Jesse L. White, Jr.

1
Economic Development in North Carolina The Role
of Higher Education
Hickory Metro Higher Education Center Advisory
Council Meeting August 24, 2005
Jesse L. White, Jr. Office of Economic and
Business Development University of North Carolina
at Chapel Hill
2
What is the difference between economic
development and economic growth?

• Economic growth economic activity in the short
  term
• Economic development creation of capacity for
  self-sustaining economic growth in the long run

3
Overview of the Southern EconomyWhere we have
beenWhere we areWhere we are going
4
Foundations of Southern and NC Economy Until
1970s

• Row crop agriculture
• Especially tobacco in NC
• Extractive industries coal, timber, minerals,
  oil
• Labor intensive, low wage manufacturing plants
• In NC the Big Three textiles, tobacco,
  furniture

5
State Policies Affecting the Old Economy

• State Departments of Agriculture
• State Farm to Market Road Systems
• Industrial Recruitment Policies
• Education elementary and secondary vs.
  post-secondary

6
Federal Policies Affecting the Old Economy

• Infrastructure canals, rivers, railroads,
  interstates and airports
• Morril Act (1863) and 1890 Act
• NC State University (1887)
• NC AT State University (1891)

• Regional Economic Development Programs
• TVA (1933)
• ARC (1965)
• National Economic Development Programs
• Rural Electrification (1935)
• E.D.A. (1965)
• Rural Development Program and USDA
• HUD

7
Landscape of Southern Economy in 1970

• Based on manufacturing employment
• Large percentage of manufacturing employment in
  branch plants
• Lower investments and outcomes in elementary/
  secondary education
• Higher investments and outcomes in post-secondary
  education

8
Three Forces of Change in the Southern Economy
after 1970
Transportation
Technology
Communications
9
Major Impacts on Southern Economy

• Globalization of production process
• Increasingly rapid decline of family farms
• Loss of jobs from extractive industries
• Loss of jobs in labor-intensive, non-durable
  manufacturing
• New metropolitan southern economy

10
Economic Development Matrix
Basic Approaches
Strengthen Existing Businesses
Business Creation
Industrial Recruitment
Education
Regional Approaches
Innovative Strategies
Strategic Visioning
Entrepreneurship Programs
Global Strategies
Post-Secondary Education Strategies
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Linking Post-Secondary Education to Economic
Development

• Why post-secondary education?
• Key to knowledge economy
• Publicly funded
• Significant geographic distribution
• Multi-jurisdictional legitimacy

12
Linking Post-Secondary Education to Economic
Development

• General roles for Post-Secondary Institutions
• Provide skilled and professional workforce
• Act as source of innovation and technology
  diffusion
• Act as a broker of services
• Act as a repository of information
• Act as a wellspring of new business

13
Linking Post-Secondary Education to Economic
Development

• Examples of specific programs
• Operating centers of advanced manufacturing
• Creating and managing sector-specific incubators
• Participating in creation of multi-jurisdictional
  non-profits
• Housing regional economic development entities
• Providing technical assistance to business
  clusters
• Tailoring degree programs to regional business
  needs
• Participating in developmental venture capital
  funds
• Training local officials and economic development
  professionals

14
Distribution of Post-Secondary Institutions in NC
Source The North Carolina Atlas, Orr and Stuart,
2000
15
Economic Developmentat UNC-Chapel Hill

• Characteristics of UNC-Chapel Hill
• Research One university
• Not a land grant school
• Public service in charter
• Leader in output of intellectual property
• Behind the curve in commercialization of
  intellectual property

16
Economic Developmentat UNC-Chapel Hill

• Office of the Vice Chancellor for Research and
  Economic Development
• Title changed in April 2003
• Office of Technology Development
• Carolina North
• Office of Economic and Business Development
• Opened May 2004
• Carolina Seminar on Economic Development

17
Economic Developmentat UNC-Chapel Hill

• Kenan-Flagler School of Business
• Educating future business leaders of North
  Carolina
• Kenan Institute of Private Enterprise
• Executive education
• Center for Community Capitalism
• Center for Entrepreneurship
• Center for Sustainable Development
• Carolina Center for Competitive Economies

18
Economic Developmentat UNC-Chapel Hill

• School of Government
• Basic certification course for economic
  developers
• State certification of community development
  professionals
• Technical assistance for communities
• Economic development forums
• Training for county commissioners
• Publications

19
Economic Developmentat UNC-Chapel Hill

• College of Arts and Sciences
• Department of City and Regional Planning
• Department of Economics
• Department of Public Policy
• William and Ida Friday Center for Continuing
  Education
• Carolina Business Institute
• Continuing Education in Health Sciences

20
Economic Developmentat UNC-Chapel Hill

• Other programs related to economic development
• UNC Medical School and Hospital
• Area Health Education Consortium (AHEC)
• NC Institute of Public Health
• Sheps Center for Health Services Research
• Friday Center for Continuing Education
• Carolina Center for Public Service
• Center for the Study of the American South
• Program on Southern Politics, Media, and Public
  Life
• Center for Urban and Regional Studies

21
New DirectionsThe Institute for Advanced
Learning and Research
Transforming an Economically Depressed Region
into a Model for Rural Economic Development