PODIUM – Richard Pattenaude

Photo by Leslie Bowman

Chancellor of Economic Development

Under Chancellor Richard Pattenaude’s leadership, the University of Maine System is reforging its commitment to helping improve Maine’s economy.

The University of Maine System’s 25-word mission statement promises accessible and affordable education, creativity, and innovation. But it also features three consecutive words that may not seem so obvious for an educational institution: improve Maine’s economy.

As the state, its people, and the country continue a long-running economic transition and face unprecedented economic challenges, improving Maine’s economy is part of the mission that Chancellor Richard Pattenaude, PhD, takes very seriously, and a key part of the University of Maine System’s 2009 New Challenges, New Directions initiative, which lays out a plan to better serve the state in a sustainable way.

“No question, economic development and the role we play in it is more important now than it’s ever been,” Pattenaude says. “We’re very aware of that, and we’re working very hard at getting even better at it, from small slices of local communities to the entire state.”
Then again, maybe it is obvious. After all, the University of Maine System (UMS)—seven universities, nine outreach centers, and dozens of course sites from South Berwick to Madawaska and Bethel to Lubec—educates more than 42,000 students annually and produces more than 5,000 graduates every year, and that means it’s creating large chunks of the oft-praised Maine workforce.

Pattenaude says workforce development is the top goal of the University of Maine System’s efforts to improve Maine’s economy, but that there’s much more to that role—from attracting research dollars to leveraging technology to public/private partnerships.
Maine Ahead talked to Pattenaude about the University of Maine System’s complex and evolving role in Maine’s economic development.

What in your mind are your key responsibilities as chancellor and how do you measure your personal success?
I work with the legislature, the governor, and the UMS board of trustees to serve the people of Maine better and better. We set broad goals and plans and work through the presidents on the campuses. I have overall responsibility to ensure that we’re using funds wisely and working toward priorities that make sense to the people of Maine. To be a great state, you need a great public university system, one that educates people, links to and strengthens the economy, and provides cultural richness. I measure that, to a great
extent, based on how the individual campuses perform.

How does the issue of economic development fit into that picture?
Over the last decade or so, as the economy becomes increasingly driven by information, research, and knowledge, this role has taken on greater importance for all U.S. universities. We recognize that we have to evolve, rapidly, into an organization that is more in touch with economic development. Our most fundamental role is contributing to an educated and energetic workforce. But economic development is increasingly a part of our work and part of our focus.

Is that a new thing?
In a general sense, it has always been that way. Think of the land-grant tradition at the University of Maine, Orono, or the teacher education tradition of other institutions. With the economy changing, it’s more important. Thirty years ago, to participate in the economy, you had to have a high school degree. Today, to participate effectively and engage in the multiple careers an individual will have, it’s important to have a baccalaureate degree, and in many areas, advanced graduate education. That’s why we’re more central than before.

What is the University of Maine System’s general philosophy or strategy for working with businesses in the state?
Each campus has a board of advisors with significant business membership. Major programs—engineering at the University of Southern Maine (USM) or at UMaine; teacher education at University of Maine, Farmington (UMF); shellfish research at University of Maine, Machias (UMM)—all have ongoing conversations with business people. We also look closely at Department of Labor research. We monitor national trends. We’re part of national discussions. We get a lot of input from businesses on what the University of Maine System should be thinking about. The most powerful tool, I believe, is local-level conversations and partnerships, because economies tend to be regional.

What kinds of things are businesses asking for?
They want to see students who can write, who have mathematical and analytical skills, who are prepared to work with teams. They want solid core development of skills and education. They’re looking for people who are learning cutting-edge information in every discipline. Essentially, they want quality programs. They also want us to help them in a direct way. For example, USM runs the state Small Business Development Center, which works with thousands of businesses. UMaine runs the Cooperative Extension, which is increasingly oriented to small businesses. University of Maine at Augusta (UMA) is very responsive to the changing needs of that region. Finally, they want more online programs so people can study where they are, and we’re providing that.

If you could ask the business owners of the state to help UMS play a stronger role in economic development, what would you ask for?
One, make sure there’s robust tuition support for continuing education programs for the current workforce—because given our demographics, the bulk of the future workforce is already working. Two, provide internships and learning opportunities for our current students. Three, be an active participant in developing campuses and campus interests. And four, be advocates for strengthening education in Maine. The enormous role that education plays in the future of the economy calls for a reasonable level of state investment in public universities, and that’s a challenge right now. But legislators like to hear from people facing real challenges and real issues.

Quoting from the recent New Challenges, New Directions report: “Maine needs to transform itself economically and demographically in the future. The University System has an essential role in this process. However, that role is not spelled out in a clear and compelling way.” What, in your mind, is the University System’s role in transforming Maine economically?
We are looking to increase the alignment between the programs that are offered and the programs that are needed. We’re increasing our technology transfer capacity. We’re increasing the number of businesses we work with, and measuring that by the number of patents and the research dollars brought into the state, often through a wonderful program from the legislature called the Maine Economic Improvement Fund (MEIF). The University of Maine, Orono, just passed the $100 million-a-year mark in grants and contracts for the first time in history. But if you really ask what is the most important thing, it is the number of people in the workforce with bachelor’s degrees, master’s degrees, and doctorates. And we compare ourselves with New England and set that as a target.

You’ve often said Maine is behind New England in that respect. What are the numbers? And how do you change that?
The most current estimate is that 29% of Maine’s workforce has a bachelor’s degree, compared to 38% for New England. For master’s and doctorates, 10% of our workforce has them, compared to 15% for New England. Moving those numbers take a lot of work. You have to deal with current workforce. You have to partner with the community college system and you have to be creative in supporting people’s aspirations.

The goals that you’ve set for 2012 need to happen quickly. How do you accomplish that?
It is fast. It has certainly been disrupted by the enormous economic problems that the state and the nation are facing. But we are working very aggressively. For example, we are adding three-year degree programs. I’m looking at proposals for about 15 of those, added in the next 12 months. We’re looking to double the number of online programs and online students in the next 24 months. We’re working with community colleges to ease and smooth student transfer to the system. We’ve continued to add financial aid at a rate faster than our budget is growing. We try to have programs that make sense, financial aid to help people afford it, and make sure that people can get the programs where and when they need them.

It really is a major transition then?
Yes, and I think we’ve got it. We’re learning to listen better. We’re learning to respond more rapidly, and we’re learning to focus our work more effectively on the projected needs of the state. For example, we’ve established a strategic investment fund, setting aside $1 million for new initiatives that respond to the evolving needs of the economy and the people of Maine.

We’re also playing a central role in strengthening access to the Internet for research entities, nonprofit entities, and schools. We have a powerful partnership with Jackson Lab, with the University of New Hampshire, and with federal money that allows our scientists to have access to research data on something called Internet2. This allows our researchers to move massive amounts of data over the Internet without competing with people looking up sports scores. Not to pick on sports scores; I look up sports scores, too. But as researchers of, say, global climate change, move their data to Harvard, they can clog the lines pretty easily. That’s why this collaborative research network is so important.

The New Directions report calls for establishing a public agenda for the University of Maine System that is “linked to other economic development strategies.” How can UMS make that happen and what are the other economic development strategies?
First of all, we work very closely with the business research and economic development committee of the legislature. We talk with them; we testify. We work closely with the Department of Labor to understand workforce needs. We receive MEIF funds and they focus on six or seven priority areas. We’re very engaged—faculty members, deans, VPs, and presidents—in the ongoing dialogue. Now we’re picking up that pace. It is important to have conversations like that, and to get feedback. For example, take (East Boothbay-based) Hodgdon Yachts. They are rapidly integrating composites into their technology, working closely with the Advanced Structures and Composites Center at UMaine. They’ve sold a boat to the Navy Seals, with Maine Composites as a partner. Look at the offshore wind initiative, working with 30 businesses. Or the partnership with Old Town Fuel & Fiber (formerly Red Shield), creating biofuels out of the papermaking process. We’re opening that door wider and wider to mirror the needs and expectations of the people and businesses of Maine.

You’re focused on “R&D&E,” meaning research, development, and education. Can you speak briefly to each of those?
When people talk about economic development and the University of Maine System, the default approach is to look at the high-end labs at the University of Maine. That’s the R part. The D part is technology transfer—taking ideas and knowledge and moving it to a marketable situation. We’ve got incubators at USM and UMaine. The E part is the educated workforce.

Under “development,” could you highlight one or two programs that the business community should be excited about?
Two that come to mind are offshore energy and tidal energy. Those are both research efforts as well as potential manufacturing opportunities and energy opportunities. Our work on the “Three Ring Binder,” bringing a high capacity fiber-optic network to Maine is important, because if you have a small business in Farmington or Norway, Maine, and you can’t get to the Internet so that you can move information and orders and things in a timely way, it’s an enormous disadvantage.

Another thing they should be excited about is our emphasis on nursing, allied health, and STEM (science, technology, engineering, and math). In the last five years, without additional funding, we’ve increased the number of graduates in these fields by 25%. We’ve also added concentrations, for example, in innovation, and in tourism. Many of those are available online, with each campus working through a coordinator at UMA. Essentially, we’re finding ways to use our resources on a broader basis, through technology. Geography’s a very important part of education in Maine. If you went to USM, UMM, or UMF, and said, “Tell me about your work with business,” you would have to spend hours and hear hundreds of examples.

Many business leaders are concerned about so-called brain drain from Maine. Can you speak to that?
There is a natural interest at that age for exploring your world. We want to make sure that people go out of state for a good reason, that they know why they’re going. We’d like to increase the breadth, the quality, and reputation of the state university so that it is easier for students to select our institutions. But the true key to creating a “stay option” is participating in economic development, so after college they can find meaningful employment and careers.

About 18 months ago, you said, “we’d like to emerge as the nation’s expert on offshore wind technology” by working with the governor, legislature, and private industry—what’s happening there and what can people watch for to see if that’s happening?
I think offshore wind is probably the next major area of energy growth. Europe is committed to 20% of their energy by 2020 from wind. It’s a growth industry. We’ve made enormous progress: The secretary of energy visited the University of Maine and was very impressed. The university received over $30 million in the last 12 months to build a research program and test site for composite components of offshore wind turbines. Professor Habib Dagher has become one of the nation’s leading experts for offshore wind technology. His lab has 140 people working now, 100 of them students. And only 3% of the budget is state money. That’s what research does.

Have you started working toward other opportunities?
We’re working with Maine Maritime Academy on tidal energy. We’ve got people at several campuses working on biofuels, made from algae and seaweed and sea slugs. We’re working on turning paper waste to alternative fuel. We have a number of campuses working in GIS, global information systems. Both USM and UMaine have built service or support centers for manufacturing technology in the state. We talk about the loss of manufacturing jobs, yet the dollar volume or value contributed to the state economy by manufacturing each year goes up, and that’s because the productivity of the individual workers keeps going up. It’s unfortunate that people are losing their jobs, but the university is playing a role in applying technology and systems to the manufacturing industry to ensure its continuing efficiency and competitiveness.

A recent UMS report said that Maine people, with the 11th lowest average income in the nation, have to pay on average the 13th highest tuition compared to income. How are you addressing that?
It’s a difficult challenge, and we are very committed to reducing tuition increases. Many of the initiatives I’ve mentioned earlier also help here. You control costs, you help people pay for it, but you try to help them move though more efficiently and use all the tools they have to make their attainment of a baccalaureate as cost-effective as possible.

Then all you need to do is raise everybody’s income.
Back in 2001, the State Planning Office published a report called 30 & 1000 [“Maine’s Knowledge-Based Economy Development Strategy”]. They analyzed state economies and found that two variables consistently drove economic growth: The percentage of workforce with baccalaureate degrees—with a goal of 30%—and R&D expenditures, public and private combined, per worker—with a goal of $1,000.

Those, we believe, are the most powerful drivers in economic development. We’re getting to the 30, but we have a ways to go on the $1,000. I think we’re at $600 or $700, well below the national average. All of the things we’ve talked about feed into those two broad strokes.

Coming into fiscal 2010, UMS revenues from the state fell from $186 million to $179 million—and the percentage of revenues you get from the state is dropping over the long term. What are your expectations over the next, say, five years for state revenues?
There has been a steady decline in state revenues as a portion of our operating budget, and as a portion of state expenditures. I think the governor and the legislature have tried hard to protect us where possible—they see the importance of higher education. I see state revenues slowly increasing. Our projections are that it will be 2013 before state revenues will return to the 2009 level, so we have important work to do in being as efficient as possible, using our resources wisely, using technology, reorganization, and restructuring to cut our costs. We cannot function effectively without healthy investment from the state, but we also have our own responsibility to be thoughtful and careful about our expenditures and to use them in a very sound and strategic way. It is a partnership.

What is it that makes this system stand out from others, in your eyes?
I think the system has a deep commitment to teaching and to students. You see that exhibited in more small classrooms; you see that exhibited in the robustness of the undergraduate research initiatives that are springing up all over. You also see it in the closer linkage and growing linkage between the institutions’ priorities and the state’s priorities. The distance between the University of Maine System and the communities around it and the state itself is declining rapidly. I used to say that UMS simply isn’t “in” the community, it is “of” the community. I think we accomplish that more than other states.

Tagged as: Maine economic development, Richard Pattenaude, UMaine System