ICAPP Economic Development Summit
Chancellor Erroll B. Davis Jr.
Thursday, May 17, 2007
Thank you. It's good to be back with this group again. I am, in fact, somewhat surprised to be here. Normally, after I give a speech, I don't get invited back again! So, I must conclude that last year, either no one listened to my remarks or, you did, and agreed with me!
One part of my message is the same -- economic development is at the core of our mission. The goals of teaching, research, and service reflect the responsibility this System holds to promote and contribute to the state's growth and prosperity This, of course, requires us to be both creative and innovative in our approaches. Our record suggests that you have been innovative, and this clearly has benefited our institutions, and the communities we serve. But we cannot rest. All USG institutions must be even more innovative in economic development in the future, for their own, as well as Georgia's benefit.
Let me take the time you have provided to me to review where we are in terms of our new strategic plan -- which does contain a strategic focus on economic development. Our colleges and universities play a critical role in Georgia's economic future. That is why one of the USG's six strategic goals is: Increasing the USG's participation in research and economic development to the benefit of a Global Georgia. I am convinced we can do this. Primarily because, we have been doing this. But, we will be successful only if we do this as a true System and on a greater scale.
When we hear the word "innovation," it would be easy to point to the large research institutions and expect them to carry the innovation ball for all of us. Don't get me wrong -- the work of our research universities and the impact of that work on the state is tremendous and vital. For example, in FY05, the four research universities generated $597 million in research out of System total of $624 million, or 95.7 percent of the total.
But many of the other 31 institutions have been innovative trailblazers as well. And I believe that all 35 of our institutions can -- and should -- be innovative when it comes to aggressively pursuing economic opportunities. That's part of the System's job -- and it is the direct responsibility of most of you in this room. There is no reason why our efforts in economic development cannot have a System-wide perspective.
Let me give you four examples from Georgia Southern University, East Georgia College Gordon College and the System:
Georgia Southern University has been quite innovative. Opportunity came knocking in 2002 when NCR offered to donate software, and Georgia Southern stepped up to the plate. The university took that opportunity and built its own software development enterprise -- Eagle Informatics.
To date, they have worked with eight client companies, with more in the pipeline, including one from India. That's right, a representative from one of India's largest software development companies visited Georgia Southern this week for preliminary discussions on off-shoring some of its work to Georgia!
Georgia Southern's Eagle Informatics is also negotiating with two additional large American companies, including one that develops business-to-business software. This particular company has already invited Georgia Southern to its upcoming national customer conference, where the plan is for Eagle Informatics to conduct a session on how it brings value to the customer.
The innovation taking place at Georgia Southern with this project has helped Georgia -- as well as Georgia Southern. The state now has a new high-tech software development industry in rural southeastern Georgia that provides well-paying jobs for local residents. From a return perspective, the university receives licensing fees for the software that its enterprise updated -- $58,000 in FY06 alone. And with several major new clients in the pipeline, that amount is expected to continue to grow each year.
Eagle Informatics also has been a great tool for recruiting students. Students, and even more so their parents, are attracted by the chance for students to get great resumé experience and contacts with software development companies while earning money at the same time. As an aside, this also indirectly helps Georgia Southern create a stronger image to recruit students.
The Board of Regents this month approved a new tuition structure to create a more robust tier of universities -- Georgia Southern, Valdosta State, Kennesaw State and West Georgia. We want students to increasingly look at these institutions as "first choices" for college.
Eagle Informatics certainly helps in this regard for those students seeking out this specific type of educational opportunity. And since Georgia Southern's software development enterprise is the first employer of its software development students, they are able to see -- and quickly correct -- holes in the curriculum.
As an aside, this process also has implications for another one of our strategic goals: a thorough review and overhaul of our core curriculum. We need to look at the core curriculum System wide to ensure our students truly can demonstrate the core competencies they need to engage and be successful in today's marketplace. Eagle Informatics gives us a real time, real world opportunity to test those competencies.
I point this out to illustrate that nothing we do happens in isolation from our other activities. We have to look at how the knowledge gained and lessons learned in one area can benefit another strategic direction or goal.
Let me turn to another innovative approach -- this time at East Georgia College. East Georgia College displayed its innovative spirit when it created the Georgia Rural Economic Development Center (GREDC) in 2003. This center clearly has helped the state.
For example, the GREDC's Entrepreneurship Program has helped more than 188 entrepreneurs in 41 counties with their start-up and growth. These entrepreneurs have created, to date, more than 510 jobs, many of them in this state, as validated in our ICAPP compliance reports. Every dollar that GREDC has spent on the Entrepreneurship Program has returned $25.30 to Georgia's economy.
The Entrepreneurship Program is just one of the many programs of the GREDC. The program has helped East Georgia College, as the leadership team there has found people more willing to make donations to the college foundation because of this program.
Why are our supporters more eager to support this program? Because through the GREDC program, the College has demonstrated its commitment to economic development -- in short, "adding value." And the community responds to that.
Now let's look at the economic activity taking place at Gordon College. Just last week, Georgia celebrated the decision of a Chinese manufacturer of electrical components to locate an electronics factory in Barnesville, complete with 350 new jobs. Along with access to highways, airports and a seaport, Gordon College was an important part of General Protecht Group's decision to locate in Barnesville.
Gordon College's President Larry Weill serves on the Industrial Development Authority Board and played an active role in promoting the Barnesville location. One key was demonstrating to company officials the close ties between the community and the college.
This decision is very important for the state: it means more and more attention in China for us. Georgia will now be on the map for additional Chinese investments. There are benefits expected for Gordon College, too, such as the ability to draw on the intellectual capital of those working with the company for possible teaching roles, and the company's interest in using College facilities and programs for its own employee development.
My final example is from a System perspective. The Board of Regents and the Regents' Office of Economic Development were partners in creating the USG Nursing Program Initiative in April 2006. This $5 million strategic investment enabled 21 University System institutions to produce new graduates with associate's, bachelor's and doctoral degrees in nursing.
The USG Nursing Program Initiative did this in three ways: first, by increasing the capacity in University System nursing programs; second, by increasing access to nursing doctoral degree programs to attract more nursing faculty to serve that increased capacity, and third, by adding simulation equipment that increases the capacity of the required clinical courses. The result? An additional 400 nursing graduates during the 2006-2007 academic year.
Innovative economic development actions have brought real benefits to Georgia Southern, East Georgia College, and Gordon College and the state. Of course, they are not alone. Let me mention a few more:
Georgia College and State University developed an online degree program so that registered nurses could take the courses they need to earn an MS in Nursing along with a Teaching Certificate.
Abraham Baldwin Agricultural College pioneered a very successful ICAPP nursing program in which students attend class one day each week while continuing to work full-time.
Macon State College has built a unique partnership with Robins Air Force Base to increase the productivity of its civilian work force to help it be competitive. These are all win-wins for Georgia and for the respective institutions. And they can be emulated.
My challenge to you is to learn from each other. Work together, think from a System perspective. My challenge to you is to become the campus expert in economic development. Make yourself the pivot point between academia and the business community. Recognize your key responsibility in driving the University System's actions in creating economic opportunities and growth. Constantly ask yourself, "What can we do at this institution to add value to this community and the state?" Continue your innovative thinking.
ICAPP will provide support to you in meeting your challenges. For example, one of our System areas of focus is on professional development. I'm pleased that next year, ICAPP will pay for ILO's to attend the Georgia Academy for Economic Development. This should offer each of you the ability to enhance your expertise.
We need your leadership, because our many partners in economic development will continue to look to the University System for resources and for answers. In this vein, my next challenge to you is to continue to build those relationships with our partners.
Tomorrow in the panel discussion you will hear from several of these state partners in economic development -- the Georgia Department of Economic Development, the Governor's Office of Workforce Development, the Georgia Department of Technical and Adult Education, and the Georgia Department of Education. This type of interchange enhances our effectiveness by strengthening relationships and sharing information.
Yes, there are a lot of players. But, we all must recognize that the new innovation economy is not about solo acts, working in silos; it is about collaborations, communications; in short, working together.
At last year's ICAPP meeting, I challenged you to contribute more to Georgia's economic development. We talked about aligning our economic development efforts with Georgia's strategic industries. I want to thank you for meeting that challenge. This year, for the first time, ICAPP Advantage projects were required to serve at least one of Georgia's 12 strategic industry clusters.
This year, I challenge the ILOs to expand their roles as the portal for Georgia business to the wealth of resources at our institutions. I challenge our chief academic officers, while maintaining academic integrity, to be creative as they find ways to meet the needs of the businesses that employ our graduates. And I also challenge our presidents to increase their support of economic development programs on their campuses.
Let me close, not with another challenge, but with some thanks. Thank you for all that you do to "create a more educated Georgia" through economic development. You play a key role at our institutions, and I appreciate your efforts on behalf of the state and its citizens.