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Research universities welcome proposed legislation to spur economic development

By Larry Wood

The presidents of USC, MUSC, and Clemson University met at the Statehouse with legislators and business leaders April 1 to support economic development in the state through research.

Earlier in the day, legislators introduced a reform package in the House to change state laws that would allow South Carolina’s three research universities to focus on research development and their roles in a knowledge-based economy.

“This is truly a defining moment in the history of our state,” said Speaker of the House David H. Wilkins (R-Greenville). “Around the country in regions that are prospering, you’ll find that research universities are a key to economic growth to generate startup companies, venture capital, high-paying jobs, and improved quality of life.

“With a deep commitment from both the public and private sectors, research universities can fuel our state’s economic engine and transform South Carolina into an economic powerhouse.

“We today are announcing sweeping legislation that empowers our research universities. Our legislative package that was introduced in the House today gives our research universities the tools to acquire the best faculty, work with business and industry to create new jobs, and play the role major research universities need to play to be successful.”

The legislative reform package will allow the universities the flexibility and responsibility to:
• increase research capabilities and make them more integral to economic development to focus on helping grow the state’s economy
• increase collaboration, efficiency, and cooperation among the three universities
• look for ways to increase private funding through grants, patents, and private partnerships.

The centerpiece of the reform package is the S.C. Research Oversight Council, which would be the new governing body for the three universities.

The legislation also creates the S.C. Research University Bond Act, a funding source from which money would be used for specific economic development projects after competitive bid. The Centers of Economic Excellence Board, the Joint Bond Review Committee, and the State Budget and Control Board must approve proposed capital projects from this revenue. Also, the approved projects must be matched dollar for dollar by nonstate resources to qualify and will have to be approved by the same board that approves endowed chairs.

The package also would allow private development on university property and give research universities flexibility to compete for top professors, research assistants, and students. Other changes include;
• removing the $1,000 cap for federal and other funded employee bonus pay for research universities to allow for rewarding professors who aquire major grants
• providing health benefits for graduate students, allowing research professors to bring their graduate assistants with them
• making research grant positions no longer subject to the same requirements for other state employees
• allowing educational fee waivers, which would allow universities to offer more scholarships to the student body as it relates to economic development.

“In short, this legislation will make them [research universities] competitive for the best professors, the best researchers, graduate students, and students,” said Bobby Harrell, chair of the House Ways and Means Committee. “We’re talking about nothing less than a Renaissance in South Carolina.

“Every sector of our economy and every part of our culture will be positively touched by these efforts. This is the beginning of what we have to do to increase the average income of South Carolina families. We want to make it happen, and we can make it happen.”

President Sorensen has proposed a five-million-square-foot research campus to stimulate economic development and attract world-class researchers to Columbia. USC’s priorities include nanoscience and technology; biomedical research; optoelectronics and laser lighting; development of new energy resources, including fuel cells; and environmental sciences and technologies.

“You all have heard me propose a research campus here in the Midlands, and we have the private capital lined up to build buildings on University property, which we are not able to do at this time,” Sorensen said. “We could begin construction within months on those research buildings if we have the ability to do so through modification of the state procurement code.”

Clemson’s plans include an automotive engineering research park in Greenville, an optical fibers center in Anderson County; and an advanced materials research project on campus.

MUSC’s initiatives include a laboratory building to house research on childhood and developmental diseases; construction of a neurosciences institute; a research incubator for small startup companies in the Charleston araa; and research centers of excellence, including the study of regenerative medicine, vaccine development, and drug discovery.

04/01

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