FIGURE 3-5 Federal funding for academic research, 1974-2004.

SOURCE: National Science Board. 2004. Science and Engineering Indicators 2004 (NSB 04-1). Arlington, VA: National Science Foundation.

states in funding academic research is frequently overlooked in Washington, DC. State funding has decreased as a percentage of university revenues, and higher education is receiving a decreasing percentage of state appropriations. Funding by state legislatures provides the teaching assistantships, scholarships, and other forms of aid on which graduate students depend.93 States commonly appropriate funds to universities per full-time student. As seen in Figure 3-6, the amount of funding per student has oscillated over time and currently is in decline. That means that public universities have less funding to support graduate students.

One might expect decreased state support for R&D to have an adverse effect on international enrollments at public universities, especially when such funding supports teaching-assistant positions. However, at least at the graduate level there seems to be no negative correlation. From 2000 to 2002, international graduate-student enrollment increased at public universities and decreased at private universities (see Figure 1-4).

The Entrepreneurial Approach to Higher Education

Some countries have begun to view higher education as a way to generate revenues. For example, after the introduction of market-oriented re-


Michael Arnone. 2004. “State appropriations for higher education, 2003-4.” The Chronicle of Higher Education 50(19):A25.

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