Maryland's Public System of Higher Education

The USM in 2010: 

Responding to the Challenges that Lie Ahead

Research and Economic Development

The research and development (R&D) conducted by higher education is fundamental to the culture of learning and has been found to improve the economic, physical, and social well-being of surrounding regions.

The Importance of Research

Research and creative activity are at the heart of American universities. The advancement of knowledge and thought is fundamental to advanced learning, and the quality of universities is largely determined by their intellectual vigor, reflected in part by the scholarly reputation of their faculty and by their success in securing competitive research grants. The quality of university research is self-reinforcing, serving to recruit and retain high quality faculty members, who, in turn, attract and train highly talented graduate and undergraduate students.

Research serves a university best when it is fully and inseparably integrated into its other core activities: namely, teaching and outreach. Research, scholarship, and creative work are important to all disciplines and in all institutions, irrespective of their mission. In fact, for all graduate students and for increasingly large numbers of undergraduate students, they are vital components of their degree programs.

Maryland's national rankings in economic and educational arenas are, at least in part, the result of the enriched academic environment of our higher education institutions. However, direct linkages between research discoveries and inventions on our campuses have not been as fully developed as possible. Therefore, this section will deal more extensively with those research activities which have direct bearing on the economic well-being of Maryland. But it is critical to note here that much of the basic research produced by our faculty comes over time to have unanticipated economic significance, while the accomplishments of those who produce original works in the arts and humanities have significant and tangible influence over the quality of life in the communities served by our institutions. In practice, the most distinguished universities and colleges sustain both basic and applied research in all areas of scholarship and creative activity, not just in those with immediate and direct economic benefits such as those described below. The simultaneous presence of both is, indeed, essential to the ultimate success of our institutions.

Furthermore, the production and application of knowledge in universities have clearly allowed the regions in which the universities are located to prosper. Particularly important have been the new businesses, even whole new industries, that have sprung up in the vicinity of major research universities. But the benefits of university research are even broader, assisting the adaptation of existing industries to changing markets, expanding our food supply, providing superior health care, addressing social welfare, and helping to protect the environment. Moreover, some of these benefits are more or less the direct product of university research, while others accrue because, through gaining research experience, highly capable graduates are produced to fill the skilled labor market. In this manner, research within the USM will be critical to achieving a prosperous future for Maryland in the 21^st century. This prosperity will depend on cutting-edge technological enterprise, the health and well-being of our citizens, our ability to address social challenges ranging from crime to sprawl, and the livability of communities and the sustainable use of natural resources. University research and graduate education must make major contributions in all of these areas.

Research and Economic Competitiveness

The National Science Board's Science and Engineering Indicators 2000 reports widespread public support for government funding of basic and applied research. An overwhelming majority agreed that even if it brings no immediate benefits, scientific research that advances the frontiers of knowledge is necessary and should be supported by the federal government. In fact, universities perform nearly half of the nation's basic research. Because of the broad consensus about the importance of university research, the federal government supports 57% of the research performed at universities. And, because of its major Federal research laboratories, such as the National Institutes of Health (NIH) and NASA Goddard, as wells as its highly competitive university research, both public and private, Federally supported research is particularly important for Maryland.

In 1998, Maryland received $8.1 billion in Federal research and development outlays, ranking second in the nation (only California received more). On a per capita basis, Federal R&D to Maryland actually far exceed those of California ($1,573 versus $441). Research is a very big business in Maryland, but the competition is unyielding as other states, understanding the benefits of a strong research enterprise, improve their own capabilities.

The Board further states that most countries acknowledge a symbiotic relationship between investments in science and technology and competitiveness in the marketplace. Science and technology make business more competitive, and commercial success, in turn, feeds new research and development.

Four Strategic Imperatives

Maryland's policy leaders have focused upon strengthening the USM's research capability and linkages to economic development. The success of a research and economic development policy direction is associated with four strategic imperatives related to:

• research facilities
• research faculty
• special laboratories and equipment
• technology transfer.

Research Facilities

Shortage of adequate research space is a national problem. The National Science Foundation reports that in light of current research commitments, more than 50% of all institutions reported inadequate amounts of space, many in the critical fields of biological and medical sciences and engineering. To be able to meet their commitments, institutions reported a need to increase existing space by 20%. Maryland's outlook is more favorable. The Governor and the General Assembly are making very substantial investments in new research and teaching facilities for science, technology, and health science at USM institutions. Fifteen major facilities are in the construction or final equipment phases. Another six are set for planning within the next five years.

Research Faculty

Research universities have always been committed to the highest standards of scholarship and research. Along with creating new knowledge, U.S. universities use their research activities to educate the next generation's scientists, teachers, and leaders in government and industry. If the U.S. is to remain the model for the fusion of education and cutting-edge research, faculty of the highest quality will need to be recruited and retained by the research universities. Here, too, Maryland's profile is improving. Significant operating budget increases will bring USM faculty closer to the goal of the 85^th percentile of faculty salaries nationally. Additionally, these new funds have substantially aided in recruitment and retention of outstanding teaching and research faculty.

Special Laboratories and Equipment

Attracting or retaining an outstanding research faculty member often requires the outlay of funds and space for a laboratory, equipment, and research assistants. The USM will need to increase its focus on this piece of the strategic puzzle. Such labs and equipment are major components of building and maintaining a cutting-edge research enterprise, their construction and maintenance require increased attention and funding.

Finally, an integral part of research is technology transfer, the means by which research findings are transferred to the private sector for potential development into products and processes.

Of particular interest are high-technology industries. They are defined as the segment of science-based industries producing products that have above-average levels of R&D in their development. These industries are especially important to nations, states, and regions for three reasons:

• High-technology firms are associated with innovation. Firms that innovate tend to gain market share, create new product markets, and/or use resources more productively.
• High-technology firms are associated with high value added production and success in foreign markets which help to support higher compensation to the workers they employ.
• Industrial R&D performed by high-technology industries has other spillover effects. These effects benefit other commercial sectors by generating new products and processes that can often lead to productivity gains, business expansions, and the creation of high-wage jobs.

A successful economic development strategy is dependent upon these strategic building blocks. Maryland is not exempt from this phenomenon: it can be argued that much of the State's current prosperity is derived from successes in research and economic development, driven in great part by the universities themselves.

USM Response

USM institutions will:

• Encourage appropriate levels of discovery and fundamental research in all of their academic programs as a fundamental aspect of institutional quality.
• Explore, with State economic development leaders, the creation of a statewide research and development strategic plan, which matches USM capabilities with State economic needs.
• Develop additional investment sources for research which will supplement State funding.
• Study strategies for building faculty recruitment capability in cases that require substantial investment in research laboratories and equipment.
• Conduct periodic economic impact studies which will be distributed to State business and political leaders, among others.
• Encourage greater entrepreneurship at USM institutions in activities that impact economic development, especially in developing research parks, partnerships with corporations, and related activities.
• Seek State support for the establishment of a $50 million R&D fund at the Maryland Technology, Engineering, and Development Corporation (TEDCO), whose purpose would be to leverage promising USM research technologies and realize their full market potential.
• Examine all of their research-related policies, identify and modify all of those that inhibit the development of partnerships, and seek more active, supportive roles for the Board of Regents in establishing research and business partnerships.
• Work to maximize USM cooperative agreements and research partnerships with federal research laboratories and other federal agencies in order to capitalize on their geographic presence in the State.