Our Views: A feedstock of technology

The capital city can continue to be a growth center in technology  — if the state will continue to do its part in fueling growth through higher education.

From Baton Rouge to New Orleans, a burst of major industrial construction is helping to fuel the economy of Louisiana. With the low price of natural gas, and a receptiveness to petrochemical plants’ development that is not the norm in other parts of the country, the prospects for the Mississippi River corridor are bright for at least the next few years.

At the same time, Louisiana’s need to diversify that economic base remains a serious challenge.

With three of Louisiana’s most significant research centers in Baton Rouge, the capital city can continue to be a growth center in technology — if the state will continue to do its part in fueling growth through higher education.

The Baton Rouge Area Chamber recently noted the research productivity of LSU’s main campus and other major research generators, the Agricultural Center and the Pennington Biomedical Research Center. Combined at almost $300 million in research generated, the benefits of this “clean industry” are growing.

Yet against some of LSU’s football rivals, such as Texas A&M or Florida, the research gap is dramatic: A peer average in flagship institutions is $645 million, BRAC said in its 2012 report on the region’s economy.

Of course, LSU is not the only source of research grants from the federal government and corporations, but it is the state’s leader. And like every other institution of higher learning in Louisiana, LSU has seen significant damage to its financial base by cutbacks at the state level since 2009.

If natural gas is feedstock for industrial processes, it is the state funding that is the feedstock for intellectual progress: Tuition increases often simply allow campuses to pay the bills and continue undergraduate education.

That is vital, but graduate education and the pursuit of intellectual talent — research professors and their grants — require flexible dollars from the state. To fail to fuel that growth with more state funding, not less, makes as much economic sense as blowing up the pipelines to our petrochemical plants.

Comments

1) Comment by agagent - 05/12/2012

We have plenty other basic problems standing in the way of more business development: some failing public schools, crime, poverty, litigious state, infrastructure, environment, corruption, workforce not suitable for some developments, etc. They all count in attracting businesses.

2) Comment by agagent - 05/12/2012

Louisiana has had unfulfilled potential for more business development: abundant energy, water transportation, natural resources, etc. Higher education can serve to enhance business development but its funding is suffering because of increasing costs of programs like Medicaid and welfare. In addition higher education is not constitutionally protected from mid-year cuts while a larger portion of the budget, including public schools, are protected from those cuts.

3) Comment by tradewinns - 04/12/2012

just a couple of years ago, people were saying LSU was producing excellent graduates but had no where for them to go to work in state. so the problem is not the cutting of educational dollars but the lack of an aggressive program to secure additional business. alabama was a backwater state a few years ago. they decided to do something about it and outbid other states for a honda assembly plant. they outbid even florida for that plant. a follow-up on their "investment" (which was hundreds of millions of dollars in the '90's bidding) show the plant cost alabama money the first year, after that the state made a profit on their investment. now look at them, they are a hub of auto manufacturing, all profitable. it took a chance and won, congratulations alabama! la. makes small investments and receives small returns. business goes to where they can maximize their dollars.

4) Comment by DMJ - 04/12/2012

"receptiveness to petrochemical plants’ development." Ha! That's one way to put it. Another way is....a willingness to put greed over the protection of our environment. I'm not saying we should do away with petrochem plants...but the least they can do is start paying for the environmental damage they do and at least pay the same tax rates as my barber.

5) Comment by Mr. T - 04/12/2012

I am sick of seeing my tax dollars go to fat-cat businesses that ought to be self sufficient. That includes you, Advocate.

6) Comment by 8point6 - 04/12/2012

How about getting more "flexible dollars" from private industries, and private donations, and leave the taxpayer dollars alone. Any word on how much money LSU collected from the $40 per vehicle "fee" to park on campus during football games? How is that money being used?