Higher Education & Economic Growth Aparna-Bhatia Busn-502-Teny-Spring 2010

1. Higher Education & Economic Growth Aparna-Bhatia Busn-502-Teny-Spring 2010

2. Higher Education & Economic Growth • According to Michael McPherson, President of the Spencer Foundation:- • “Higher Education can be a critical element in supporting social mobility and in improving our economic future” (Mattoon 2006). • “Higher Education policy is ‘Rocket Science’ since these institutions are complex in nature hence proper studies and critical analysis need to be conducted in order to improve policy making” (Mattoon 2006).

3. Role of Higher Education • Knowledge Creation and Dissemination. • Human and Social Capital Production, Empowerment, Growth, Development, Design, and Discovery. • Career Development, Skills Achievement, and Knowledge Enhancement. • Establishment of Research Design, Development, and Evaluation centers. • Foster Healthy Academic and Business Competition.

4. Role of Higher Education • Patenting, Licensing, and Consulting (Mattoon 2007) • Leadership & Entrepreneurial Skills Design and Development. • Achievement of High Academic Standards of Excellence through Program Accreditation ,University Rankings, and Continuous Improvement in Quality (Mubarak al Nahayan 2010)

5. Past, Present, & Future Challenges • There exists a wide Gap between what is being taught in Colleges and Universities and the kind of Skills that are needed in the 21st Century Workplace due to the existence of Traditional and Conservative Academic Models, Policies, Procedures, and Practices that are ineffective for today’s knowledge based economy. • Many Businesses and Corporations feel that College Graduates lack basic skills in Reading, Writing, Math, Science, and Communication even after obtaining a Post Graduate Degree (Mattoon 2007). • In order to fill the above stated Gap, Businesses and Corporations are forced to spend hundreds of thousands of dollars on remedial course training in addition to on-the-job training (Mattoon 2007).

6. Ways in which Higher Education Institutions can Close the Gap and Foster Economic Growth. • Alignment of Higher Education mission, goals, and objectives with the economic, political, social, cultural, legal, business, and technical needs of the local and regional economies (Mattoon 2006). • Adoption of a differentiated, innovative, and strategic approach to bring about social change and economic transformation to the region of interest or location(Mattoon 2007). • As per Richard Lester, one size-fits-all approach is not applicable in all cases hence the higher education model needs to be customized to meet the needs of the business and local community in order to be effective enough to spur and influence economic growth and advancement (Mattoon 2007).

7. Ways in which Higher Education Institutions can Close the Gap and Foster Economic growth. • Preparation of Today’s XYZ Generation for the 21st Century Global Workplace . • Knowledge Creation and Dissemination in fields such as Math, English, Communication, Computer Science, Engineering, Infrastructure, Technology, Medicine, Economics, and Finance. • Collaboration and Partnership with profit as well as non-profit organizations (Domestic and International) including other Higher Educational Institutions (Domestic and International) to develop innovative policies and practices. • Implementation of Academic, Business, and Industrial Best Practices, Policies, Standards, and Benchmarks.

8. Ways in which Higher Education Institutions can Close the Gap and Foster Economic Growth. • Usage of Advanced Social and Professional Networking Technologies at the academic level for the purposes of teaching and learning. • Constructive Design and Development of Innovative Policies, Practices, Incentive Systems, and Infrastructure(Mubarak al Nahayan 2010). • Practical Training through the offering of meaningful internships, co-op positions, job shadowing, and work-study programs. • Increasing Access to Higher Education Programs through the provision of Scholarships, Grants, and Fellowships. • Timely Research and Evaluation of existing degree and diploma programs through the establishment of performance indicators set by the Academic and Business Community (Mubarak al Nahayan 2010).

9. Scale of Higher Education Enrollment & GDP per capita in China • According to a Study that was published in the Journal of Asian Social Science vol. 5 no. 11 (Nov 2009), by the Canadian Center of Science and Education there exists a long-term and positive co-integration relationship between enrollment in Higher Education and the actual GDP per capita in China (Huang, Jin, & Sun 2009). • As per the conclusions of the above study, if optimum investment is made into higher education enrollments then the results are going to be positive but if investment exceeds the optimal level then the results are going to be negative due to Diminishing Marginal Utility (Huang, Jin, & Sun 2009).

10. Higher Education & Wealth Creation According to H.E. Nahayan Mubarak al Nahayan –Chancellor of Higher Colleges of Technology. “Investment in Education today will lead to Knowledge development tomorrow which can assure us of wealth creation in the future” (Nanda Gopal, 2006).

11. The End All Good Things have to come to an END! Thank-You for your Time!

12. References • Hansen, H. (2004, March 15). Granholm, Cherry Announce Commission on Higher Education and Economic Growth. Michigan.gov. An official State of Michigan website, Retrieved May 27, 2010, from http://www.michigan.gov/gov/0,1607,7-168-29544-88248--,00.html. • H.E. Sheikh Nahayan Bin Mubarak Al Nahayan opens Engineering Conference. (2010, May 3). Dubai Men's College. Higher Colleges of Technology. Retrieved May 27, 2010, from http://dbm.hct.ac.ae/news/h.e.-sheikh-nahayan-bin-mubarak-al-nahayan-opens-engineering-conference • Huang, F., Jin, L., & Sun, X. (2009). Relationship between Scale of Higher Education and Economic Growth in China. Asian Social Science, 5, No. 11, 55-60.   • Mattoon, R. H. (2007, March). Can Higher Education Foster Economic Growth?-A Conference Summary (Conference Summary No. 236a). Chicago Fed Letter (pp. 1-4). Chicago: The Federal Reserve Bank of Chicago. Retrieved from http://econpapers.repec.org/scripts/search/search.asp?ft=236a • Mattoon, R. H. (2006, August). Can Higher Education Foster Economic Growth? (Conference Report No. 229). Chicago Fed Letter (pp. 1-4). Chicago: The Federal Reserve Bank of Chicago. Retrieved from http://econpapers.repec.org/article/fipfedhle/y_3a2006_3ai_3aaug_3an_3a229.htm

13. References • Mattoon, R. H. (2006, January). Higher Education and Economic Growth: A Conference Report (Conference Report No. 222b). Chicago Fed Letter (pp. 1-7). Chicago: The Federal Reserve Bank of Chicago. Retrieved from http://econpapers.repec.org/scripts/search/search.asp?ft=222b • McLean, Chaunte'. (2009, February 25). Obama: "We Stand at the Crossroads of History". WLTX.com. Retrieved May 27, 2010, from http://www.wltx.com/news/story.aspx?storyid=70930&catid=2 • Nahayan Mubarak, A. N. (2010). Higher Colleges of Technology. Higher Colleges of Technology-UAE-2010. Retrieved May 29, 2010, from http://www.hct.ac.ae/messages/aspx/chancellor_message.aspx • Nanda Gopal, V. B. (2006). Higher Education-A Powerful tool for Economic Growth. PowerPoint, Jeddah-Saudi Arabia. Retrieved from 2006. hctmit.com/conf2/Presentation/Day%20One/HCT-MIT.ppt • Wende, M. V. D. (2009, May). European Responses to Global Competitiveness in Higher Education. University of California Berkeley-Center for Studies in Higher Education. Retrieved from http://cshe.berkeley.edu/publications/docs/ROPS-MW-global-05-30-09.pdf