Tier One and the Economy
Attaining National Research University status will not only transform Texas Tech University, but it will create an economic boom for Lubbock, the region and the state.
Top research universities produce new innovations and technology that fuel business and create jobs. Companies want to locate in cities that offer the potential for partnerships with university researchers and offer access to a skilled workforce produced by the university.
Once the state’s criteria are met for National Research University, Texas Tech will qualify for funds from the National Research University Fund (NRUF). The fund was established by Texas voters in November. It’s estimated that Texas Tech could receive up to $10 million per year in NRUF funding if it is one of the first institutions to fulfill the criteria.
This $10 million is expected to have a total economic impact of $19.8 million per year for Lubbock County. About 228 jobs would be created or sustained in Lubbock with an impact of $10.4 million on household earnings, translating into a potential for an extra $13.5 million in local sales revenue.
It’s long been recognized that Texas needs more National Research Universities. Currently only the University of Texas, Texas A&M and Rice University hold that classification. California, with nine Tier One institutions and New York, with seven, are far head of Texas. Pennsylvania, with a population of 12.5 million people, about half that of Texas, has four Tier One universities.
Texas has 8 percent of the U.S. population but only receives 5 percent of federal research and development (R&D) funding and 5 percent of the nation’s venture capital investment. If Texas received just its population-based share (8 percent), that would mean an incremental $3.7 billion in R&D funding to the state. Additionally, Texas is currently a net exporter of high school graduates who attend doctoral granting universities in other states. The state currently is experiencing a net loss or brain drain of nearly 6,000 highly qualified students per year and this number has increased by 54 percent in the last six years. Texas must develop more National Research Universities to remain competitive.