States Building R&D Capacity through Endowed Faculty Positions

Studies have shown a strong correlation between high-wage economic growth and university research activity. As a result, many state and local economic development efforts strive to increase the quantity and quality of university R&D undertaken within their boundaries. States can encourage this by financially supporting the recruitment and retention of exceptional academic researchers through endowed chairs, faculty positions, or eminent scholars.

Contact: Sam Leiken
Social, Economic and Workforce Programs Division

http://www.nga.org/center/frontAndCenter/1,1188,C_FRONT_CENTER%5ED_6840,00.html

Federal research grants, industrial R&D collaborations, exceptional graduate students and faculty, scientific community awareness, and patent filings are among the benefits a university or college expects to gain by enticing a single elite academic researcher to its campus. Such world class researchers can spark economic growth through the creation and commercialization of new technology, attracting new businesses, forming clusters, and strengthening existing tech companies by encouraging additional investment. For example:

* The Georgia Research Alliance (GRA) created an Eminent Scholars program several years ago as the "hub" of its investment strategy. Through these investments, GRA has recruited more than 40 eminent scholars, predominantly focused in advanced communications and biosciences, to six Georgia universities to lead research programs with a high potential to impact economic development. GRA’s effort is yielding results too: for every state dollar invested in eminent scholars, the state sees a $4 to $6 jump in federal R&D funding.

* Missouri’s state house passed a bill funding endowed chair programs beginning in FY 2007 requiring both a non-state commitment of a $2 million endowment or $100,000 per year for 20 years, and a university and state commitment of $100,000 per year for 20 years.

* Oklahoma and Florida also are working on legislation to eliminate the backlog of state funding for endowed chairs. Oklahoma Governor Brad Henry recently signed H.B. 1904 to authorize a bond issue to match donations as part of his Economic Development Generating Excellence (EDGE) initiative. (Currently, $52 million in private donations is waiting for matching funds).

* In South Carolina, Clemson University will tap into state lottery funds set aside last year by the General Assembly for an endowed chair program. BMW Manufacturing Corp. pledged $10 million with another $5 million to be raised by suppliers for the state to match. Clemson will use the funds to recruit engineers and scientists to the school’s new graduate program in automotive systems integration.

Related Links:

* Georgia Research Scholars Eminent Scholars Program http://www.gra.org/eminentscholars.asp

* Missouri Bill (HB 1671) http://www.house.state.mo.us/bills041/bills/hb1671.htm