Brain Gain: Higher Education’s Role in the Regional Economy
By President Richard Cook
March, 2003 for the Erie Times-News March Forum
Much has been written about Pennsylvania’s “brain drain.” Our state has the 4th oldest population in the country as measured by median age, and our leaders are concerned about the talented young people who are leaving the state to work in the new economy’s emerging industries. They call this exodus the brain drain.
What if we looked at this problem from a different angle? Pennsylvania has one unique characteristic that—if properly marketed—could turn the brain drain into a “brain gain.”
More than 200 liberal arts colleges are identified as national institutions in the annual U.S. News and World Report higher education profile. By a large margin, Pennsylvania is home to more of these institutions than any state in the union. Together we enroll vast numbers of students who travel from other states and countries to Pennsylvania, bringing not only their tuition dollars (which are locally invested in salaries, housing, tourism, etc.), but their intellectual capital as well. Many choose to settle in Pennsylvania upon graduation. Allegheny College—our region’s nationally ranked institution—enrolls hundreds of out-of-state students every year.
Why is this important to us? Economic development consultant Brian Bosworth recently met with business and government leaders to discuss the declining market for our region’s traditional industries and to consider strategies for a quick turnaround. We must bring new jobs to the state in cutting-edge fields such as biotechnology, information services, and environmentally sustainable manufacturing. This effort will require an educated workforce and entrepreneurial leaders.
Unfortunately, our population trends are as alarming as the economic forecast. In 1980 Pennsylvania was the 4th most populous state in the nation, slipping to 5th in 1990 and 6th in 2000. Our population growth from 1990-2000 was 3.4%, compared to 13.1% nationally. In addition to having one of the highest median ages, our percentage of residents over 65 is significantly higher than the rest of the country’s. It is difficult to attract new businesses when the population is shrinking and aging.
The good news is that higher education continues to thrive in Pennsylvania. State budget imbalances and tuition increases at state institutions have hit families hard across the country, but the Pennsylvania economy has been bolstered by students who travel from around the world to study here. In fact, private colleges alone contribute $10.3 billion to the state’s economy. But for Pennsylvania to achieve the greatest possible benefit we will need more than students’ tuition dollars. We must nurture their creativity and entrepreneurial spirit.
Allegheny’s Center for Economic and Environmental Development (CEED) illustrates how brain gain can work. Students and faculty have partnered with regional businesses such as PPG, Werner Company, and Plastek Corporation to reduce waste, resulting in increased profitability and improved environmental management. The students—many of whom come from outside Pennsylvania—contribute time, creativity, and the knowledge gained from studying the latest techniques for waste reduction. The companies share their real-world experience with the students, helping them transform their classroom knowledge into practical applications, and sometimes even recruiting them as full time employees (and Pennsylvania residents) after graduation. Everyone wins.
I could cite dozens of similar examples from Allegheny and elsewhere. But in order to realize the full economic benefit of Pennsylvania’s lofty higher education position, we have to recognize that in today’s world knowledge is a natural resource. Pennsylvania’s strong economy was built not only on coal, steel, and agriculture, but on the quality of its labor force: generations of people who believed in hard work and who out-hustled the competition. This combination of resources—the land, the people, the work ethic, the knowledge—will be hard to beat.
We all have a role to play in the new economy. Pennsylvania’s colleges and universities are in the knowledge business. Energetic young people come to Pennsylvania from around the world to acquire it. Our job is to attract them, to teach them, and in partnership with regional businesses, to create opportunities for them to stay here. Pennsylvania’s preeminence among nationally ranked colleges gives us a critical advantage as we seek to restore economic growth in our region.