FOR RELEASE THURSDAY NOV. 2, 2000
CONTACT:Roger Williams, Associate Vice Chancellor501-575-5555, [email protected]
Jay Nickel, Assistant Manager Media Relations501-575-7943, [email protected]
UNIVERSITY OF ARKANSAS REPORTS BENEFITS OF RESEARCH INVESTMENT
FAYETTEVILLE, Ark. -- For every one-dollar invested in higher education, you get an eight percent return, and for every one-dollar invested in research universities, you get a 23 percent return.
This was the message University of Arkansas Chancellor John A. White and two UA economists conveyed in the results of Priming the Pump, Research as a Catalyst for Economic Growth, an economic study showing significant benefits of state investment in higher education research.
"The Priming the Pump report is both timely and significant for Arkansas," Chancellor White said. "It not only demonstrates the impact of research investment on personal income but also quantifies the benefits of externally funded research performed by UA faculty and students."
The study provides information for the University's 2010 Commission, a group of state leaders searching for ways to improve the University's public funding support. The research for Priming the Pump, Research as a Catalyst for Economic Growth was performed by Dr. Jeffery T. Collins, director of the UA Center for Business and Economic Research, and Dr. Craig T. Schulman, associate professor of Economics.
The analysis from the study examined the linkage between income and education and discussed the present status of research dollars invested in Arkansas compared to other universities throughout the country.
The researchers also explained the estimated impact of research investment on per capita income in Arkansas and state revenues.
"The results of the study are so powerful that we want the public to be aware of them immediately, even before the Commission completes its work," White said. "Although the University has had noteworthy successes this year in competing for external funds for research, we have not until now shown the people of Arkansas what's in it for them."
White said in many states, political leaders have discovered the close linkage between higher education research funding and prosperity -- higher family incomes and greater state revenues. Because of this linkage, federal and state investment in higher education research has been growing.
Reported by Professors Collins and Schulman, the conclusions of the study include:
o The return on investment in higher education research in Arkansas is a very high 23.2 percent a year.o For every dollar invested in higher education research in Arkansas, from any source, $8.02 will be returned to the state economy over a ten-year period.o Investments in higher education research will increase both per capita income and state revenues, with benefits continuing well beyond the period of investment.
"We have made significant progress since the last legislative session because Governor Huckabee and the Arkansas General Assembly supported state research matching funds, which have allowed us to compete for federally funded research grants," White said. "During October, alone, we announced nearly $12 million in federal funding for two large projects that have been matched with far smaller amounts of state funds. No matter how excellent our proposals, we would not have been able to compete without those state funds."
In addition to these success stories, the findings of the 'Priming the Pump' study provide even greater incentive for the University of Arkansas to realize its vision of becoming a nationally competitive, student-centered research university, serving Arkansas and the world. The University's goal for 2010, to increase annual research expenditures to at least $100 million, with at least $50 million of that in federal research funding, is made far more compelling with the results shown in this study.
In fiscal year 2000, the University of Arkansas received $49.1 million in research awards, which represented an 18.3 percent increase over the 1999 totals. For the current fiscal year, new research awards total nearly $15 million; over the same period last year the total was $10.5 million.
For more information pertaining to Priming the Pump, Research as a Catalyst for Economic Growth, visit the 2010 web site at www.uark.edu/admin/chaninfo/2010/econ.html.
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