They recognized that their knowledge-based resources provided an essential ingredient in the infrastructure needed by the nation to grow and compete in a highly competitive, technologically advanced world economy. Colleges and universities play a variety of roles that contribute to economic development. They provide education and training that expand human capital. They conduct basic and applied research that generate new technologies, new products, and new services. The human capital development role contributes to the availability of a skilled and capable workforce.
Technology development provides the foundation for future production of goods and services.
Existing technology and information, when transferred to the public and private sectors, provide opportunities for government and industry to create new industries, and thus, new jobs. Colleges and universities have traditionally fulfilled their public service and community outreach mission through continuing education programs. Whereas the programs have historically provided night schools and part-time degree programs, they have now expanded their formats and curricula to include problem solving, facilitation, and community development. One aspect of community development is economic development. Such an increase may be manifested by positive changes in the level and distribution of area employment, by increases in per capita income, or both.