Why the Knowledge Industry Matters

This week, a new report on the impact of higher education was released by Select Greater Philadelphia, the Greater Philadelphia Chamber of Commerce’s regional marketing effort. The report provides updated and valuable information on the impact of the 11-county region’s 88 higher education institutions. Some highlights from the Select report include:

• Colleges and universities indicated that they are planning to spend about $3.7 billion on capital projects to be completed or started over the next five years;
• Enrollment is 233,961 full-time students and 125,550 part-time students for a total, non-duplicated enrollment of 359,511 students;
• In total, students spend about $2.2 billion, equivalent to just over $8,000 per student per academic year (excluding tuition, room and board);
• 210,598 jobs, comprising 6.9% of the region’s total, are due to higher ed; and,
• The sector has a total economic impact of $15.2 billion - 4.8% of total gross regional product.

This report builds on the Economy League’s Greater Philadelphia’s Knowledge Industry report from the fall of 2000. Out of that effort, the Economy League incubated the Knowledge Industry Partnership (KIP), which has morphed into Campus Philly, the region’s effort to attract, engage, and retain the students who are instructed at Philadelphia’s higher ed institutions.

What we have learned from the KIP experience is that our colleges and universities are crucial to defining and setting apart our region from others. Talented young people come from around the world to Philadelphia, and many of them stay to work and live here or to set up their own businesses. The research coming out of the schools creates new businesses and adds value to existing businesses. The community investments they make can transform communities. It is clear that the success of these schools is crucial to the future of our region.>/p>

The Select Greater Philadelphia report tells us a lot about where we currently stand. But one of the key factors for the future will be strengthening the connections of the region’s higher-ed institutions to our economy and communities. In North Carolina, the University of North Carolina System has just begun a 20 year planning process, which includes listening sessions across the state, to learn where it should be going and how to best connect it to community needs. A recent session in Charlotte described how the UNC System could to help fill an expected gap of 15,000 workers with B.A.s and 19,000 associates degrees per year through 2014 – a need fueled by economic growth and boomer retirements.

So what are our region’s future needs? As skill level requirements rise, our economic future will depend on how we are able to produce workers with the know-how to fill both new jobs and those jobs that will be open due to retirements. How will we connect the efforts of all parts of our talent development system – community colleges, colleges, universities, and proprietary (technical) schools – with the needs of businesses throughout the region? Our advantage, the Select report points out, is that we start with an incredible base. Our challenge is figuring out how best to leverage that advantage and use it to fuel our economic growth.

-- Steve Wray, Executive Director