Fall 2003, Vol. 56. No. 4

Why "Top 20"?
by Cathy Sams

In 2001, the University adopted a vision to become one of the nation's top-20 public universities. That vision, along with a comprehensive set of goals and a focused academic plan, is driving Clemson to improve quality on every front -- academics, research, public service and student life.

Although generally embraced by the Clemson family, the vision also has raised important questions. Is this just another bragging right? If Clemson's quest succeeds, who benefits?

You do. If you are a student, alumnus or taxpayer; if you live and work in South Carolina, Clemson's progress will have a direct impact on you.

Research shows that people who live in states with top-tier universities earn more money, are better educated and have a higher quality of life than people who don't. Top-20 universities have outstanding teachers and students, prolific researchers and more resources. Students at top-tier universities are more likely to graduate on time, be admitted to the most highly regarded graduate schools and earn higher starting salaries.

Not enough? Then consider this: States with top-tier universities outperform South Carolina on virtually every economic performance indicator -- employment growth, wage average, wage growth, gross state product, venture capital investment, new business establishment, business growth, patents and initial public offerings - according to a report by the Harvard Business School's Institute for Strategy and Competitiveness.

Coincidence? Not according to Harvard Professor and Institute Director Michael Porter. His groundbreaking work on "economic clusters" identifies strong research universities as a critical component in the development of geographic concentrations of similar industries, service providers and associated agencies -- geographic concentrations that can transform a state's economy. Think "Silicon Valley."

Does anyone except Clemson care about having a top-20 university? Apparently so. In an opinion poll conducted by Clemson sociologist James Witte, nationally known for survey expertise, nine out of 10 South Carolinians said it was important for South Carolina to have a top-tier university. They think it will improve the economy, keep the brightest students in state and enhance the state's reputation. Further, the majority thought Clemson was the institution most likely to achieve that status.


Students at top-ranked universities receive a better education.

Top-20 universities are known for the quality of their undergraduate experience. A student at a top-20 university is less likely to drop out, more likely to graduate on time, and will generally be more actively engaged in academic activities such as service-learning, study abroad and undergraduate research. (Sources: The Center, "The Top American Research Universities," August 2002; "America's Best Colleges 2003," U.S. News & World Report, September 2003)

Many of the criteria used to rank universities are variables that directly impact the quality of the undergraduate experience -- such as class size, student-to-faculty ratio and the quality of the faculty. Research confirms that these factors make a difference.

At least four published studies conducted between 1992 and 2002 clearly establish the link between class size and student achievement. The studies show that classes with fewer than 20 students:

  • make modest increases in academic achievement,
  • benefit students from economically disadvantaged homes,
  • improve teacher morale,
  • reduce dropout rates, and
  • engage students in learning.

 

Top-ranked universities have more resources.

Top-ranked universities are more successful at generating research funding and developing intellectual properties that can be patented or licensed. Top-ranked universities also are more successful at generating private gifts and building their endowment. That makes them less susceptible to state revenue shortfalls and helps keep tuition stable.

Research Expenditures
(millions)
Patent
Income
(millions)
Licenses
Generating
# Patent Applic.
Income
Expenditure
Per
Faculty
Private
Endowment
(millions)
Endowment Rank (out of 200)
Georgia  $272  $2.9  90 55   $157,955  $396 108 
Ga. Tech $305  $4.6  61 68  $403,439   $1.093 41 
Illinois  $373 $7  160 148  $166,517   $601 78 
Texas   $321  $2.26  29  80  $146,441   $1.463 25 
Wisconsin   $554  $24  201 188   $257,287   $1.120 36
Berkeley   $426.9  $7.1  417 121  $296,047   $1.953 21
Clemson  $114  $4.5  10  27  $131,958   $215  181
               

Sources -- Patent, startups and research figures from the Association of University Technology Managers 2002 survey (FY01 figures). Research per faculty based on dividing research expenditures by the number of full-time faculty listed on each school's Web site. Endowment figures and rankings are from The Center (based on FY01 figures).

 

Top-ranked universities drive economic development.

Top-ranked universities spin off new companies, attract high-tech industries and create better paying jobs for citizens of their state.

According to the Association of University Technology Managers, top-ranked universities are more likely to spin off new companies from their research. At least 494 new companies based on an academic discovery were formed in FY01 -- 84 percent in the university's home state.

  Startups
2001
 Startups
96-00
Georgia 6 36 
Ga. Tech 8 26
Illinois 6 20
Texas 9 23
Wisconsin 3 22
Clemson 0 3


Ranked universities are more likely to attract high-technology, knowledge-based industry to a state. According to a report from the Milken Institute, of the top 30 high-tech metropolitan areas in the United States, 29 were home to or within close proximity of a major research university. All of the top 10 cities are home to or near a top-ranked university.

As a rule, knowledge-based jobs pay more and are less susceptible to recession than other industry sectors. According to the latest U.S. Department of Commerce statistics, employee pay in high-tech industries is 67 percent higher than in other industries. Throughout the 1990s, growth in the high-technology sector averaged four times that of the overall economy. (Source: Milken Institute)

According to the U.S. Department of Commerce, states with a top-20 university have a greater proportion of their labor force in the high-tech sector (54.9 percent vs. 51 percent in 2000). States with more than one top-ranked university have a far greater proportion of their labor force in the high-tech sector (65.5 percent). By contrast, only 27 percent of South Carolina's labor force was employed in the high-tech sector in that year.


Citizens in states with top-tier universities have a better quality of life.

Per capita personal income is higher in states with ranked universities than it is in states without ranked universities. According to the U.S. Commerce Department's Bureau of Economic Analyses, none of the "bottom 10" (i.e., states with lowest per capita personal income, which is where South Carolina ranks) are home to top-tier universities. Nine of the "top 10" claim at least one ranked university. Per capita personal income was higher in the 14 metropolitan areas with top-20 universities ($34,917) than in the United States as a whole ($29,760) or in the Greenville-Spartanburg area ($24,403) in 2000.

But income isn't the only indicator of quality of life. Compared to the United States as a whole, states with a top-20 university:

  • have slower rates of population growth (7.3 percent from 1990-1999 vs. 9.8 percent). States with more than one top university grew even more slowly (5.3 percent).
  • have a more educated population. Residents of the 14 metropolitan areas with top-20 universities are more educated (29.5 percent were college grads in 2000) than residents of the United States as a whole (24.4 percent) or of the Greenville-Spartanburg area (20.7 percent).
  • have lower rates of teen pregnancy (10.4 percent vs. 11.8 percent) and out-of-wedlock births (32.4 percent vs. 33.2 percent in 2000). In South Carolina those rates are 15.3 percent and 39.8 percent, respectively.
  • have lower crime rates (3.8 percent vs. 4.1 percent in 2000). States with more than one top university have even lower crime rates (3.5 percent) despite being more urban. South Carolina's crime rate in the year 2000 was 5.2 percent. (Source: Walker School of Economics, Clemson University)

How does U.S. News & World Report rank a university?

To rank colleges and universities, U.S. News & World Report first assigns schools to a group of their peers, based on categories developed by the Carnegie Foundation for the Advancement of Teaching.

Clemson is ranked with 248 other universities in the "National University -- Doctoral" category, which requires schools to offer a wide range of undergraduate majors as well as master's and doctoral degrees. All of the country's large research universities, including MIT, Stanford and Duke, are ranked within this same category.

Next, data is gathered from each of the colleges on indicators of academic excellence including a school's ability to retain and graduate its students, the resources available to its faculty, the quality of its students, the average spending per student and the percent of alumni who give back to their school.

To account for intangibles, such as faculty dedication to teaching, schools are also judged by university presidents, provosts and admissions directors from across the country who take part in a survey to rank each school.

Finally, schools in each category are ranked against their peers, based on their composite score.

 

CASE STUDIES: Harnessing brainpower to create jobs
Many states have taken progressive measures to harness the power of their research universities to drive economic development.

North Carolina's Research Triangle Park, created in 1959, was one of the earliest attempts to build a knowledge-based economy on the strength of nearby research universities Duke and UNC-Chapel Hill. Today, it's home to more than 100 R&D facilities employing more than 37,000 people with a combined income of $1.2 billion. (Source: www.rpt.org)

The Georgia Research Alliance was founded in 1990 as a partnership of research universities, industry and state government to foster economic development by leveraging the universities' research capabilities. Through FY98, the state had invested $200 million, which attracted $50 million in private support and $500 million in sponsored research. (Source: 1999 report by the Milken Institute)

According to Georgia Tech's 2001 annual report, the school's economic development activity has generated more than $691 million in revenue, provided over 4,600 jobs through its incubator facility, attracted more than $41.8 million in capital investment to Georgia, and created or saved 662 jobs in the state. Over the past 20 years, Georgia Tech has spun off 79 successful start-up companies (source: www.gatech.edu)

The University of Illinois-Urbana opened a new research park in January 2001, which is already home to nine companies and research centers employing 475 people. A year later, the park was full and broke ground for a fifth facility, built through a public-private partnership that allows private development on university property. A 40K-square-foot incubator opened in January 2003. (source: www.illinois.edu)

By contrast, more than 20 years after opening, the Clemson Research Park houses four private companies employing 121 people, according to the South Carolina Research Authority.


Can Clemson make the leap?

Declining state resources have made Clemson's drive for excellence more challenging. But there are promising signs:

• The S.C. General Assembly adopted the Research Centers of Excellence initiative, which sets aside lottery funding for endowed chairs (an act that provided Clemson with $15 million for faculty in automotive engineering). A bill offering research universities regulatory relief and funding for research infrastructure passed in the House and will be considered by the Senate in 2004.

• Clemson is attracting and retaining top faculty, many who recently received such prestigious honors as National Science Foundation Career Awards, Guggenheim and Fulbright Fellowships, and recognition from the National Endowment for the Humanities.

• Progress is under way on emphasis areas defined in the University's academic plan, such as the development of a Clemson automotive research park in Greenville and construction of an advanced materials research cluster at the Clemson Research Park.

• Clemson continues to attract an increasingly talented student body. A third of the state's Palmetto Fellows enrolled at Clemson, and this year's freshman class has an average SAT score above 1200. Last year, three Clemson students won Goldwater Scholarships. With three winners, Clemson beat Stanford, Vanderbilt, Cal Tech and UC-Berkeley and tied Yale and MIT. In fact, if Clemson were rated solely on student quality, it would already be a top-20 university.

Clemson's vision for becoming a top-20 public university is not so much about a magazine rating. It's about jobs, higher wages, access to top graduate programs, increased personal wealth of the state's citizens and greater public service.

In other words, it's about a better quality of life for all South Carolinians.