Strengthening the Relationship between Higher Education and Regional Economic Development
چکیده
This paper analyzes the relationship between higher education institutions (HEIs) and regional economic development, focusing on the evolvement of various systems of higher education, and stressing that strengthening higher education is a key strategy for successful economic development. Further, this paper investigates and studies the crucial factors that enable certain national higher educational systems to achieve a high level of success and which promote economic development, while addressing the needs and objectives of specific countries and/or regions. The paper posits that the values of academic freedom must occupy the highest priority in educational systems that aspire to promote its national and/or regional goals for sustainable economic development. In studying the current situation in various parts of China, this paper discusses the essential progressive need to promote academic freedom in Chinese colleges and universities, which is necessary for all successful colleges and universities. This, in turn, will enable them to encourage and prepare research personnel, business leaders, and entrepreneurs, while developing cutting-edge innovations and industries. Finally, this paper seeks to identify and discuss specific strategies and programs that have proven successful in certain regions/countries and that can be adapted to the current educational needs of growing and vibrant countries such as China. INTRODUCTION Consistent with the experience of most developed countries, knowledge has been the major incentive and foundation for successful economic development (Ledgerwood & Broadhurst, 1998; Laukkanen, 2000; Peck & McGuinness, 2003). Higher education institutions (HEIs) are places where knowledge is acquired and transmitted, and successful enterprises rely on them to achieve sustainable development through the transfer of technology, the cultivation of talents and ideas, and the promotion of entrepreneurship. Regional analyses suggest that success depends heavily on institutional “thickness” (Amin and Thrift, 1994; Indergaard, 1997; Cooke and Morgan, 1998, cited in Allison & Keane, 2001) or so called “social capital” (Putman, 1993, cited in Allison & Keane, 2001). We firmly believe that successful economic development relies heavily on a vibrant and progressive system of higher education. Depending on the level of economic development in a specific country or region, certain key ingredients are absolutely essential and are best provided by the higher education establishment. For example, in countries or regions with a low level of economic development and significant needs, the most critical ingredient is for a system of higher education that addresses the basic needs of literacy, fundamental scientific knowledge and an understanding of how economic systems function. In contrast, in the more highly developed countries or regions, the need for higher education resources will include a more sophisticated level of teaching faculty, plus a highly productive and competent level of research capabilities of university faculty members. Between these two extremes, exist models of economic development that call for varying levels of competence, skills, application and resolve. As the economies in certain nations and/or regions develop, the higher education systems need to adapt in order to better serve the changes and assist the process of development. According to the World University Rankings (The Times Higher Education Supplement [THES], 2006), the top ranked universities are primarily located in the more developed countries. This is because in the early stages, higher education in those countries adopted the necessary policies to develop itself, thereby assisting economic development in those nations. The higher education systems and economies in those areas have mutually promoted each other, so that the more developed areas have the best higher education systems, and those countries that have better higher education systems have more highly developed economies compared with other nations and regions. America was a relatively poor country when it was first established, but things began to change about the time that the country embraced the concept of academic freedom as practiced in Germany in the 19 century. In addition, because the United States persisted on this path, America’s HEIs have been continuously enhanced. According to THES (2006), among the top 20 world universities, 11 universities are located in the United States. And according to the University Ranking of Shanghai Jiao Tong University (2005), there are 17 universities located in the United States among the top 20 world universities. These universities and their graduates eventually helped the economic development of the nation, so that the United States is one of the most highly developed countries in the world. When one examines the relative achievements of universities that have been ranked in the top tier of all universities worldwide, in contrast to those that have been ranked in the bottom tier, it is easy to discern the reasons for the success of the higher ranked universities. It is not merely their technical skills and knowledge that sets them apart. More specifically, those institutions that have been ranked in the upper ten percent of all colleges and universities worldwide exist within an environment that has promoted and continues to promote and protect academic freedom to learn, teach and conduct research. This paper analyzes the critical role that higher education plays in regional economic development. It also focuses on the development of certain systems of higher education and stresses that improving higher education is a key strategy for regional economic development. Further, this paper investigates and studies the critical factors that enable certain national higher educational systems to achieve a high level of success and which promote economic development while addressing the needs and objectives of specific countries and/or regions. In studying the current situation in various regions of China, this paper then discusses the need for certain changes and modifications in Chinese colleges and universities which would enable them to achieve higher levels of success in competition with colleges and universities worldwide. Finally, this paper identifies and discusses specific strategies and programs that have been proven successful in certain regions/countries and that can be adapted to the current educational needs of growing and vibrant countries such as China. HIGHER EDUCATION AND REGIONAL ECONOMIC DEVELOPMENT Beginning with the passage of the Morrill Land-Grant College Act in 1862, the American government has prevailed upon higher education institutions to assist in the development of the national economy (Perorazio, 2000). Thus, the relationship between higher education and government can be described as an ongoing series of “social contracts” – an expectation that higher education should provide a return to the society for the public investment provided (Perorazio, 2000). Since the late 1800’s, additional studies have focused on the relationship between higher education and economic development. Previous research had focused mainly on three points: 1) HEIs can provide knowledge and skills that meet the demands of regional economic development; 2) HEIs play a critical role in regional economic development; 3) HEIs are promoters of internationalization, which links the local to the global. Producers of Knowledge According to Duderstadt (2000), we are now entering the age of knowledge, in which the key strategic resource necessary for prosperity has become knowledge itself. As knowledge is created, absorbed, and applied – primarily by keenly educated minds – universities in particular will play increasingly important roles. Erich Bloch, former Director of the U.S. National Science Foundation states: “The solution of virtually all the problems with which government is concerned: health, education, environment, energy, urban development, international relationships, economic competitiveness, and defense and national security, all depend on creating new knowledge—and hence upon the health of our universities” (cited in Duderstadt, 2000, p. 3). Fran Hulbert, Director of Skills Policy at the North West Regional Development Agency says: “Knowledge is an invisible resource that impacts significantly on the regional economy in many ways...Universities are vast repositories of knowledge, supplying the business community with products, training, qualifications, high quality employees, consultancy services and innovation solutions. They are also a key stakeholder within the economy as a major employer, both directly and indirectly, a major owner of capital such as property and facilities – and they are also a very stable feature in the regional landscape. The cumulative power of all of these factors makes universities significant strategic partners both within the region itself, and as a national voice to influence government.” (Cited in Robson, Keith, & Deas, 1998, ¶ 3) According to Knight (1995, cited in Allison & Keane, 2001), the focus on knowledge has been a key feature of economic development in the 1990’s. In “post-modern” economic structures, knowledge-creating enterprises, including universities and professional firms, are seen as critical to developing competitive advantage for localities (Ledgerwood & Broadhurst, 1999). Regional analyses also suggest that success depends heavily on institutional “thickness” (Amin and Thrift, 1994; Indergaard, 1997; Cooke and Morgan, 1998, cited in Allison & Keane, 2001) or so called ”social capital” (Putman,1993, cited in Allison & Keane, 2001)). Regional economies should be knowledge-based. To achieve economic success, regions need to emphasize innovation and see regional constitution as learning regions (Allison & Keane, 2001). Regions ought to become learning regions to acquire economic development, since as Goddard (1997, cited in Allison & Keane, 2001) argues that institutional thickness is more than a strong presence of institutional bodies, rather, there is a high level of interaction and a mutual awareness of common purpose generating tacit knowledge and lifelong learning. Actually, the traditional role of universities is changing. Previously, the main objective of universities was to increase and transfer knowledge, but currently universities are engaged in regional economic development and they are also involved in local employment, as well as university spin-offs and growth (Lazzeretti & Tavoletti, 2005). A Crucial Factor in Regional Economic Development Chugh (1997) argues that the HEIs play a vital role in assisting business and community organizations become engaged in promoting economic development. He believes that institutions can provide small business assistance, workforce and entrepreneurial development, international trade and investment assistance, total quality management, technology transfer and product development. He also cites the Internet and computer services, economic research, environmental and forestry management, continuing education, training programs, assistance to community organizations, as well as providing conference and workshop facilities. Morgan (2002) also suggests that it now has been accepted that higher education plays a critical role in regional development. According to the National Report in UK (National Committee of Inquiry into Higher Education [NCIHE], 1997, ¶ 2), one of the purposes of higher education is: “to serve the needs of an adaptable, sustainable, knowledge-based economy at local, regional and national levels”. The British Government’s White Paper on Enterprise, Skills and Innovation (DTI and DfEE, 2001) requires Regional Development Agencies to develop their cluster strategies further, by including partnerships involving higher education (Peck & McGuinness, 2003). Vest (1996) reminds us of Michael Porter's argument about the importance of "core clusters" of talent and infrastructure for economic health. Further, Vest (1996) believes that of all the "core clusters", higher education and preeminent research universities remain our greatest asset. Robson, et al (1998) suggest that HEIs have a role in supporting local and regional economic development through a variety of aspects of HEIs’ work, such as involvement in local and regional partnerships, links with local business and industry through targeted training and research consultancies, the establishment of research incubators, science parks, quasi autonomous R&D companies and the commercialization of higher education research via spin-off companies and patents. Also cited are student placements in local businesses and the tying of student projects to the needs of businesses and local community groups, and through HEIs’ wider role as part of a network of knowledge industries, a feature which itself is used in local and regional promotion to attract overseas inward investment. Therefore, economic development policy-makers are increasingly attempting to draw universities and colleges into their strategies. Different kinds of HEIs serve different needs of economic development. Vocational institutions meet the increasing demand for skilled workers, while research institutions improve the transfer of new technologies to business, and HEIs on the whole can create better links between the needs of business and the education of students (St. Paul, 1996). A Link between Local and Global Development Concurrent with the development of economic globalization, higher education plays a most critical role in linking global and local development (Thanki, 1999). The involvement of colleges and universities in regional economic development is enhanced by the growing importance and globalization of knowledge and technology. Furthermore, colleges and universities do not merely benefit the growth of regional economies, but also they provide enhancement of social, political and cultural life in the region. Based on a case study regarding the Dutch University of Twente, Lazzeretti & Tavoletti (2005) argue that local economic relevance and international excellence are not incompatible objectives (Lazzeretti & Tavoletti, 2005). Goldstein & Drucker (2006) examined the influences of 4-year colleges and universities in the United States, focusing on the internal and external factors that affect regional economic development, and the spatial extent of their impact, while analyzing the effects of specific university functions. They found that knowledge-based university activities, particularly teaching and basic research, have substantial positive results in regional earnings gains. They argue that the greatest impact occurs in smalland medium-sized regions, and further suggest that universities may be able to function as a substitute for agglomeration economies (Goldstein & Drucker, 2006). Gunasekara (2005) discusses the role of universities in shaping regional agglomeration in Australia. He states that universities carry out an important extensive developmental role, including education, research and incubation of industries and enterprises. Lin (2004) argues that higher education overall provides a positive and significant affect on Taiwan’s economic development, and that engineering and the natural sciences majors play the most prominent role in this process. Atkinson & Reed (2000) suggest that California's education system and its economy maintain a close link with each other, and as the California economy becomes increasingly information-based, this connection will become even more consequential. The employers in the state will rely on universities more than ever to provide graduates who are well-prepared for the more intellectually demanding jobs. Since universities in the state of California understand that the success of California's future economy depends on the effectiveness of the state's education system, they are working to strengthen the education-economy continuum so that students receive the preparation they need to succeed (Atkinson & Reed, 2000). THE KEY ELEMENT OF SUCCESSFUL HEIS As the former Director of the U.S. National Science Foundation Erich Bloch states, “...to solve the problems associated with regional development, it is essential to maintain the health of universities (cited in Duderstadt, 2000)”. We argue that a healthy university must have good systems for the faculty to carry out research, to create and transfer knowledge to the students, cultivate innovation, while encourage the university to interact with industries. When we examine the top ranked universities in the world, we find that they are mainly located in the US and UK, but especially in the US. As mentioned previously, HEIs are playing a vital role in regional economic development. If one wants to improve regional development, it is essential to understand the importance of HEIs in the region, and how to maintain successful HEIs. Now, an important question needs to be asked – what is it that makes HEIs in America so successful and excellent? In China, scholars have carried out many comparative studies between Chinese universities and American universities, expecting to discover the differences between the systems of higher education in order to enhance Chinese universities. Zhang & Jiang (1994) argue that American universities have attracted the best teachers, developed better management systems, and world-class research facilities (Zhang & Jiang, 1994). Ren (2006) believes that China should adjust the orientation of universities to help the progress of the social and economic development of the nation. Pan (2006) suggests that because of the procedures, structure and function of higher education in America and China are different, the two types of higher education systems have achieved different status. Jiang (2005) argues that the main differences between the two types of higher education systems are in the framework and educational purpose of the university. Viewed from the perspective outside of China, we contend that it is essentially the values of academic freedom that lead to the main differences between these two systems of higher education. Currently, many Chinese universities are attempting to attract excellent overseas Chinese professors to return to China to teach and do research. Besides salary and housing, the main concern of overseas Chinese professors is for the academic freedom to do research and teaching without interference. If there is no or very limited academic freedom in universities, a faculty’s desire and ability to carry out research will be restrained. They will have little motivation to do what they are prepared to do, because they know that there will be many limitations. Under such conditions, students too have little freedom to question and debate teachers; instead, they are required to repeat what the teacher believes and they will only do what the teacher wants them to do. Thus the innovation of students is severely limited. It is clear that if a university does not have strong faculty who can do research, and does not have excellent students who can think critically, it will be very difficult for a university to achieve true excellence. There are two types of academic freedom in America: 1. Individual academic freedom that protects the right of individual professors. 2. Institutional academic freedom that protects universities from interference by government, a right that applies to the community of scholars, not to individual