January 26, 2005
Purdue's economic development efforts paying off for Indiana
By Martin C. Jischke
While Gov. Mitch Daniels' proposed flat-line state budget for higher education would cause Purdue University significant concerns and difficulties, we understand the state's immediate need to close the gap between revenue and spending, and we remain committed to being a vigorous agent of Indiana economic growth.
Although restraint is necessary in developing this biennial budget, it also is essential to recognize the state cannot cut and reallocate itself to prosperity. True economic growth requires carefully targeted strategic investments that create an environment in which businesses prosper and new high-paying jobs are created. Purdue is committed to making the state's investments in the university's economic development initiatives pay off in economic growth.
Since 1986, Purdue's Technical Assistance Program has provided faculty expertise to help Indiana companies solve problems and improve operations. The state's total funding for TAP during that time – through June 30, 2005 – has been $18.5 million. The companies with which TAP has worked estimate that its assistance has created or preserved more than 4,000 Indiana jobs and had an economic impact of $63 million in capital investments and $296 million in increased sales. This is an amazing return on the state's investment.
Just four years ago, the General Assembly appropriated $5 million for construction of a nanotechnology research facility on the West Lafayette campus. Purdue used that commitment to encourage private donors to enhance the facility, and the state's initial investment has turned into Discovery Park, a $200 million interdisciplinary research complex on 40 acres.
The $60 million Birck Nanotechnology Center is just one of five buildings where research will be used not only to enhance students' learning, but also to take the results of Purdue research to the marketplace where it will foster new business for Indiana. The Lilly Endowment alone has invested $60 million in Discovery Park.
The Burton D. Morgan Center for Entrepreneurship, Discovery Park's first completed structure, is working both with Purdue researchers and fledgling entrepreneurs throughout the state to turn ideas and research into businesses.
Many high-technology companies already are flourishing at the Purdue Research Park, ranked the best university research park in the country just a few months ago. The park nurtures startup companies and those further along in the funding cycle.
Indiana's 21st Century Research and Technology Fund has provided valuable start-up funds to 76 projects for which Purdue researchers are leading or functioning as partners with other institutions and firms.
Purdue cannot be a pre-eminent university unless our state is on solid fiscal footing. We will continue educating students and doing the research and technology transfer that will pay dividends. And whenever Indiana makes strategic investments in Purdue, we will make sure those investments pay off for all the people of our state.
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