge Creation and Commercialization is found in the activities associated with the Collaboration with Business and Industry, Regional Economic, and Corporate Alliances. Entrepreneurial Business Assistance is probably best associated with Business Accelerators and/or Entrepreneurial Activities of the 14 Universities. Finally, all three HEED infrastructure areas can be associated with Community and Collaboration with Non-Profit Groups. In short, the four categories correspond and overlap efficiently with the traditional infrastructure dimensions of economic development identified in the literature. Furthermore, PASSHE s four economic development categories span PASSHE s five Strategic Goal Categories as outlined in its strategic plan Leading the Way (2004). The five goal areas will frame System efforts through 2009: (1) Student Achievement and Success; (2) University and System Excellence; (3) Commonwealth Service; (4) Resource and Stewardship; and (5) Public Leadership. As will be shown later, each of the four economic development categories supports PASSHE s Strategic Goals helping to move the System forward along strategic areas. Table 1 provides information on PASSHE Universities supporting economic development activities through the four development infrastructure activities. The largest category of reported economic development activities was Regional Economic and Collaboration with Government with 291 activities or 35% out of 820 reported activities. The second largest category of reported activities was Workforce /Collaboration with other Educational Institutions with 252 activities or 31% of the total. These two economic development categories that align with Human Capital and Training HEED infrastructure are mission-based contributions to economic development. These two categories are expected to contain the largest number of activities; however, WednetPA activities were combined, and not listed individually. PASSHE Universities are strategically building alliances with each other, as well as with other Commonwealth institutions, in order to leverage resources for regional economic development and to train students for the State s workforce needs. Workforce/Other Education Institutions** Collaboration with Business, Corporate, Accelerators, Entrepreneurial*** Table 1: PASSHE University s Economic Activities by Economic and Strategic Plan Goal Categories: July 1, June 30, 2006 Student University and Resource ED ED Commonwealth Public Achievement System Activity Activity Service Leadership and Success Excellence and Stewardship Totals* Percent % % Regional Economic /Government % Community /Non-Profit % Groups**** Strategic Plan Goal Category Totals Strategic Plan Goal Category Percent 24% 11% 33% 22% 10% *Reported economic development categories maybe listed in more than one Strategic Plan Category; thus summing up across rows may not equal Economic Activity Totals. 85

4 **WednetPA grants and Customized Job Training grants are reported as a combined workforce development activity where appropriate. Slippery Rock's Regional Learning Alliance partnership activity has not been included in the Resource and Stewardship Goal Category and Economic Activity Totals. ***Did not include the one economic development activity reported by Lock Haven for contract with Aramark to provide on-campus food service. ****Did not include one activity under Commonwealth Service from Indiana University the established statewide Disadvantaged Business Enterprise (DBE) goals for the Pennsylvania Department of Transportation's federally assisted contracts. Source: University Economic Data Submissions Table 1 reports 152 economic development activities as Community and Collaboration with Non-Profit Groups (19%). Lastly, there were 125 Collaborations with Business and Industry/Corporate Alliances, Business Accelerators and/or Entrepreneurial Activities (15%). From a strategic perspective, notice that economic development activities support PASSHE s Strategic Goal Category of Commonwealth Service (33%) to meet the higher education and regional economic needs of the Commonwealth. The second largest frequency of economic development activities aligned with a Goal Category is in advancing Student Achievement and Success (24%) to enhance the quality of PASSHE Universities, student learning resources, student support services, and providing opportunities for life-long learning. Additional activities focusing upon economic development align with PASSHE s Strategic Goal Categories with the following frequency: Resource and Stewardship (22%), University System and Excellence (11%), and Public Leadership (10%). PASSHE s economic development activities are aligned with the strategic vision of the State System as reported in the frequency of activities among the five Strategic Plan Goal Categories. In addition, PASSHE s economic development activities support a higher education and economic development infrastructure. To enhance this infrastructure, PASSHE s Universities and the Office of the Chancellor identified five economic development initiatives that are expected to support long-term economic development of Pennsylvania. PASSHE ECONOMIC DEVELOPMENT INITIATIVES The five PASSHE higher education and economic development initiatives will enhance PASSHE s contribution to regional and state economic development. The budget request for these initiatives in Fiscal Year is $5 million. 6 The initiatives have a strong System-wide focus, but can be located at any University. They do not attempt to duplicate existing State programs. The five economic development initiatives described below will enhance PASSHE s partnerships with the state and local communities and increase economic development throughout the Commonwealth. The $5 million budget request and the subsequent return to Pennsylvania can be measured as a return to taxpayers for their investment in PASSHE (Pennsylvania State System of Higher Education: Economic Impact on the Commonwealth of Pennsylvania, 2006). For fiscal year , the state dollars appropriated to PASSHE, $434.8 million, are compared to total state economic impact of $4.47 billion. Each dollar invested by the Commonwealth into the state-owned Universities provided a return of $10.27 to Pennsylvania. The initiatives include: (1) Entrepreneurial Leadership Centers (2) Internships (3) Planning and Feasibility for University/Business (4) Workforce (5) Technology Transfer and Commercialization Resource Network A description of each of the economic development initiatives follows: Entrepreneurial Leadership Centers (ELC) The purpose of this initiative is to develop an infrastructure that supports the creation or expansion of Entrepreneurial Leadership Centers at PASSHE Universities. It is recognized that entrepreneurship tends to be place-based. Universities that develop entrepreneurial services combined with a flow of innovation are catalysts for the economic development of a region (Advanced Research Technologies, April 2005). The funding from this initiative would provide program development, mentors and networking opportunities, reference materials, best practices, entrepreneurial seminars/workshops, entrepreneurial boot camp programs, and collaborative opportunities that support and encourage entrepreneurial activities by the PASSHE Universities within their regions. The Entrepreneurial Leadership Centers will encourage the development of innovation and create entrepreneurial opportunities by linking institutions of higher education to a network of community and business partners. These Centers will provide students across all academic disciplines with opportunities to pursue an entrepreneurial path while continuing their education. ELCs will encourage critical thinking in new business and entrepreneurial development; assist students in identifying career path options; and prepare them with fundamental skills for starting a business. 86

5 Incorporating entrepreneurial education as an academic component across the curriculum will provide PASSHE students with the advantage of understanding the role of entrepreneurship in a global economy. The Centers will encourage students to explore opportunities for selfemployment; foster new business start-up; sponsor non-credit business courses and assist in the development of new entrepreneurs. The ELCs will provide support to entrepreneurs located within, but not limited to, business incubators and/or Keystone Innovation Zone programs. Entrepreneurial support will occur through internships, graduate assistantships, and applied research opportunities. In addition, speaker series, best practice seminars, and/or the creation of Entrepreneur in Residence programs will provide first-hand experience to students. The availability of expert PASSHE faculty can be a valuable resource for facilitating and assisting start up processes for companies. Resource databases of service providers (e.g., attorneys, accountants and insurance providers) will be available in each region along with library collections to support students and community members in their development of business plans. With the majority of new industry development occurring from entrepreneurs, PASSHE institutions will provide a critical role in assisting individuals with their business plans and new start-up companies/business ventures. The Corporation for Enterprise (CFED) reports Pennsylvania has moved from 32 nd in 2002 to 6 th in 2006 in the volume of jobs created by start-up businesses. This initiative will enhance PASSHE s capacity to participate in this economic growth by supporting new start-up companies and retaining recent graduates. The FY appropriation request for this initiative is $1.4 million. Seed money will be provided through a competitive grant process to the Universities in which interested PASSHE Universities will develop a proposal for establishing ELCs. It is envisioned that awards will be made to institutions that have related strategic goals in economic development and have existing targeted initiatives that boost self-employment/new business start-up by graduates. Internships The purpose of the Internships initiative is to increase the number and percent of enrolled students at PASSHE Universities who complete a credit or non-credit internship (experiential learning) during their undergraduate program. Students seek internship opportunities as a jump-start to their careers and employers desire graduates with internship experience because they have practical work exposure, knowledge, abilities, and references. Internships must be accessible to students (i.e., within reasonable proximity to their University). PASSHE University representatives will recruit businesses through existing organizations (i.e., regional Ben Franklin Technology Partners, Industrial Resource Centers, and Workforce Investment Boards) in regional efforts to offer internships. Funding will create a more coordinated structure and mechanism for matching students and employers, and will address demands of the regional/county labor market. Additional funding will also provide student financial support (incentives/reimbursements) - as most students cannot afford to pursue related higher education opportunities without some earned income. This is particularly true during the summer months when traditional financial aid is rarely available. Many businesses are reluctant to pay competitive wages to interns due to the perceived learning curve and low productivity expectations of an intern. Therefore, a student internship program would address both PASSHE s organizational capacity and student financial concerns. Each PASSHE University could include many of the following targeted needs: Recruit and develop additional internship sites within the Commonwealth of Pennsylvania; Develop or enhance an on-campus marketing plan for internships that defines their value and need for cooperation and collaboration among all stakeholders; Focus on the needs of the Commonwealth s High Priority Occupations; Develop guidelines for student financial assistance to enable some high-need students to pursue an internship; Enhance resources to align students majors, career goals, internships, and employment opportunities; Increase the number and percentage of students completing an internship (experiential learning). The FY appropriation request for this initiative is $700,000 to be divided evenly among all interested PASSHE Universities. Planning and Feasibility for University/Business The PASSHE Planning and Feasibility for University/Business initiative is intended for Universities to continue their collaboration with businesses and their communities. This initiative will provide planning and feasibility seed funding for a physical infrastructure needed to support a University business environment. This investment will assist in attracting, establishing, and retaining businesses in incubators, research parks and centers for the 87

6 economic benefit of the regions and surrounding communities (Resource Guide, August 2006). In addition, PASSHE will expand upon existing educational programs, incorporating real world experiences for students through opportunities provided by the resulting expanded business infrastructure. PASSHE Universities will utilize existing programs to expose students to a broader spectrum of resources available through collaborations between private businesses and educational institutions. The businesses will then be able to draw upon the valuable educational talent emerging from PASSHE s Universities. The FY appropriation request for this initiative is $1.4 million. Seed money will be provided through a competitive grant process to the Universities. PASSHE Universities will develop a proposal for funding of a feasibility analysis and marketing assessment and other preliminary planning activities for the creation or expansion of business incubators, research parks, and/or business learning centers. Workforce The purpose of the Workforce initiative is to develop technology-based, academic programs and training initiatives that address regional Workforce Needs and Pennsylvania s High Priority Occupations. PASSHE will provide training, equipment, and start-up funding for technology-based, workforce development academic programs that address the Commonwealth s Regional Workforce Investment Board s (RWIB s) High Priority Occupations. The University shall confirm it addresses one or more high priority occupation(s) contained on the WIB regional lists at and identify those occupations in its work plan. The Universities will work in collaboration with community colleges and career or technology institutes (2+2+2 initiatives) when those institutions are within the University s service area. To compete in today s global economy, businesses need a skilled workforce and citizens need increasingly advanced training and knowledge. In the past, many workforce education and training programs were not aligned with skill needs and job openings in the economy. Pennsylvania s new workforce development strategy seeks to change that situation by targeting education and training dollars to High Priority Occupations. These include job categories that are in demand by employers, have higher skill needs, and are most likely to provide family-sustaining wages. To meet these three criteria, many of the High Priority Occupations require a minimum of a bachelor s degree. RWIBs analyze the High Priority Occupations for employment growth and wage levels and further prioritize specific occupations. With a statewide presence, PASSHE is in an ideal position to enable regional employers to address their unique job market priorities and opportunities. In many regions of the Commonwealth, a PASSHE University fills the demand for post-secondary and vocational education through associate degree programs in addition to bachelor s, master s and professional certification programs. In order to develop responsive and timely workforce academic programs, funding is needed for equipment and start-up costs. The FY appropriation request for Workforce is $1 million to be divided evenly among all interested PASSHE Universities. The funds may be used to develop new technology-based programs or to expand, realign or introduce new technology into existing programs. Funds may be expended on equipment purchase, marketing, faculty training on the technology, start-up operating costs, assessment and data collection. Technology Transfer and Commercialization Resource Network The purpose of the Technology Transfer and Commercialization Resource Network initiative is to develop an integrated approach across all PASSHE Universities to protect intellectual property and advance projects toward commercialization. Technology transfer and commercialization is the licensing of research for commercial application (Council on Government Relations, March 2000). It is the effort by which universities provide commercial companies with access to new discoveries and innovation resulting from research. This initiative will provide technology transfer and commercialization services for students, faculty and University administrators to move innovation into the marketplace (Resource Guide, August 2006). Historically, PASSHE Universities have not focused on commercialization and technology transfer. While the PASSHE faculty collective bargaining agreement addresses Intellectual Property, in the past, faculty or students have generated little activity. That trend is changing. PASSHE faculty and students are increasingly engaging in activities that will result in business creation, intellectual property, and technology transfer and commercialization opportunities. Innovation, coupled with physical support infrastructure (i.e., business incubators), has the potential to spin-off companies with patents, licensed products and services. Through the initiative, PASSHE will provide additional resources to support commercialization and technology transfer initiatives. The PASSHE Technology Transfer and Commercialization Resource Network will provide an integrated approach to 88

7 protecting intellectual property and advancing projects toward commercialization. In addition to legal and financial services, assistance will be provided with patent searches and applications, negotiation of licensing agreements, equity agreement, stock warrants, etc. The structure and the services will have to observe existing intellectual property requirements in grant and contract agreements, and the faculty collective bargaining agreement. The structure of the Network will be developed in consultation with the Office of University Counsel and the Office of Labor Management, and University grant compliance officers, which currently have functional responsibilities in this area. The FY appropriation request for the Technology Transfer and Commercialization Resource Network initiative is $500,000. Funding for the Network will be centralized from the Office of the Chancellor, but services may be outsourced to existing service providers or developed within the existing PASSHE structure (at one University or the System office), or some combination of arrangements. Table 2 shows an alignment of the five economic development initiatives with the following dimensions previously discussed in this paper: Table 2: PASSHE Five Economic Initiatives by Higher Education and Economic, Economic Categories, and Strategic Plan Goal Categories Higher Education and Economic Student Achievement and Success University and System Excellence Strategic Plan Goal Categories Commonwealth Service Resource and Stewardship Public Leadership Economic Categories Human Capital and Training Internships Internships Workforce Workforce Workforce / Collaboration with Other Education Institutions Knowledge Creation and Commercialization Entrepreneurial Business Assistance Entrepreneurial Leadership Centers Feasibility/Tech. Transfer & Commercialization Network Entrepreneurial Leadership Centers Feasibility Tech. Transfer & Commercialization Network Collaboration with Business and Industry, Corporate Alliances, Business Accelerators and/or Entrepreneur Activities & Regional Economic and Collaboration with Government Community and Collaboration with Non- Profit Groups Source: Economic Initiatives Three areas of Higher Education and Economic are: (1) Human Capital and Training; (2) Knowledge Creation and Commercialization; and (3) Entrepreneurial Business Assistance Five Strategic Plan Goal categories: (1) Student Achievement and Success; (2) University and System Excellence; (3) Commonwealth Service; (4) Resource and Stewardship; and (5) Public Leadership; and Four Economic categories: (1) Workforce /Collaboration with Other Education Institutions; (2) Collaboration with Business and Industry, Corporate Alliances, Business Accelerators and/or Entrepreneurial Activities; (3) Regional Economic and Collaboration with Government; and (4) Community and Collaboration with Non-Profit Groups. Implementation of the five economic development initiatives will continue to move PASSHE in strategic desirable directions as outlined in PASSHE s strategic plan Leading the Way (2004). The five economic development initiatives will enhance PASSHE s three key economic dimensions of a higher education and economic development infrastructure for greater regional and state economic development. CONCLUSION The Pennsylvania State System of Higher Education performs a crucial role in supporting the long-term economic 89

8 development and growth of multiple regions and the entire state. PASSHE s economic development initiatives will not only increase the likelihood of providing highly skilled workers for local businesses, but will also serve as sources of innovation and potential commercialization, and entrepreneurial business assistance. ENDNOTES * The authors would like to thank Laurie Wasilition and discussant for comments. In addition, the authors would like recognize the following 14 PASSHE University economic development representatives for their efforts in support of the economic development initiatives: James Matta, Bloomsburg University; Norman Hasbrouck; California University; Sharon Cannon, Cheyney University; Woodrow W. Yeaney, Clarion University; Mary Frances Postupack, East Stroudsburg University; Terry L. Smith, Edinboro University; Robin Gorman, Indiana University; Ray Campbell, Kutztown University; Tim Keohane, Lock Haven University; Susan W. Sweet, Mansfield University; Jan Edwards, Millersville University; Thomas Enderlein, Shippensburg University; James T. Kushner, Slippery Rock University; and Christopher Fiorentino, West Chester University. All possible errors are the authors. 1. The direct impact of $1.86 billion multiplied by the state multiplier of produced the total impact of PASSHE upon the Commonwealth of $4.47 billion. The multiplier was from the Bureau of Economic Analysis Regional Industrial Multiplier System, RIMS II, regional multipliers. 2. The Center for Workforce Information and Analysis reported that PASSHE is the 15 th largest employer in the Commonwealth, while the economic impact study reported a state employment impact of 51,216 jobs. Nine PASSHE Universities are ranked in the top 10 employers for their respective counties. In addition, three of the Universities (Bloomsburg, Clarion, and Indiana) are the top employers within their rural counties for the first quarter of The 14 PASSHE Universities are: Bloomsburg, California, Cheyney, Clarion, East Stroudsburg, Edinboro, Indiana, Kutztown, Lock Haven, Mansfield, Millersville, Shippensburg, Slippery Rock, and West Chester Universities of Pennsylvania. 4. Purchasing and Procurement Activities, typically reported in economic impact studies, is usually included as one of the dimensions of a HEED infrastructure. 5. An economic development inventory will be conducted annually. The first inventory was conducted for PASSHE s economic impact study (Pennsylvania State System of Higher Education: Economic Impact on the Commonwealth of Pennsylvania, 2006). 6. PASSHE cannot finalize the funding until the General Assembly adopts and the Governor signs Pennsylvania s Fiscal Year budget and PASSHE s Board of Governors approves PASSHE s budget. REFERENCES Advanced Research Technologies. April The Innovation Entrepreneurship NEXUS: A National Assessment of Entrepreneurship and Regional Economic Growth and. Advanced Research Technologies, LLC: Powell Ohio. Armstrong, Thomas O.; Bernotsky, R. Lorraine; Bohl- Fabian, Lou; Loedel, Peter H.; and Khalil Yazdi Economic Impact of the Pennsylvania State System of Higher Education. Pennsylvania Economic Association Proceedings, Armstrong, Thomas O.; Bernotsky, R. Lorraine; Bohl- Fabian, Lou; Loedel, Peter H.; and Khalil Yazdi. December 6, The Economic and Community Role of Public Regional Universities in Pennsylvania. Creating Pennsylvania s Future Conference. Armstrong, Thomas O. and Khalil Yazdi Keystone Innovation Zones: Technological Transfer Entrepreneurial Zones For Pennsylvania. Pennsylvania Economic Association Proceedings, Barro, Robert Education as a Determinant of Economic Growth. In Education in the Twenty-First Century. (Editor: Edward P. Lazear), Hoover Institution Press, Stanford, Council on Government Relations. March Technology Transfer in U.S. Research Universities: Dispelling Common Myths. Washington, D.C. Economic Impact of Independent Higher Education on Pennsylvania. March 8, Association of Independent Colleges & Universities of Pennsylvania. Gigerich, Larry. August 8, The Impact of Higher Education on Economic. Inside Indiana Business, 1-3. Hall, Robert E The Value of Education: Evidence from Around the Globe. In Education in the Twenty-First Century. (Editor: Edward P. Lazear), Hoover Institution Press, Stanford,

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