The Rostrum By STANLEY O. IKENBERRY, President, University of Illinois

PRODUCTIVITY declined in 1980 for the third year in a row. The official news release was received without surprise and is simply another indication that the American economy is not well. Indeed, during the decade ahead, the economy may present the greatest single challenge.

Illinois is experiencing these same economic strains and stresses. Although prudent fiscal management by state government and greater diversification in the economic base have strengthened our relative position, the state revenue picture in Illinois reflects the same troublesome economic weaknesses evident in every other midwestern state.

Reflecting on the serious weaknesses in the economy, the head of one of this country's largest auto manufacturers talked informally with the presidents of a dozen of America's largest and most prestigious universities. His warning: "Over the long term, America can not have strong universities and a sick economy in every sector except agriculture and computers." In a weakened economy, monies that should be invested to refurbish university laboratories, pay competitive salaries and open new fields of exploration are siphoned off. Tax revenues decline. Costs of government rise. Private support, crucial to public and nonpublic universities alike, is constrained.

The cycle is not simple, however, for in the long run, just as we are not likely to have strong universities in the face of a sick economy, neither are we likely to have a robust national economy built on a foundation of deteriorating universities.

In Illinois, we understand what that interdependence has meant in agriculture. Since 1950, the average yield of corn in Illinois has increased from 51 bushels an acre to 128 bushels an acre, up 150 percent. Soybean production grew from 24 bushels an acre to 38. Nationally, the result has been a dramatic increase in the number of people each farmer can feed, up from 15 persons in 1950 to 58 persons in 1979.

We err if we look only to agriculture, however, in seeking examples of links between the work of universities and the health of the economy. Illinois professor John Bardeen invented the transistor which literally transformed the electronics industry. The late Nathan M. Newmark, Illinois professor of civil engineering, made contributions in the area of structural dynamics that influenced design throughout the world. Professor Nick Holonyak and other Illinois researchers constructed the first visible spectrum semiconductor laser. And the list of examples goes on. In virtually all of the professions which sustain industry and commerce, universities carry a major responsibility for generating new knowledge and developing new applications. Universities should ask themselves whether more can be done.

Universities can begin by turning outward and strengthening the relationships between the academic world and business and industry. There are several possibilities. At the national level, the Business-Higher Education Forum has been created to improve communication between corporate chief executives and university presidents. At the local level, far-reaching cooperative agreements have been signed by Harvard and Monsanto, MIT and Exxon, and Purdue and Control Data. Penn State operates a remarkably effective technical assistance program for small business. The University of Illinois College of Engineering has proposed a program of engineering research to strengthen Illinois industry — to help develop new products, improve old ones and increase productivity.

State government should play a strong supportive role in these efforts. In the state of California, it has been suggested that a new partnership between industry, the university and the state be formed to promote research vital to the semiconductor industry in California. General directions for the program will be established by a policy board appointed by University President David Saxon consisting of representatives from the three sectors.

Different targets of opportunity and different arrangements are appropriate for Illinois, but the time has come to explore the relative costs and benefits.

Tax incentives for corporate sponsorship of university research should be enhanced. At the federal level, the "Vanik Bill," HR 6632 in the last Congress, and reintroduced by Senator Bradley as S692 this year, is a promising effort to enhance innovation and productivity. The proposal provides a nonrefundable tax credit to business for support of research by colleges and universities. Companies that compete on national and international markets would benefit from better access to university laboratories. Universities, on the other hand, need to diversify their sources of research support and come in closer contact with ongoing research in industrial laboratories.

University patent policies need to be reassessed. Incentives to develop and patent new innovations need to be enhanced. Rewards for faculty members must be protected, but also universities need to reassess patent policies to insure that corporate as well as university interests are protected. More flexibility is needed in shaping patent agreements. The University of Illinois presently is engaged in a restudy of its patent policies with these very objectives in mind.

May 1981 /Illinois Issues/39

University programs directly related to the health of the economy must be responsibly supported. Engineering is an obvious and troublesome example. Enrollments in engineering have expanded dramatically, and yet a growing shortage of engineers is apparent. Failure to respond to the demand for engineering talent will, in the long term, have a depressing effect on the economy. As competition for engineering talent has become more intense, salaries for engineering faculty have become less competitive. Moreover, the pool of graduate students from which future engineering professors and researchers is drawn is down sharply.

The University of Illinois is attempting to attack the problem in engineering by shifting monies internally from other areas to engineering, improving salaries of engineering professors, seeking more realistic equipment budgets and asking help from corporations as well as improved state support. In time, we will make progress, but the dilemma illustrates only one of several instances in which what happens at universities will have longterm implications for the vitality of the economy.

Illinois may face competitive disadvantages, but also we have great strengths. These should be used more imaginatively. The University of Illinois is among the best of American universities. We should ask how we can contribute more effectively. And those in the worlds of industry and government need to ask how the talent in our universities can be true to its academic mission and at the same time help stimulate the vitality of the economy. For our state and nation, this must be high on our agenda in the months and years ahead. □