Texas Border Business
The Carnegie Classification of Institutions of Higher Education is the nation’s best-known framework for categorizing US higher education institutions into tiers based on various criteria. Of particular interest from an economic perspective are the designations related to research activity.
Carnegie provides three research designations based on the level of research spending and the number of research doctorates awarded per year. The top level is “Research1: Very High Spending and Doctorate Production” or R1, which means the institution spends at least $50 million per year on research and development (R&D) and awards 70 or more research doctorates.
The most recent Carnegie Classifications indicate that Texas has 16 R1 institutions. Included are the state’s largest public universities, Texas A&M University-College Station and The University of Texas at Austin. Several additional schools of The University of Texas System also received the designation (Arlington, Dallas, El Paso, and San Antonio). Other large state schools including Texas Tech, the University of Houston, and the University of North Texas are also now R1.
Private schools making the R1 list include Baylor University, Rice University, and Southern Methodist University. Medical education institutions are also named – Baylor College of Medicine, The University of Texas Health Science Centers at Houston and San Antonio, and The University of Texas Southwestern Medical Center.
Located across the state, these 16 research-intensive institutions benefit the economy in a number of ways. First, research spending leads to substantial economic benefits (both while ongoing and through commercialization of discoveries). In fact, the return on such investments is extremely high (the average social rate of return exceeds 40% per year).
In addition, the R1 designation helps when recruiting top students and faculty. Many who come to Texas for higher education opportunities will remain in the state, enhancing workforce and growth potential. Research-intensive institutions provide essential intellectual infrastructure needed to excel in technology, biosciences, and other emerging industries. They generate life-changing and life-saving discoveries, spin-off activity and a steady stream of exceptional graduates. Texas now has more R1 institutions than any other state.
It’s a notable milestone, and it has been reached impressively quickly (our firm was pleased to provide the pro bono analysis that supported the initiative that Texas voters approved to jumpstart this effort about 15 years ago). We still have work to do, as only three Texas institutions (The University of Texas, Texas A&M, and Rice) have attained the ultimate accolade of membership in the Association of American Universities (California has nine). Nonetheless, the large number of R1 designations is a remarkable achievement that will pay dividends for decades to come. Stay safe!
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Dr. M. Ray Perryman is President and Chief Executive Officer of The Perryman Group (www.perrymangroup.com), which has served the needs of over 3,000 clients over the past four decades.
