KU research helps Lawrence crack top 10 of Forbes magazine list

LAWRENCE -- A quick glance at the top of the most recent Forbes magazine list of best smaller metro areas for business reveals an obvious recurring theme: Most of these smaller cities have a major research university in their backyard.

Lawrence, thanks in large part to the support it receives from the University of Kansas, cracked the top 10 of the annual Forbes/Milken Best Places for Business and Careers list for the first time this year, ranking ninth out of the 96 cities surveyed for its "smaller metro areas" category.

The connection between university research and economic prosperity is making national headlines, but it comes as no surprise to officials at KU's Center for Research.

"The infrastructure is in place in Lawrence," said Robert Barnhill, vice chancellor for research and president of KUCR. "People here are talking about research, and that has created a certain ambience that is important for further development -- that's the sign that our research mission is really taking off."

With so many college towns on its list, the Forbes poll underlines the strong link between higher education and economic success, reinforcing a report issued earlier by the National Governors Association. In its 2000 report, "Strategies for the New Economy," the governors association concluded that innovative firms are constantly seeking the right environment to set up shop.

Public research universities, it reported, help create that inviting atmosphere: "The state university system, traditionally the major site for public research and development, is the most powerful tool states have to create such an environment."

KU has helped Lawrence's economy by making one of the largest jumps in attracting federal research dollars. Barnhill said recently released data shows that KU witnessed the largest growth rate for federally funded life science research among the nation's top 50 comprehensive public universities from fiscal years 1996 to 2000.

KU's jump from $25 million in federal funding of life science research in FY 1996 to just under $47 million in FY 2000 marked an increase of 87 percent -- the largest jump of any top 50 institution during the same time period, and enough to rank KU 35th among all public universities in that category.

The continued increase in funding -- particularly federal funding -- is the product of a concerted effort by KU researchers to pursue bigger picture, cutting-edge research projects in timely areas, such as the life sciences, Barnhill said.

What's more, these life science projects are not just happening at the KU Med Center in Kansas City, Kan. Instead, Barnhill said, many of the projects and spin-off companies that are created as a result begin right here in Lawrence.

Earlier this year, KUCR officials reported that KU's research expenditures for all campuses for FY 2001 topped $224 million, eclipsing the $200 million mark for the first time in school history.

Barnhill said the increase in funding benefits KU and Lawrence, and it helps the state economy.

According to a formula provided by the U.S. Department of Commerce, every $1 million in university research funding creates about 40 jobs throughout the state, meaning KU's efforts have translated into about 9,000 jobs in Kansas. As of FY 2002, the Technology Transfer operation of the combined KU campuses has generated 23 start-up companies, 45 patents, 43 licenses and 35 pending patents.

State investment in public university research also yields a strong rate of return, according to the National Association of State Universities and Land Grant Colleges. In its 2000 report, "Shaping the Future -- The Economic Impact of Public Universities," the association concluded that every state dollar invested in university research provides a return of $5 for the state's economy.

While these may be difficult economic times for the state, Barnhill said he had every reason to believe the growth at KU and Lawrence was sustainable for the foreseeable future.

"I think we are on the right path by emphasizing bioinformatics and other areas," he said. "We are also improving our collaborations with all parts of KU and throughout the state."

The magazine, which defined smaller metro areas as cities with a population of fewer than 177,000 people, measured success according to the latest government data for employment and wage growth over a one- and five-year period, as well as a measure of activity in critical high-tech industries that foster future growth. Last year, Lawrence ranked 19th.

Las Cruces, N.M., was at the top of the smaller metro areas list, featured in the May 27th online issue of Forbes, followed by Iowa City, Iowa; Tyler, Texas; Punta Gorda, Fla.; Sioux Falls, S.D.; Fort Walton Beach, Fla.; Bryan-College Station, Texas; Pocatello, Idaho; Lawrence; and Rochester, Minn.