Keeping California’s Economic Edge:
The Role of the University
While natural resources and manufacturing remain very important components of the California economy in the 21st century, the industries that will largely be driving the state's economic recovery in the short term and leading the way to longer-term competitiveness will be knowledge-based industries. Computers and software, biotechnology and pharmaceuticals, microelectronics and nanotechnology, communications, and entertainment are examples of these industries.
Companies in these industries depend greatly upon discoveries and highly educated employees from research universities. In many cases, these companies can locate anywhere in the world because they are not tied to the land – and they typically say that one of the most important factors in their location decision is the quality of the workforce in the region.
In this new age, a critical factor is the availability of "knowledge workers" – a term coined by Peter Drucker, the noted management consultant, more than four decades ago for those individuals with advanced formal and continuing education who can apply theoretical and analytical knowledge, create new product ideas, and add value through ingenuity.
The link to research universities in this regard is clear.
It is widely recognized that innovation is an important component to productivity growth, which in turn leads to higher standards of living – and the work of a public research university such as the University of California is critical to stimulating innovation through its teaching, research, and service. President Dynes has launched this long-range planning effort to maximize UC's ability to accommodate a growing population in California over the next 20 years and to continue to serve the state's changing needs as our economy becomes ever more dependent on the work of universities.
What other issues should we consider?