Education decisions are among the most important choices people ever make. So we were surprised and disappointed to see an article so loosely reasoned and reckless in its conclusions as “Five Reasons to Skip College” published in Blank Slate at Forbes.com on April 18, 2006. The article never provides a numerical assessment of the costs and benefits of going to college, uses statistics inappropriately and in a way that biases the conclusions against college, contains conceptual errors on how to evaluate the return on a college education, and greatly exaggerates the only substantive criticism of typical evaluations of the financial worth of a college degree.

The Arizona Board of Regents annually prepares an analysis of the financial condition of Arizona State University, Northern Arizona University, and The University of Arizona using data from the universities’ audited financial statements. This Assessment of Financial Strength uses the methodology developed by KPMG, BearingPoint, et al. and used by university governing boards and accreditation agencies across the country. The methodology employs four financial ratios and a single indicator of financial health—the Composite Financial Index—and provides a scale against which to benchmark our universities. The analysis is for each university’s entire enterprise, which includes their component units.

Growth in the stock of knowledge has been the most important factor behind the dramatic rise in living standards in the United States and other countries over the past 100 years. Systematic efforts made by firms, universities, governments, and other organizations to increase the stock of knowledge are referred to as research and development (R&D). The purpose of this paper is to provide an overview of the entire system of R&D in the United States—or as it is sometimes called, the national innovation system. Special emphasis will be placed on basic research. This is the component of R&D that is most likely to be underprovided by the private sector and the one that figures most prominently in public policy toward science and technology. The report also emphasizes the role of universities that, in the United States, perform the lion’s share of basic research.

The report provides a variety of basic statistical indicators of R&D effort and identifies recent trends in sources of R&D funding. The report also reviews classic arguments on the appropriate role of government in supporting R&D and the strengths and weaknesses of universities as performers of R&D. The U.S. national innovation system is compared with those in other major industrialized countries.

This paper provides a review of studies that examine the extent to which university research promotes local economic growth and development. The primary focus of the paper is on economic impacts that derive from the innovative outputs of faculty. this paper evaluates Arizona State University and the Phoenix metropolitan area in terms of factors that enhance the local economic impact of university research. The potential for local impacts from ASU’s research and graduate programs is greatly aided by the fact that ASU is located in a major metropolitan area with a climate and other natural amenities that mobile professional workers find attractive.

Arizona is one of the states in which the high-wage end of the employment distribution provides a more favorable impression of its job quality than that based on all employment. Thus, Arizona’s subpar job quality is not due to a scarcity of high-wage jobs, but instead results from lesser job quality in the remainder of the employment distribution. In particular, Arizona has an above-average share of very low-paying jobs that serve tourists and seasonal residents. In turn, the low overall average wage in Arizona — 7 percent less than the U.S. average — primarily results from factors other than job quality. The average wage in Arizona is less than the U.S. average in the vast majority of industries and occupations, both high- and low-paying.