Engineer Missouri Prepared by: Thomas G. Johnson and James D. Rossi Community Policy Analysis Center (CPAC) University of Missouri – Columbia September 15, 2013 Executive Summary Government projections suggest strong growth in employment in Science, Technology, Engineering, and Mathematics (STEM) occupations over the coming years. Moreover, a 2009 survey of manufacturing firms revealed that 36 percent of firms reported a shortage of scientists and engineers today. Despite the demand for these skills, the enrollment of U.S. citizens and permanent residents in graduate programs has decreased since the early 1990s. The Missouri Economic Research and Information Center projects a total of 15,753 job openings by the year 2020 in engineering occupations in Missouri. Missouri ranks below the national average in the proportion of its workforce employed in 18 of 23engineering occupations for which data are available. Moreover, Missouri ranks 26th among U.S. states in engineers as a proportion of the workforce. Holders of STEM degrees earn 11 percent more per hour in non-STEM fields and 20 percent more per hour in STEM fields than their non-STEM degree holding counterparts. STEM occupations pay better than non-STEM occupations: in Missouri, workers inSTEM sectors earn 29.7 percent more with a high school education, 32.4 percent more with an associate’s or other post-secondary degree, and 32.4 percent more with a bachelor’s degree than non-STEM workers. All engineering occupations for which data are available report average salaries in excess of the state average salary. In 2011, there were over 9,200 undergraduate and 2,700 graduate students enrolled in engineering programs at Missouri’s universities. During the 2010 – 2011 school year Missouri’s universities awarded 1,635 bachelor’s degrees, 945 master’s degrees, and 136 doctoral degrees in engineering. A 2006 analysis revealed that among technology BS and MS graduates, 67 percent of domestic students and 75 percent of foreign-born students were likely to stay in the areas where they earned their degrees. Among doctoral degree holders (all fields of study) working outside of academia, 52 percent of domestic students and 41 percent of foreign students were likely to stay. Given the right economic conditions, the number of engineering jobs in a state can increase on nearly a one-to-one basis with the number of graduates. There are nearly 50,000 engineers employed in Missouri earning an average salary of $81,058. The roughly $4 billion in wages paid to Missouri’s engineers contributes an additional 27,000 jobs to the Missouri economy, an extra $1.1 billion in wages to Missouri workers, and $3.4 billion to state GDP. Missouri’s engineers contribute $218.6 million to Missouri’s state and local governments annually. For every one additional engineer employed in a state’s workforce, state real gross domestic product (GDP) increases by over $3 million. For every one additional engineer per 1,000 jobs, per capita state GDP increases by $219.48 and real personal income per capita increases by $171.17. Missouri’s number of patents per 1,000 workers is less than half the national average. High patenting regions have been found to produce as much as $4,300 more per worker than low-patenting regions. For every 28.6 engineers working in a given state, one additional patent is produced, on average. Missouri consistently ranks in the bottom third of U.S. states in high-technology establishments as a percentage of all business establishments. This prevents Missouri’s economy from growing through the first-mover advantage often enjoyed byhightechnology firms. Missouri lags behind other states in the amount of federal Small Business Innovation Research Funding and venture capital investment. Increasing Missouri’s performance in these two indicators is important to future economic growth. Engineer Missouri Thomas G. Johnson and James D. Rossi I. Introduction In his State of the Union addresses, President Barack Obama has frequently repeated a clarion call for the United States to educate and train a new generation of workers and educators in Science, Technology, Engineering, and Mathematics (STEM) skills to assure that the U.S. remains competitive in the global economy (e.g. Robelen, 2011; Koebler, 2012; Brenchley, 2013). In December 2012, the Obama administration formally adopted this policy, declaring a cross-agency-policy goal of increasing the number of STEM graduates by one million more graduates in the next decade (Feder, 2012). The U.S. Department of Commerce (2012) notes that not only was job growth in STEM fields nearly three-times greater than in non-STEM fields over the period 2000 – 2010, but that over the period 2008 – 2018 STEM fields are projected to have nearly twice as much job growth as non-STEM fields. The Bureau of Labor Statistics predicts that science and engineering jobs are projected to grow by 21.4 percent during the period 2006 and 2016. Of this growth, approximately 64 percent of the projected increase is in computer and mathematical scientist occupations. Engineering jobs are predicted to grow by 10.6 percent over the period (National Science Foundation, 2010) Further, in a 2009 survey of the manufacturing sector, 36 percent of firms surveyed reported moderate to severe shortages of scientists and engineers today with many seeing future shortages a serious concern. Within specific industries, 74 percent of energy and resources firms, 63 percent of aerospace and defense firms, 43 percent of industrial products firms, and 38 percent of consumer products and life sciences firms reported moderate to severe shortages of scientists and engineers (Deloitte, 2009). A shortage of workers, all else equal, leads to higher wages and lower unemployment for workers with those particular skills in demand, but at the same time will limit the rate of economic growth in the economy. It is also important to point out that STEM skills are also in demand in non-STEM industries with nearly two-thirds of workers with STEM undergraduate degrees working in nonSTEM industries. Further, workers with STEM degrees in non-STEM fields earn 11 percent more per hour than their non-STEM degree holding counterparts. When only STEM industry occupations are considered, this earnings-differential increases to 20 percent (U.S. Department of Commerce, 2012). the National Science Foundationfound that in 2003holders of science and engineering bachelor’s degrees earned more than those without science and engineering degrees in every year except in the first four years following graduation, (National Science Foundation, 2010). STEM occupations typically require a college education. In fact, nearly 75 percent of those in science and engineering occupations in 2007 held at least a bachelor’s degree. 43.8 percent of all workers in science and engineering jobs held a bachelors degree, 21.3 percent held a master’s degree, 1.2 percent held a professional degree, and 6.7 percent held a doctorate degree (National Science Foundation, 2010). As such, in order to produce a qualified supply of STEM workers, it is imperative that enough educational opportunities exist. Further, there is evidence that the U.S. is not remaining competitive in the production of STEM degree-holders relative to other industrialized nations. Of even greater concern, the enrollments of U.S. citizens and permanent residents in graduate programs have decreased since their 1990s peaks. Additionally, an increasing percentage of students in STEM fields are foreign-born (for example, in 1982 one-fourth of graduate students in science and engineering fields were foreign born whereas now more than one-third are foreign born). Foreign student enrollments are not a concern if we can retain these students post-graduation, however many countries such as China, have created programs aimed at sending students to the U.S. for an education and then providing economic incentives, such as employment and salary guarantees,to assure that they return to their home countries(Committee on Prospering in the Global Economy of the 21st century, 2007). Of the 27 Organization for Economic Co-Operation and Development (OECD) countries for which data are availablein 2010, the U.S. ranked dead last in the proportion of college graduates with degrees in engineering (OECD StatExtract, 2013). It has been suggested that the declining share of science and engineering graduates is hampering the U.S.’s comparative economic advantage. This reduced comparative advantage will inevitably reduce America’s traditional dominance in high-tech industries, research and development (R&D), and other scientific and engineering-related industries. Recovering this comparative advantage will require a restructuring of the U.S. labor force and will require new policies to adapt to the changing global environment (Freeman, 2005). The structure of this paper is as follows: in the next section, Missouri’s need for engineering graduates is discussed; in the third section, the state of engineering education in Missouri is discussed; in the fourth section, factors influencing the migration patterns and retention of engineering graduates are discussed; in the fifth section, the economic impact of engineers on Missouri’s economy is presented; in the sixth section, the effect of engineers on innovation and economic growth is discussed; in the seventh section, Missouri is compared with other Midwestern states; and finally, in the seventh section, conclusions are offered. II. Missouri and the Need for Engineers The state’s current performance in training and retaining engineering graduates is best exemplified by calculating location quotients1for various engineering occupations in Missouri. A location quotient measures the share of employment in a given industry, in a given region, relative to that industry’s share of employment in a reference region (in this case, the reference region is the United States). For example, if a given occupation in Missouri comprised 4 percent of total employment in Missouri compared with only 2 percent in the national economy, then that occupation would have a location quotient of 2.00 in Missouri. The interpretation of location quotients is as follows: 1) A location quotient of less than 1.00 indicates that there is less employment in that occupation than would be expected indicating that there is either a shortage of jobs or potential employees in industries employing that occupation; 2) a location quotient of 1.00 indicates that the employment in the occupation is equal to the share found in the reference economy; and 3) a location quotient of greater than 1.00 indicates that employment in that occupationis relatively greater than in the reference economy and that the economy has a comparative advantage in goods and services employing this occupation. Location quotients greater than 1.00 often identify a region’s economic base and if these are higher wage and productivity occupations then this is an indication that the region’s 1 economy performing well. When the larger location quotients are in lower wage and lower productivity occupations, the region’s economy is generally underperforming. Table 1 below provides a list of engineering occupations in Missouri2, their associated location quotients, the number of persons employed in that occupation per 1000 jobs in the Missouri economy, and Missouri’s rank relative to the other states. As can be seen in Table 1, Missouri ranks below the national average for employment share in eighteen of the twentythreeoccupationsfor which employment shares were available and in the bottom half of states for eighteen of those occupations. For all engineering occupations, Missouri ranks twentysixthamong U.S. states with a location quotient of only 0.80. Table 1: Location Quotient and Number of Engineers per 1000 Jobs for Missouri 2012 Occupation Title3 Architectural and Engineering Managers Cost Estimators Software Developers, Applications Software Developers, Systems Software Architects, Except Landscape and Naval Surveyors Aerospace Engineers Agricultural Engineers Biomedical Engineers Chemical Engineers Civil Engineers 2 Location Quotient 0.65 1.26 1.20 0.36 1.34 0.23 0.58 0.63 0.42 0.66 0.80 Number Per 1000 Jobs 0.938 1.881 5.412 1.072 0.850 0.75 0.356 0.012 0.061 0.163 1.592 State4 Rank 35(48) 9(50) 9(50) 36(48) 5(50) 43(50) 16(31) 17(19) 22(33) 29(45) 33(49) The occupations included as engineering occupations were based on the Missouri Economic Research and Information Center’s list of engineering occupations. The occupations were further refined to only include engineering jobs that required at least a bachelor’s degree. A further modification was made to exclude natural science managers and foresters based on the low percentage of engineers filling these occupations and the lack of employment of these occupations within engineering firms based on the Bureau of Labor Statistics’ Occupation Profiles. As such, the list of engineering occupations can be considered a conservative listing of engineering occupations. 3 Data for some occupations were not disclosed because of insufficient numbers. These occupations have been removed from the table. A full list of engineering occupations is available in Table A1 in the Appendix. 4 Due to disclosure requirements, the BLS does not report values for all states. The number of states with a reported value is given in parentheses. 0.08 Computer Hardware Engineers 1.02 Electrical Engineers 0.73 Electronics Engineers, Except Computer 0.68 Environmental Engineers 0.92 Health and Safety Engineers, Except Mining Safety Engineers and Inspectors 0.92 Industrial Engineers 0.77 Materials Engineers 0.70 Mechanical Engineers 1.52 Mining and Geological Engineers, Including Mining Safety Engineers 0.59 Engineers, All Other 0.80 Materials Scientists 0.46 Engineering Teachers, Postsecondary 0.80 All Engineering Occupations Source: Bureau of Labor Statistics, Occupational Employment Statistics 0.051 1.257 0.755 0.266 0.165 42(42) 18(50) 25(47) 39(50) 27(50) 1.550 0.134 1.353 0.089 22(50) 25(50) 33(50) 16(32) 0.553 0.049 0.121 19.226 32(48) 20(29) 38(40) 27(50) At the national level, STEM workers out-earn their non-STEM counterparts at every level of education (U.S. Department of Commerce, 2012). In 2010, STEM workers with only a high school diploma or less earned 59.6 percent more per hour than non-STEM workers with similar education ($24.82 hour and $15.55, respectively). Workers with some college or an associate degree earned 40 percent more in STEM occupations ($26.63 versus $19.02). Bachelor’s degree holders earned 26.7 percent more in STEM fields ($35.81 versus $28.27). And STEM workers with a graduate degree earned 12.3 percent more than their non-STEM counterparts ($40.69 versus $36.22). In Missouri the pattern of higher wages for STEM workers follows the national pattern. The Missouri Economic Research and Information Center (MERIC) estimates that workers in STEM occupations, with only a high school education, earn 29.7 percent more than their nonSTEM counterparts. When those with an associate’s or other post-secondary degree are considered, the pay differential increases to 32.4 percent more for STEM workers. For those with a bachelor’s degree, the pay gap shrinks somewhat, but still remains at 27.3 percent (2012). Each of the twenty six engineering occupationsfor which salariesare reportedpay a mean salary in excess of the state mean salary ($41,170) as can be seen in Table 2. While many of these occupations (22 of 24) pay below the national average salary for that occupation, it is important to note that Missouri’s cost of living is below the national average, with a cost of living of 93 percent of the national average in 2012 (Missouri Economic Research and Information Center, 2013). However, the majority (17 of 24) of the occupations pay salaries less than 93 percent of the national average for that occupation. The need to educate, train, and retain an increased number of engineers is also highlighted by employment projections for these occupations for the year 2020 (Tables 3 and 4). The Missouri Economic Research and Information Center (2012) projects a total of 15,753 job openings by the year 2020 including 6,704 growth openings and 9,049 replacement openings. The greatest areas of need are found in the fields of applications software developers (2,513), cost estimators (2,345), and mechanical engineers (1,708). Table 2: Mean Annual Salary of Engineering Occupations in Missouri and the U.S., 2012 Occupation Title Architectural and Engineering Managers Cost Estimators Software Developers, Applications Software Developers, Systems Software Architects, Except Landscape and Naval Surveyors Missouri Mean Salary U.S. Mean Salary State Rank $116,580 Missouri Median Salary $114,100 $133,240 31(49) $60,570 $84,600 $93,180 $72,170 $57,400 $83,430 $89,790 $68,820 $63,080 $93,280 $102,550 $78,690 23(50) 25(50) 25(50) 31(50) $58,160 $50,910 $40,190 19(50) $98,950 $101,170 Aerospace Engineers $82,030 $82,390 Agricultural Engineers $61,860 $58,140 Biomedical Engineers $88,860 $87,530 Chemical Engineers $73,550 $69,350 Civil Engineers $81,110 $82,310 Computer Hardware Engineers $87,440 $86,920 Electrical Engineers $84,030 $81,690 Electronics Engineers, Except Computer $73,030 $68,510 Environmental Engineers $74,930 $74,200 Health and Safety Engineers, Except Mining Safety Engineers and Inspectors $77,540 $75,300 Industrial Engineers $86,230 $86,450 Marine Engineers and Naval Architects $78,360 $76,140 Mechanical Engineers $81,320 $78,480 Mining and Geological Engineers, Including Mining Safety Engineers $86,300 $88,380 Engineers, All Other $73,260 $67,250 Materials Scientists $58,100 $51,650 Architecture Teachers, Postsecondary $85,290 $80,140 Engineering Teachers, Postsecondary $81,058 N/A All Engineering Occupations Source: Bureau of Labor Statistics, Occupational Employment Statistics $104,810 $77,370 $91,200 $102,270 $84,140 $103,980 $91,810 $95,250 19(38) 3(19) 33(34) 33(45) 37(49) 38(44) 21(49) 34(48) $85,140 $79,760 47(50) 25(50) $82,100 $96,140 $84,770 $91,250 32(50) 9(18) 32(50) 17(32) $93,330 $89,740 $78,770 $100,100 $93,492 27(48) 26(31) 24(24) 32(39) 33(50) Table 3: 2010 and 2012 Employment and 2020 Projected Employment in Engineering Occupations, Missouri Occupation Title Architectural and Engineering Managers Cost Estimators Software Developers, Applications Software Developers, Systems Software Architects, Except Landscape and Naval Surveyors Aerospace Engineers Agricultural Engineers Biomedical Engineers 5 NP indicates no projected value reported. 2010 Employment 2012 Employment 2,496 4,501 12,285 4,595 2,570 884 N/A N/A 198 2,450 4,900 14,100 2,790 2,220 600 930 30 160 2020 Projected Employment 2,655 5,983 13,521 5,697 2,942 1,010 NP5 NP 330 368 430 413 Chemical Engineers 4,629 4,150 5,187 Civil Engineers 219 130 246 Computer Hardware Engineers 3,544 3,280 3,866 Electrical Engineers 2,068 1,970 2,134 Electronics Engineers, Except Computer 786 690 886 Environmental Engineers 342 430 401 Health and Safety Engineers, Except Mining Safety Engineers and Inspectors 3,338 4,040 3,644 Industrial Engineers 329 350 384 Materials Engineers 3,841 3,530 4,313 Mechanical Engineers 144 230 165 Mining and Geological Engineers, Including Mining Safety Engineers N/A N/A N/A Nuclear Engineers N/A N/A N/A Petroleum Engineers 1,341 1,440 1,390 Engineers, All Other 83 130 87 Materials Scientists 104 0 108 Architecture Teachers, Postsecondary 320 310 327 Engineering Teachers, Postsecondary 48,895 49,290 55,689 All Engineering Occupations Source: Bureau of Labor Statistics, Occupational Employment Statisticsand Missouri Economic Research & Information Center Table 4: Projected Engineering Job Openings by Occupation 2010-2020, Missouri Occupation Title Architectural and Engineering Managers Cost Estimators Software Developers, Applications Software Developers, Systems Software Architects, Except Landscape and Naval Surveyors Aerospace Engineers Agricultural Engineers Biomedical Engineers Chemical Engineers Civil Engineers Computer Hardware Engineers Electrical Engineers Electronics Engineers, Except Computer Environmental Engineers Health and Safety Engineers, Except Mining Growth Openings 159 1,482 1,236 1,102 372 126 NP NP 132 45 558 27 322 66 100 59 Replacement Openings 487 863 1,277 478 522 192 NP NP 44 118 940 52 854 499 173 74 Total Openings 646 2,345 2,513 1,580 894 318 NP NP 176 163 1,498 79 1,176 565 273 133 Safety Engineers and Inspectors 306 Industrial Engineers 55 Materials Engineers 472 Mechanical Engineers 21 Mining and Geological Engineers, Including Mining Safety Engineers NP Nuclear Engineers NP Petroleum Engineers 49 Engineers, All Other 4 Materials Scientists 4 Architecture Teachers, Postsecondary 7 Engineering Teachers, Postsecondary 6,704 Total Projected Openings Source: Missouri Economic Research & Information Center 727 91 1,236 32 1,033 146 1,708 53 NP NP 295 27 17 51 9,049 NP NP 344 31 21 58 15,753 III. Engineering Education in Missouri6 In 2011, there were over 9,200 undergraduate engineering students enrolled in Missouri universities (Table 5). Of these students, over 8,500 were enrolled as full-time students while 570 were enrolled as part-time students. The Missouri University of Science and Technology had the most undergraduate students enrolled, accounting for over 4,200 students. The University of Missouri – Columbia had the second highest number of enrolled undergraduates with over 2,500 students. Of the full-time students, 25.6 percentwere freshmen, 20.6 percent were sophomores, 21.9 percentwere juniors and the remaining 31.8 percentwere seniors7. Data for University of Missouri – St. Louis were not available. A possible explanation for the larger senior class relative to the other classes is that some students take a 5th year to complete their degree and would be included in the senior totals. 6 7 Table 5: Undergraduate Engineering Enrollment, Fall 20118 University9 Freshman (FT10) 667 89 950 178 45 283 2,212 Sophomore (FT) 470 97 760 127 19 305 1,778 Junior (FT) 497 117 845 106 9 313 1,887 Senior (FT) 786 182 1,331 131 10 319 2,749 Total (FT) 2,420 485 3,886 542 83 1,220 8,636 Parttime 114 145 320 6 0 0 585 MU MU-KC S&T SLU SEMO WU-SL Total Undergraduate Enrollment Source: American Society for Engineering Education, Profiles of Engineering & Engineering Technology Colleges and Truman (2013) Missouri’s universities graduated a total of 1,635 students with bachelorof engineering degrees during the 2010 – 2011 school year (Table 6). Not surprisingly, the Missouri University of Science and Technology and the University of Missouri – Columbia graduated the largest number of students, 785 and 422 respectively. The most common types of engineering degrees were: 1) mechanical engineering (386 degrees awarded), 2) civil engineering (203), 3) and computer science (196). Table 6: Bachelor’s Degrees Awarded, 2010-2011, by School and Degree Field Degree Field MU Aerospace Architectural Biomedical Chemical Civil 0 0 40 32 75 MU-KC S&T SLU 0 0 0 0 19 49 48 0 53 98 36 0 17 0 0 SEMO WU-SL Total 0 0 0 0 0 2 0 75 31 11 87 48 132 116 203 St. Louis University and Washington University – St. Louis are both private schools. MU: University of Missouri, MU-KC: University of Missouri – Kansas City, S&T: Missouri University of Science and Technology, SLU: St. Louis University, SEMO: Southeast Missouri State University, and WU-SL: Washington University in St. Louis. 10 FT: Full-time 8 9 11 0 45 3 0 8 Computer 67 76 25 52 0 0 43 Computer Science 196 48 0 79 6 0 12 Electrical 145 0 9 0 0 0 0 Electrical/ Computer 9 Engineering 0 0 49 0 0 0 Engineering Management 49 0 0 0 0 3 0 Engineering Science & 3 Engineering Physics 0 0 13 0 0 0 Environmental 13 29 0 0 0 0 0 Industrial/ Manufacturing 29 111 25 173 19 0 58 Mechanical 386 0 0 36 0 0 0 Metallurgical & Materials 36 0 0 44 0 0 0 Mining 44 0 0 20 0 0 0 Nuclear 20 0 0 6 0 0 26 Other 32 0 0 20 0 0 0 Petroleum 20 Total Bachelor’s Degrees 422 78 785 81 3 266 1,635 Awarded Source: American Society for Engineering Education, Profiles of Engineering & Engineering Technology Colleges and Truman (2013) In addition to the undergraduates, Missouri’s universities had 2,716 engineering graduate students enrolled in the fall of 2011 (Table 7). Of these, 1,709 were enrolled in master’s programs and 1,007 were enrolled in doctoral programs. The Missouri University of Science and Technology had the greatest number of both masters and doctoral students with 694 and 352, respectively. Washington University in St. Louis had the second largest number of both master’s and doctoral students with 369 and 332 students, respectively. Southeast Missouri State University does not award graduate degrees in any engineering disciplines. Table 7: Graduate Engineering Enrollment, Fall 2011 University MU MU-KC S&T SLU SEMO Master's 318 301 694 27 0 Ph.D. 267 52 352 4 0 Total 585 353 1,046 31 0 369 332 701 WU-SL Total Graduate Enrollment 1,709 1,007 2,716 Source: American Society for Engineering Education, Profiles of Engineering & Engineering Technology Colleges and Truman (2013) Missouri universities awarded over half as many master’s degrees (945) as they did bachelor’s degrees during the 2010 – 2011 school year (Table 8). The Missouri University of Science and Technology and Washington University in St. Louis awarded the most master’s degrees with 427 and 202 degrees awarded, respectively. Electrical engineering was the most common field of study for master’s graduates in 2010 – 2011, with 184 degrees awarded. Other engineering degrees were the second most common with 150 degrees awarded. Table 8: Master’s Degrees Awarded, 2010-2011, by School and Degree Field11 Degree Field MU MU-KC S&T SLU WU-SL Total 0 0 13 0 6 Aerospace 19 9 0 0 0 15 Biomedical 24 5 0 6 0 0 Chemical 11 14 9 40 0 6 Civil 69 7 0 9 0 7 Computer 23 12 77 27 0 28 Computer Science 144 40 97 35 0 12 Electrical 184 0 0 0 7 0 Engineering (General) 7 0 0 105 0 14 Engineering Management 119 0 0 16 0 25 Environmental 41 11 0 0 0 0 Industrial/Manufacturing 11 11 11 43 0 34 Mechanical 99 0 0 5 0 0 Metallurgical & Materials 5 0 0 14 0 0 Mining 14 6 0 7 0 0 Nuclear 13 0 0 95 0 55 Other 150 0 0 12 0 0 Petroleum 12 Total Master's Degrees 115 194 427 7 202 945 Awarded Source: American Society for Engineering Education, Profiles of Engineering & Engineering Technology Colleges and Truman (2013) 11 Southeast Missouri State University does not have a graduate degree program in engineering. Missouri universities awarded 136 engineering doctoral degrees during the 2010 – 2011 school year (Table 9). The University of Missouri - Columbia had the highest number of Ph.D. graduates with 52. The Missouri University of Science and Technology and Washington University in St. Louis awarded 40 and 35 doctoral degrees respectively. The University of Missouri – Kansas City awarded five engineering doctoral degrees during the 2010 – 2011 school year. St. Louis University did not award any doctoral degrees during this time. Computer science and biomedical engineering were the most common doctoral degrees awarded with 21 and 19 degrees awarded, respectively. Table 9: Doctoral Degrees Awarded, 2010-2011, by School and Degree Field12 Degree Field MU MU-KC S&T WU-SL Total 0 0 1 1 Aerospace 2 9 0 0 10 Biomedical 19 3 0 4 0 Chemical 7 2 0 3 3 Civil 8 0 0 2 2 Computer 4 8 4 4 5 Computer Science 21 0 0 8 5 Electrical 13 14 0 0 0 Electrical/Computer 14 0 0 2 0 Engineering Management 2 0 0 0 6 Environmental 6 1 0 0 0 Industrial/Manufacturing 1 7 1 6 2 Mechanical 16 0 0 12 0 Metallurgical & Materials 12 8 0 0 0 Nuclear 8 0 0 2 1 Other 3 Total Doctoral Degrees Awarded 52 5 44 35 136 Source: American Society for Engineering Education, Profiles of Engineering & Engineering Technology Colleges and Truman (2013) Missouri universities employed a total of 421 full-time tenured or tenure-track and 35 full-time non-tenured/ non-tenure track engineering teaching faculty members during the fall of 12 St. Louis University did not report any engineering doctoral degrees awarded during this period. 2011. The Missouri University of Science and Technology had the greatest number of full-time tenured or tenure track faculty members with 157 faculty members. It also had the greatest number of non-tenured/ non-tenure track full-time faculty members with 24. Missouri universities also employed 136 part-time teaching faculty members (accounting for 35.91 fulltime equivalent positions). Washington University in St. Louis had the greatest number of parttime teaching faculty members employing 68 faculty members (Table 10). Missouri universities also employed another 73 full-time engineering research faculty members during the fall of 2011 (Table 11). In addition to full-time employees, Missouri universities also employed 26 part-time research faculty members (accounting for 19.1 full-time equivalent positions). Table 11: Teaching Faculty, Fall 2011 Full-Time Part-Time Tenured/Tenure-Track Non Professor Associate Assistant Total T/T-T Total FTE13 52 43 19 114 9 9 8.2 MU 8 11 21 40 0 16 4.38 MU-KC 77 51 29 157 24 38 11.41 S&T 7 9 11 27 2 5 3.25 SLU 2 2 3 7 0 0 0 SEMO 36 23 17 76 0 68 8.67 WU-SL 182 139 100 421 35 136 35.91 Total Source: American Society for Engineering Education, Profiles of Engineering & Engineering Technology Colleges Table 12: Research Faculty, Fall 2011 MU MU-KC S&T SLU SEMO 13 FTE: Full-Time Equivalent Full-Time 25 0 11 1 0 Part-Time 3 0 11 0 0 FTE 8.5 0 4.14 0 0 36 12 6.46 WU-SL 73 26 19.1 Total Source: American Society for Engineering Education, Profiles of Engineering & Engineering Technology Colleges IV. Retaining Engineering Graduates A challenge faced by many states, particularly those centrally located in the U.S. is the phenomenon of “brain drain”. Brain drain is the out-migration of young and often-highly educated persons, the so-called “creative class”, to other cities which are alleged to have greater amenities such as recreational opportunities, youth culture, climate, etc. (Florida, 2002). Using a dynamic stock-and-flow model, Bound et al. (2004) find a weak long-term relationship between the production of bachelor’s degree graduates and the concentration of college graduates within a state’s labor force. However, they note that the presence of a greater number of college graduates can attract employers of college graduates, especially for goods and services which are produced for sale outside of the state (i.e. as state exports). For goods and services primarily consumed locally (such as in the health care) there is little-to-no relationship. While this study does not look specifically at STEM graduates, many STEM sectors (manufacturing, engineering consultancies, etc.) fall into the first category (exporting sectors). Hansen, Ban, and Huggins (2002) in a survey of recent college graduates from Pittsburgh-area universities find that the school-specific characteristics such as reputation and financial considerations were important in the selection of a school, proximity to friends and family and amenities were major determinants of the decision to stay or relocate following graduation and not financial considerations. They find that having attended a local area high school, strong ties to family, and those concerned with housing costs or access to continuing education were the prime factors in the decision to stay in the Pittsburgh area. Further, the authors find that which university a student attended was highly correlated with the decision to stay or leave (Duquesne graduates were likely to stay whereas Carnegie Mellon graduates were likely to leave). The authors note the difficulty of reconciling policy implications with many of these findings (e.g. family considerations, climate, etc.), but that others such as offering competitive salaries and benefits, reducing the costs of tuition, career counseling, increasing opportunities for women and minorities, and developing and promoting local amenities can be influenced by policy-makers. Using a random parameters logit model, Gottlieb and Joseph (2006), find that recent technology graduates are not as strongly motivated by amenity factors as they are by economic factors. However, when considering the decisions of technology doctorate holders (working outside of academia), Gottlieb and Joseph find that doctorate holders are more responsive to amenity factors than economic conditions. They attribute this finding to doctorate holders having more bargaining power in hiring negotiations, less susceptibility to general labor market conditions, and because they are making more long-run decisions because they have finished their schooling. Most importantly, Gottlieb and Joseph find “a large and significant tendency among college graduates to stay rather than migrate” (p 653), however, they are quick to caution that simply increasing enrollments will not guarantee students stay put, particularly if job opportunities are lacking. They do note that there is a greater tendency to stay when a graduate is from the university’s home state, however, this “may reflect a selection effect rather than a treatment effect” (p 654). Finally, they find that immigrant students (who held BS/MS degrees) were more likely to stay in the areas they earned their degrees (75 percent) than domestic born students (67 percent); however, for holders of doctorates, the opposite holds true with foreignborn students only 41 percent likely to stay relative to 52 percent of domestic-born students. In a study of the migration patterns of U.S. born science and engineering doctorate recipients, Sanderson and Dugoni (2002) find that doctorate recipients were more likely to exhibit educational mobility both prior to finishing high school (35.5 percent) as well as when first enrolling in university (37.8) than other undergraduates as a whole. Moreover, 71.1 percent of doctorate holders received their degree from a university outside of the state in which they enrolled as undergraduates. Upon graduation, 59.2 percent planned to work in a state other than the one in which they earned their doctorate. V. The Economic Impact of Engineers on Missouri’s Economy There are a variety ways of estimating the economic impact of economic stimuli on a regional or state economy. Each is based on different assumptions about the ways in which the economy responds to the stimuli. The impacts of workers, such as engineers, are a source of income, productivity, and innovation. One common approach is to view the income earned by workers as a new source of demand for regional products thus generating additional income, employment and government revenues through a multiplier effect. This so-called backward linkage approach is used to estimate the impact of engineers on the economy of Kansas for example (Center for Economic Development and Business Research, 2009).An alternative assumption is that engineers increase the productivity of existing employers and coworkers, and attract new employers to the state. These so-called forward linkages are less certain but when they occur they lead to significantly larger impacts on the economy. In this study, we have used both methods. The first offers a lower bound while the second is an upper bound on the impacts that the state of Missouri can expect from additional engineers. This section estimates the lower bound and the next estimates the upper bounds. In 2012, there were nearly 50,000 engineers employed in Missouri earning an average salary of $81,578 (Table 12). The salaries of entry level positions in engineering occupations ranged from $34,980 for cost estimators to $80,340 for architectural and engineering managers. Average salaries for engineering occupations ranged from $58,100 for postsecondary architecture teachers to $116,580 for architectural and engineering managers. For experienced workers, biomedical engineers were the lowest paid ($68,760) and again, architectural and engineering managers were the highest paid ($134,700). Table 12: Engineering Employment and Salaries in Missouri, 2012 Title Architectural and Engineering Managers Cost Estimators Software Developers, Applications Software Developers, Systems Software Architects, Except Landscape and Naval Surveyors Aerospace Engineers Agricultural Engineers Biomedical Engineers Chemical Engineers Civil Engineers Computer Hardware Engineers Electrical Engineers Electronics Engineers, Except Computer Environmental Engineers Employment Mean Median Experienced 2,450 Entry Level $80,340 $116,580 $114,100 $134,700 4,900 14,100 $34,980 $59,190 $60,570 $84,600 $57,400 $83,430 $73,360 $97,310 2,790 $62,390 $93,180 $89,790 $108,570 2,220 $44,650 $72,170 $68,820 $85,920 600 930 30 160 430 4,150 130 $35,800 $71,890 $62,650 $48,080 $61,170 $49,890 $53,050 $58,160 $98,950 $82,030 $61,860 $88,860 $73,550 $81,110 $50,910 $101,170 $82,390 $58,140 $87,530 $69,350 $82,310 $69,340 $112,480 $91,720 $68,760 $102,700 $85,380 $95,140 3,280 1,970 $60,110 $55,730 $87,440 $84,030 $86,920 $81,690 $101,100 $98,180 690 $48,530 $73,030 $68,510 $85,280 430 $47,770 $74,930 $74,200 $88,510 Health and Safety Engineers, Except Mining Safety Engineers and Inspectors 4,040 $55,150 $77,540 $75,300 $88,730 Industrial Engineers N/A $65,760 $86,230 $86,450 $96,460 Marine Engineers and Naval Architects 350 N/A N/A N/A N/A Materials Engineers 3,530 $52,900 $78,360 $76,140 $91,090 Mechanical Engineers 230 $50,970 $81,320 $78,480 $96,490 Mining and Geological Engineers, Including Mining Safety Engineers N/A N/A N/A N/A N/A Nuclear Engineers N/A N/A N/A N/A N/A Petroleum Engineers 1,440 $47,200 $86,300 $88,380 $105,850 Engineers, All Other 130 $49,680 $73,260 $67,250 $85,050 Materials Scientists N/A N/A $58,100 $51,650 N/A Architecture Teachers, Postsecondary 310 N/A $85,290 $80,140 N/A Engineering Teachers, Postsecondary 49,290 N/A $81,578 N/A N/A All Engineering Occupations Source: Bureau of Labor Statistics, Occupational Employment Statistics and Missouri Economic Research & Information Center The economic impact of Missouri’s engineers can be found in Table 13. The direct impactswere calculatedusing the information in Table 12. Engineering employment in Missouri has an employment multiplier of 1.55 indicating that for every one engineer employed in Missouri, an additional 0.55 jobs were created. The $4 billion in salaries paid to Missouri’s engineers created an additional $1.1 billion in Missouri salaries and $3.375 billion in state GDP; that is, for every $1 paid in salary to an engineer in Missouri, an additional $0.27 in salaries were earned by other Missouri workers and state GDP increased by $0.84. For every one engineer employed in Missouri, $150,062 in state GDP is created. The nearly $7.4 billion in economic impact of engineers on Missouri’s economy represents over 3 percent of the nearly $222 billion in state GDP. Table 13: Economic Impact of Engineers in Missouri, 2012 Employment Payroll GDP Earnings Direct Effect 49,290 $4,020,970,795 $4,020,970,795 Total Effect14 76,427 $5,106,711,082 $7,396,539,954 Multiplier15 1.55 1.27 1.84 Source:Bureau of Labor Statistics, Occupational Employment Statistics, Missouri Economic Research & Information Center, and IMPLAN The impact of engineers on Missouri’s state and local government revenues totaled nearly $219 million in 2012 (Table 14). Of this $219 million, approximately $21 million of revenues were from corporate taxes, $89 million in sales tax, $66 million in property taxes (business and personal), and $20 million in personal income taxes. For each engineer employed in Missouri, $4,434 in tax receipts was collected by Missouri’s state and local governments. Table 14: Fiscal Impact of Engineers on Missouri, 2012 Type of Tax Corporate Taxes Social Insurance Tax Sales Tax Business Property Tax Other Business Taxes Personal Income Tax Personal Property Tax Other Personal Taxes Total Tax Revenue 14 Tax Revenues $20,625,963 $3,216,029 $88,702,472 $66,095,656 $16,150,202 $20,292,526 $397,404 $3,077,546 $218,557,798 Total effect includes the direct effect of engineering employment and salaries and the effects of their purchases and spending on the Missouri economy. 15 Multiplier is the ratio of total effect to direct effect. Thus, an employment multiplier of 2.5 indicates that for each direct job created, 1.5 additional jobs are created in the regional economy. Source:Bureau of Labor Statistics, Occupational Employment Statistics, Missouri Economic Research & Information Center, and IMPLAN If we consider the economic impacts of the projected growth in engineering jobs by the year 2020 in Tables 3 and4, we see that in 2020, Missouri’s projected 55,689 engineers will accountfor an additional 30,464 jobs in the state (Table 15).16 The $4.5 billion in salaries paid to Missouri’s engineers will create an additional $1.2 billion in salaries and $3.8 billion in state GDP (2012 dollars). Table 15: Projected Economic Impacts of Missouri’s 2020 Projected Engineering Employment (2012 Dollars) Employment Payroll GDP Earnings Direct Effect 55,689 $4,514,063,389 $4,514,063,389 Total Effect 86,153 $5,732,948,064 $8,303,578,765 17 Multiplier 1.55 1.27 1.84 Source:Bureau of Labor Statistics, Occupational Employment Statistics, Missouri Economic Research & Information Center, and IMPLAN Moreover, if Missouri’s engineering employment reaches its projected 2020 levels, $245 million (2012 dollars) in tax revenues will accrue to Missouri’s state and local governments (Table 16). Once again, the majority of the tax revenues will be from sales taxes ($99.6 million) and property taxes ($74.6 million). Each individual engineer is projected to have an impact of $4,405.89 on therevenues of Missouri governments. Table 16: Projected Fiscal Impact of Missouri’s 2020 Projected Engineering Employment (2012 Dollars) 16 This and other calculations here use the most recent IMPLAN multipliers to project employment impacts in 2020. In fact, multipliers evolve over time as technology and economic structure changes. By the year 2020, engineering jobs could have a higher or lower multiplier depending on changes in technology across the economy. 17 These multipliers are roughly equivalent to those estimated for the state of Kansas (Center for Economic Development and Business Research, 2009). Type of Tax Tax Revenues Corporate Taxes $23,155,325 Social Insurance Tax $3,610,410 Sales Tax $99,580,056 Business Property Tax $74,200,976 Other Business Taxes $18,130,703 Personal Income Tax $22,781,000 Personal Property Tax $446,138 Other Personal Taxes $3,454,946 Total Tax Revenue $245,359,554 Source:Bureau of Labor Statistics, Occupational Employment Statistics, Missouri Economic Research & Information Center, and IMPLAN VI. Engineers, Innovation, and Economic Growth In this section we consider alternative assumptions about the role that engineers play in the state economy. Increased numbers of engineering graduates are correlated with increased engineering jobs in the state. We regressed the number of engineering graduates18 by state for the 2010 – 2011 school year on the increase in the number of engineering jobs by state between 2011 and 2012 (Table A2). We found that for every one additional graduate from a state institution nearly one additional engineering job was produced (0.90 jobs per engineering graduate) on average. These results indicate that given the right economic conditions, the number of engineering jobs in a given state can increase on nearly a one-to-one basis with the number of graduates. This, of course, is an average, and some states will increase their engineering jobs more than their number of graduates, essentially capturing the graduates of other states. Increased graduates must be complemented with attractive climates for employers. Increasing the number of engineers in an economy has many beneficial effects. An increased numbers of engineers leads to increases in state gross domestic product (GDP). We 18 Bachelor’s, Master’s and Doctoral graduates including computer science (outside engineering) graduates. also examined the relationship between the number of engineers in the contiguous 48 states and real GDP19 over the time period 1999 – 2012 (Table A3). Our analysis indicates that for every one additional engineer in a given state, on average, that state’s real GDP increased by over $3 million per year. Increasing the relative percentage of engineers as a share of the state workforce also yields economic benefits. Examining this relationship, the authors find that for every one additional engineer per 1000 jobs in a given state’s economy, annual per capita real GDP increases by $219.48(Table A4) and annual real personal income per capita increases by $171.17 (Table A5). Again, these results are based on average performance and a given state’s performance will depend on other economic economic conditions. In summation, increasing the number of engineers, all else equal, increases the size of a state’s economy, the productivity of its workforce, and the incomes of its residents. Comparing the results in this and the previous sections, we see that the earlier results, presented in Table 13 indicate, that that state total GDP per engineer is only $148,000, while in this section, we estimate that each additional engineer increases state total GDP by over $3 million. There are many reasons for this difference. First in table 13, we estimated only the contribution to state GDP as engineers spend the earnings on goods and services. These impacts ignore the effect of these engineers on the production side of the economy and their impact on economy-wide productivity. By considering the experience of all states as they increase their numbers of engineers we see that the impacts include not only the impacts of engineers’ increased earnings but also the impacts of the goods and services produced by the engineers and their effect on the productivity of other workers in the economy. 19 Real GDP is GDP that has been adjusted to account for the effects of inflation. In addition, the results reportedin table 13do not account for the structural change in the state economy brought about by increasing the number of engineers; in the current sectionwe account foradjustments in the state economy in response to the change in the number of engineers.Increasing the number of engineers can lead to innovation which, in turn, can lead to economic growth. Again, actually realizing the increase in state GDP from increasing the number of engineers requires that other changes be made toeconomic development policy changes, investments in infrastructure, etc. Innovation has long been linked to economic growth. The economic argument here is relatively straightforward: innovation increases the productivity of labor and other resources, which, in turn, leads to economic growth20 (Barro, 2003; Barrow and Sala-i-Martin, 2005; Lucas, 1988; and Romer, 1990, 1994).Nobel laureate economist, Robert Solow (1957) found that over half of the economic growth of the first half of the 20th century was the result of technological advancements. Moreover, technological advances often lead to “spillovers”; that is, when the benefits of a given advancement spill over to other industries, inventions, and individuals. However, these spillovers can inhibit investment in education as the creators of the original process are often unable to capture all of the benefits of their investment, but often bear the full brunt of the costs of the research unless a government or other public body helps fund the research (Griliches, 1992; Nelson and Romer, 1996). A measure of the innovation related to engineering is the filing of patents21 (Griliches, 1998). Economic estimates of the value of a single patent are approximately half a million 20 Of course, many other factors such as trade, legal systems, and governance impact economic growth. A full treatment is beyond the scope of this paper. 21 Many empirical studies utilize R&D expenditure as a proxy of innovation. However, as argued by Crosby (2000), R&D expenditures measures the “input to innovation outputs….The relationship between R&D and innovation dollars, not counting any benefits to society from the adoption of the technology (Hall, Jaffe, and Trajtenberg, 2005). Moreover, Rothwellet al. (2013) find that patents do lead to regional economic growth in the MSA regions of the U.S over the period 1980 – 2012 with highpatenting regions producing as much as $4,300 more per worker than low-patenting regions. In a 2003 survey of scientists and engineers with prior work experience, the NSF found that 2.6 percent of scientists and engineers had been named as an inventor on a U.S. patent application from the fall of 1998 to the fall of 2003. Approximately 15.7 percent of doctoral degree holders had been named as an inventor compared to only 0.7 percent of bachelor’s degree holders (National Science Foundation, 2010). However, as can be seen in Table 17, Missouri lags behind many other states in patent production. Over the period 2003 – 2010, Missouri’s number of patents awarded per 1,000 workers employed in science and engineering occupations was nearly half of the national average. Further, Missouri habitually ranked among the bottom states for patent production per 1,000 workers. Table 17: Patents Awarded per 1,000 Individuals Employed in Science and Engineering Occupations, 2003 – 2010 Year 2003 2004 2005 2006 2007 2008 2009 United States 17.7 16.6 14.3 16.6 14.2 13.4 14.2 Missouri 9.8 8.8 6.8 7.5 6.9 5.8 6.8 State Rank22 35(50) 36 (49) 41 (50) 39 (49) 39 (50) 38 (47) 35 (48) outputs is likely to be time varying, possibly nonlinear, and is also likely to occur with uncertain lags ” (p 256) whereas patents measure the output of innovation. 22 Number of states with data reported in parentheses. 19.4 9.5 35 (47) 2010 Source: National Science Foundation Science and Engineering Indicators, 2012 An examination of the relationship between engineers and utility patent filings for the period 1999 – 2012 for the contiguous 48 states, the authors find a statistically significant relationship between the number of engineers in a state and the number of patents filed. For every additional engineer in a given state, on average, 0.035 additional patents would be filed in a given year; that is, for each additional 28.6 engineers in a given state, 1 additional patent would be filed every year (Table A6). Another measure of the effect of engineers on an economy and their capacity to grow an economy is the percentage of high-technology establishments of all business establishments in a state. High technology firms are believed to grow an economy through “first-mover advantage”, wherein by being the first to introduce a new good or service to the market, the firm gains a competitive advantage which can lead to higher economic rents from their innovative activity (Organization for Economic Co-Operation and Development, 2003). As can be seen in Table 18, Missouri historically has been below the U.S. national average in every year for which data are available. Moreover, Missouri has consistently ranked in the bottom third of all states for hightechnology establishments. The attraction of this type of businesses is paramount as they represent a key potential employer of engineering graduates. Table 18: High-Technology Establishments as a Percentage of All Business Establishments, 2003 – 200823 United States Missouri 23 2005 data not available 2003 8.17 6.39 2004 8.19 6.35 2006 8.35 6.57 2007 8.46 6.64 2008 8.52 6.69 35 39 36 37 37 Rank Among States Source: National Science Foundation Science and Engineering Indicators, 2012 One obstacle faced by Missouri has been a dearth of federal Small Business Innovation Research (SBIR) funding over the past two decades. As indicated in Table 19, Missouri has been in the bottom quartile of all states in regards to average annual federal SBIR funding per $1 million of GDP. Over the period 1988 to 2010, Missouri has, in fact, received anywhere from approximately 16 percent to 30 percent of the national average for SBIR funding per $1 million of GDP. It is important that Missouri’s policymakers and business leaders work together to increase this SBIR fundingperformance to help stimulate business formation in key industries. Table 19: Average Annual Federal Small Business Innovation Research Funding per $1 million of GDP, 1988-90 – 2008-10. United States Missouri State Rank 76 16 40 1988-90 91 15 38 1992-94 125 23 38 1996-98 121 27 47 2000-02 152 46 43 2004-06 88 24 42 2008-10 Source: National Science Foundation Science and Engineering Indicators, 2012 Missouri’s business formation has also been hindered by the slowdown of venture capital funding following the dotcom bust of 2001. Missouri captures venture capital investments ranging from a high of approximately one-third of the national average in 2001 to only 6 percent of the national average in 2009 (see Table 20). Table 20: Venture Capital per $1,000 GDP, 2001 – 2010 Year 2001 2002 United States 4.04 2.12 Missouri 1.36 0.4 State Rank 22 29 1.82 0.4 28 2003 1.78 0.3 30 2004 1.84 0.26 31 2005 1.96 0.28 26 2006 2.21 0.39 26 2007 1.98 0.36 31 2008 1.3 0.08 37 2009 1.5 0.25 32 2010 Source: National Science Foundation Science and Engineering Indicators, 2012 VII. Benchmarking Missouri’s Engineering Labor Force and Education Given the benefits of engineers to a state’s economy and labor force, it seems natural to question how one’s state is performing relative to other states. To that end, data were gathered from three other Midwestern states: Illinois, Michigan, and Ohio. For purposes of benchmarking, these states were chosen for their geographic proximity, because they have major urban centers, have major research-one universities, and because their performance in terms of graduating and retaining engineers exceeds that of Missouri. Together these characteristics mean that the performance of these states offer feasible goals for Missouri. Table 21, below, compares these states and Missouri in terms of both engineers per 1,000 jobs and engineers per 1,000 residents as well as how these states rank among U.S. states. As can be seen, Michigan leads the group in both engineers per 1,000 jobs and engineers per 1,000 residents followed by Ohio and Illinois, respectively, in both categories. Table 21: Engineers per 1,000 jobs and 1,000 residents, 2012 State Illinois Michigan Missouri Ohio Rank 21 5 26 19 Engineers per 1,000 Jobs 20.45 32.18 18.91 21.36 Rank 21 6 25 16 Engineers per 1,000 Residents 8.96 12.76 8.19 9.35 Source: American Society for Engineering Education, Profiles of Engineering & Engineering Technology Colleges and Bureau of Economic Analysis The next metric under examination is the number of engineering graduates produced annually per 1 million residents24 (Table 22). Michigan, again, outperforms its cohorts in the production of bachelor’s, master’s, and all graduates, but is outperformed by Illinois in the production of doctoral graduates. Missouri outperforms Illinois in the production of bachelor’s degree graduates, but lags behind both Michigan and Ohio. Missouri ranks third in the production of master’s degree graduatesoutperforming only Ohio. However, Missouri ranks last among the cohort in doctoral degree graduates awarded, producing only two-thirds of as many as Ohio and nearly half of that produced by Illinois and Michigan. Table 22: Engineering Graduates per 1 million residents, 2010 – 2011 State Bachelor's Master's Doctoral All Degrees 233.97 164.27 38.93 437.17 Illinois 393.07 199.87 38.38 631.32 Michigan 272.02 157.22 22.63 451.86 Missouri 283.41 140.58 30.92 454.92 Ohio Source: American Society for Engineering Education, Profiles of Engineering & Engineering Technology Colleges, Bureau of Economic Analysis, and Truman (2013) A major determinant of how many engineering graduates can be produced in a given state is the number of faculty available to educate and train would-be graduates25. Table 24 below shows the number of undergraduates students enrolled (both full- and part-time), full-time and full-time equivalent faculty members (both teaching and faculty) and the ratio of enrolled students to faculty members for the 2010 – 2011 school year. As can be seen in Table 23, 24 One million residents is used here instead of one thousand residents for purposes of scale. The relative performance of each state is not affected by this scaling. 25 Of course, many other factors such as the quality of K-12 education in a given state impact the production of engineers, but such discussion is beyond the scope of this paper. Missouri has the smallest number of engineering students enrolled. While some of this is owing to differences in state population, part of it is also attributable to Missouri’s ranking in the ratio of students to faculty members, a category in which Missouri ranked last. Table 23: Undergraduate Education, 2010 – 2011 Illinois 14,769 518 15,287 1,042.8 Michigan 18,876 1,485 20,361 1,306.4 Missouri 8,636 585 9,221 491.9 Ohio 20,923 1,472 22,395 1,248.6 Full-Time Students Part-Time Students Total Enrolled Full-Time and FTE Teaching Faculty Members 253.3 225.7 92.1 213.5 Full-Time and FTE Research Faculty Members 1,296.1 1,532.1 584.0 1,462.1 Total Full-Time and FTE Faculty Members 14.66 15.59 18.75 17.94 Total Enrolled per Full-Time Teaching Faculty Member 11.79 13.29 15.79 15.32 Total Enrolled per Total Full-Time Faculty Member Source: American Society for Engineering Education, Profiles of Engineering & Engineering Technology Colleges and Truman (2013) Tables 24 and 25, below contain the same information as Table 23, but for Master’s and Doctoral students, respectively. For master’s students, Illinois has the highest student-to-faculty member ratio. For doctoral students, Missouri actually ranks first, but this is because their doctoral enrollment is only one-third of the other states. The relatively low number of students enrolled at the graduate level is likely a result of the low number of students enrolled at the undergraduate level, which in many cases, feeds into graduate programs. Missouri’s low number of enrolled students at the graduate level will hinder their production of master’s and doctoral graduates which will, in turn, reduce the number of said graduates available in their labor force. As such, it is imperative that efforts be made to increase the number of enrolled students as well as the number of faculty available to train and educate these students. Table 24: Master’s Education, 2010 - 2011 Illinois 2,901 1,162 4,063 1,042.8 Michigan 2,841 1,770 4,611 1,306.4 Missouri 997 712 1,709 491.9 Ohio 3,000 1,083 4,083 1,248.6 Full-Time Students Part-Time Students Total Enrolled Full-Time and FTE Teaching Faculty Members 253.3 225.7 92.1 213.5 Full-Time and FTE Research Faculty Members 1,296.1 1,532.1 584.0 1,462.1 Total Full-Time and FTE Faculty Members 3.90 3.53 3.47 3.27 Total Enrolled per Full-Time Teaching Faculty Member 3.13 3.01 2.93 2.79 Total Enrolled per Total Full-Time Faculty Member Source: American Society for Engineering Education, Profiles of Engineering & Engineering Technology Colleges and Truman (2013) Table 25: Doctoral Education, 2010 - 2011 Illinois 3,118 169 3,287 1,042.8 Michigan 2,676 278 2,954 1,306.4 Missouri 885 122 1,007 491.9 Ohio 2,350 245 2,595 1,248.6 Full-Time Students Part-Time Students Total Enrolled Full-Time and FTE Teaching Faculty Members 253.3 225.7 92.1 213.5 Full-Time and FTE Research Faculty Members 1,296.1 1,532.1 584.0 1,462.1 Total Full-Time and FTE Faculty Members 3.15 2.26 2.05 2.08 Total Enrolled per Full-Time Teaching Faculty Member 2.54 1.93 1.72 1.77 Total Enrolled per Total Full-Time Faculty Member Source: American Society for Engineering Education, Profiles of Engineering & Engineering Technology Colleges and Truman (2013) VIII. Conclusions Despite the numerous economic and societal benefits that accrue from innovation and technological advancement and the dire warnings issued in 2005’s seminal A Gathering Storm, the outlook for the nation has actually diminished. Following the recession which startedin late 2007, funding for research has fallen in many areas, test scores in science and mathematics have not increased, and many of our competitors have continued to catch up (Members of the 2005 “Rising Above the Gathering Storm” Committee, 2010). In order to maintain or enhance its position in the US economy, and to contribute to the restoration of US competitiveness in the global economy, it is imperative that Missouri takes actions to increase the engineers employed in the state. One very direct way of encouraging this is to increase the supply of engineering graduates. As has been shown in this report, engineering occupations include well-paying jobs in high demand. Moreover, significant growth in these occupations is projected in the next decade. In addition to the benefits that accrue to the engineering graduate, Missouri benefits in terms of higher state GDP and higher personal incomes for all its residents, and a stronger tax base. A number of complementary strategies will be necessary to increase the number of engineers in the state. First, the capacity of state engineering schools must be enhanced. Missouri lags behind the nation and its peer states in a number of dimensions including faculty and facilities. Next, increased numbers of high quality students from Missouri, other states and from abroad must be recruited to Missouri’s schools of engineering. Improved facilities and larger faculties will help with recruiting but other strategies such as funding for scholarships, fellowships and work study will be necessary. Next, policies and strategies must be found to retain Missouri graduates. This will involve vigorous placement programs, strong partnerships with in-state employers, job-fairs, internships programs, and other innovative programs. Finally, and possibly most importantly, the state must have a broad array of effective policies and programs to attract, retain and grow firms that will employ engineers. Only a balanced and comprehensive array of programs can raise Missouri’s performance to equal and exceed that of its peer states. The challenge is described very well by the Committee on Prospering in the Global Economy in the 21st Century, who argued, Without a renewed effort to bolster the foundations of our competitiveness, it is possible that we could lose our privileged position over the coming decades. For the first time in generations, our children could face poorer prospects for jobs, healthcare, security, and overall standard of living than have their parents and grandparents(p. 223). References Barro, R. 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Appendix Table A1: Engineering Occupations Standard Occupational Classification Code 11-9041 13-1051 15-1132 15-1133 17-1011 17-1022 17-2011 17-2021 17-2031 17-2041 17-2051 17-2061 17-2071 17-2072 17-2081 17-2111 17-2112 17-2121 17-2131 17-2141 17-2151 17-2161 17-2171 17-2199 19-2032 25-1031 25-1032 Occupation Title Architectural and Engineering Managers Cost Estimators Software Developers, Applications Software Developers, Systems Software Architects, Except Landscape and Naval Surveyors Aerospace Engineers Agricultural Engineers Biomedical Engineers Chemical Engineers Civil Engineers Computer Hardware Engineers Electrical Engineers Electronics Engineers, Except Computer Environmental Engineers Health and Safety Engineers, Except Mining Safety Engineers and Inspectors Industrial Engineers Marine Engineers and Naval Architects Materials Engineers Mechanical Engineers Mining and Geological Engineers, Including Mining Safety Engineers Nuclear Engineers Petroleum Engineers Engineers, All Other Materials Scientists Architecture Teachers, Postsecondary Engineering Teachers, Postsecondary Table A2: Engineering Graduates 2010 – 2011 and Change in Engineering Jobs 2011 – 2012 Model Graduates OLS 0.8985** (0.0847) Intercept -126.265 (243.370) F-Test 112.55 2 R 0.7710 N 48 Source: American Society for Engineering Education, Profiles of Engineering & Engineering Technology Colleges and Bureau of Labor Statistics, Occupational Employment Statistics Standard errors in parentheses; Statistical significance: * < 0.05, ** < 0.01 Table A3: Engineering Employment and Real GDP, 1999 – 2012 Model Engineers Fixed-Effects 3.019** (0.3360) Intercept 128636.3** (14342.56) F-Test 80.73 2 R 0.5492 0.9306 N 672 Source: Bureau of Economic Analysis, U.S. Economic Accounts and Bureau of Labor Statistics, Occupational Employment Statistics Robust standard errors in parentheses; Statistical significance: * < 0.05, ** < 0.01 Table A4: Engineering Employment per 1000 Jobs and Real GDP per capita, 1999 – 2012 Model Engineers/1000 jobs Random-Effects 219.4828** (45.6734) Intercept 36688.87** (991.764) Wald 114.45 2 R 0.1168 6525.8076 2028.2984 N 672 Source: Bureau of Economic Analysis, U.S. Economic Accounts and Bureau of Labor Statistics, Occupational Employment Statistics Standard errors in parentheses; Statistical significance: * < 0.05, ** < 0.01 Table A5: Engineering Employment per 1000 Jobs and Real Personal Income per capita, 1999 – 2012 Model Engineers/1000 jobs Fixed-Effects 171.1743** (35.6495) Intercept 31628.07** (517.198) F-Test 23.06 2 R 0.1457 0.2086 N 672 Source: Bureau of Economic Analysis, U.S. Economic Accounts and Bureau of Labor Statistics, Occupational Employment Statistics Robust standard errors in parentheses; Statistical significance: * < 0.05, ** < 0.01 Table A6: Engineering Employment and Utility Patent Filings, 1999 – 2012 Model Patents Fixed-Effects 0.0350** (0.0109) Intercept 371.3398 (464.602) F-Test 10.35 2 R 0.5860 0.8865 N 672 Source: U.S. Patent and Trademark Office and Bureau of Labor Statistics, Occupational Employment Statistics Robust standard errors in parentheses; Statistical significance: * < 0.05, ** < 0.01