The Benefits of Schools and Industry

The New York Times recently reported on the University of Washington’s superstar computer science program. Apparently, it’s one of the best in the nation and is attracting major attention from Silicon Valley.

What stood out to me, however, is the program’s effect on Seattle. Though the headline suggests that many UW alums are heading down to California, the pipeline is moving in both directions:

[…] executives have begun streaming up the coast to Seattle, fueled by a talent arms race for programmers. Facebook, Zynga and Google have opened offices in the area, trying to woo U.W. engineers who’d rather live here, where taxes and home prices are lower, even if mist and dark skies envelop the scenery for much of the year.

Significantly, many of the gradutes also stay in Washington after graduation:

More than 80 percent of the program’s students come from Washington State, and the same percentage end up staying in the state after graduating, even if they work for companies based in Silicon Valley.

This process can be a risky game. If the program starts exporting too many graduates, for example, Seattle, Washington and UW start losing their investment. Some people have argued that that’s what happens in Boston, where high housing costs drive highly educated gradutes away.

But so far, UW’s computer science program appears to be a major economic force in Seattle. That makes sense, and Forbes noted a similar phenomenon when it crowned Provo the best place in America for business.

What does all this mean?

For starters, it means that Provo is in a good economic position because it also has a large university. However, it also suggests that civic leaders interested in economic development should strive to work with BYU — perhaps a fundamentally quixotic task, but one worth trying anyway — to further develop programs that bring prestige to the school and prosperity to the community.

As UW shows, retention is also a major goal. I’d be shocked to hear that 80 percent of graduates from any BYU program stay in Provo, which means the community is losing resources by training people and sending them away.

Even more broadly, Provo should consider longterm increases to its higher education system. I made a similar point in May, using Greensboro as my example at that time, but the example provided by UW is even more dramatic. In the end, then success is often defined by educational opportunities.

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4 Comments

Filed under Development, economics

4 responses to “The Benefits of Schools and Industry

  1. Paul

    At least one fundamental difference between Seattle and Provo is that Provo per se doesn’t have a higher education system (and least not in BYU; UVU probably counts in a sense similar to UW in Seattle). BYU’s sponsoring institution is much more focused on sending educated people out over the earth, not on retaining them here to build a stronger local labor force. Provo’s economy will always benefit to some degree from having BYU here, producing talented people some of whom will elect to remain here. But we shouldn’t be surprised, nor beat ourselves up as a community, if the local graduate retention rate is well below 80%. That’s simply contrary to BYU’s mission. If we want to do economic development in Provo through improving the local labor force, UVU may be the better vehicle for us to attend to.

    • I agree with you about BYU’s mission, but I’m disappointed by it. I think city leaders should fight BYU on that (nicely if they can, not nicely if they must). BYU seemingly gets to do whatever it wants in Provo; but city leaders could require it to compromise. Its the “I’ll scratch your back if you scratch mine” philosophy. Right now, Provo does all the scratching and gets an insufficient return.

      But because I think city leaders will probably be unwilling to go to war with BYU on every project until BYU chooses to be a better neighbor, I’d say more could be done to entice grads to stick around. And UVU has a lot of potential, but, significantly, it’s not in Provo.

  2. Pingback: Competition and the Knowledge Economy | (pro(vo)cation)

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