BusinessTN

There is perhaps no more important issue for the future than the precarious state of America’s competitiveness in a global economy. The question of our future—and current—ability to be a leader in an increasingly borderless world has moved from the sometimes-arcane arena of academia and specialized industries to the top of every business executive’s and policymaker’s “to do” list.

Tennesseans have a direct stake in this debate, since our state is blessed with dynamic public and private institutions that can, and must, play an increasingly active role in the innovation economy. There are multiple ways to describe this new industrial sector—research, discovery, the creation of new knowledge, science and technology. In the end, it encompasses everything from the likes of robots and nanotechnology to life-altering cancer research, stem cell research and MRI imaging. However one names it, the field is a $400 million annual industry at Vanderbilt alone.

This is more than Vanderbilt’s industry, though— more even than higher education’s industry. In fiscal year 2003, the last year for which data is available, Tennessee ranked 15th among the 50 states in the amount of funding received from the National Institutes of Health, and second in the South to North Carolina. More than $402 million from the NIH alone flowed to institutions in this state—$261 million went to Vanderbilt, but that total also includes institutions from across Tennessee, including Meharry Medical College, U.T.-Knoxville, East Tennessee State University and St. Jude Children’s Research Hospital.

The monies brought in by researchers at Tennessee’s colleges and universities benefit all of the citizens of our state. Research dollars are spent almost entirely in state, creating and sustaining thousands of desirable, well-paid jobs that lead to the purchase of homes and cars, goods and services as well as to tax revenue.

Additionally, research funding should be seen as an investment with a multiplier effect, most noticeably fueling capital construction for big-ticket projects like research buildings and clinical facilities, as well as renovations and infrastructure improvements across the campuses where this research takes place. And, through licensing and technology transfer, new companies are formed to commercialize the intellectual property that is created in the labs.

I am convinced that Tennessee can become an even bigger force in research, thanks to new and exciting partnerships between our universities and the Oak Ridge National Laboratory. There are, however, certain obstacles that stand in the way. The largest, of course, is money. Under the proposed federal budget for fiscal year 2006, the $132.3 billion research portfolio would just barely increase by 0.1% or $84 million above last year’s funding level, resulting in a cut in real terms.

A second threat to progress is political. Federal and state efforts to regulate science can stifle innovation at the precise moment when intellectual entrepreneurship is most essential. Perhaps more ominous, the country is rapidly dividing into those states, like California, New Jersey and Michigan, that are making significant investments of their own in science and research, and others that are trying to regulate, or even ban, the very concept of discovery that is so important for the future of the country. Even the most well-meaning efforts can inadvertently create a climate seen as hostile to research and exploration.

A final threat is the state of education. Despite all the gee-whiz, high-tech gadgets that we get to play with, research is essentially a very simple enterprise. Get a lot of smart people together, and they will eventually discover new ideas. But increasingly, securing that talent is not simply a matter of money. It is lifestyle, the ability to get a good education for their children and families, and the ability to surround yourself with good employees and colleagues. Enhancing public education, from kindergarten through college, must be the highest priority for all of us.

Basic research creates new knowledge, which in turn leads to technology, products, services, jobs, income and revenue—for individuals and for society. Those who share a commitment to Tennessee’s present and future success can ensure that our state continues to be an engine for innovation and discovery.