This economic catalyst is a class act: the University of North Carolina is helping transform the state's economy in the information age.

As North Carolina undergoes a fundamental shift from a manufacturing economy to a knowledge-based economy, the state's universities are being viewed more than ever as major economic resources. In such an environment, sustained partnerships among higher education, business and government are crucial to long-term success, and recognition is growing that the 16-campus University of North Carolina system--through teaching, research and outreach--can help lead this transformation.

State leaders understand that to compete in the global economy, workers need increased access to university-level education. That's why legislation passed by the 2004 General Assembly directed the university and community-college systems, working in partnership, to conduct a comprehensive study of economic development and work-force needs and to specify educational and training programs tailored to every region. The study will be completed in December.

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Already, UNC is responding to unprecedented enrollment demand and making its curriculum more nimble and responsive to changing work-force needs. In the past five years alone, UNC campuses have enrolled 29,000 additional students--akin to adding a campus the size of North Carolina State University. Much of this growth is occurring at UNC's seven focused-growth campuses: Elizabeth City State University, Fayetteville State University, North Carolina A & T State University, North Carolina Central University, UNC Pembroke, Western Carolina University and Winston-Salem State University.

To accommodate growing enrollment and meet future skill needs, the university system is investing $2.5 billion through the 2000 Higher Education Bond Program. More than one-third of this capital investment is being targeted to new science, engineering and other research buildings. But UNC's curriculum is transforming as well. New emphasis is being placed on preparing the next generation of entrepreneurs and meeting the needs of technology and knowledge-based businesses.

UNC Chapel Hill, for instance, is using a $3 million grant from the Kauffman Foundation to engage undergraduate students in entrepreneurship studies and field experiences. Western Carolina has developed undergraduate and master's programs in business entrepreneurship. As a required element of its MBA curriculum, UNC Wilmington's Learning Alliance Program incorporates 16 months of field experience with regional businesses. Other campuses are also requiring practical learning experiences for graduate and undergraduate students in selected fields.

In a related vein, UNC is focusing on developing degree programs to meet the needs of emerging industries. N.C. State, for example, has created professional science master's programs in selected disciplines. The university system is supporting the expansion of such programs at other campuses.

In fiscal 2004, for the first time in its history, UNC's sponsored research grants and contracts topped $1 billion. As noted elsewhere in this issue, the innovative discoveries made by faculty and student researchers affect North Carolina's economy and the quality of life, health and safety of its residents--and generate about 34,000 jobs in the state. This external funding supports projects across all disciplines and gives rise to companies and technologies vital to the state's competitive position. In fiscal 2003, UNC-based research produced more than 90 patent applications and 400 invention disclosures, and it generated more than $8.6 million in licensing income.

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Several UNC campuses achieved large increases in external funding during fiscal 2004. UNC Asheville's external awards quadrupled, bolstered by a federal grant to launch the National Environmental Modeling and Analysis Center. NEMAC will foster basic and applied environmental research related to water, soil and air quality; weather forecasting; climate trend prediction; and health and safety risk assessment.

Similarly, with funding from the National Oceanic and Atmospheric Administration, UNC Wilmington excels in research related to the marine sciences, including projects such as the National Undersea Research Center and Collaborative Coastal Ocean Research and Monitoring Program. Much of Fayetteville State's recent success has centered on expanding strong programs related to science and technology education at the K-16 levels.

NCCU and N.C. State benefited from large awards from Golden LEAF to support the statewide biotechnology research and training initiative. The initial phase includes a world-class biotechnology training and education center at N.C. State and a biomanufacturing research institute at NCCU. Additional information on these and all other UNC awards can be found at www.uncsparc.northcarolina.edu.

UNC's outreach efforts are increasingly focused on creating quality jobs and building companies and communities that will be competitive in the 21st century. The Industrial and Cooperative Extension Services, along with UNC's Small Business and Technology Development Center, are leading examples. They are joined by regional development initiatives and a growing number of innovative campus efforts focused on business creation and growth.

SBTDC, in particular, has helped many young companies acquire capital and has improved North Carolina's national rankings for federal R & D funding to businesses. Venture forums held by campuses including UNC Charlotte and East Carolina University are designed to improve private investing. SBTDC also is testing a collaborative sponsored-research model that brings together businesses and universities in western North Carolina.

Other campus-based initiatives are making a difference as well. UNC Wilmington's Marine Trades Services program has had an immense impact on the growth of the boatbuilding industry in Eastern North Carolina. Western Carolina's rapid-prototyping center is available to help manufacturers design and build new products, while A & T's PT Cam helps metal fabricators improve products and manufacturing processes. Campuses such as Appalachian State University, East Carolina and Western Carolina also have development centers that are helping rural communities identify economic-development opportunities and address challenges to growth.

The creation of millennial campuses, modeled on the Centennial Campus at N.C. State, exemplifies UNC's emphasis on innovative public-private partnerships. Campuses under development by UNC Charlotte, UNC Chapel Hill, Western Carolina, UNC Greensboro and A & T will provide collaborative work environments and a focal point for regional economic development.

University of North Carolina Office of the President

P.O. Box 2688

Chapel Hill, NC 27515

[phone], www.northcarolina.edu