Economic Development
  1. Introduction
  2. Academic Excellence & the Economy
  3. ETIC and Oregon's Workforce
  4. Oregon Innovation Council
  5. University Research

Introduction

Oregon's future depends on achieving long-term, sustainable economic growth, creating quality jobs, and positioning the State to compete in a global economy. The Oregon University System has made many contributions to the state, partnering and participating in statewide economic development efforts. These efforts have helped the state transition from an "extraction" economy also reliant on natural resources such as timber and fishing, to a "knowledge" economy reliant on human resources in numerous industries such as high tech and healthcare, and extending into natural resource industries.

Projected New Jobs in Oregon (2000 - 2010)

Source: Oregon Employment Department

Key economic drivers that Oregon's public universities have contributed to include:

  • The quality and quantity of graduates from Oregon public universities who enrich and diversify the state's workforce, attracting and retaining companies and jobs
  • Cultivation of well-paying jobs that go to Oregonians and reduce the need to import top management and skill positions from out-of-state, and
  • Creation of world-class signature research centers and business incubators that transfer scientific innovation into solutions and products that create new companies, jobs and revenues for Oregon.

The need for sustained and comprehensive employment growth and financial vitality for Oregon has grown even more critical in recent years. Providing the opportunity for a college education to more Oregonians is the fuel that will help to invigorate and stabilize our state economy.

Academic Excellence and the Economy

The Oregon State Board of Higher Education believes firmly that innovative ideas are essential to keeping Oregon competitive. The State Board's Academic Excellence/Economic Development Workgroup (the "Workgroup") recognizes that economic development efforts need to adopt near- and long-term strategies that methodically capitalize on Oregon's strengths, and build upon academia's research capacity in selected emerging industries. Targeted investments in research and development, capital formation, and an effective workforce development system are prerequisites for economic development. The Workgroup has identified 12 "Opportunity Areas" that reflect potential business, education, and research opportunities that will be explored as possible areas for future initiatives.

AEED Goals and Purpose

  • Identify and gain support for 2-5 economic development initiatives that build on the academic excellence within our postsecondary institutions.
  • Provide a measurable return on investment with each initiative over 20 years, with interim results at earlier intervals.
  • Collectively touch every part of Oregon with the initiatives.
  • Build on existing or emerging momentum.
  • Draw on and reinforce excellence in academic programs.
  • Ensure that the initiatives are both exciting and easy to conceptualize.

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ETIC and Oregon's Workforce
ETIC Business and
Industry Membership

A recent Oregon Employment Department report indicates that, despite the recession, employers continue to say that there is a shortage of skilled workers in the state, and that vacancies exist in all major occupations even in a period of lower hiring activity. These shortages of skilled labor lower company productivity and sales, and thus the revenue they provide to the state in taxes, and are related to the number of jobs that companies can maintain. A second concern of employers in the report was that employees have insufficient "soft skills" such as problem-solving, critical thinking skills, interpersonal skills, and management and leadership skills. These are the types of skills, in fact, that college graduates are able to bring with them into the workplace.

Since 1997, the Oregon University System has participated in a mutually beneficial partnership with the private sector to "grow our own" engineers and computer scientists to fuel the state's largest sector, high tech, and all of its sectors that use technology. Today in Oregon, technology is used in industries as diverse as agriculture and healthcare, forestry and electronics, and utilities and retail.

This partnership is represented by the Engineering and Technology Industry Council - or ETIC - made up of executives representing a wide variety of industries from throughout Oregon as well as leadership from Oregon universities. Through this effort, OUS and its industry partners are meeting the state's goals of making engineering and technology education a strategic resource that fuels our economy and creates opportunities for all Oregonians.

The ETIC 2005-2007 Budget in the Governor's Recommended Budget is $21.7 million of the OUS General Fund budget. For more detail on the budget and the impact on each of the seven OUS campuses, click here.

ETIC Strategic Objectives Include:

  • Doubling the annual number of work-ready technical graduates, a goal that ETIC is well on its way to meeting, in order to increase Oregon's in-state technical talent, making it easier to generate new technologies and grow new businesses and jobs;
  • Tripling the federal research dollars flowing to Oregon;
  • Growing nationally ranked programs that supply the highly skilled graduates needed to retain and attract companies and jobs to the state, and which allow existing Oregon companies to recruit locally, increasing the number of top jobs that go to Oregonians;
  • Increasing the quality and diversity of engineering and technology students to be able to meet state demand;
  • Providing increased opportunities for high paying jobs to Oregonians, whether they are new to the workforce, entrepreneurs, or displaced by changes in the economy;
  • Quickly forming industry-higher education partnerships to mold and adapt to global markets for Oregon industry and economic advantage; and
  • Fostering inter-campus and community college collaborations for programs and research that provide statewide opportunities for education and training.
ETIC Funding Provide Benefits Across Oregon

Since 1999, ETIC's efforts have increased the number of undergraduate and graduate engineers and computer scientists by 40%, and is forecast to increase those numbers by more than 74% by 2009. ETIC's movement towards its goals have generated a high level of confidence in Oregon's business community that sustained investments and clear objectives can achieve the end result of more high skill technology workers for our industries. This confidence has brought about a financial commitment from the private sector that has grown from $7.1 million in the 1997-1999 biennium to $37.1 million in the 2003-2005 biennium to match public support of $5 million in 1997-1999 and $20.9 million in 2003-2005.

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Oregon Innovation Council (Oregon INC)

History

In 2001, the Legislative Assembly approved a comprehensive set of strategies to enhance Oregon's economic competitiveness in a knowledge-based, global economy. The Oregon Council for Knowledge and Economic Development (OCKED) was established under Senate Bill 273 to focus exclusively on increasing high-quality research and development, cultivating technology transfer and commercialization of university research, and promoting the development of a technologically skilled workforce.

The official report, Renewing Oregon's Economy: Growing Jobs and Industries Through Innovation , was presented to the Legislature in 2003, outlining economic development policies and priority recommendations. The report noted that innovation and commercialization are the economic drivers for Oregon's 21st Century, but the challenges facing Oregon's public policymakers have a decidedly 20th Century feel - high unemployment, stagnant job growth, and a demand on General Fund dollars that exceeds projected revenue. The early work of OCKED promoted the leadership and collaboration necessary for regional economic development, global competitiveness, and job creation.

Transition to Oregon Innovation Council

New challenges require new focus and bold direction. Governor Kulongoski, the Oregon Economic and Community Development Department, and the Oregon Council for Knowledge and Economic Development have teamed to recommend a series of statutory realignments of statewide technology organizations. Throughout 2004, these public policy leaders met to discuss the competitiveness of Oregon's traded sector and knowledge industries and how to increase the state's capacity for innovation, technology development, and product creation.

Staffed by the Oregon Economic and Community Development Department, the Oregon Innovation Council (Oregon InC.) will coordinate statewide private sector business and industry efforts, such as the Oregon Business Plan, to enhance Oregon's knowledge economy and international competitiveness. The plan renames the OCKED and reasserts the Council's role to create a statewide plan for the innovation economy. The plan sets out a shared vision, a coordinated set of state policies and programs, and a cohesive budget for the agencies and partners directly involved with developing globally competitive businesses and jobs. The proposal eliminates the Higher Education Technology Transfer Fund, the Oregon Science and Technology Fund, and moves the Oregon Nanoscience and Microtechnologies Institute (ONAMI) under the auspice of the new Council.

The Governor views the Innovation Council as a necessary feature to provide for sustained economic development and promote collaboration among Oregon's public and private institutions of higher education, economic development leadership, and the private sector in enhancing the competitive advantage of Oregon's traded sector and emerging industries as defined in ORS 348.701.

The Council would develop a state plan for innovation by December 2006 that would provide a five year and 20 year vision for the state's innovation capacity to create new products and businesses that would sustain economic growth and jobs for traded sector industries. The plan would include policy, program and budget recommendations for leveraging private and public resources.

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University Research Supports Economy

The 2003 Oregon Legislative Assembly, recognizing the vast potential of nanotechnology as an economic driver, approved $1 million in operating funds and $20 million in bonds to support the construction of signature research centers including the Oregon Nanoscience and Microtechnologies Institute (ONAMI). ONAMI is an unprecedented and powerful collaboration involving Oregon's three public research universities - Oregon State University, Portland State University, University of Oregon - the Pacific Northwest National Laboratory (Richland, WA); the state of Oregon; selected researchers from the Oregon Graduate Institute and the Oregon Health and Science University School of Dentistry.

In December 2003, the President signed the 21st Century Nanotechnology Research and Development Act (S. 189) - a bill authored by U.S. Senators Ron Wyden and George Allen of Virginia. The U.S. law authorizes $3.67 billion for nanotechnology research and development over the next three years for the National Nanotechnology Program.

In June 2004, U.S. Senators Ron Wyden and Gordon Smith secured U.S. Senate approval for $10 million in defense-related projects for ONAMI. Competitively funded research dollars for ONAMI over the last five years have attracted $75 million in sponsored research and other funds.

OUS Sponsored Research Actuals and Targets
1999 to 2007

Dollars in millions

Sponsored Research:

Developing Work-Ready Students and Oregon's Economy

Many collaborative research projects and proposals are now in progress. ONAMI is one example of the growing "shared resource" activities of Oregon's public universities.

Total sponsored research dollars for OUS in 2002-03 totaled $253 million. The non-state dollars are not only indicators of faculty performance, but also translate into a source of funds spent on salaries, goods, and services in their respective communities.

Sponsored Research Currently Underway

At ONAMI (OSU):

At PSU:

At UO:

To read about the UO’s latest and most exciting research projects, see the PDF versions of Inquiry, the university’s research newsletter:

  • Fall 2004 – featuring a review of research accomplishments in FY04
  • Spring 2004 – featuring research from the College of Arts and Sciences
  • Fall 2003 – featuring UO’s innovative integrated research efforts

For issues of the semi-annual newsletter, visit the website here.

For more information about the university’s research visit the UO’s Points of Pride Sponsored Research page here.

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