Publisher's Note to this Issue

At almost every turn, the important roles played by universities and colleges in a knowledge-based economy seem to be validated. Industry and political leaders across the country are talking of the need for strong institutions of higher education, particularly public research universities, to improve national, state, and local competitiveness. 



Whether it is the generation of new ideas or innovations or the development of a skilled workforce, higher education is a critical component of almost every high tech hot spot (see for example, Annalee Saxenian's analysis of Silicon Valley and Route 128, Regional Advantage, or the Milken Institute's report, America's High Tech Economy: Growth, Development, and Risks for Metropolitan Areas) or the most successful state and local tech-based economic development strategies. 



Clearly, policymakers have grasped the important role of higher education in building tech-based economies.  One need look no further than the number of initiatives that governors have proposed in their State of the State addresses over the last three years to see the important role they envision for universities. Most of the new spending and activity in tech-based economic development over the last five years has been focused on universities and colleges. 



Yet, we have been struck in the last few months by the juxtaposition of the increased understanding of the importance of universities as a source of ideas and a skilled workforce with two disturbing trends: increased tuition and declining state support for higher education. At a time when there's increased demand for a skilled workforce in general and in science and engineering in particular, tuition increases in excess of 10 percent are not uncommon. For example, University of Iowa raised tuition 10 percent this year, the University of Minnesota 12 percent and the University of Tennessee 13 percent. Clemson raised tuition 25 percent this year while increases for the previous five years combined totaled less than 15 percent. Ohio State University is raising tuition for incoming freshmen 34 percent next fall. A recent report by the National Center for the Education Statistics, The Study of College Costs and Prices, 1988-89 to 1997-98, indicates that during that time period the level of state appropriations as a proportion of total revenue decreased for all types of public institutions. During that period, states were running record budget surpluses. 



Given the importance of higher education to building tech-based economies and this odd juxtaposition, we thought a special issue focused on higher education was needed.