The Extraordinary Value of Great Universities - Jobs & Economy - The Atlantic Cities - 0 views
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George Mehaffy on 15 Jan 12"The Extraordinary Value of Great Universities Richard Florida Dec 15, 2011 2 Comments The Extraordinary Value of Great Universities Reuters Share Print Email The United States is home to more than a third of the world's top 400 research universities. But how exactly do universities factor into the wealth, innovation, and economic competitiveness of their host nations? To get at this, my colleague Charlotta Mellander and I looked into the statistical associations between a nation's concentration of leading universities and broader measures of economic competitiveness, innovation, human capital and social well-being. We based our analysis on a statistical technique that enables us to control for the effects of population size. While correlation is not causation (none of these findings prove that anything more than an association exists) the results are nonetheless striking. In fact, they number among the very strongest I have ever seen in this type of analysis. The concentration of great universities in a nation is extraordinarily closely related to its economic competitiveness. It is closely associated with economic output per capita (.74), total factor productivity (.77) and overall competitiveness (.71) based on the Global Competitiveness Index developed by Harvard's Michael Porter. Universities are also a key force in technology. A nation's concentration of leading universities is closely associated with its level of innovation, measured as patents (.78) and its research and development expenditures (.74). While Stanford's role in Silicon Valley-style high-technology entrepreneurship is the stuff of legend, universities are closely associated with the entrepreneurial level of nations. The concentration of world-class universities is closely associated with a nation's level of entrepreneurship as measured on the Global Entrepreneurship Monitor (.69). Technology is one key factor in economic competitiveness, but a nation'