Enrollment in degree-granting institutions of higher education in Arizona as a percentage of the state’s population was about equal to the national average in 2003. The Arizona figure was higher than the national average at private for-profit institutions, slightly greater than the national average at public institutions, but considerably below average at private not-for-profit institutions. Total revenues and expenditures per student at Arizona institutions of higher education were far below the national averages in 2003, among the least in the nation. Among public institutions, Arizona’s higher education revenues and expenditures were not as far below average, but still ranked among the bottom 10 states in the nation.

Economic development leaders and public officials throughout the country are tending to the effects of a sour economy and huge state budget deficits when they would rather be creating quality jobs and new economy assets. According to the most prominent thinking on today’s knowledge economy, locally developed and exported technology will be the primary economic differentiator between future winners and losers. Thus, with long-term fiscal and economic health at stake, the 50-state race is on for advantages and leadership in science and technology. This report sheds light on these issues through an overview of Arizona’s standing in science and technology today, short case studies of four competitors in the west, as well as Arizona, and ideas for Arizona’s leaders to consider as they strive to give our state an edge.