A university's relationship to high-tech industry and the regional economy: The case in Minnesota and the U.S

This dissertation examines the role of a university in stimulating economic growth in its region, with the primary focus on the University of Minnesota and its impact on the state of Minnesota. The purpose of the research is to shed light on some development programs in Minnesota (as well as those that are similar in other states). These programs, in part, try to stimulate growth by fostering cooperation between academic institutions and the private sector. The basic hypothesis tested is that, by the training of students in engineering and related fields and by the research done by the faculty and staff in these fields, a university improves the economic climate for growth of the high technology industries in the region.;The hypothesis is formally tested by econometric cross-sectional and time series methods. The econometric time series part of the study investigates the historical development of the high technology industry in Minnesota and the corresponding work at the University. The United States is analyzed using cross-sectional methods with states being the units of study. An economic history of the computer industry in Minnesota is used for a more micro examination on the role of higher education and high technology industry.;The empirical evidence marshaled by this study for making the general argument that support of higher education is a good regional economic development strategy is very mixed. Cross-sectional studies provide some support for this hypothesis. A time series study for Minnesota produced no supporting evidence. Thus, for those whose support of higher education is grounded only in the objective of regional economic development, the wise strategy would seem to be to identify quite precisely what one wishes to accomplish and to pursue funding and program development with this in mind--rather than to support higher education in general. However, higher education can and should make many contributions other than to economic development of the local region. Something very important will be lost if these achievements are ignored in favor of only a university's direct contribution to regional economic growth.