The business model for higher education has shifted dramatically during the past two decades. Where public institutions once relied on state support for 70 percent of their operations, the model has now flipped, with universities depending primarily on self-generated funds. Most of that revenue now comes from tuition and fees. Relying on our cherished customers, our students, to keep up with increasing cost of operations – salaries, facility maintenance, and rapidly rising technology costs – is not sustainable.
For the business community, this shift matters because universities must become more entrepreneurial, meaning more opportunities for public-private partnerships that will drive economic growth.
Louisiana Tech is pursuing a model that will ease the burden on our students by diversifying revenue through innovation and philanthropy. This will allow us to continue the educational experience for which Tech has long been regarded, one that leads our graduates to life and career success.
We unveiled an example of that innovation just last month when Governor Landry and LED Secretary Susan Bourgeois were on campus to announce the construction of a secure microchip manufacturing facility in Ruston. Radiance Technologies’ $80 million secure facility is the manifestation of Louisiana Tech’s longstanding reputation as an innovator in cybersecurity, advanced manufacturing, and microelectronics. The facility will be constructed and owned by the Louisiana Tech Foundation and leased by the Huntsville-based company, creating steady and predictable revenue that will contribute to university operations.
It’s a win-win for the region, which will not only benefit from an additional 150 jobs averaging $80,000 a year but will become an anchor for other defense technology companies to create a presence here to capitalize on our faculty expertise and our willingness to forge creative partnerships.
Aside from the business partnership with the foundation, our faculty will continue to play a significant role in Radiance’s research and development, our students will benefit from more experiential learning opportunities, and our graduates will provide the highly skilled workforce.
We hear a lot about Louisiana college graduates, our best and brightest, leaving the state for opportunities. While the data suggests this problem is not as widespread as most believe, our hope is that any Louisianian who desires to stay here and enjoy the unique culture has the opportunity to do so.
Last year we surveyed a large population of our engineering graduates who are living out of state to gauge interest in returning to the area. The response was overwhelming on the side of returning. We intend to be a catalyst for those who yearn to come home.
North Louisiana has so much to offer in terms of quality of life, from outdoor opportunities to a people who genuinely care for one another. Pairing those attributes with expertise in the latest technology and our crown jewel, Barksdale Airforce Base, we stand to make a strong case for even more growth in the defense technology realm.
Deals like Radiance may not come around every day. But as long as we continue to attract faculty with interests and expertise that advance technology, produce graduates who are prepared socially and technically for the workforce, and carry an openness to innovative partnerships I expect we will be seeing a lot more activity along the I-20 corridor.